• Total Net Revenues: RMB6.08 billion for the full year 2024.
• Game Related Services, Advertising, and Other Revenues: Increased by 145.4% year over year to RMB1.33 billion for the full year.
• Non-GAAP Net Income: RMB269 million, up by 125.6% year over year.
• Net Cash Provided by Operating Activities: Positive RMB94 million for 2024.
• Fourth Quarter Total Net Revenues: Approximately RMB1.5 billion.
• Fourth Quarter Gross Margin: 11.4%, up from 1% in the same period last year.
• Fourth Quarter Non-GAAP Net Income: RMB1.2 million, marking a turnaround from the same period last year.
• Fourth Quarter Operating Loss: RMB93 million, compared with a loss of RMB322 million for the same period last year.
• Cash and Cash Equivalents, Short Term Deposit, and Long Term Deposit: RMB6.73 billion as of December 31, 2024.
• 2025 Dividend Plan: USD1.47 per ordinary share or per ADS, totaling approximately USD340 million.

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Release Date: March 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• HUYA Inc (NYSE:HUYA) reported a significant increase in revenues from game-related services, advertising, and other segments, which rose by 145.4% year over year to RMB1.33 billion.
• The company achieved a non-GAAP net income of RMB269 million, marking a 125.6% increase year over year.
• HUYA Inc (NYSE:HUYA) successfully turned net cash provided by operating activities positive, reaching RMB94 million.
• The company made substantial progress in its strategic transformation, enhancing its live streaming content ecology and technology.
• HUYA Inc (NYSE:HUYA) plans to distribute a total of no less than USD400 million in cash dividends to shareholders over the next three years, demonstrating a commitment to shareholder returns.

Negative Points

• Live streaming revenues continued to be impacted by macroeconomic and industry challenges, with users' willingness to spend on gifting yet to recover.
• The company faced gross margin pressure in the fourth quarter due to the seasonal nature of major Esports events and related cost allocations.
• Despite improvements, the overall live streaming revenue remained weak, with expectations of a seasonal decline in the first quarter of the following year.
• Interest income decreased significantly due to lower time deposit balances and declining market interest rates.
• HUYA Inc (NYSE:HUYA) recognized impairment charges on investments due to weak financial performance of certain investees, impacting overall financial results.

Q & A Highlights

Q: What factors does HUYA consider when making shareholder return strategies? A: Raymond Peng Lei, Acting Co-CEO and CFO, explained that HUYA emphasizes enhancing shareholder returns through a 2025 to 2027 dividend plan, aiming to distribute no less than USD400 million in cash dividends over three years. For 2025, a cash dividend of USD1.47 per ADS, totaling approximately USD340 million, has been declared. The plan is designed to reward shareholders, optimize capital structure, and improve cash utilization efficiency. HUYA has sufficient internal funds, with over USD900 million in cash and no debt as of December 2024.

Q: Can management share expectations for the growth of game-related services and other revenues? A: Junhong Huang, Acting Co-CEO and SVP, noted that despite a sequential decline, revenues from game-related services, advertising, and others nearly doubled year over year in Q4 2024. HUYA has become a primary distribution channel for several games, and efforts to enhance operational excellence and expand collaborations with game developers are ongoing. The company plans to strengthen cooperation with game developers and explore exclusive distribution models to sustain business growth.

Q: How is HUYA integrating AI technologies, and what impact does it have on products and monetization strategy? A: Junhong Huang highlighted that HUYA is actively integrating AI solutions to create long-term value in live streaming and Esports. The platform has launched an AI assistant to help users search for events and live streams. HUYA is also developing AI-powered streamer assistants to enhance broadcaster efficiency and user interaction. The company aims to leverage AI to create new IP models and virtual streamers, transforming the live streaming industry from human-driven to technology-driven.

Q: Can you discuss the trend in live streaming revenue and overall profitability margin? A: Raymond Peng Lei stated that live streaming revenue remains impacted by macroeconomic conditions, with a seasonal decline expected in Q1 2025. However, cost optimization efforts have led to a significant decline in content costs, improving gross margins. The company continues to control operating expenses, and future profitability will depend on revenue scale changes and cost management. Interest income is expected to be lower in 2025 due to reduced cash surplus and declining market interest rates.

Q: What are HUYA's plans for shareholder returns and capital structure optimization? A: Raymond Peng Lei reiterated the 2025 to 2027 dividend plan, with a focus on distributing USD400 million in cash dividends. The company also has a share repurchase program, with USD63.6 million spent on repurchasing shares as of December 2024. The program has been extended until March 31, 2026, and HUYA will consider market conditions and shareholder returns in advancing the repurchase program.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.