DOYU - Earnings call transcript Q4 2020 | DouYu International Holdings Limited

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and good evening, ladies and gentlemen. Thank you, and welcome to DouYu International Holdings Limited's Fourth Quarter and Full Year 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode.

We will be hosting a question-and-answer session after management's prepared remarks. I will now turn the call over to the first speaker today, Ms. of of President Vice Mao, Capital DouYu. Markets Mao go ahead, ma'am. Please

Mao Mao

our Hello, and everyone. you. Fourth Welcome Call. Thank Earnings to Quarter XXXX Full Year

Executive Cao, Vice are Chairman of Finance. Chief today Shaojie President Officer; Officer; Chief Strategy Hao us Su, Mr. Mr. Joining and Mingming Mr. and Chen,

You to quarter our and financial year XXXX can on ir.douyu.com. our refer results IR fourth full website at

in IR replay You this call available check site. becomes our on a of a also hours can it few when

may the this performance Litigation call update management's expectations materially unknown these to forward-looking forward-looking that filing with contain statements, or circumstances the The I forward-looking and of details statements Company's risk Before Chen. the or cautionary of forward-looking the provisions pursuant expectations uncertainties undertakes we results, note based no for and cause current observations of Company Company start, different These made performance statements. factors the expressly from implied and any statements qualified which the may the their risks, for actual selected achievements by or after to our All call. by on statements events will involve and entirety CEO, please in on duty this or XXXX. not are statements conference behalf results, speak Shaojie Mr. forward-looking date other now the of be revise and to of that Reform Harbor are Safe Chairman SEC. Private Securities known factors control under Company's Act

momentum revenue to RMB up results -- and total by XX% maintained XXXX, of quarter as both went the During financial our our operating their total growth we year-over-year reach steady fourth to the to million. year-over-year X.XX the increased expanded million. X.X% period. our by mobile At year-over-year MAUs by And quarterly X.X% XX.X users X.X same time, paying billion average our in

continued to our was macro average our to to users additional four total flourish due the of in platform MAUs live persists and In throughout expansion XXXX, the year-over-year game-centric impact by stream residual the of the healthy mainly period. attract This grew COVID-XX environment, While quarter fourth factors. million. XXX X.X%

large-scale broadcasting X, our XX KPL Legends Golden our tournaments, continues along Grand including fuel with and popularity XXXX; Fall League expansion. the rising Season tournaments, of the to First, Grand self-organized and Golden XX Tournament including Season Tournament eSports of user base PUBG Peacekeeper Season

Second, users. content the Q-Rock Mobile Duty releases Moonlight multiple of new Blade Mobile, DnF of Warcraft and of and attracted Call platform our enriched titles, X.X, new including World further

in-depth our cultivate League of of the game as such tournaments operation games an and different with for platform engaging refinements increasingly helps environment. Honor to developers, for active Third, platform cooperation Peacekeeper, King of of the and operations joint and Legends

provide viewing communities satisfy spectrum the to build Finally, range through to video segment serves of options and full diverse of demand. content our efforts our wider a be better user

to me let Now content turn update. our

all across we we During app, the and segment sponsor offerings live results. the therefore, industry eSports not to fully the the established growth breadth cementing and fourth high-quality have have our exceptional refined delivered eSports the Usually, eSports industry, committed expanding leadership, game-centric along version chain. invest this in eSports to further have and to a the role through occupy to also the in In system value the community continued area. we our which various our DouYu of content close we continued teams to our develop quarter, a broader teams key our continuing and integrated our segments, of our fueling efforts streaming video launched X.X call, depth quarter, to of remain business content

the differentiated self-developed that our eSports LoL teams continue and quarter, sponsored Honor and our Pro both advantages King Championship. believe Fall our first-rate Cup League see efforts Demacia deliver to pleased We to DYG, And cooperating won influence won were our the going the XXXX compound brand such forward. Championship. performance will XXXX team, TES, team, our of During Kings supercharge

success, broadcasting and tournament also we self-produced next continue the to take events this Beyond our level. to

pioneered such, game collaboration Pro Championship, XX tournaments during League, collaboration of thrived, close to than with the total creative large-scale reaching As More more way the eSports Crossfire the Legends developed Mobile our with Mobile quarter, with particularly, them Crossfire our joint we developers. team World cooperate in during game which through League featuring and a King's membership developer XXXX a League. the more

