HUYA Inc (HUYA) Q1 2025 Earnings Call Highlights: Navigating Growth and Challenges

GuruFocus News

Wed, May 14, 2025, 8:00 AM 4 min read

• Total Net Revenues: RMB 1.51 cardinal for Q1 2025, stabilized twelvemonth implicit year.

• Game-Related Services, Advertising, and Other Revenue: RMB 370 million, a 52.1% year-over-year increase.

• Live Streaming Revenues: RMB 1.14 billion, decreased from RMB 1.26 cardinal twelvemonth implicit year.

• Gross Margin: 12.5% for Q1 2025, down from 14.7% successful the aforesaid play past year.

• Net Income: RMB 1 cardinal for Q1 2025, compared to RMB 71 cardinal successful the aforesaid play past year.

• Non-GAAP Net Income: RMB 24 cardinal for Q1 2025, compared to RMB 92 cardinal successful the aforesaid play past year.

• Number of Paying Users: 4.4 million, level twelvemonth implicit year.

• Cash and Cash Equivalents: RMB 6.25 cardinal arsenic of March 31, 2025.

• Share Repurchase Program: 21 cardinal shares repurchased, totaling USD 69.8 million.

• Warning! GuruFocus has detected 4 Warning Signs with HUYA.

Release Date: May 13, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• HUYA Inc (NYSE:HUYA) reported a year-over-year summation of 52.1% successful game-related services, advertising, and different revenue, reaching RMB 370 million.

• The institution achieved a nett net successful the archetypal 4th of 2025, indicating fiscal stability.

• HUYA Inc (NYSE:HUYA) successfully expanded its in-game point sales, starring to a grounds GMV for in-game point income successful the archetypal quarter.

• The institution is actively exploring and enhancing its game-related commercialization capabilities successful overseas markets, showing promising maturation with multifold gross increases.

• HUYA Inc (NYSE:HUYA) continues to innovate with AI-driven initiatives, enhancing the viewing acquisition and engagement successful eSports content.

• Brand advertizing gross declined twelvemonth implicit twelvemonth and 4th implicit 4th owed to less tournaments and promotions.

• The institution faced a alteration successful involvement income compared to erstwhile periods, chiefly owed to dividend payments.

• Gross borderline decreased to 12.5% for the quarter, down from 14.7% successful the aforesaid play past year, owed to accrued gross sharing fees and contented costs.

• Operating nonaccomplishment was reported astatine RMB 60 cardinal for Q1, compared to a nonaccomplishment of RMB 39 cardinal for the aforesaid play past year.

• HUYA Inc (NYSE:HUYA) is facing geopolitical tensions and imaginable risks astir delisting, which could interaction its operations and capitalist confidence.

Q: Can absorption elaborate connected the concern outlook and prospects for game-related services? A: Raymond Peng Lei, Acting Co-CEO and CFO, explained that game-related services, advertising, and different revenues reached RMB 370 million, a 52.1% year-over-year increase. This maturation was driven by game-related services, contempt a diminution successful marque advertizing revenues owed to less tournaments and a precocious basal effect from past year. The full transaction worth of game-related services is importantly higher than reported gross owed to gross sharing with crippled companies. Junhong Huang, Acting Co-CEO, added that contempt constricted caller crippled launches, Huya deepened engagement with existing games, starring to a much unchangeable and balanced crippled organisation business. The institution plans to research exclusive organisation models and seizure opportunities from caller crippled launches.