Shulou(Shulou.com)11/24 Report--

On August 14, Beijing time, Douyu (NASDAQ:DOYU) released his unaudited financial report for the second quarter of 2023. In the second quarter, Douyu continued to implement a long-term sustainable development strategy to maintain a stable user scale of the platform driven by high-quality content services and product experience by enriching and activating the platform game community ecology. At the same time, Douyu continues to reduce the low conversion rate of marketing customer input, launch diversified revenue activities, upgrade the membership system and other innovative revenue products, to promote platform users' willingness to pay and payment stickiness, so as to achieve sustainable profitability.

According to the financial report, Douyu's average mobile MAU increased to 50.3 million month-on-month in the second quarter, with 4 million paying users, with total revenue of 1.392 billion yuan, including live broadcast revenue of 1.258 billion yuan and advertising and other revenue of 134 million yuan, an increase of 106.5% over the same period last year. In that quarter, Douyu made a gross profit of 189 million yuan, corresponding to a gross profit margin of 13.6%. Under non-US GAAP, net profit rose to 61.4 million yuan, up 161 per cent from a year earlier.

The continuous enhancement of profitability is inseparable from Douyu's meticulous operation strategy. Chen Shaojie, founder of Douyu and CEO, pointed out in the financial report, "in the second quarter of 2023, we continue to build a healthy and sustainable gaming community ecology, attach importance to the operation of core users, create more interactive and high-quality content, promote community interaction, and enhance user experience. At the same time, on the one hand, we strengthen the deep and mutually beneficial cooperation with game manufacturers, on the other hand, we reduce the marketing investment in promoting customers, through the constantly updated supply of high-quality game content, rich platform operation activities and the upgrading of revenue products, maintain the stability of the core quality users of the platform. In the future, we will continue to implement the development strategy of 'diversified content ecological platform with games as the core', devote ourselves to the production of high-quality content and the innovation of product models, and explore new growth points at the same time. Through steady business development, we will continue to consolidate the company's comprehensive competitiveness and leading position in the domestic game content industry. "

Make continuous efforts to create high-quality content and build a healthy and sustainable community ecology.

In the second quarter, Douyu continued to create boutique content around games, events and pan-entertainment to attract and retain high-quality users.

In terms of building a diversified event system, Douyu broadcast more than 20 official large-scale e-sports events in the second quarter, including League of Legends LPL Spring match, Arena of Valor KPL Spring match, Game for Peace PEL Spring match, CFPL Summer match of the Cross-Fire Professional League, CSGO Blast Major, and so on. Among them, the return of LPL copyright has rekindled the enthusiasm of League of Legends players to watch the game, and the attention of the trump card game derivative program "what to say this game" has also reached a new high, winning more than 200 million discussions in the whole network, which once again proves Douyu's ability to produce large-scale popular tournaments.

During the off-season, Douyu also made his own professional e-sports events such as Douyu Arena of Valor National Masters S7, Douyu Game for Peace Autumn Mingshan Cup S3, Douyu League of Legends Yingying Cup S2, as well as IP event LBL with League of Legends anchor Doinb as the core, and Arena of Valor's first and only IP professional event "Gemini Lucky Cup S2". And Douyu specially created for female players of the CSGO women's event "aim!" 60 own-brand competitions, such as "Goddess". More relaxed, interesting and interactive e-sports content has successfully captured the attention of moderate and mild gamers.

In terms of PGC content, not only pay more attention to the influence of the head anchor, combine the game zone with the pan-entertainment zone, and create self-made variety shows that break through the whole network, such as "PDD Singers Club", "Huangpu JumpJumpJump" and "CSGOGOGO Doomsday Farm". At the same time, traditional culture and positive value are also integrated into some of the program content in ingenious and novel interactive forms. Programs such as "Shu Ruima Special Forces", "Xinjiang Family", "College Music Festival" and "National Tide Girl Group" have all won a good reputation.

In terms of improving ecological health, Douyu also completed the comprehensive optimization of the platform's content management and audit mechanism in the second quarter, added and refined more than 30 audit standards, enhanced the technical capabilities of content monitoring, filtering and disposal, and built a more benign community ecology to provide users with more high-quality content and services.