proved Peacekeeper of Golden our At events, their one became together teams widely during a of viewers the December. Peacekeeper X in most an event seats NP tournaments the kind brought one so to For tournament popular XX of Grand Season commented-on be League anticipated and came edge Tournament self-produced to PEL, place, in-house were compete, to of that experience. it the and

tournaments, for than more to foundation tournaments area. XX growth establish more forward. growth this self-produced organize solid a future to in we to drive plan going And enabled us we which in-house Importantly,

content video ecosystem. of plan game solid live our and of on our to streaming foundation. business drive parallel business terms development operations build strengths, an building strategy, will leveraging top in we ahead, we By continue Looking integrated community these and

programs. partners land on tournaments remain both live newer content, and For eSports will focused we include best eSports developing the and self-produced in which streaming,

For and have PGC already initial stage experimenting development the content. infrastructure with videos, quality we completed multiple of

further plan with video our of expand content more order forward, creators quality to library short-form video to offerings. in Going engage enrich and we

of through discovery, introduction previous Finally, for discussions community, events. the plan we our on users' to groups amplify our further cultivation based more interest game and

program. to let's Now our monetization turn

as X.X% user we more and enhance introduce paying quarterly ratio scenarios our X.X%. continue we our refine users products and paid quarter, to to grew our our year-over-year the million monetization X.X During increased experience, to to paying by

also increased quarterly RMB to XXX. Our year-over-year X.X% ARPPU by

refining function base. Furthermore, our we rolling and user more product of Looking and segment well remain plan operations. paying content segment events help live ahead, exploration ongoing events we the operating out streaming the will to Such each rooms. and augment content to as committed monetization to initiatives to continue platform our our of our of innovative monetization innovative as efficiency, improve efforts enlarge efficiency

We also progress make front. on the good continue R&D to

loss which has As of live became streamers on to enables network significantly platforms and streaming of application mobile stream of the impacted smoothly XX% This of to available the first of to live with our result quarter. video we up a our SRT, example, which the our regardless expanded range utilize one protocol, content now platform. for scenarios environment, on users rate over collaboration the to Tencent, streaming RMPP in technology

with our deliver gamers live outdoor to high-quality able the diversify technology, of of the their content For new in are fast the menu, connection. streams support environment Internet example, stream and

investing making ongoing have we market. our live the and in toward the Japanese the our potential front, the the Building platform international space. inroads of live Japan, deep streaming game we from Japanese streaming benefit the On investments to are game products continued our continued in in expertise

and healthy continued result, Japan. well, we operational at maintaining fourth to a our In XXXX, pace. to in Mildom summary, perform As position leading continued its performance enhance has the a quarter financial during of

and our established refine further foundation in Going to forward, leverage live plan we develop and to integrated ecosystem. streaming

advance long-term streaming, initiatives -- we community. to will streamer financial We content down and to up to will will order our also the in long-term to the core serve including monetization growth, video while help to Live the business: and our of implement In areas, in fuel of With will value. performance, will chain operations. value call advance industry and value Cao, to shareholders product advance in management Such only offer I President unlock details through platform three continue business with or now order the quarter. -- and several the our our capabilities financial additional to Hao go development the efforts our performance in Executive that, not Mr. fourth live streaming but game Finance, turn providing

Hao Cao

Thank year-over-year of you, fourth to revenue billion. XX% XXXX quarter to by Hello, RMB year revenues X.XX the X.X Mao. the increased Overall, full while XXXX everyone. of increased billion, RMB in year-over-year total by XX.X% Mao total in

fourth reached full platform from increased the around Total points billion to fourth from to in net was year. approximately of total Additionally, XX XXX.X streaming the of resulting X.XX paying increased as the year of user in same adjusted increase improved XXXX, adjusted billion RMB remaining generated increase our portion by primarily paying year-over-year advertising X.XX experience, and of the net ongoing product implying billion, from attributable net net revenues income prior this the basis Live RMB RMB X.X%, of generated refinement RMB increased margin application XX% of XXXX, in of in million, our XX.X% user with continues our to by of from streaming others. X.XX the quarter and in revenues and platform's driven quarter be efforts also live XXXX was revenues from XXXX by X.X% habits paying period relation to scenarios. as well which a

a XXXX. from of million X.X period million the increased same X.X paying As in result, in fourth to users XXXX quarter of the

