HUYA Inc. Reports Fourth Quarter and Fiscal Year 2022 Unaudited Financial Results

Rhea-AI Summary

HUYA Inc. (NYSE: HUYA) reported fourth quarter 2022 net revenues of RMB2,102.2 million ($304.8 million), down from RMB2,808.7 million year-over-year. The net loss attributable to HUYA was RMB524.4 million ($76.0 million), compared to a loss of RMB312.7 million in Q4 2021. For the fiscal year, total revenues were RMB9,220.5 million ($1,336.8 million), a decline from RMB11,351.4 million in 2021. Average mobile MAUs increased by 4.2% year-over-year to 84.3 million. Despite the losses, the company reduced operating expenses by 34.7% and continues to seek growth opportunities in the game live streaming market.

Positive

• Average mobile MAUs increased to 84.3 million, a 4.2% rise year-over-year.
• Operating expenses decreased by 34.7% year-over-year.

Negative

• Fourth quarter net revenues dropped by 25.1% compared to Q4 2021.
• Net loss for the fiscal year was RMB486.7 million ($70.6 million), down from a net income in 2021.

GUANGZHOU, China, March 21, 2023 /PRNewswire/ -- HUYA Inc. ("Huya" or the "Company") (NYSE: HUYA), a leading game live streaming platform in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2022.

Fourth Quarter 2022 Highlights

• Total net revenues for the fourth quarter of 2022 were RMB2,102.2 million (US$304.8 million), compared with RMB2,808.7 million for the same period of 2021.
• Net loss attributable to HUYA Inc. was RMB524.4 million (US$76.0 million) for the fourth quarter of 2022, compared with RMB312.7 million for the same period of 2021.
• Non-GAAP net loss attributable to HUYA Inc.^[1] was RMB440.0 million (US$63.8 million) for the fourth quarter of 2022, compared with RMB241.7 million for the same period of 2021.
• Average mobile MAUs^[2] of Huya Live for the fourth quarter of 2022 was 85.5 million, compared with 85.4 million for the same period of 2021.
• Total number of paying users^[3] of Huya Live for the fourth quarter of 2022 was 5.5 million, compared with 5.6 million for the same period of 2021.

Fiscal Year 2022 Highlights

• Total net revenues in fiscal year 2022 were RMB9,220.5 million (US$1,336.8 million), compared with RMB11,351.4 million in 2021.
• Net loss attributable to HUYA Inc. in fiscal year 2022 was RMB486.7 million (US$70.6 million), compared with a net income attributable to HUYA Inc. of RMB583.5 million in 2021.
• Non-GAAP net loss attributable to HUYA Inc. in fiscal year 2022 was RMB281.4 million (US$40.8 million), compared with a non-GAAP net income attributable to HUYA Inc. of RMB454.4 million in 2021.
• Average mobile MAUs of Huya Live in fiscal year 2022 was 84.3 million, compared with 80.9 million in 2021.
• Average quarterly paying users of Huya Live in fiscal year 2022 was 5.6 million, compared with 5.8 million in 2021.             

"We ended a challenging 2022 with our full-year average mobile MAUs of Huya Live up by 4.2% to 84.3 million and annual total revenues of approximately RMB9.2 billion. In the fourth quarter, we continued to bring high-quality e-sports tournaments and entertainment programs to our users. We also enhanced the interactive experience between broadcasters and viewers through in-depth collaborations with game studios, helping us stabilize our user scale and achieve healthy user engagement levels," said Mr. Rongjie Dong, Chief Executive Officer of Huya. "While we may face continued pressure from the volatile market environment in the near term, we are shoring up our long term prospects. We will continue to reinforce Huya's core competencies and actively explore a diversified business ecosystem for new growth opportunities, while maintaining our leadership position in the game live streaming market."

