HUYA (HUYA) Q3 2024 earnings summary

Executive summary

• Total net revenues for Q3 2024 were RMB 1.54 billion, down from RMB 1.66 billion year-over-year.

• Game-related services, advertising, and other revenues surged 209.3% year-over-year to RMB 410 million, now 26.7% of total revenues.

• Net income attributable was RMB 23.6 million, up from RMB 10.5 million year-over-year.

• Paying users for game-related services grew 9.5% year-over-year to 4.6 million.

• Operating expenses decreased by 20.9% year-over-year, supporting stable performance.

Financial highlights

• Live streaming revenues were RMB 1.13 billion, down from RMB 1.53 billion year-over-year due to macroeconomic and industry pressures.

• Gross profit was RMB 204 million, with a gross margin of 13.2%, down from 14.6% year-over-year.

• Non-GAAP net profit was RMB 78 million, with a non-GAAP net margin of 5.1%.

• Diluted net income per ADS was RMB 0.1; non-GAAP diluted net income per ADS was RMB 0.34.

• Cash and equivalents, deposits, and investments totaled about $1.15 billion as of September 30, 2024.

Outlook and guidance

• Expectation of improved gross profit margin in Q4 compared to the low base last year.

• Non-GAAP results for Q4 and full year anticipated to show noticeable year-over-year growth.

• Management plans to foster in-house content and partnerships to drive growth.

• Strategic transformation and business structure adjustments are ongoing.

• Live streaming revenue faces short-term pressure but is expected to recover with macroeconomic improvement.