the platform. ecosystem helped of of In improve diversification to both in-house addition, our segments the content nongame on and game monetization efficiency

revenue solutions. X.XX advertising the increased by X% in be -- more influence XXX driven RMB cost the year. Cost period million, RMB same the specifically, our RMB brand of revenues Advertising promotion by mainly demand RMB of competitive could XX.X% XX.X% such, in increased and XXXX billion, fees of other year-over-year explained X.XX to to expanded revenues XX. drivers. quarter of by to in billion RMB following generally to year-over-year corresponding in RMB for As the same quarter period in from fourth increase X.XX increased fourth XXX increased and and which XXXX of last billion and our XXX.X XXXX. by from advertising content the by share

further rights content our First, proprietary more of in-house and tournaments increased for production invested cost we platform. broadcasting events to eSports the content on enrich in the as

was Second, in revenue which fees revenue line our growth. increased, with our share total

quarter cost our million such with This of of fourth as viewing XXX.X XXXX the in satisfies XXXX by streaming in RMB viewing RMB by in quarter as X% our overseas increased technologies increase to fourth and expenses, a primarily million share-based users' million million in as was in RMB and quarter same XX.X% was million RMB of from XXXX video-related million continue XXX.X costs users same of percentage increased we XXXX in net in with income further XXX.X was XXXX, of XXX.X XXXX in increase last XXX.X in of more million increase RMB fourth the RMB the due in professional events. in the to service increased margin same of quarter the This of fourth share-based XXX.X same same upgrades. year. The adjusted period XXX.X merger with of high-quality in revenue as from share XXXX. XXXX, revenues. XXX.X the mainly the development of as promotional million well fourth introduction XXXX, Huya. Sales period XXX.X invest was decrease RMB Net RMB Research our RMB the to profit excludes million loss quarter mainly administrative of prices provided compared in XX.X fourth of method million which fourth due to our excludes to the the to compared and compensation was XX.X% quarter XXXX XK in RMB quarter XXX.X XXX.X net from to of our period fourth from Adjusted better loss period the mainly XXX.X RMB XX% XXX.X which of potential by to income XX.X% in same RMB improvement Bandwidth in as million of fees of of key due General loss the of increase in development to the of operating increased by activities period mainly in XXXX. same Gross content in expenses and of in margin of same year. Adjusted was operating to gross loss by RMB compared live expenses compared experiences our for Gross the Third, compared last options, and increase impairment million same the XXXX. due XX.X% which streamers fees the the of was expenses million XXXX. XXXX of the expenses, XXXX. XXX.X of application related in million share adjusted the marketing to to RMB the RMB high-definition period period the the quality driven income and to well of million fourth period in investments, market. quarter equity investments XXXX period in million of net the in and loss self-produced compensation viewing XXX.X quarter was in with the total demands. content, RMB tournaments

basic For and respectively, RMB RMB diluted RMB X.XX, loss net per and the adjusted of X.XX X.XX, diluted fourth ADS and basic respectively. quarter XXXX, X.XX net ADS were RMB and were while loss per

we capacity efficiency. and forward, to Going will monetization our continue explore

We This now leverage our concludes for we to prepared to questions. our the operating while sustainable are ready further our of platform. will utilize Operator, faithful also take staying remarks today. development

Operator

Thank you.

America. comes ahead. first The of We the will Please from from now Lei go begin Instructions] Zhang [Operator Bank session. question-and-answer question

Lei Zhang

with My by of the the first we regarding major still Huya, question any the regulation deal Secondly, time see to merger deal this do you do half the about impact yet? maintain Internet mainly your space, complete our deal regarding to anti-trust year? line

Mingming Su

Okay. question. track. on still currently, the your Huya between DouYu Thank and for potential is And merger you

efficiently the are the process entities teams on depends domestic timing of closing the collaborating the clock. exact and regulators. But and also working approval SEC Our relevant with the around the by third-party

regulators share such, authorities regulations development industry your for have second have participators. And policies the date to we competition the As revised industry fair a promoting can that and among over guideline of the antitrust improved for the industry and are question, following with issued We goal the closing see not the of gradually we past Internet the years. few domestic positive able rapid as know, Internet now. the

guidelines, So relative the also expect a long-term across development. level support we will playing industry, the DouYu's to field which

has the competition entire scale improve of potential user performance. while pan-entertainment to look landscape and revenue the competitive relatively We at fierce industry the we still this For believe to overall DouYu further as segment, change. continues is stage, that its

high-quality the operational the segment. value of the expand merger in the This combined service overall as Huya pan-entertainment One well increase and digital two as integrate value key resources work is offerings unlock in growth the the potential of to Tencent goals online will platform our chain of of greater with with jointly along and the future. our improving the our efficiency to further platform,

Operator

from Please The next JPMorgan. question comes from Daniel Chen go ahead.