Enhance the interaction of game content, innovate the new mode of intermodal transportation and expand commercialization.

In the second quarter, new games and blockbuster games were launched one after another. as the main position for game promotion and promotion, Douyu increased the content layout of relevant game sections and maintained close cooperation with game manufacturers. through the promotion of drainage, content construction, event activities and other dimensions, to enhance the site traffic and interaction, to explore a new commercial space.

During the promotion period of Miha Tour's high-profile new product "collapse: star Dome Railway", Douyu's "collapse: star Dome Railway" area has rich live broadcast contents, such as new tour experience, strategy teaching, and interesting moments, and the average number of version update nodes is more than 10,000 per day, ranking in the forefront of the industry. At the same time, Douyu also combines the two-dimensional social attributes of the game, launching more than 10 live events a month, releasing traffic through the conversion link of "platform-activity-VJ", thus giving game products a lot of exposure opportunities at the ecological level.

On the basis of remarkable achievements in online promotion, Douyu, as the only live broadcast platform, was invited to participate in Miha Tour "miYoSummer" offline Comic-Con Exhibition. Douyu combined with the game elements of "collapse: star Dome Railway" to set up the offline booth "cute Fish North Station". The live anchor Douyu and the game Coser attracted a lot of attention, causing a large number of live users and the official Coser of Miha Tour to clock in, covering more than 30,000 core QR users. The omni-directional layout of "online and offline" has successfully enhanced Douyu's influence in the QR layer.

During the final test of the recent hot FPS product "Dauntless contract", Douyu also, as an important channel for game promotion, conducted deep linkage with manufacturers, releasing 220000 game test qualifications, leading the platform in this number. At the end of the season, the mobile game "against the Cold" opened a public test, and Douyu also mobilized dozens of head anchors on the platform to guide and promote content in the form of "Red packet Rain" to help the game hit the peak of registration on the first day.

Reduce low gross margin marketing investment and upgrade paid products to improve operational efficiency

In the second quarter, under the background of reducing costs and increasing efficiency in the industry, Douyu improved and upgraded the traditional gift reward system and innovative member business system by virtue of the rational reduction of low-margin marketing and some revenue activities, which greatly improved the operating efficiency on the revenue side of the platform.

In order to provide users with a better payment experience, on the one hand, Douyu, on the basis of the "aristocratic" user identity system, has newly launched the "supreme" user identity system and set up seven honorable stalls. With the supreme identity, you can enjoy exclusive privileges such as distinguished identity, cool driving, exclusive customer service and so on. On the other hand, it has further improved the two sets of membership rights and interests systems of the whole platform and the game single zone, launched innovative privileged gifts such as "customizable sound gifts", and tried to link the two systems in daily operation. according to different game characteristics to provide users with a variety of membership benefits, further enhance user activity and willingness to pay. It is understood that member services with specific value have attracted more high-quality users to spend on the platform, so the quarterly average ARPPU of Douyu users has maintained a healthy growth compared with the same period last year.

The increase in the income of specific members of the game has promoted the growth of other income on the platform. In the second quarter, Douyu's advertising and other income doubled from the same period last year, an increase of 106.5% to 134 million yuan. Judging from the overall financial indicators of the platform, Douyu's achievements in optimizing the revenue product structure are also very remarkable: in the second quarter, Douyu's total revenue was 1.392 billion yuan, with a gross profit of 189 million yuan, corresponding to a gross profit margin of 13.6%, an increase of 1.7 percentage points compared with the previous quarter. Net profit under non-GAAP was 61.4 million yuan, 2.6 times that of the same period in 2022.

Sustainable profit indicates that Douyu has found a new engine of healthy growth. Cao Hao, vice president of finance of Douyu, said that in the future, Douyu will explore new ways to realize cash on the basis of maintaining the stable operation of the core business, focus on the long-term development of the platform, and strive to bring long-term value to shareholders.

According to the financial report, as of June 30, 2023, Douyu had cash equivalents, restricted cash and short-term and long-term bank term deposits of 7.056 billion yuan.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.