Ms. Ashley Xin Wu, Vice President of Finance of Huya, commented, "Against the backdrop of macro headwinds and the COVID-19 pandemic resurgence at the end of the year, our total revenues were RMB2.1 billion for the fourth quarter of 2022. Lower revenues and higher content costs associated with a large e-sports event in the quarter contributed to a gross loss for the period. At the same time, we continued to promote operational efficiencies, reducing our total operating expenses in the fourth quarter by 34.7% year-over-year. Looking ahead, we will further optimize our cost and expense structure and focus our resources on areas with better returns to strengthen our operational and financial performance."

[1] "Non-GAAP net loss attributable to HUYA Inc." is defined as net loss attributable to HUYA Inc. excluding (i) share-based compensation expenses, (ii) gain on fair value change of investments, net of income taxes, (iii) gain arising from disposal of an equity investment, net of income taxes, (iv) impairment loss of investments and (v) loss on equity method investment, net of income taxes. For more information, please refer to the section titled "Use of Non-GAAP Financial Measures" and the table captioned "HUYA Inc. Unaudited Reconciliations of GAAP and Non-GAAP Results" at the end of this press release.

[2] Refers to average monthly active users on mobile apps. Average mobile MAUs for any period is calculated by dividing (i) the sum of active users on the mobile apps for each month during such relevant period, by (ii) the number of months during such relevant period.

[3] Refers to the sum of user accounts that purchased various products and services on our platform at least once during such relevant period.

Fourth Quarter 2022 Financial Results

Total net revenues for the fourth quarter of 2022 were RMB2,102.2 million (US$304.8 million), compared with RMB2,808.7 million for the same period of 2021.

Live streaming revenues were RMB1,975.2 million (US$286.4 million) for the fourth quarter of 2022, compared with RMB2,612.9 million for the same period of 2021, primarily due to lower average spending per paying user and a decreased number of paying users on Huya Live, as the recent macro and regulatory environment adversely affected the sentiment of the Company's paying users.

Advertising and other revenues were RMB127.0 million (US$18.4 million) for the fourth quarter of 2022, compared with RMB195.8 million for the same period of 2021, primarily due to soft demand for advertising services resulting from the challenging macro environment, and lower content sub-licensing revenues.

Cost of revenues decreased by 15.0% to RMB2,386.4 million (US$346.0 million) for the fourth quarter of 2022 from RMB2,807.7 million for the same period of 2021, primarily due to decreased revenue sharing fees and content costs, as well as bandwidth costs.

Revenue sharing fees and content costs decreased by 11.9% to RMB2,170.6 million (US$314.7 million) for the fourth quarter of 2022 from RMB2,463.1 million for the same period of 2021, primarily due to the decrease in revenue sharing fees associated with the decline in live streaming revenues. This was partially offset by the increase in spending on e-sports content, which was mainly related to the higher content cost booked for a large e-sports event that occurred in the fourth quarter of 2022.

Bandwidth costs decreased by 45.5% to RMB99.5 million (US$14.4 million) for the fourth quarter of 2022 from RMB182.7 million for the same period of 2021, primarily due to improved bandwidth cost management and continued technology enhancement efforts, as well as less overseas bandwidth usage as a result of the strategic adjustment in the Company's overseas business to focus on key markets.

Gross loss was RMB284.2 million (US$41.2 million) for the fourth quarter of 2022, compared with a gross profit of RMB1.1 million for the same period of 2021, primarily due to lower revenues and increased content costs related to e-sports content. Gross margin was negative 13.5% for the fourth quarter of 2022, compared with approximately zero for the same period of 2021.

Research and development expenses decreased by 30.0% to RMB143.9 million (US$20.9 million) for the fourth quarter of 2022 from RMB205.7 million for the same period of 2021, primarily due to decreased personnel-related expenses and share-based compensation expenses.

Sales and marketing expenses decreased by 48.2% to RMB113.2 million (US$16.4 million) for the fourth quarter of 2022 from RMB218.5 million for the same period of 2021, primarily due to decreased marketing and promotion fees, as well as personnel-related expenses.

