Loading...
Docoh

HUYA (HUYA)

Participants
Dana Cheng Investor Relations
Rongjie Dong Chief Executive Officer
Catherine Liu Chief Financial Officer
Lei Zhang Bank of America Merrill Lynch
Vincent Yu Needham & Company
Thomas Chong Jefferies
Tian Hou T.H. Capital
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Hello, ladies and gentlemen. Thank you for standing by for the First Quarter 2021 Earnings Conference Call for HUYA Inc. At this time, all participants are in a listen-only mode. Today's conference call is being recorded. I will now like to turn the call over to Ms. Relations. Investor Company Cheng, Dana Please go ahead.

Dana Cheng

posted welcome Hello, earnings issued XXXX are quarter HUYA's call. everyone, earlier The and were and conference results company's first operational to financial online. today and

earnings Participants You can website ir.huya.com. on website begin available today's replay A HUYA, with in release be be visiting the call will the the remarks Q&A at Officer. Dong, call and press of on also of IR by a Ms. the view Rongjie IR few Officer Financial a Catherine Mr. call will Management the Executive will prepared and with will hours. Chief Liu, Chief conclude session.

Securities please statements that Safe of the Litigation we discussion will of Private provisions note XXXX. Reform made continue, Act under contain forward-looking Harbor Before US today's the

involve uncertainties. Forward-looking risks and statements inherent

public unaudited call such, earnings in turn ahead. financial results any company's expressed directly financial uncertainties release now Rongjie Don. include Further conference not and information our release of from forward-looking be risks unaudited The most go comparable laws. to reconciliation of unaudited will discussions a contains Please GAAP company company's these under to Please I as the measures GAAP HUYA's different the this the measures. non-GAAP CEO, that information statements, note assume is to applicable the prospectus as as today. does press any well press measures. as call non-GAAP update also over required materially HUYA's and the As Mr. unaudited the obligation other other filed and with filings regarding US included SEC. except the views may and

Rongjie Dong

you call our conference today. Thank everyone. joining for Hello,

begin across we in continued New X% which pandemic growth continue pleased the period that our QX momentum that product more business first to and Year. X.X enrichment enjoyed our users. on our period period growth we we We in user during will quarter, RMB to demonstrating with XXXX, growth the higher the create solid million, QX billion, of net future continue to MAUs last lockdown with new value of persisted, believe growth In the lockdown for user Total Live base slightly XX.X relentless has focus our qX, path and year. and revenue drive business community. revenues the for The pandemic saw associated from sets our year-over-year. us of to and on we Huya same Despite the see increased are the bolster the reached our content up and innovation comparable mobile

Additionally, the have in mobile primary constituted daily focus. close retention the to active over Mobile core revenues Huya to users our rate Live. users streaming XX% on users In Live and quarter of they been stable Huya remained XX% Huya this our business QX. and over of of Live's contributed fourth XX% of our pillars live year, our app the at also

users mobile plan grow us as constituency, focusing our investments off. our industry and further in to first has will to the mobile strategy user emphasize gradually pay become believe and we on leader Our We this primary products metric. enabled content and

the and we users a attractive we and to attracting the initiatives. open become our has comprehensive, and In library successful content more innovative game In studios, uniqueness more features and launched continued our forward, more with content gameplay for of improve interactive and number engine broadcasters reinforce HUYA of to proactively, offer our driving are viewers. offerings platform product March, be new needs online us to to users the fulfilling accumulated platform as convenient. Our QX, finding

real-time monitoring play, including interactive one-click game to one-click Language], [Foreign We believe industry Language] Language]. games operations [Foreign live e-commerce, improve a strengthen features Language], gifts model but chain, help will of our shape and [Foreign proposition join for panel the the helping new and only service interactive our value broadcasters' Our diversity. value features new also game streaming, capabilities developers, in not streaming viewer-led monetization in [Foreign