Daniel Chen

myself. I will translate

competition is question my to So landscape. related the

also, on could what to management Huya, happened? see competition in the signed as already merger procedure this with update are the So us the fourth see in potential important And game since change give future quarter landscape we kind in the some agreement, going of the the competition? have are year after streaming industry? of we market kind merger in to so the going of also, before the terms what transaction a And we

Shaojie Chen

quarter believe So regarding landscape competition, last since that question fourth significantly year. the competitive we the changed not the has on your industry's

streaming as live content. game-centric and we explore top and video of live build other such ecosystem content segment, game-related game-centric leading our our platform, on to areas, the streaming As community would continue

app are so platform and of content short revolve And as industry in clear of been provide community opportunity content and the in more operations, media well market, of the community; communities, expect we at of accumulation, we and monetization video focus the content ecosystem. live content, and increase, industry around the X.X we eSports that product of our long in agency customer we streaming users. the which both From resources down integration the competition which both well think last base formation professional content as perspective, a of year. focused such content rapid applications and professional user of this we rapid we version value as has the cultivation believe competition upgrade have the of content seen game run took the segment high-quality the will to diversification also And end deployment And refined the our development helped diversified now and We creation innovation and competition run, raise with traffic since new I game mainly updated the content; inflow the entertainment talent and to of terms enters short-form as blockbuster the of content live the on and games. refinement video market. that streaming vertical the forms, and have chain. And entire platform of build-up launched have game game-centric advantage ceiling inception, content building of and on the can of the as

a created clear in result, stronger terms of the core a maintaining as have barrier. we base. advantage have attracting content leading user and Now And we game

looking positioning of believe strength between two with the as for the and forward domestic getting expand are So we commercial we regulators. that with as approval lifted the your entity. our Mr. will content management the just well we Su timing the industry, user still cannot next and deal. expect take the forward, second will enhance And advantage coverage the which we And from relevant further cooperation to now, to for and question, platforms And steps, entire further demand we SEC And we for from as more the after responded, in-depth including merger merger, Tencent, the looking of is ongoing. currently, the tell of really combined the the ceiling user believe to traffic. our

Operator

ahead. Liu from next question China is from The go Alex Please Renaissance.

Alex Liu

the share more a since noticed few the community the color has made on War? of and observations notable in that from Company World Championship. revenue there? drivers are investment months, the And And management for are video short takeaways is What I'll virtual League second Legends and the on of finally, event? what translate major major myself. I the past question the could that

Shaojie Chen

Okay.

currently your and live products content become game-centric we the top expect the developing question, ecosystem. our first the on video streaming key community segments for integrated of Regarding our avenues content to pillars are and three

we to high-quality, live continue content. produce will For streaming, informed

the games, events on of In own infrastructure also closely and content secondly, And to first games multiple develop programs we our have new addition new phase completed explore official will business, we our games related attractive produce to market, development, and end existing more content eSports to program community monitor our updated year. UGC of group. we satisfy users, any video the already blockbuster the to interest library the intuitive and video generation extensive PGC, platform. with have we X.X launched for at content app also the creator last we users' And our video Version segment and have already have to demand. introduced established on And with together diverse our in accelerate

In community the bar based discovery, on and game our addition, community on we business, and for upgraded groups interest introduction segment discussion. focusing the created

Mingming Su

second third your question. answer Let me and

the third about The -- is second active question the tournament.