General and administrative expenses decreased by 12.6% to RMB79.1 million (US$11.5 million) for the fourth quarter of 2022 from RMB90.5 million for the same period of 2021, primarily due to decreased share-based compensation expenses.

Other income was RMB43.8 million (US$6.4 million) for the fourth quarter of 2022, compared with RMB56.3 million for the same period of 2021, primarily due to lower tax refunds and government subsidies.

Operating loss was RMB576.7 million (US$83.6 million) for the fourth quarter of 2022, compared with RMB457.3 million for the same period of 2021.

Interest and short-term investments income were RMB101.7 million (US$14.7 million) for the fourth quarter of 2022, compared with RMB61.6 million for the same period of 2021, primarily due to increased interest rates.

Net loss attributable to HUYA Inc. was RMB524.4 million (US$76.0 million) for the fourth quarter of 2022, compared with RMB312.7 million for the same period of 2021.

Non-GAAP net loss attributable to HUYA Inc., which excludes share-based compensation expenses, impairment loss of investments and loss on equity method investment, net of income taxes, was RMB440.0 million (US$63.8 million) for the fourth quarter of 2022, compared with RMB241.7 million for the same period of 2021, which excludes share-based compensation expenses.

Basic and diluted net loss per American depositary share ("ADS") were each RMB2.16 (US$0.31) for the fourth quarter of 2022. Basic and diluted net loss per ADS were each RMB1.31 for the fourth quarter of 2021. Each ADS represents one Class A ordinary share of the Company.

Non-GAAP basic and diluted net loss per ADS were each RMB1.81 (US$0.26) for the fourth quarter of 2022. Non-GAAP basic and diluted net loss per ADS were each RMB1.01 for the fourth quarter of 2021.

As of December 31, 2022, the Company had cash and cash equivalents, short-term deposits, short-term investments and long-term deposits of RMB10,749.2 million (US$1,558.5 million), compared with RMB11,008.2 million as of September 30, 2022.

Fiscal Year 2022 Financial Results

Total net revenues were RMB9,220.5 million (US$1,336.8 million) in fiscal year 2022, compared with RMB11,351.4 million in the prior year.

Live streaming revenues were RMB8,195.9 million (US$1,188.3 million) in fiscal year 2022, compared with RMB10,186.2 million in the prior year, primarily due to lower average spending per paying user and a decreased number of paying users on Huya Live, as the macro and regulatory environment during the year adversely affected the sentiment of the Company's paying users.

Advertising and other revenues were RMB1,024.6 million (US$148.5 million) in fiscal year 2022, compared with RMB1,165.2 million in the prior year, due to soft demand for advertising services resulting from the challenging macro environment.

Cost of revenues decreased by 11.7% to RMB8,609.6 million (US$1,248.3 million) in fiscal year 2022 from RMB9,751.2 million in the prior year, primarily due to decreased revenue sharing fees and content costs, as well as bandwidth costs.

Revenue sharing fees and content costs decreased by 10.0% to RMB7,535.7 million (US$1,092.6 million) in fiscal year 2022 from RMB8,374.6 million in the prior year, primarily due to the decrease in revenue sharing fees associated with declined live streaming revenues, and lower costs related to content creators, partially offset by the increase in spending on e-sports content.

Bandwidth costs decreased by 24.7% to RMB537.2 million (US$77.9 million) in fiscal year 2022 from RMB713.7 million in the prior year, primarily due to improved bandwidth cost management and continued technology enhancement efforts, as well as less overseas bandwidth usage as a result of the strategic adjustment in the Company's overseas business to focus on key markets.

Gross profit was RMB610.9 million (US$88.6 million) in fiscal year 2022, compared with RMB1,600.3 million in the prior year, primarily due to lower revenues and increased content costs related to e-sports content. Gross margin was 6.6% in fiscal year 2022, compared with 14.1% in fiscal year 2021.

