HUYA (HUYA) Q2 2024 earnings summary

Executive summary

• Total net revenues for Q2 2024 were RMB 1.54 billion, up 2.5% sequentially but down from RMB 1.84 billion year-over-year, driven by growth in game-related services, advertising, and other businesses.

• Game-related services, advertising, and other revenues grew 152.7% year-over-year and 26.6% quarter-over-quarter to RMB 309 million, now 20% of total net revenues.

• Non-GAAP net income was RMB 97 million, with continued profitability despite macro and industry headwinds.

• Average mobile MAUs reached 83.5 million, up sequentially and year-over-year, driven by esports events and new game launches.

• Paying users grew to 4.5 million in Q2, up quarter-over-quarter.

Financial highlights

• Live streaming revenues declined to RMB 1.23 billion from RMB 1.72 billion year-over-year due to macroeconomic softness and strategic adjustments.

• Gross profit was RMB 215 million, with a gross margin of 13.9%; non-GAAP gross margin was 14.2%.

• Non-GAAP net income attributable was RMB 97 million, with a non-GAAP net margin of 6.3%.

• Diluted net income per ADS was RMB 0.13; non-GAAP diluted net income per ADS was RMB 0.42.

• Operating loss narrowed to RMB 26 million from RMB 32.9 million year-over-year.

Outlook and guidance

• Q3 revenue from game-related services, advertising, and other segments expected to achieve double-digit growth over Q2.

• Full-year gross profit margin and profit level expected to increase compared to 2023.

• Management aims to expand in the game industry through content, technology, and product innovation, focusing on operational efficiency and platform upgrades.