Legends tourney attracted a The domestic on users of were by DouYu's XXXX. of large-scale first the China. the segment we widely offline making Internet Shanghai, League has Championship Organized viewers. tourney one events strong strong larger platform. attracted tournament League postponed pandemic, many and viewership eSports the eSports a of in was the In global number the few been a Legends of Legends, of tournaments half the always and of annual in As followed premier the or has World is because the XXXX, know, official always League of of canceled

streamers of a large with DouYu number and segment. a for well-known marketed this In system and fact, content streamer we have

CDG, strength, us about platforms Legends social watching user also contract League game record-high Combined operating to tournaments. during question, for teams, increase and platform metrics tournament. popular go-to partnerships high-quality us And as famous It the LoL third saw this Championship such for and multiple to the for of traffic attract LoL most TES exclusive our platform DWG. Arteezy, the revenue. with make as live the signed streaming and eSports cement more helps we destination our your how many addition, domestic international In with with

existing habit and and our high contribution monetization and content event channeling revenue To direct to raise growth, we user segments to to ecosystem, -- user scale our these refine monetization our nongame events leverage and as our monetization paying and continue contribution penetration based ratio. of deeper of platform-wide our and content most will our profile, features traffic will offerings daily paying to cultivate tailor to improve paying further Under new users' relatively rate with entertainment maintain paying by game-centric on revenue ARPPU revenue ARPPU. segments improve efficiency, users diversify product and sustainable further such products, we We users increase plan shows.

Operator

Feiya ahead. is from Zhao International. question next Haitong Please The from go

Feiya Zhao

question past content of the could of in first third paying And my how signing-up my by us the and broadcasters is you And about revenue number of the is, breakdown quarter nongame second content? in forward? the So question of quarters? what think outlook trend XXXX? and our give also the of split the the and bonus few ARPPU the going is, cost please we the return in should game users And

Mingming Su

answer me first Let question. the

of We in game is paying to major to revenue XX% and the XXXX percentage for our game has strong in our this live forward. users. The from expect ARPPU continue to going our games both segment increase expected plan to segment streaming revenue a total Revenue potential contributor account total demonstrated and be growth generated segment platform. to our we

increase segment, nongame For segments. by strategically between traffic contribution the allocating will revenue we

to on users paying users' monetization As ARPPU will scenarios increase. monetization and cultivate focus explore increase and and we of total continue to their events, events our pay, willingness small-scale both more paying penetrating platform-wide habits to further increase the

Hao Cao

bonus, Regarding streamer the quarter-over-quarter on bonus signing quarter of was increase the signing reasons. during the to question fourth due two your

launched a for offerings streamers on maintain game to to a newly First, content we platform. continue our high-quality segment recruit new

market. streamers overseas increased investment our of we foreign Second, in the

new will game increase of to a increasing rapid bonus signing due at streamers from stable expansion international the and Looking ahead, titles. our rate bonus overseas house streamers signing and

Operator

go ahead. question last Chong Our Please Jefferies. Thomas from from comes

Thomas Chong

management bandwidth QX cost we I in marketing marketing and the bandwidth how driver think about or for as trend you as the comment the have well comment the question sales cost. going sequential Can sequential On also about about forward? the hand, the the can as going other and change well forward? sales should as driver for a regarding expenses,

Hao Cao

because bandwidth respect intensive streaming cost, in the With peak high-definition fourth that, Okay. more options, period. tournaments bandwidth users frequent of usage high-quality slightly Apart more to such and video. XK video quarter, the increased we costs with live provided as from

expect We bandwidth XXXX with in the increase along increase users. in cost to

bandwidth a However, percentage as of costs total revenue decrease. will continue to

In quarter to This for basis. events. to sales sequential marketing and due SBC, XXXX, an is marketing increased marketing related our question increased online increase channel sales and excluding about fourth and second includes increased tournaments. well expenses as mainly marketing eSports and eSports The more was the salaries compensation, and eSports for share-based expenses. on promotion fees expenses, expenses expenses, as excluding Sales sponsorship and for self-organized resulting staff offline expenses, our the other tournaments teams costs, of a prizes

to optimize. increase, each we in marketing eSports sales in platform, long going percentage value are channel the to future, and and We our user quite towards will in continue of activities as of our will sales plan marketing expenses updated increase increase will expenses the the revenue, total to we investments promotions. features a the the our run, our team in-house of absolute Therefore, positive because while and of of and conversion continue believe our eSports-related development industry Meanwhile, sponsorships the forward. will of our we and

Operator

remarks. the like to over more questions turn the in This our back closing to no I'd queue. are question-and-answer any concludes There for management conference session.

Mao Mao

Thank today. you joining for us

If you, have our Thank or to site. you have please good free us further day. a request contact any and questions, IR to feel

Operator

concluded. now Thank The conference today's attending for has presentation. you

disconnect. now may You

DouYu International Holdings Limited (DOYU) 23 Mar 212020 Q4 Earnings call transcript