Research and development expenses decreased by 16.9% to RMB680.4 million (US$98.6 million) in fiscal year 2022 from RMB818.9 million in the prior year, primarily due to decreased share-based compensation expenses and personnel-related expenses.

Sales and marketing expenses decreased by 36.4% to RMB482.9 million (US$70.0 million) in fiscal year 2022 from RMB759.5 million in the prior year, primarily due to decreased marketing and promotion fees, as well as personnel-related expenses.

General and administrative expenses were RMB320.4 million (US$46.5 million) in fiscal year 2022, compared with RMB326.8 million in the prior year, primarily attributable to decreased share-based compensation expenses.

Other income was RMB166.3 million (US$24.1 million) in fiscal year 2022, compared with RMB274.7 million in the prior year, primarily attributable to lower tax refunds and government subsidies in fiscal year 2022 and realized damages received in the first quarter of 2021 from a favorable outcome in a broadcaster-related lawsuit.

Operating loss was RMB706.5 million (US$102.4 million) in fiscal year 2022, compared with RMB30.2 million in the prior year.

Interest and short-term investments income were RMB298.2 million (US$43.2 million) in fiscal year 2022, compared with RMB247.0 million in the prior year, primarily due to increased interest rates.

Share of loss in equity method investments, net of income taxes was RMB0.5 million (US$0.1 million) in fiscal year 2022, compared with share of income in equity method investments, net of income taxes of RMB379.2 million in the prior year, primarily due to the investment gain related to a disposal of equity investment in the third quarter of 2021, as disclosed in a Form 6-K filed on July 6, 2021.

Net loss attributable to HUYA Inc. was RMB486.7 million (US$70.6 million) in fiscal year 2022, compared with a net income attributable to HUYA Inc. of RMB583.5 million in the prior year.

Non-GAAP net loss attributable to HUYA Inc., which excludes share-based compensation expenses, gain on fair value change of investments, net of income taxes, impairment loss of investments, and loss on equity method investment, net of income taxes was RMB281.4 million (US$40.8 million) in fiscal year 2022, compared with a non-GAAP net income attributable to HUYA Inc. of RMB454.4 million in the prior year, which excludes share-based compensation expenses, gain on fair value change of investments, net of income taxes, and gain arising from disposal of an equity investment, net of income taxes.

Basic and diluted net loss per ADS were each RMB2.02 (US$0.29) in fiscal year 2022. Basic and diluted net income per ADS were RMB2.45 and RMB2.41, respectively, in fiscal year 2021.

Non-GAAP basic and diluted net loss per ADS were each RMB1.17 (US$0.17) in fiscal year 2022. Non-GAAP basic and diluted net income per ADS were RMB1.91 and RMB1.88, respectively, in fiscal year 2021.

Conference Call

The Company's management will host an earnings conference call at 8:00 a.m. U.S. Eastern Time on March 21, 2023 (8:00 p.m. Beijing/Hong Kong time on March 21, 2023).

For participants who wish to join the call, please complete online registration using the link provided below 20 minutes prior to the scheduled call start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call.

Participant Online Registration: https://register.vevent.com/register/BI2946f2083b1740f6aced48c04ff6e362

Once complete the registration, please dial-in at least 10 minutes before the scheduled start time of the earnings call and enter the personal PIN as instructed to connect to the call.

A live webcast of the earnings call will be accessible at https://ir.huya.com and a replay of the webcast will be available following the session.

About HUYA Inc.

HUYA Inc. is a leading game live streaming platform in China with a large and active game live streaming community. The Company cooperates with e-sports event organizers, as well as major game developers and publishers, and has developed e-sports live streaming as one of the most popular content genres on its platform. The Company has created an engaged, interactive and immersive community for game enthusiasts of China's young generation. Building on its success in game live streaming, Huya has also extended its content to other entertainment content genres. Huya's open platform also functions as a marketplace for broadcasters and talent agencies to congregate and closely collaborate with the Company.

