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DouYu International Holdings Ltd (DOYU)
NASDAQ:DOYU
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DouYu International Holdings
(NASDAQ:DOYU)
Rating:55Neutral
Price Target:
$9.00
▲(20.00% Upside)
Positive Factors
Cost Management
Management is committed to reducing costs significantly, which should help Douyu bring forward the breakeven timeline to 2025.
Earnings Performance
With year-over-year and quarter-over-quarter improvement in gross profit margin and trimmed operating expenses, Douyu's non-GAAP net loss beat estimates.
Revenue Growth
Douyu reported a significant 60.2% year-over-year growth in other revenues, driven by the voice-based social networking business.
Negative Factors
Business Deterioration
Douyu's live-streaming revenues continued to decline, showing a year-over-year drop of 29.5%.
Market Valuation
The target multiple for Douyu is set at the low-end of China live-streaming peers and implies a 20% discount to its current cash value, reflecting concerns over the deteriorating live-streaming business.
Rating Downgrade
Douyu is rated Neutral instead of Buy due to potential downside risks in the live-streaming business despite a profit turnaround.
DouYu International Holdings (DOYU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$217.29M
Dividend YieldN/A
Average Volume (3M)70.01K
Price to Earnings (P/E)―
Beta (1Y)1.84
Revenue Growth-18.43%
EPS Growth-349.12%
CountryUS
Employees819
SectorCommunication Services
Sector Strength90
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.37
Shares Outstanding30,178,860
10 Day Avg. Volume63,354
30 Day Avg. Volume70,006
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap-0.18
Enterprise Value/Revenue>-0.01
Enterprise Value/Gross Profit-0.12
Enterprise Value/Ebitda0.10
Forecast
1Y Price Target
$7.83Price Target Upside4.40% Upside
Rating ConsensusHold
Number of Analyst Covering3
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 generates revenue through multiple streams, primarily from virtual gifts and subscriptions. Users can purchase virtual items to gift to streamers during live broadcasts, with DouYu taking a percentage of these transactions. Additionally, the company earns money through advertising partnerships, where advertisers pay to promote their products or services on the platform. DouYu also engages in sponsorship deals and collaborations with gaming companies and esports organizations, further enhancing its revenue. Furthermore, the company has expanded its offerings by providing premium subscription services that grant users access to exclusive content and features, contributing to its earnings.
DouYu International Holdings Earnings Call Summary
Earnings Call Date:May 20, 2025
(Q4-2024)
| % Change Since: 8.07%|
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 faces significant financial challenges with declining revenue and profitability, as well as negative cash flows. Despite a strong balance sheet with low debt and high equity, the operational difficulties pose liquidity risks. Strategic improvements are crucial for long-term sustainability.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.27B | 5.53B | 7.11B | 9.17B | 9.60B |
| Gross Profit | 323.83M | 684.03M | 990.11M | 1.09B | 1.56B |
| EBITDA | -467.38M | -53.23M | -109.87M | -559.92M | 238.53M |
| Net Income | -297.44M | 35.52M | -152.81M | -338.79M | 762.17M |
Balance Sheet | |||||
| Total Assets | 5.45B | 8.07B | 8.15B | 8.16B | 8.91B |
| Cash, Cash Equivalents and Short-Term Investments | 4.09B | 6.16B | 6.55B | 6.53B | 7.51B |
| Total Debt | 15.68M | 21.47M | 47.05M | 61.70M | 53.23M |
| Total Liabilities | 1.24B | 1.38B | 1.58B | 1.90B | 1.93B |
| Stockholders Equity | 4.22B | 6.69B | 6.56B | 6.33B | 6.94B |
Cash Flow | |||||
| Free Cash Flow | -251.97M | -63.99M | -630.38M | -708.76M | 585.29M |
| Operating Cash Flow | -238.85M | -47.69M | -464.79M | -586.26M | 667.65M |
| Investing Cash Flow | -1.07B | 414.18M | -4.17B | -19.13M | -2.61B |
| Financing Cash Flow | -2.21B | -965.00 | -746.64M | -107.15M | -479.19M |
DouYu International Holdings Technical Analysis
Neutral
7.50
Price Trends
7.37
Negative
7.16
Positive
6.29
Positive
Market Momentum
-0.07
Positive
42.34
Neutral
17.26
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOYU, the sentiment is Neutral. The current price of 7.5 is below the 20-day moving average (MA) of 8.08, above the 50-day MA of 7.37, and above the 200-day MA of 6.29, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 42.34 is Neutral, neither overbought nor oversold. The STOCH value of 17.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $858.42M | 19.41 | 34.34% | ― | 92.91% | ― | |
73 Outperform | $1.47B | 22.30 | 9.18% | 5.06% | 26.71% | -23.67% | |
67 Neutral | $787.79M | 46.70 | 5.00% | ― | 12.60% | 64.81% | |
60 Neutral | $44.01B | 1.87 | -10.61% | 4.00% | 2.46% | -39.70% | |
55 Neutral | $217.29M | ― | -6.76% | ― | -18.43% | -349.12% | |
54 Neutral | $62.44M | ― | -16.65% | ― | 105.31% | 95.66% | |
47 Neutral | $375.81M | ― | -0.39% | ― | -19.68% | 99.02% |
* Communication Services Sector Average
Performance Comparison
DOYU
DouYu International Holdings
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113.49%
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CCG
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4.20
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37.25%
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.