市场见解

3 Important Takeaways from Douyu’s Latest Results

DouYu International Holdings Ltd (NASDAQ: DOYU) delivered a stellar set of earnings. Here’s how it’s benefitting from the growth in live streaming. – Streaming stocks

On Monday (August 10), DouYu International Holdings Ltd (NASDAQ: DOYU), a leading game-centric live streaming platform in China, reported its second-quarter results for the year ending 2020.

Here are three important things that investors should know from the company’s latest earnings release.

Overall financial performance

Douyu delivered a strong quarter with improving metrics across the board.

Total net revenue for the quarter increased by 33.9% to RMB 2.5 billion (US$359.8 million), up from RMB 1.9 billion for the same period last year thanks to higher income from live-streaming and advertising.

Gross profit performed even better, up by 73.7% to RMB 522.9 million in the quarter thanks to higher revenue and improving gross margin.

Net profit reached RMB 319 million, an improvement of more than ten-fold from RMB 23.2 million last year.

Looking forward, it expects net revenues to be in the range of RMB 2.64-2.68 billion in the third quarter of 2020, representing year-on-year growth of between 42.1% and 44.2%.

Operational metrics

Douyu’s financial performance improved on the back of improving operational performance. Let’s look at a few metrics to illustrate this point.

Firstly, average monthly active users (MAUs) of its live-streaming platform reached 165.3 million in the second quarter of 2020, up by 2.5 million from the corresponding quarter of 2019.

Out of this, average mobile MAUs accounted for 58.4 million, an increase of 15.4% from the same period last year.

Secondly, the total number of paying users jumped 13.4% from 6.7 million last year to 7.6 million this quarter.

On average, these users spent RMB 305 on Douyu’s platform, an increase of about 20% from RMB 255 last year.

A combination of higher MAUs, an increase in the number of paying users, as well as a stronger average spending per user, drove Douyu’s live-streaming revenue for the quarter – which improved by 35.8% year-on-year.

Solid financial position

Last but not least, another highlight from Douyu’s latest results was its strong balance sheet.

As of 30 June, 2020, Douyu had RMB 8.2 billion in cash and cash equivalents, which improved from RMB 8.1 billion on 30 June, 2019. It also had zero debt on its balance sheet.

With its strong balance sheet, Douyu will is well-positioned to invest in new content and user acquisitions to sustain its long-term growth.

Foolish conclusion

Overall, Douyu delivered a solid quarter with strong performance across the board. It also expects to sustain its strong performance in the next quarter.

More reading

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Hong Kong contributor Lawrence Nga doesn’t own shares in any companies mentioned.

The Motley Fool Hong Kong Limited(www.fool.hk) 2020

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!