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DouYu International Holdings Ltd (DOYU)
NASDAQ:DOYU
RESEARCH TOOLSreports
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DouYu International Holdings
(NASDAQ:DOYU)
Rating:49Neutral
Price Target:
$7.00
▲(1.89%Upside)
Positive Factors
Cost Management
Management is committed to reducing costs significantly, which should help Douyu bring forward the breakeven timeline to 2025.
Innovative Business Growth
Douyu reported better-than-feared fourth quarter with revenues 8% above expectations, driven by 47% year-over-year growth in innovative business.
Negative Factors
Live-Streaming Business Decline
Douyu could still face downside risks if live-streaming business further deteriorates.
Valuation Concerns
The target multiple is set at the low end of China live-streaming peers and implies a 20% discount to its current cash value of US$8.8/ADS, which is reasonable given the deteriorating live-streaming business.
DouYu International Holdings (DOYU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$207.33M
Dividend YieldN/A
Average Volume (3M)41.62K
Price to Earnings (P/E)―
Beta (1Y)1.77
Revenue Growth-18.43%
EPS Growth-349.12%
CountryUS
Employees819
SectorCommunication Services
Sector Strength87
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.37
Shares Outstanding30,178,860
10 Day Avg. Volume42,582
30 Day Avg. Volume41,619
Financial Highlights & Ratios
PEG Ratio-36.42
Price to Book (P/B)7.18
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.25Price Target Upside5.53% Upside
Rating ConsensusHold
Number of Analyst Covering2
DouYu International Holdings Business Overview & Revenue Model
Company DescriptionDouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People's Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors eSports teams and organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and allows viewers and streamers to edit and upload short video clips by themselves. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People's Republic of China.
How the Company Makes MoneyDouYu makes money primarily through a combination of virtual gifting, advertising, and subscription services. Virtual gifting is the largest revenue stream, where viewers purchase virtual items and gifts to send to their favorite streamers during live broadcasts. This interaction not only enhances the viewing experience but also directly contributes to DouYu's earnings, as the company takes a percentage of the revenue generated from these transactions. Advertising is another significant source of revenue, with DouYu offering advertisers access to a large and engaged user base through in-stream ads and brand partnerships. Additionally, DouYu generates income through subscription services, where users pay for premium features or content access. Strategic partnerships with gaming companies and esports organizations further bolster its revenue streams by integrating exclusive content or events onto the platform.
DouYu International Holdings Earnings Call Summary
Earnings Call Date:May 20, 2025
(Q4-2024)
| % Change Since: -1.01%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with significant achievements in revenue diversification and cost optimization. However, the company faces challenges with declining revenues and paying user metrics, alongside efforts to refine strategy for long-term stability.Q4-2024 Updates
Positive Updates
Revenue Diversification Success
Innovative business, advertising, and others reached 28% of total revenues in 2024, marking a 63.6% increase year-over-year.
Cost Optimization Achievements
Content costs reduced by 19% year-over-year, and expenses in sales and marketing, R&D, and G&A decreased by 17% year-over-year.
Special Cash Dividends
Declared two special cash dividends totaling USD 600 million, reflecting confidence in the company's growth potential.
Quarterly Mobile MAUs Increase
Mobile MAUs were 44.5 million in Q4 2024, increasing 5.9% quarter-over-quarter.
Innovative Business Growth
Innovative business revenue increased by 47.2% in Q4 2024, reaching 35.7% of total revenue.
Negative Updates
Year-over-Year Revenue Decline
Total net revenues decreased by 12.3% year-over-year in Q4 2024, with livestreaming revenues dropping by 28.4%.
Decline in Paying Users and ARPPU
Paying users declined, and ARPPU decreased by 11.5% to RMB 246 in Q4 2024 compared to the same period last year.
Gross Margin and Net Loss Challenges
Gross margin in Q4 2024 was 6.1%, down from 9.7% in the same period of 2023, with a net loss of RMB 163.7 million.
User Base and Revenue Pressure
Adjustments in streamer resources and content costs may lead to noticeable declines in user base and revenue in the short term.
