Huya Q2 2023 Financial Results

Key insights

7 takeaways

01
Huya reported a net profit of $15.9 million (¥115M) for Q2 2023, representing an 1,850% year-over-year increase from the $818,000 (¥5.9M) reported in Q2 2022.
02
Total revenue for Q2 2023 reached $252.5 million (¥1.82B), a 20% decline compared to the $315 million (¥2.27B) generated in the same period of 2022.
03
Longtime CEO Rongjie Dong stepped down from his position on August 7, 2023, after 17 years with the company, citing personal reasons.
04
Ashley Wu and Junhong Huang have been appointed as acting co-CEOs while the company board searches for a permanent successor.
05
Huya maintained a monthly active user (MAU) base of 82.9 million during the second quarter of 2023.
06
The platform streamed over 75 large-scale esports competitions during the quarter, including the Valorant Champions Tour (VCT) Masters Japan, the League of Legends Pro League (LPL), and the CS:GO Paris Major.
07
Management attributed the improved profitability to ongoing efforts in optimizing costs and expenses and diversifying the company's revenue mix.

Summary

Huya, a China-based live streaming platform, released its financial results for the second quarter of 2023, highlighting a significant shift in profitability despite a contraction in total revenue. The company reported total revenue of ￥1.82 billion ($252.5 million), representing a 20% year-over-year decline from the ￥2.27 billion ($315 million) recorded in the same period of 2022. Conversely, net profit surged to ￥115 million ($15.9 million), an 1,850% increase compared to the ￥5.9 million ($818,000) profit reported in the second quarter of 2022.

The company’s performance was supported by a base of 82.9 million monthly active users. During this period, the platform facilitated the streaming of over 75 large-scale esports competitions, including major titles such as the Valorant Champions Tour Masters Japan, the League of Legends Pro League, the King Pro League, and the CS:GO Paris Major. Management attributed the improved bottom-line results to ongoing efforts to optimize costs and expenses, aiming for a more balanced and diversified revenue structure.

The quarter also marked a significant leadership transition for the organization. Longtime CEO Rongjie Dong stepped down for personal reasons after a 17-year tenure, with his departure finalized in early August 2023. In the interim, the company appointed VP of Finance Ashley Wu and Senior Vice President Junhong Huang as acting co-CEOs while the board conducts a search for a permanent successor. Financial data for the quarter utilized a conversion rate of 7.2513 RMB to 1 USD, based on the noon buying rate as of June 30, 2023.