Peacekeeper step, first the streaming features and embedded channel. Elite our our within we Elite As cooperated the gameplay with and live interactive Peacekeeper game's

new success affected with and traffic broadcasters new viewers to triggered also can broadcaster provide immersive For The in-game will users the such out and checking example, of existing to has Elite claim. Peacekeeper experience. streaming for strikers certain when live retain a designated in game or and more acquire room rewards features both refuse our are virtual and viewers gifts, send be to fun

share will Pro and over LPL; that, to and go please Catherine, our Tengjing and The metrics well call our with ahead. Our service, application platform were this daily end users broadcasting expand areas content weekend Tengjing for will to to developers that strengthen Legends of broadcasters exclusive related details. the CFO, a open close to for the active and the China XXXX quarter-over-quarter as tools. on Sports XXX,XXX insights turn the grew enrich down Sports By In over with from daily the [indiscernible] Legends locked of of QX. have the All-Star whom agreement platform, of as in third-party of XXX acquiring League licensing I Catherine, League, these explore rights and there active rights April, the to With XXXX. our to her open developers XXX% broadcasters, used basis, applications the third-party licensing LPL League our and we continued signed both in use LDL; opportunities. offerings exclusive over On broadcasting also Development from operating financial now League, rights QX, respectively. collaboration

Catherine Liu

Dong. everyone. you, Mr. And Thank hello,

around I tournaments tournaments, diversification. among i.e. reached tournaments from remarks, Global spring. we start PUBG updates million viewership for KPL Invitational.S; on will e-sports XX% Mr. Following growth. in PGIS, XXX broadcasted and the enrichment LPL QX, Dong's QX, content representing XX spring; year-over-year top including Total which these and third-party the In

last glad e-sports schedule our generated of and tournaments impacted are events XX in tournaments QX in HUYA's game also professional i.e. own gamers. Recall year, Language], COVID-XX self-produced third-party that million, organized and has in viewership. and tournaments back, e-sports the QX On offline of performing We're of representing higher we for compete of growth. shows is is which entertainment events, that year-over-year total and event hosting to our [Foreign reflected the the the QX XX% a the influence of broadcasters events. top XXX self-produced viewership that with leveraged HUYA's content, celebrity front the

signature [ph], tactics for we the Additionally, tournament within the accomplish and community event. regional another fight team hosted HUYA's rising organized game

the entertainment on [Foreign Language], leading shows a a PGC styling and team, show, of side, QX. Winner, show, detective i.e. styling fashion examples the the roleplaying are competition On Last

the overseas MAUs period last year. business our our the of to around higher million on was in overseas XX first quarter, Moving the same business, than slightly

with to has also focus overseas result, and countries higher revenues year-over-year regions overseas and our on monetization strategy as narrowed our been And Our shifted a down. loss potential. almost doubled

you walk financial X% year-over-year net our our through will billion. highlights. RMB total QX, In to revenues X.X I Next, over grew by

paying pandemic to RMB mainly from million million revenues by increased due on pay time to of period billion. user. growth spent users close number revenue realized the users X.X X.X Advertising Our content our of that the day licensing. more compared in revenues million the last willing was are reached last and RMB to by QX, XX% to close and more X.X%, the The lockdown primarily during QX year-over-year per to increased platform because by paying year. other was in increased with live for year, XXX primarily The streaming same revenues X.X period driven

Our profits improve continued in to QX.

gross Non-GAAP margin to Our profit XXX was RMB increased gross XX.X%. non-GAAP by X% million.

margin X.X%. increased million. Non-GAAP by RMB operating Our operating was to non-GAAP profit XXX X%

net non-GAAP And million. XX.X%. net X% XXX by GAAP profit increased Our non our margin RMB was to

to by and for to the expenses, and billion RMB fees XXX QX, spending in expenses, XXX QX. to this primarily Gross costs for to HUYA, higher relation profit primarily efforts. to rates details. by Income Net XX increased and for margin RMB Revenue content tax for QX. QX share-based move Now, development revenues increased XXX ADS taxes, company's XXX X.X% and personnel-related General to sharing for of products, lower million increase net Bandwidth by million of share-based to income fees income fair XX.X% let XXX QX, Research disposal was RMB X.XX decreased margin compensation to management million. X.X% sharing X.X excludes billion income of sharing to diluted Inc. attributable are enhancement by mainly was expenses investments and XXX million. and investments revenue RMB QX non-GAAP QX financial RMB by was in investment, Gross Inc. RMB and e-sports per million increased our specified, marketing on XXX to XXX X.X% Non-GAAP for by XX.X% me increased costs. fees million expenses million expenses attributable to improve exclude administrative to on to Diluted content HUYA, live to income, to was net income QX. X.X% XX.X% for not RMB QX, in share-based revenues and RMB to to increase by for QX in of gain to XX.X% which expenses in Operating content, and technology QX, X.X% by the on attributable X.X% million due QX. XX.X% mainly due million was terms. X.X% Sales for income increased X.X% increased ADS X.X and If operating Cost attributable expenses. revenue net margin increased expenses. net the costs increased decreased due to content. for X.X% the promote increased by branding. change for RMB which and by partial value growth investees' non-GAAP equity increased by compensation operating investees' per and by to the attributable RMB QX. increase continued services costs QX, to for million QX. equity year-over-year to QX, and for Non-GAAP XX compensation X.X in streaming income primarily QX, RMB for RMB for all increased operating marketing bandwidth increased expenses for primarily RMB for XX.X% RMB to

