1. HUYA's Q1 2025 revenues reached RMB1.51 billion, stable year-over-year. 2. Game-related services revenue grew 52.1% year-over-year, significant recovery. 3. Net income dropped to RMB0.9 million, down from RMB71 million in Q1 2024. 4. MAUs increased slightly to 83.4 million, indicating stable user engagement. 5. Share repurchase program of US$100 million ongoing, strengthens investor confidence.
While revenues stabilized and increased year-over-year, the drop in net income and profitability raises concerns. Historically, such mixed results have led to stagnant or fluctuating stock performance in similar companies.
The article discusses key financial metrics and strategic direction crucial for investors, which may sway market perceptions.
The immediate financial results could affect investor sentiment and, subsequently, stock price in the short-term as markets react to mixed earnings.
Mr. Junhong Huang, Acting Co-Chief Executive Officer and Senior Vice President of Huya, commented, "During the first quarter of 2025, we continued to strengthen our live streaming content ecosystem, deepen collaborations with game companies and content platforms, and effectively implement our strategic business transformation. We are pleased to highlight that our total net revenues stabilized year-over-year, driven by the growth in game-related services, advertising, and other businesses. While maintaining a strong focus on our domestic market, we have begun to actively explore and enhance our game-related commercialization capabilities in overseas markets through our growing international presence, particularly our global mobile application service platform. In the first quarter, our overseas game-related services recorded multi-fold sequential revenue growth. Given current development and market trends, we are confident that by expanding our overseas user base and scaling up our business, our international initiatives will become a key growth engine for Huya going forward."
"In addition, under our 'AI + Live Streaming' strategy, we are exploring the integration of AI capabilities into our e-sports experiences. For our recent flagship self-organized e-sports tournament, the Huya League of Legends Legend Cup Season 3, we leveraged end-to-end AI solutions to transform the viewing experience and introduced 'Hu Xiao Ai,' a pioneering all-scenario AI agent for e-sports viewing. Hu Xiao Ai serves as a smart viewing companion for our users, capable of understanding the game, grasping e-sports dynamics, and providing live commentary throughout tournaments, significantly enhancing users' viewing experience. In short, Huya's first quarter progress across various business areas has laid a solid foundation for our development throughout the year. We will continue building out our game content and service platform and exploring new commercial opportunities to create a more diversified and sustainable business model and deliver greater value to our users and stakeholders," Mr. Huang concluded.
Total net revenues for the first quarter of 2025 were RMB1,508.6 million (US$207.9 million), compared with RMB1,504.0 million for the same period of 2024.
Live streaming revenues were RMB1,138.2 million (US$156.8 million) for the first quarter of 2025, compared with RMB1,260.4 million for the same period of 2024, primarily due to the continued impact of the macroeconomic and industry environment.
Game-related services, advertising and other revenues were RMB370.4 million (US$51.0 million) for the first quarter of 2025, compared with RMB243.6 million for the same period of 2024. The increase was primarily due to higher revenues from game-related services, which were mainly attributable to the Company's deepened cooperation with Tencent and other game companies, partially offset by decreased brand advertising revenues.
Cost of revenues increased by 2.9% to RMB1,320.1 million (US$181.9 million) for the first quarter of 2025 from RMB1,283.5 million for the same period of 2024, primarily due to increased revenue sharing fees and content costs, partially offset by decreased bandwidth and server custody fees. Revenue sharing fees and content costs, a key component of cost of revenues, increased by 3.9% to RMB1,166.3 million (US$160.7 million) for the first quarter of 2025 from RMB1,123.0 million for the same period of 2024, primarily due to increased broadcaster-related costs, partially offset by lower costs related to licensed e-sports content and in-house produced content.
Gross profit was RMB188.5 million (US$26.0 million) for the first quarter of 2025, compared with RMB220.5 million for the same period of 2024. Gross margin was 12.5% for the first quarter of 2025, compared with 14.7% for the same period of 2024, primarily attributable to increased revenue sharing fees and content costs as a percentage of total net revenues.
Research and development expenses decreased by 4.1% to RMB129.5 million (US$17.8 million) for the first quarter of 2025 from RMB135.1 million for the same period of 2024, primarily due to decreased personnel-related expenses and share-based compensation expenses.