Use of Non-GAAP Financial Measures

The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), except that the consolidated statement of changes in shareholders' equity, consolidated statements of cash flows, and the detailed notes have not been presented. Huya uses non-GAAP gross profit (loss), non-GAAP operating (loss) income, non-GAAP net (loss) income attributable to HUYA Inc., non-GAAP net (loss) income attributable to ordinary shareholders, non-GAAP basic and diluted net (loss) income per ordinary shares, and non-GAAP basic and diluted net (loss) income per ADS, which are non-GAAP financial measures. Non-GAAP gross profit (loss) is gross profit (loss) excluding share-based compensation expenses allocated in cost of revenues. Non-GAAP operating (loss) income is operating (loss) income excluding share-based compensation expenses. Non-GAAP net (loss) income attributable to HUYA Inc. is net (loss) income attributable to HUYA Inc. excluding share-based compensation expenses, gain on fair value change of investments, net of income taxes, gain arising from disposal of an equity investment, net of income taxes, to the extent applicable, and impairment loss of investments. Non-GAAP net (loss) income attributable to ordinary shareholders is net (loss) income attributable to ordinary shareholders excluding share-based compensation expenses, gain on fair value change of investments, net of income taxes, gain arising from the disposal of an equity investment, net of income taxes, impairment loss of investments, and loss on equity method investment, net of income taxes, to the extent applicable. Non-GAAP basic and diluted net (loss) income per ADS is non-GAAP net (loss) income attributable to ordinary shareholders divided by weighted average number of ADS used in the calculation of non-GAAP basic and diluted net (loss) income per ADS. The Company believes that separate analysis and exclusion of the impact of (i) share-based compensation expenses, (ii) gain on fair value change of investments, net of income taxes, (iii) gain arising from disposal of an equity investment, net of income taxes, (iv) impairment loss of investments, and (v) loss on equity method investment, net of income taxes, add clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measures for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measures represent useful supplemental information for investors and analysts to assess its operating performance without the effect of (i) share-based compensation expenses, which have been and will continue to be significant recurring expenses in its business, and (ii) gain on fair value change of investments, net of income taxes, (iii) gain arising from disposal of an equity investment, net of income taxes, (iv) impairment loss of investments, and (v) loss on equity method investment, net of income taxes, which may recur when there is observable price change in the future. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company's net (loss) income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similar titled measures used by other companies. In light of the foregoing limitations, you should not consider a non-GAAP financial measure in isolation from or as an alternative to the financial measures prepared in accordance with U.S. GAAP.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "HUYA Inc. Unaudited Reconciliations of GAAP and Non-GAAP Results" at the end of this announcement.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.8972 to US$1.00, the noon buying rate in effect on December 30, 2022, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred to in this announcement could have been or could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Huya's strategic and operational plans, contain forward-looking statements. Huya may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Huya's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Huya's goals and strategies; Huya's future business development, results of operations and financial condition; the expected growth of the game live streaming market; the expectation regarding the rate at which to gain active users, especially paying users; Huya's ability to monetize the user base; Huya's efforts in complying with applicable data privacy and security regulations; fluctuations in general economic and business conditions in China; the impact of the COVID-19 to Huya's business operations and the economy in China and elsewhere generally; any regulatory developments in laws, regulations, rules, policies or guidelines applicable to Huya; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Huya's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Huya does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

HUYA Inc.
Investor Relations
Tel: +86-20-2290-7829
E-mail: ir@huya.com 

The Piacente Group, Inc.
Jenny Cai
Tel: +86-10-6508-0677
E-mail: huya@tpg-ir.com 

In the United States:

The Piacente Group, Inc. 
Brandi Piacente
Tel: +1-212-481-2050
E-mail: huya@tpg-ir.com