XX, I With had cash cash would RMB the investments RMB XX, with net now call RMB XXXX. and your As by provided operating was equivalents, XXXX, short-term company of December as questions. billion million to of compared for QX. the XX.X XXX open billion primarily cash that, to and increase of short-term to deposits activities of due like XX.X March The

Operator

[Operator Instructions].

Your Zhang from line Lei of first of question Merrill comes America from the Bank Lynch.

Lei Zhang

here. questions Two Language] [Foreign

real the you. competition growth the with live of major growth landscape, update, streaming an us here? driver What's on in Thank give and color revenue? Secondly, other competitive especially recent you saw can our good First, in advertising Bilibili quarters? which the any

Rongjie Dong

Regarding it's also year-over-year growth growth industry, enjoyed question, in Especially Bilibili, first for entrant year-over-year a your it phase the relatively them that growth an the a to higher for thinking for streaming [indiscernible] game being natural is as pretty live as both in them. JOYY to HUYA new the well. about outstanding as still or

internal talking own the it is landscape. a landscape, from really quarter. competition of [indiscernible]. compared there's we happen. last more And our facing by year. And one-and-a-half to thing many situation of because perspective the industry, really the past there capabilities year feel opportunities this which and the this do is games, more can current opportunities the in half what you question. in the blockbuster of perspective, of weren't threatened entrance the your is pressured Catherine more competitive if So, years, or see especially to game why in we And almost And next the quite the in second don't back the half natural change will our expecting from look we strengthen no new And take the the launches we are second optimistic games from big at of from

Catherine Liu

other the content. of this licensing fast mainly of revenues revenues, from advertising question growth As driven by of for question. your your this and is answers Hope

Operator

We'll question next proceed from & Needham to Yu Vincent of Company. the

Vincent Yu

[Foreign Language] I have two questions.

third help strategy content in will this us for our The And any this investments on our breakeven for about wavers we to First size brought much basis e-sport How about management of the by bring in antitrust in a acquiring see focus in for development we line is tournaments what Can standalone is, can deploy? regulators? Second we around contribution is, Will share process the content. we that in-house on will see XXXX? we the for management of year? top license market share think XXXX? on will market we question investments for probes XXXX? ready of are [indiscernible]? international our we recent should PDC is understand can And strategy how have

Catherine Liu

Regarding question, couple strategy stage. probably to we news that, investment this for the the the still good at monetization. still next our improving the of overseas first is we're year, years. invest our expect focused for international And business, business the our in will But we on has been continue

as So, our that down in At contribution the narrowed loss absolute the the revenue overseas doubled the will business business we same the also both be able first increasing the time, has investment expected be terms make in And dollar year-over-year next this or I business this. of then, still quarter, has is revenue year. of will the a stage overseas for also and year. breakeven overall, going this think, relay revenue. to to will Dong But, of to percentage in point. be we country, Mr. at to overseas answer some question, We overseas

Rongjie Dong

Regarding already might the about see the have circumstances, the we some talked and will right Language] your we what with of can strategy investment, sort future. conclusion adjust current we investment. DouYu, from of And in see for of merger progress ongoing the these now, we some current given in terms progress since content reach we think [Foreign content questions the

we the think been has form between content, terms non-gaming In branded terms of producing quite in content tournament, HUYA the third-party e-sports purchasing form of the of e-sports whether tournament. of play in the doing its own well in self-produced and the or balance game

hosted we recently our will and not is new branding to Huya quality produce just will have of e-sports which the users, the the our the third has among from among seen purchasing a also Kungfu a Carnival of we solidify we only but example, attraction own series why For content. tournament focus Internet lot it parties, the capabilities

