HUYA Inc. Exceeds Q1 2024 Revenue Estimates, Driven by Game-Related Services Growth

HUYA Inc. reports Q1 2024 unaudited financial results, exceeding analyst estimates with total net revenues of RMB1.504 billion (US$208.11 million). The company's strong performance is driven by growing revenue from game-related services, advertising, and other businesses.

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Aqsa Younas Rana
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HUYA Inc. Exceeds Q1 2024 Revenue Estimates, Driven by Game-Related Services Growth

HUYA Inc. Exceeds Q1 2024 Revenue Estimates, Driven by Game-Related Services Growth

HUYA Inc. (NYSE: HUYA) has announced its unaudited financial results for the first quarter of 2024, with total net revenues reaching RMB1.504 billion (US$208.11 million), exceeding analyst estimates by 0.71%. The company's strong performance was driven by the growing revenue contribution from its game-related services, advertising, and other businesses, which accounted for 16.2% of total net revenues, up from 5.2% for the same period last year.

Why this matters: The success of HUYA Inc. in the gaming and live streaming industry has implications for the broader technology and entertainment sectors, as it demonstrates the growing demand for online gaming and streaming services. As the company continues to expand its offerings and reach, it may influence the direction of the industry and shape consumer behavior.

Huya's gross margin increased to 14.7% for the first quarter, attributed to the growing revenue contribution from businesses with higher gross margins and the company's continued cost optimization efforts. Total operating expenses decreased by 17.8% year-over-year through operational efficiency enhancements.

Commenting on the results, Mr. Junhong Huang, Acting Co-CEO and Senior Vice President of Huya, stated, "In the first quarter of 2024, strong strategic execution delivered advancements across the board as we navigated an evolving industry environment." Ms. Ashley Xin Wu, Acting Co-CEO and Vice President of Finance, added, "We remain dedicated to seizing opportunities and delivering future business growth."

Huya Live, the company's flagship live streaming platform, saw its average mobile MAUs grow marginally year-over-year to 82.6 million in the first quarter. The number of paying users on Huya Live also increased sequentially to 4.4 million in the quarter. The company made encouraging progress in the commercialization of its game-related services, with rapid growth in revenues from game distribution, advertising services, and in-game item sales.

In March 2024, Huya repurchased US$48.5 million of its shares through its share repurchase program and announced a special cash dividend declaration totaling approximately US$150 million. Additionally, in December 2023, Huya acquired a global mobile application service provider from Tencent Holdings Limited for an aggregate cash consideration of US$81 million, consolidating its financial results on a retrospective basis since the first quarter of 2022.

Huya's strong first-quarter performance, driven by the growth of its game-related services and strategic acquisitions, positions the company well for continued success in the dynamic live streaming and gaming industry. With a focus on seizing opportunities and delivering future business growth, Huya remains committed to enhancing shareholder value and solidifying its position as a leading player in the market.

Key Takeaways

  • HUYA Inc. reports Q1 2024 revenue of RMB1.504 billion (US$208.11 million), exceeding analyst estimates.
  • Game-related services, advertising, and other businesses contribute 16.2% to total net revenues, up from 5.2% last year.
  • Gross margin increases to 14.7% due to higher-margin businesses and cost optimization efforts.
  • Huya Live's average mobile MAUs grow to 82.6 million, with 4.4 million paying users in Q1 2024.
  • Huya repurchases US$48.5 million of shares and declares a special cash dividend of US$150 million.