HUYA, Inc. Q1 FY2025 earnings call

• Business transformation: Game-related services, advertising, and other revenues grew 52.1% y-o-y to RMB 370 million. Game distribution gross proceeds more than doubled y-o-y, and in-game item sales GMV reached a record high.
• Overseas expansion: Exploring game distribution, in-game item sales, regional exclusive distribution, and game advertising services in overseas markets, with multi-fold sequential revenue growth in the first quarter.
• Professional content: Solidified e-sports tournament position, broadcasting 75 events, self-organizing 25 tournaments, and launching AI initiatives in e-sports viewing.
• Product upgrades: Integrated AI in e-sports experience, introducing Hu Xiaoyi AI agent for enhanced viewing experience.

Total net revenues for the first quarter of 2025 stabilized year-over-year and grew quarter-over-quarter to RMB 1.51 billion. Game-relative services, advertising and other revenue reached RMB 370 million, representing a 52.1% year-over-year increase and accounting for 24.6% of total net revenues (up from 16.2% in the same period last year). Live streaming revenues were RMB 1.14 billion for the first quarter, a slight sequential increase but a year-over-year decline due to macroeconomic and industry environment factors.

Total revenue has essentially bottomed out. Expect total revenue to grow this year with game-related services, advertising, and other businesses achieving relatively fast year-over-year growth. Live streaming revenues are expected to stabilize, and overseas game commercialization is seen as another growth engine.

Potential impacts from external environment changes, U.S. listing regulations, and geopolitical tensions. HUYA is monitoring U.S. listing risks and evaluating opportunities in other capital markets.

Q: Elaborate on business outlook and prospects.

A: Junhong Huang mentioned game-related services, advertising, and other revenues grew 52.1% y-o-y, with domestic game distribution deepening engagement, in-game item sales GMV record, and overseas game-related services showing multi-fold sequential revenue growth.

Q: Second quarter and full-year outlook, geopolitical risks.

A: Junhong Huang stated total revenue has bottomed out, expecting growth this year with live streaming revenues stabilizing and overseas commercialization as growth engine. Also mentioned monitoring external environment and U.S. listing risks.

Q: Future profit trend.

A: Junhong Huang discussed cost optimization, margins, with non-GAAP operating results expected to improve this year as operational improvements take effect