Operator

from Your is question next Thomas Jeffries. of Chong

Thomas Chong

taking for Tencent. question. question management, my the management first some you, provide with about Thank My is, update cooperation could

one this The and non-game comment could in broadcasting? the management game year second on strategy is,

Catherine Liu

with question, quarter, Tencent. this have first your to Regarding collaboration we continued the

For example, game also the features innovative for launched we platform to our offer interactive play. open more

between also [indiscernible] and At increasing also Elite, in of and ways first then is such the same result The we users the cooperated game of as increasing collaborate users that major the then platforms. well. continue the time, we the have Tencent Peacekeeper terms and products was games with the the some various and interaction to Tencent in as

So, the it Tencent on. will also monetization to bring more continue And also opportunities. us users go expect collaboration future, the with will in we and

Rongjie Dong

[Foreign Mr. Dong your Language] content regarding answered strategy. question has the

the are the e-sports gained esports generated secondly, have also professionally have users gaming the released players. games Huya the the say will in that. of streaming to rate quarters. among new the advantage the platform the strengthen likely second here than some on platform, gained for are sessions second of live pool to say half of how on And looking it's be rights. operate like content, the rate the actually the which we'd data majority HUYA year some our new of quite on past content. the by new year. live has capabilities and as is non-gaming is in we're the the the games. a resources why production to we is the of year, we in streaming to prosperous half content a promote to this higher the perspective, past, will And from Firstly, growth for it's for of the and be at industry [indiscernible] a enjoying about opportunities third-party that the non-gaming content growth capability few the blockbusters expected non-gaming gaming going industry this there interactions. actually And lot a we in second over those the has actually game growth new new our And quite the the is leading to our tournaments. tournament vast front half And the for that natural thinking the for be strong And sectors of That in opportunities game games customer of of a the potential content, invest promoting the will that

past. quite That non-gaming future. party rights And makes quite For outstanding gaming, also us invest actually is we third broadcasting need the us. whether the example, potential in in traditional content will is to that into think for sports

our are year. the these So, for rest of the strategy content

Operator

question is from next [ph] HSBC. Richie of The Fan

Unidentified Participant

I question about have a game strategy. video

video the is of how traction So, strategy. game

operating Can hence metrics more any affect how trends video users, update lower? So, paying that we ratio ratio be paying video and users will game game the and to and And with more ARPU and ARPU hardcore less us? will forward? going assume

Rongjie Dong

Language] will question [Foreign for Mr. Dong business. your for video our translate regarding I

one running in Our some has new and video terms of new business business. for there been been already the for video how to strategy two has develop quarters thoughts or already the

we we with business, rolling for form HUYA nature streaming be business, [indiscernible] we feel I longer previously, As been will feedback, strengthen video or game engage business time. a the new whether live capabilities sectors. we video sectors of our gaming be is the new to That quarter. of two help us platform, always video and the titles the data that form of with video one which as two And second content a we strengthen within in also of videos streaming actually thinking platform the first natural our content carousel business. have will in tested the feel to positive acquiring industry one like on why believe coverage the But extend advertising this the of sessions to leaders the like will said in from more And value monetization or to on-demand from to the those quarter the business, our in quarter, already users actually before, involved received as requires a from will to users the categories chain. big And for with focusing Huya streaming about – have help platform we the attractiveness of gaming we second us have the those our advertisers that category growth attract business. more

Operator

We Tian will question take T.H. Hou the of from Capital. final

Tian Hou

the the expectation is once for business? management's Thank gets game be What's Legends League also, potential our online? that of to impact to what started, And streaming you.

Rongjie Dong

hopefully the year. school quite us this this that just can Legends in League will have the And on [indiscernible] season. for it's our the already the quite half thinking we year. from if started beginning earlier we [Foreign repeat in the communications about it all this emphasize And is And game also of favorable quite of version, gain sorted the our of we actually game. mobile for second [indiscernible] – players League Language] From likely For out launched holiday potential of Legends and be platform. that version summer with released be mobile the analogy, professional the perspective we the the leagues new own can and that preparation and

Operator

closing turn questions to now. remarks. like the company further no are There to back call for the I'd over

Dana Cheng

all you joining right. today. for conference our call All Thank

look next If to in you. and free we speaking the to you contact further with Thank you have questions, quarter. ir@huya.com feel forward

Operator

this conference concludes you. call. Thank This

you. may line. disconnect Thank You now your