Company Guidance
During DouYu International Holdings Limited's Fourth Quarter and Full Year 2024 Earnings Conference Call, several key metrics and strategic initiatives were highlighted. The company's innovative business, advertising, and others reached 28% of total revenues, marking a 63.6% increase year-over-year, while mobile MAUs were 44.5 million, up 5.9% quarter-over-quarter but down 13.9% year-over-year. The total number of paying users in Q4 was 3.3 million, with a quarterly ARPPU of RMB 246. The call also emphasized cost optimization, with content costs reduced by 19% and sales, marketing, R&D, and general and administrative expenses down by 17% year-over-year. DouYu declared two special dividends totaling USD 600 million, highlighting their commitment to shareholder returns. Looking ahead to 2025, the company's strategy focuses on cost reduction and efficiency improvement, with an emphasis on advancing monetization within their niche game ecosystem and enhancing AI capabilities.DouYu International Holdings Financial Statement Overview
Summary
DouYu International Holdings shows financial stability through its balance sheet but faces significant challenges in generating revenue, profitability, and cash flow. The declining revenue, negative profitability margins, and negative cash flows indicate operational difficulties and potential liquidity risks.Income Statement
DouYu International Holdings has experienced declining revenue and profitability over recent years, with significant negative net income and EBIT margins. The gross profit margin has decreased, reflecting challenges in maintaining cost efficiency. Recent revenue figures show a downward trend, indicating potential challenges in growth and market position.34
Negative
Balance Sheet
The balance sheet is strong with a high equity ratio and low debt levels, suggesting financial stability and low leverage risk. However, declining equity over the years indicates some erosion of value. The consistent cash and short-term investments provide a cushion against operational challenges.68
Positive
Cash Flow
The cash flow statement reveals significant challenges, with negative operating cash flow indicating issues in generating cash from core operations. Free cash flow has been negative, highlighting difficulties in sustaining cash generation after capital expenditures. These factors suggest liquidity risks and potential challenges in financing operations.20
Very Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.18B | 4.27B | 5.53B | 7.11B | 9.17B | 9.60B |
| Gross Profit | 328.34M | 323.83M | 684.03M | 990.11M | 1.09B | 1.56B |
| EBITDA | -399.21M | -467.38M | -53.23M | -109.87M | -559.92M | 238.53M |
| Net Income | -289.10M | -297.44M | 35.52M | -152.81M | -338.79M | 762.17M |
Balance Sheet | ||||||
| Total Assets | 3.20B | 5.45B | 8.07B | 8.15B | 8.16B | 8.91B |
| Cash, Cash Equivalents and Short-Term Investments | 1.93B | 4.09B | 6.16B | 6.55B | 6.53B | 7.51B |
| Total Debt | 12.51M | 15.68M | 21.47M | 47.05M | 61.70M | 53.23M |
| Total Liabilities | 1.23B | 1.24B | 1.38B | 1.58B | 1.90B | 1.93B |
| Stockholders Equity | 1.97B | 4.22B | 6.69B | 6.56B | 6.33B | 6.94B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -251.97M | -63.99M | -630.38M | -708.76M | 585.29M |
| Operating Cash Flow | 0.00 | -238.85M | -47.69M | -464.79M | -586.26M | 667.65M |
| Investing Cash Flow | 0.00 | -1.07B | 414.18M | -4.17B | -19.13M | -2.61B |
| Financing Cash Flow | 0.00 | -2.21B | -965.00 | -746.64M | -107.15M | -479.19M |
DouYu International Holdings Technical Analysis
Positive
6.87
Price Trends
6.86
Positive
6.97
Positive
5.67
Positive
Market Momentum
0.03
Negative
73.55
Negative
91.27
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOYU, the sentiment is Positive. The current price of 6.87 is above the 20-day moving average (MA) of 6.63, above the 50-day MA of 6.86, and above the 200-day MA of 5.67, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 73.55 is Negative, neither overbought nor oversold. The STOCH value of 91.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DOYU.
DouYu International Holdings Risk Analysis
DouYu International Holdings disclosed 101 risk factors in its most recent earnings report. DouYu International Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
DouYu International Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $1.80B | 27.24 | 9.18% | 3.88% | 26.71% | -23.67% | |
75 Outperform | $874.63M | 23.50 | 32.17% | ― | 113.43% | ― | |
67 Neutral | $1.04B | 61.56 | 4.85% | ― | 10.41% | 122.27% | |
55 Neutral | HK$64.51B | -1.63 | -1.91% | 7.22% | -4.22% | -14.17% | |
49 Neutral | $207.33M | ― | -6.76% | ― | -18.43% | -349.12% | |
47 Neutral | $61.39M | ― | -16.65% | ― | 105.31% | 95.66% | |
47 Neutral | $358.65M | ― | -0.39% | ― | -19.68% | 99.02% |
* Communication Services Sector Average
Performance Comparison
DOYU
DouYu International Holdings
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4.30
130.70%
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24.53
3.61
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19.98
7.33
57.94%
FVRR
Fiverr International
28.90
5.45
23.24%
CCG
Cheche Group
0.76
0.04
5.56%
ZH
Zhihu
4.39
1.19
37.19%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.