HUYA INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share, ADS, per share data and per ADS data)
		As of December 31,		As of December 31,
		2021		2022		2022
		RMB		RMB		US$
Assets
Current assets
Cash and cash equivalents		1,790,784		655,241		95,001
Restricted cash		55,670		4,050		587
Short-term deposits		8,351,945		9,018,298		1,307,530
Short-term investments		816,331		3,117		452
Accounts receivable, net		88,034		75,898		11,004
Amounts due from related parties, net		148,560		59,702		8,656
Prepayments and other current assets, net		664,945		637,225		92,389
Total current assets		11,916,269		10,453,531		1,515,619
Non-current assets
Long-term deposits		-		1,072,548		155,505
Deferred tax assets		20,245		-		-
Investments		608,617		906,215		131,389
Property and equipment, net		79,611		200,893		29,127
Intangible assets, net		83,942		57,810		8,382
Right-of-use assets, net		395,371		345,136		50,040
Prepayments and other non-current assets		150,887		110,874		16,075
Total non-current assets		1,338,673		2,693,476		390,518
Total assets		13,254,942		13,147,007		1,906,137
Liabilities and shareholders' equity
Current liabilities
Accounts payable		12,579		22,517		3,265
Advances from customers and deferred revenue		459,509		445,620		64,609
Income taxes payable		5,944		28,924		4,194
Accrued liabilities and other current liabilities		1,845,452		1,592,455		230,884
Amounts due to related parties		216,128		81,814		11,862
Lease liabilities due within one year		36,473		29,801		4,321
Total current liabilities		2,576,085		2,201,131		319,135
Non-current liabilities
Lease liabilities		45,084		8,617		1,249
Deferred tax liabilities		4,597		20,533		2,977
Deferred revenue		118,975		73,354		10,635
Total non-current liabilities		168,656		102,504		14,861
Total liabilities		2,744,741		2,303,635		333,996

 

 

HUYA INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(All amounts in thousands, except share, ADS, per share data and per ADS data)
		As of December 31,		As of December 31,
		2021		2022		2022
		RMB		RMB		US$
Shareholders' equity
Class A ordinary shares (US$0.0001 par value;    750,000,000 shares authorized as of December    31, 2021 and 2022 respectively; 86,993,764 and    89,401,484 shares issued and outstanding as of    December 31, 2021 and 2022, respectively)		58		60		9
Class B ordinary shares (US$0.0001 par value;    200,000,000 shares authorized as of December    31, 2021 and 2022, respectively; 151,076,517    and 150,386,517 shares issued and outstanding    as of December 31, 2021 and 2022    respectively)		99		98		14
Additional paid-in capital		11,764,059		11,922,820		1,728,646
Statutory reserves		122,429		122,429		17,751
Accumulated deficit		(1,300,144)		(1,786,800)		(259,062)
Accumulated other comprehensive (loss) income		(76,300)		584,765		84,783
Total shareholders' equity		10,510,201		10,843,372		1,572,141
Total liabilities and shareholders' equity		13,254,942		13,147,007		1,906,137

 

 

