DouYu Beats Q4 Projections Despite Drop in Livestreaming, Advertising Revenues Skyrocket
Portfolio Pulse from Anusuya Lahiri
DouYu International Holdings Limited (DOYU) reported a Q4 fiscal 2023 revenue of $182.5 million, a 22.9% decrease year-on-year but above the consensus of $170.9 million. The company's adjusted earnings per ADS loss was $(0.00), better than the expected $(0.02). Livestreaming revenues fell by 36.1% to $143.8 million, while advertising and other revenues surged by 226.5% to $38.8 million. Gross margin declined to 9.7%. The company's cash and equivalents stood at $965.6 million. Quarterly average mobile MAUs and paying user count also decreased. DOYU shares dropped by 2.36% in premarket trading. Investors can also gain exposure to DOYU through Vanguard FTSE Emerging Markets ETF (VWO) and Vanguard Total International Stock ETF (VXUS).
March 26, 2024 | 12:40 pm
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NEUTRAL IMPACT
Vanguard FTSE Emerging Markets ETF (VWO) offers exposure to DOYU, which reported better than expected Q4 results but saw a decrease in stock price.
As an ETF that includes DOYU, VWO may see some impact from DOYU's earnings report and subsequent stock price movement. However, the effect is likely to be diluted due to the diversified nature of ETF holdings.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Vanguard Total International Stock ETF (VXUS) provides exposure to DOYU, which exceeded Q4 fiscal 2023 expectations but experienced a premarket stock price decline.
Given VXUS's exposure to DOYU, the ETF might be affected by DOYU's earnings beat and stock price decline. However, the impact is expected to be minimal due to VXUS's broad international diversification.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
DOYU reported better than expected Q4 fiscal 2023 results with a smaller loss and higher revenue than anticipated, despite a significant drop in livestreaming revenues and a decrease in gross margin.
Despite beating revenue and earnings expectations, the significant drop in livestreaming revenues and the decline in gross margin, coupled with a decrease in mobile MAUs and paying users, likely contributed to the negative market reaction and a decrease in stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100