DOYU

Key Points

• Revenue Diversification: Innovative business, advertising, etc., revenue grew 36.6% YOY in 2024, accounting for 28% of total revenue, driven by voice-based social networking and game membership.
• Cost Optimization: Content costs down 19% YOY; sales, R&D, and G&A expenses reduced by 17% YOY.
• Shareholder Returns: Declared 2 special cash dividends totaling USD 600 million.
• Q4 2024 Performance: Mobile MAUs 44.5 million, QoQ increase 5.9%, driven by content partnerships, official tournaments, and game promotions.
• 2025 Plans: Focus on cost reduction, efficiency improvement, revenue resilience via innovative business, streamer resource optimization, AI initiatives, and copyright cost optimization.

Forward-Looking

• 2025 focus on margin improvement, reducing content costs, growing innovative business.
• Expect revenue from innovative business to continue growing, contributing ~35% of total revenue.
• Aim to narrow net loss in 2025 through cost optimization and operational efficiency, including optimizing streamer resources and acquiring tournaments with higher ROI.

In 2024, despite challenges, revenue diversification efforts saw innovative business, advertising, and others contribute 28% of total revenues, a 63.6% year-over-year increase in revenue contribution. Livestreaming revenues declined. In Q4 2024, total net revenues decreased 12.3% YOY to RMB 1.14 billion, with livestreaming revenues down 28.4% to RMB 0.73 billion. Innovative business, advertising, and others revenues in Q4 2024 increased 47.2% to RMB 405.1 million, contributing 35.7% to total revenue. Content costs decreased 19% YOY. Sales and marketing, R&D, and G&A expenses decreased 5.5%, 42.2%, and 10.4% respectively in Q4 2024.

Risks

• Macro-economic headwinds affecting user spending and livestreaming revenues.
• Potential decline in user base and revenue due to adjustments in content costs and streamer resources.
• Uncertainty in ROI from copyrighted content and official tournaments.

Q: Regarding new business growth drivers (audio business, game props) and cash use.

A: Simin Ren discussed voice-based social networking focusing on traffic distribution, AI integration, and product innovation; game props to partner with developers, expand multi-platform marketing, and strengthen game membership. Hao Cao mentioned cash and cash equivalents as of end-February 2025 were RMB 2.24 billion, with plans to use cash to support business initiatives.

Q: About tournament procurement and streamer strategic adjustments.

A: Simin Ren explained copyright cost optimization by forgoing high-cost tournaments and prioritizing cost-effective ones, and streamer resource adjustments to reduce compensation costs via flexible contracting and cross-platform content cooperation, with short-term pressure but long-term margin improvement benefits.