The following is a summary of the HUYA Inc. (HUYA) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Q2 2024 revenue reached RMB1.54 billion, driven by 152.7% YoY and 26.6% QoQ growth in game-related services, advertising, and other revenues.

• Gross profit maintained at RMB215 million despite a decrease in live-streaming revenues, supported by higher-margin game-related services.

• Non-GAAP net income of approximately RMB97 million, with a diluted net income per ADS of RMB0.13 and non-GAAP diluted net income per ADS of RMB0.42.

• Achieved a nearly breakeven non-GAAP operating margin due to operational efficiency improvements and cost reductions in sales, marketing, and labor.

Business Progress:

• Significant growth in mobile MAUs to 83.5 million due to successful self-organized e-sports events and new game launches.

• Expansion in game-related services through innovative partnerships, product enhancements, and distribution gains, particularly with DnF Mobile and League of Legends: Wild Rift.

• Increased commercialization opportunities with 120 million mobile users reached in June via Huya's content on various platforms, including Tencent's ecosystem.

• Improved operational efficiencies, with a decline in bandwidth costs by 40% YoY due to better cost management and technological advancements.

Opportunities:

• Enhancement of Huya's platform ecosystem, broad-ranging user engagement strategies, and extended outreach through a variety of content streams offer substantial possibilities for increased market share and revenue sources.

• Expansion in international markets evidenced by broadcasting international events such as the inaugural Esports World Cup in Saudi Arabia.

Risks:

• The fluctuating gross margins and the impact of macroeconomic conditions on live-streaming revenue highlight potential financial vulnerabilities despite a diversification in revenue streams.

More details: HUYA Inc IR

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