DouYu International Holdings Limited

Q4 2024 total net revenues were RMB 1.14 billion, down 12.3% year over year from RMB 1.3 billion. Livestreaming revenue fell 28.4% to RMB 0.73 billion, while innovative business, advertising and other revenue rose 47.2% to RMB 405.1 million. Gross profit was RMB 69.8 million versus RMB 126.2 million a year ago, and gross margin was 6.1% versus 9.7%. Net loss was RMB 163.7 million versus RMB 62.2 million, and basic/diluted net loss per ADS was RMB 5.43. Adjusted net loss was RMB 68.8 million, and adjusted basic/diluted net loss per ADS was RMB 2.28. For the full year 2024, innovative business, advertising and others revenue increased 63.6% to RMB 1.2 billion. As of Dec. 31, 2024, cash and cash equivalents, restricted cash, restricted cash in other noncurrent assets and short- and long-term bank deposits totaled RMB 4.47 billion, or USD 612.1 million. Looking to 2025, management said innovative business, advertising and others revenue should remain on a healthy growth trajectory and contribute about 35% of total revenue, while full-year copyright cost is expected to decrease significantly year over year and operating losses are expected to improve versus 2024.

Co-CEO Simin Ren said 2024 was shaped by weak macro conditions and intense competition, so DouYu responded by reallocating resources, diversifying revenue, and controlling costs. She framed the core 2025 strategy as narrowing losses through revenue resilience, a lower-cost structure, and deeper AI use in content review, programming productivity, and user conversion. Her tone was cautious but proactive: management acknowledged that these adjustments could pressure traffic and revenue in the near term, but said they are necessary for long-term healthy growth.

VP of Finance Hao Cao said the company’s financial focus has shifted to margin improvement and financial resilience. He pointed to full-year innovative business, advertising and other revenue of RMB 1.2 billion, up 63.6%, but said gross and net margins were hurt by fixed cost components. In Q4, cost of revenues fell 8.8% to RMB 1.07 billion, with revenue-sharing fees and content costs down 9.3% to RMB 896.2 million and bandwidth costs down 30% to RMB 70.3 million; sales and marketing, R&D, and G&A also declined year over year. He also noted cash of RMB 4.47 billion at Dec. 31, 2024, falling to RMB 2.24 billion at the end of February 2025 after the dividend distribution, while saying the company still has sufficient reserves.

Analysts focused on the growth outlook for new businesses, the use of cash, and the impact of tournament copyright changes and streamer restructuring. Management said voice-based social networking and game props are key growth drivers, with more resources to be allocated to innovative business in 2025, and said innovative business, advertising and others should contribute about 35% of total revenue. On cash, management said the special dividends and buybacks were based on surplus cash and future cash plans, and that it still has enough liquidity to support operations. On copyrights and streamer costs, management said it will skip some low-ROI tournaments, negotiate better pricing, and reduce streamer compensation costs, but acknowledged this could temporarily reduce traffic and live-streaming revenue.