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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