- DouYu International ( DOYU ) stock rose to a near 10-week high on Monday after the live streaming platform operator swung to adj. net profit in Q2 as its focus on operating efficiency paid off.
- DOYU reported Q2 adj. EPADS of $0.01, topping Street estimates, and a turnaround in adj. net profit at $3.5M vs. adj. net loss of $21.4M, helped by cost control measures.
- Revenue fell 21.6% Y/Y to $273.7M. Livestreaming revenues decreased 18.8% to $264M due to ongoing implementation of prudent operating strategies.
- Advertising and other revenues declined 58.5% to $9.7M due to "continued exploration of new commercialization models by using a portion of advertising traffic that could have been directly monetized", DOYU said, as well as soft demand for advertisements and COVID-19 resurgence in China.
- Average mobile MAUs decreased 8.2% to 55.7M, while quarterly average paying user count fell 8.3% to 6.6M.
- Gross margin improved to 16.9% vs. 13.1% in Q2 2021, helped by decreases in revenue sharing fees and copyright costs as a percentage of total revenue.
- Shares of DOYU have fallen 48.1% YTD.
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DouYu International stock hits 10-week high as cost cuts drive earnings beat