Sales and marketing expenses decreased by 20.4% to RMB60.7 million (US$8.4 million) for the first quarter of 2025 from RMB76.2 million for the same period of 2024, primarily due to decreased marketing and promotion fees, as well as personnel-related expenses.
General and administrative expenses increased by 2.4% to RMB61.4 million (US$8.5 million) for the first quarter of 2025 from RMB60.0 million for the same period of 2024, primarily due to higher share-based compensation expenses.
Other income was RMB3.5 million (US$0.5 million) for the first quarter of 2025, compared with RMB12.3 million for the same period of 2024, primarily attributable to lower government subsidies.
Operating loss was RMB59.6 million (US$8.2 million) for the first quarter of 2025, compared with RMB38.5 million for the same period of 2024.
Interest income was RMB64.9 million (US$8.9 million) for the first quarter of 2025, compared with RMB117.1 million for the same period of 2024, primarily due to a lower time deposit balance, which was mainly attributable to the special cash dividends paid in May 2024 and October 2024.
Net income attributable to HUYA Inc. was RMB0.9 million (US$0.1 million) for the first quarter of 2025, compared with RMB71.0 million for the same period of 2024.
Non-GAAP net income attributable to HUYA Inc. was RMB24.0 million (US$3.3 million) for the first quarter of 2025, compared with RMB92.5 million for the same period of 2024.
Basic and diluted net income per American depositary share ("ADS") were each RMB0.00 (US$0.00) for the first quarter of 2025. Basic and diluted net income per ADS were each RMB0.30 for the first quarter of 2024. Each ADS represents one Class A ordinary share of the Company.
Non-GAAP basic and diluted net income per ADS were each RMB0.10 (US$0.01) for the first quarter of 2025. Non-GAAP basic and diluted net income per ADS were RMB0.40 and RMB0.39, respectively, for the first quarter of 2024.
As of March 31, 2025, the Company had cash and cash equivalents, short-term deposits and long-term deposits of RMB6,254.6 million (US$861.9 million), compared with RMB6,734.0 million as of December 31, 2024.
Pursuant to the Company's up-to-US$100 million share repurchase program authorized in August 2023, which has an extended expiration date of March 31, 2026, the Company had repurchased 21.0 million ADSs as of March 31, 2025, with a total aggregate consideration of US$69.8 million.
The Company's management will host a Tencent Meeting Webinar at 8:00 a.m. U.S. Eastern Time on May 13, 2025 (8:00 p.m. Beijing/Hong Kong time on May 13, 2025), to review and discuss the Company's business and financial performance.
For participants who wish to join the webinar, please complete the online registration in advance using the links provided below. Upon registration, participants will receive an email with webinar access information, including meeting ID, meeting link, dial-in numbers, and a unique attendee ID to join the webinar.
Participant Online Registration:
Chinese Mainland:
https://meeting.tencent.com/dw/ETSDHTEFiC2G
International:
https://voovmeeting.com/dw/ETSDHTEFiC2G
A live webcast of the webinar will be accessible at https://ir.huya.com, and a replay of the webcast will be available following the session.
HUYA Inc. is a leading game live streaming platform in China. As a technology-driven company, Huya offers rich and dynamic content across games, e-sports, and other entertainment genres where it has cultivated a large, highly engaged, interactive, immersive community of game enthusiasts. Building on its success in game live streaming and through close collaboration with game companies, e-sports tournament organizers, broadcasters, and talent agencies, Huya is expanding its presence in the game industry, both domestically and internationally. By providing more innovative game-related services, the Company is committed to meeting the evolving needs of game enthusiasts, content creators, and industry partners.
The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), except that the consolidated statement of changes in shareholders' equity, consolidated statements of cash flows, and the detailed notes have not been presented. Huya uses non-GAAP financial measures to provide a clearer view of its operations and financial performance.
This announcement contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations.
In China:
HUYA Inc.
Investor Relations
Tel: +86-20-2290-7829
E-mail: ir@huya.com
Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
E-mail: jenny@piacentefinancial.com
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: brandipiacente@piacentefinancial.com