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Mar 31

HUYA Q1 2025 Earnings Report

HUYA posted flat revenue and a marginal profit, as strength in game-related services helped offset continued challenges in live streaming.

Key Takeaways

HUYA's Q1 2025 results showed stable total net revenues year-over-year at $207.9 million, supported by a 52.1% increase in game-related services and advertising. While live streaming revenue declined, the company returned to profitability, with a net income of $0.1 million and a non-GAAP EPS of $0.01. Investments in AI-powered features and overseas expansion were key strategic highlights.

Total revenue reached $207.9 million, nearly flat YoY.

Net income was $0.1 million, with a non-GAAP net income of $3.3 million.

Live streaming revenue fell while game-related services rose 52.1% YoY.

HUYA deployed AI innovations and increased its global mobile platform presence.

Total Revenue
$208M
Previous year: $209M
-0.6%
EPS
$0.01
Previous year: $0.05
-80.0%
R&D Expenses
$17.8M
Previous year: $18.6M
-4.4%
Sales & Marketing
$8.36M
Previous year: $10.5M
-20.4%
G&A Expenses
$8.47M
Previous year: $8.27M
+2.4%
Gross Profit
$26M
Previous year: $30.7M
-15.3%
Cash and Equivalents
$40.9M
Previous year: $996M
-95.9%
Total Assets
$1.27B
Previous year: $1.74B
-27.0%

HUYA

HUYA

HUYA Revenue by Segment

Forward Guidance

HUYA plans to drive growth via its AI + Live Streaming strategy, overseas expansion, and continued optimization of its content and monetization capabilities.

Positive Outlook

  • AI integration enhances viewer engagement, notably with 'Hu Xiao Ai'.
  • Overseas game services saw multi-fold sequential revenue growth.
  • Game-related revenue now 24.6% of total revenue, up from 16.2% YoY.
  • Maintained positive net income despite declining live streaming segment.
  • Strong cash position with over $860M in deposits and equivalents.

Challenges Ahead

  • Live streaming revenue continued to decline year-over-year.
  • Gross margin dropped to 12.5% from 14.7% last year.
  • Overall operating loss widened compared to Q1 2024.
  • Lower interest income impacted bottom line.
  • Brand advertising revenue declined within the game services segment.

Revenue & Expenses

Visualization of income flow from segment revenue to net income