DouYu's Revenue Dip But Surprising Ad Growth: What's Next For The Streaming Giant?
Portfolio Pulse from Anusuya Lahiri
DouYu International Holdings Limited (NASDAQ: DOYU) reported a Q3 FY23 revenue decline of 24.4% year-on-year to $186.3 million, slightly above consensus estimates. Adjusted earnings per ADS matched consensus at $0.03. Livestreaming revenues fell by 32.5%, while advertising and other revenues surged by 123.2%. The company's gross margin remained stable at 14.2%, with cash reserves of $978.5 million. However, mobile MAUs and paying user count both decreased. Despite the revenue dip, DOYU's stock rose by 1.55% to $0.72.
December 07, 2023 | 12:28 pm
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DouYu's Q3 FY23 report shows mixed results with a revenue decline but a significant increase in ad revenue. The company's stock price increased slightly following the report.
While DouYu's overall revenue declined, the surprising growth in advertising revenue and the stable gross margin, along with the slight increase in stock price post-earnings, suggest a positive short-term impact. However, the decline in mobile MAUs and paying users could be a concern for future growth, tempering the potential upside.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100