HUYA INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousands, except share, ADS, per share data and per ADS data)
		Three Months Ended								Twelve Months Ended
		December 31, 2021		September 30, 2022		December 31, 2022		December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2022
		RMB		RMB		RMB		US$		RMB		RMB		US$
Net revenues
Live streaming		2,612,897		2,017,128		1,975,155		286,371		10,186,204		8,195,907		1,188,295
Advertising and others		195,844		361,416		127,038		18,419		1,165,242		1,024,555		148,547
Total net revenues		2,808,741		2,378,544		2,102,193		304,790		11,351,446		9,220,462		1,336,842
Cost of revenues(1)		(2,807,672)		(2,036,191)		(2,386,375)		(345,992)		(9,751,160)		(8,609,594)		(1,248,274)
Gross profit (loss)		1,069		342,353		(284,182)		(41,202)		1,600,286		610,868		88,568
Operating expenses(1)
Research and development expenses		(205,709)		(171,779)		(143,942)		(20,870)		(818,882)		(680,383)		(98,646)
Sales and marketing expenses		(218,473)		(124,293)		(113,249)		(16,420)		(759,507)		(482,871)		(70,010)
General and administrative expenses		(90,478)		(78,653)		(79,120)		(11,471)		(326,772)		(320,386)		(46,452)
Total operating expenses		(514,660)		(374,725)		(336,311)		(48,761)		(1,905,161)		(1,483,640)		(215,108)
Other income, net		56,289		43,949		43,797		6,350		274,704		166,307		24,112
Operating (loss) income		(457,302)		11,577		(576,696)		(83,613)		(30,171)		(706,465)		(102,428)
Interest and short-term investments income		61,589		71,703		101,663		14,740		247,009		298,201		43,235
Gain on fair value change of investments		-		-		-		-		44,161		7,602		1,102
Impairment loss of investments		-		-		(55,201)		(8,003)		-		(55,201)		(8,003)
Foreign currency exchange gains (losses)      net		89		(3,309)		3,831		555		(1,480)		(2,402)		(348)
(Loss) income before income tax benefits      (expenses)		(395,624)		79,971		(526,403)		(76,321)		259,519		(458,265)		(66,442)
Income tax benefits (expenses)		83,051		(19,593)		2,418		351		(55,227)		(27,871)		(4,041)
(Loss) income before share of (loss) income      in equity method investments, net of      income taxes		(312,573)		60,378		(523,985)		(75,970)		204,292		(486,136)		(70,483)
Share of (loss) income in equity method      investments, net of income taxes		(96)		45		(414)		(60)		379,207		(520)		(76)
Net (loss) income attributable to HUYA Inc.		(312,669)		60,423		(524,399)		(76,030)		583,499		(486,656)		(70,559)
Net (loss) income attributable to ordinary      shareholders		(312,669)		60,423		(524,399)		(76,030)		583,499		(486,656)		(70,559)

 

 

HUYA INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(All amounts in thousands, except share, ADS, per share data and per ADS data)
		Three Months Ended								Twelve Months Ended
		December 31, 2021		September 30, 2022		December 31, 2022		December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2022
		RMB		RMB		RMB		US$		RMB		RMB		US$
Net (loss) income per ADS*
—Basic		(1.31)		0.25		(2.16)		(0.31)		2.45		(2.02)		(0.29)
—Diluted		(1.31)		0.25		(2.16)		(0.31)		2.41		(2.02)		(0.29)
Net (loss) income per ordinary share
—Basic		(1.31)		0.25		(2.16)		(0.31)		2.45		(2.02)		(0.29)
—Diluted		(1.31)		0.25		(2.16)		(0.31)		2.41		(2.02)		(0.29)
Weighted average number of ADS used in      calculating net (loss) income per ADS
—Basic		239,233,239		242,117,367		242,506,902		242,506,902		238,198,117		241,437,842		241,437,842
—Diluted		239,233,239		242,287,157		242,506,902		242,506,902		241,790,445		241,437,842		241,437,842
*    Each ADS represents one Class A ordinary share.
(1)  Share-based compensation was allocated in cost of revenues and operating expenses as follows:
		Three Months Ended								Twelve Months Ended
		December 31, 2021		September 30, 2022		December 31, 2022		December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2022
		RMB		RMB		RMB		US$		RMB		RMB		US$
Cost of revenues		15,156		9,054		6,122		888		56,629		31,955		4,633
Research and development expenses		31,629		22,289		14,427		2,092		135,316		67,242		9,749
Sales and marketing expenses		2,245		1,507		1,077		156		8,318		4,477		649
General and administrative expenses		21,968		12,813		7,200		1,044		89,442		52,804		7,656

 

 

