HUYA (HUYA) Q1 2025 earnings summary

Executive summary

• Total net revenues for Q1 2025 were RMB 1.51 billion, nearly flat year-over-year, driven by a 52.1% increase in game-related services, advertising, and other revenue to RMB 370 million, now 24.6% of total revenue.

• Net income attributable was RMB 1 million, with non-GAAP net income of RMB 24 million, despite lower interest income due to dividend payments.

• Strategic business transformation, expansion in game distribution, in-game item sales, and overseas markets are key growth drivers.

• Average mobile MAUs reached 83.4 million, up from 82.6 million year-over-year.

• Focus on integrating AI into e-sports experiences, including the launch of "Hu Xiao Ai."

Financial highlights

• Total net revenues: RMB 1.51 billion, up from RMB 1.5 billion year-over-year.

• Live streaming revenues: RMB 1.14 billion, down from RMB 1.26 billion year-over-year.

• Game-related services, advertising, and other revenues: RMB 370 million, up from RMB 244 million year-over-year.

• Gross profit: RMB 188 million; gross margin: 12.5%, down from 14.7% year-over-year.

• Operating loss: RMB 60 million; non-GAAP operating loss: RMB 36 million.

• Cash and equivalents: RMB 6.25 billion as of March 31, 2025.

Outlook and guidance

• Total revenue expected to grow in 2025, with live streaming revenues stabilizing and game-related services, advertising, and other business revenues projected to achieve fast year-over-year growth.

• Overseas game commercialization and international initiatives anticipated to become key future growth engines.

• Non-GAAP operating results expected to improve, with profit performance relying more on operational improvements than interest income.

• Continued focus on business transformation, AI integration, and diversified revenue streams.