DouYu International Holdings reported second-quarter results that beat analyst estimates despite a year-over-year revenue decline and a swing to loss, as the Chinese live-streaming platform continued to invest in growth initiatives.
The company posted adjusted net loss per American Depositary Share (ADS) of $0.45, exceeding the consensus estimate of a $1.12 loss. Total revenue reached RMB981.1 million ($144.6 million), topping the $946.6 million forecast. Revenue fell 6.9% from RMB1,053.9 million in the same period last year, reflecting weaker consumer spending and a challenging macro backdrop.
Gross profit rose 12.0% year-over-year to RMB159.0 million, lifting the gross margin to 16.2% from 13.5% in the prior-year period. The improvement was driven by lower revenue-sharing fees, content costs, and bandwidth expenses. Livestreaming revenue, the platform’s core segment, declined 13.0% to RMB503.0 million, while innovative business, advertising, and other revenues edged up 0.4% to RMB478.1 million.
Sales and marketing expenses surged 102.6% to RMB124.8 million, as DouYu increased spending on branding and promotional activities, including its annual DouYu Carnival event. Average monthly active users on the livestreaming platform rose 2.6% sequentially to 45.4 million, while quarterly average paying users totaled 2.3 million. Average revenue per paying user (ARPU) stood at RMB283.
CEO Simin Ren noted resilience in the core livestreaming ecosystem, stating that livestreaming revenues returned to sequential growth and user engagement improved despite external pressures. The company’s shares were little changed in after-hours trading following the results.