HUYA INC.
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except share, ADS, per share data and per ADS data)
		Three Months Ended								Twelve Months Ended
		December 31, 2021		September 30, 2022		December 31, 2022		December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2022
		RMB		RMB		RMB		US$		RMB		RMB		US$
Gross profit (loss)		1,069		342,353		(284,182)		(41,202)		1,600,286		610,868		88,568
Share-based compensation expenses allocated      in cost of revenues		15,156		9,054		6,122		888		56,629		31,955		4,633
Non-GAAP gross profit (loss)		16,225		351,407		(278,060)		(40,314)		1,656,915		642,823		93,201
Operating (loss) income		(457,302)		11,577		(576,696)		(83,613)		(30,171)		(706,465)		(102,428)
Share-based compensation expenses		70,998		45,663		28,826		4,180		289,705		156,478		22,687
Non-GAAP operating (loss) income		(386,304)		57,240		(547,870)		(79,433)		259,534		(549,987)		(79,741)
Net (loss) income attributable to HUYA Inc.		(312,669)		60,423		(524,399)		(76,030)		583,499		(486,656)		(70,559)
Gain on fair value change of investments, net      of income taxes		-		-		-		-		(40,130)		(6,842)		(992)
Gain arising from disposal of an equity      investment, net of income taxes		-		-		-		-		(378,679)		-		-
Impairment loss of investments		-		-		55,201		8,003		-		55,201		8,003
Loss on equity method investment, net of      income taxes		-		-		414		60		-		414		60
Share-based compensation expenses		70,998		45,663		28,826		4,180		289,705		156,478		22,687
Non-GAAP net (loss) income attributable to      HUYA Inc.		(241,671)		106,086		(439,958)		(63,787)		454,395		(281,405)		(40,801)
Net (loss) income attributable to ordinary      shareholders		(312,669)		60,423		(524,399)		(76,030)		583,499		(486,656)		(70,559)
Gain on fair value change of investments, net      of income taxes		-		-		-		-		(40,130)		(6,842)		(992)
Gain arising from disposal of an equity      investment, net of income taxes		-		-		-		-		(378,679)		-		-
Impairment loss of investments		-		-		55,201		8,003		-		55,201		8,003
Loss on equity method investment, net of      income taxes		-		-		414		60		-		414		60
Share-based compensation expenses		70,998		45,663		28,826		4,180		289,705		156,478		22,687
Non-GAAP net (loss) income attributable to      ordinary shareholders		(241,671)		106,086		(439,958)		(63,787)		454,395		(281,405)		(40,801)
Non-GAAP net (loss) income per ordinary share
—Basic		(1.01)		0.44		(1.81)		(0.26)		1.91		(1.17)		(0.17)
—Diluted		(1.01)		0.44		(1.81)		(0.26)		1.88		(1.17)		(0.17)
Non-GAAP net (loss) income per ADS
—Basic		(1.01)		0.44		(1.81)		(0.26)		1.91		(1.17)		(0.17)
—Diluted		(1.01)		0.44		(1.81)		(0.26)		1.88		(1.17)		(0.17)
Weighted average number of ADS used in       calculating Non-GAAP net (loss)      income per ADS
—Basic		239,233,239		242,117,367		242,506,902		242,506,902		238,198,117		241,437,842		241,437,842
—Diluted		239,233,239		242,287,157		242,506,902		242,506,902		241,790,445		241,437,842		241,437,842

 

 

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SOURCE HUYA Inc.

FAQ

What were HUYA's fourth quarter 2022 net revenues?

HUYA's fourth quarter 2022 net revenues were RMB2,102.2 million ($304.8 million).

How much did HUYA lose in the fourth quarter of 2022?

HUYA reported a net loss of RMB524.4 million ($76.0 million) in Q4 2022.

What was HUYA's average mobile MAUs for fiscal year 2022?

The average mobile MAUs for fiscal year 2022 was 84.3 million.

How did HUYA's total revenues change in fiscal year 2022?

Total revenues for HUYA in fiscal year 2022 were RMB9,220.5 million, a decrease from RMB11,351.4 million in 2021.

What was the impact of the macro environment on HUYA's financial results?

The macro environment negatively affected HUYA's revenues and the sentiment of paying users.