DouYu Revenue Declines Over 23% In Q3 As Economic And Macro Headwinds Weigh

DouYu International Holdings Limited (NASDAQ: DOYU) reported a third-quarter FY22 revenue decline of 23.4% to $252.8 million year-on-year, beating the consensus of $249 million.
Segments: DouYu's Livestreaming revenues decreased by 22.9% Y/Y to $239.7 million due to prudent operating strategies in anticipation of a tightening regulatory environment.
Advertising and other revenues declined by 32.1% Y/Y to $13.1 million due to the challenging macro environment and exploration of new commercialization models.
Gross margin rose by 210 bps to 14%.
Adjusted EPS per ADS of $0.01 missed the consensus of $0.02.
DouYu held $966.2 million in cash and equivalents.
Drivers: DouYu's quarterly average mobile MAUs fell 7.7% Y/Y to 57.1 million. The quarterly average paying user count decreased 22.2% Y/Y to 5.6 million.
Shaojie Chen, Chief Executive Officer of DouYu, commented, "During the third quarter, we achieved stable and holistic business development as we navigated through a challenging macro environment. We stabilized our user base through continuous innovation and investment in our content and service offerings while further improving revenue quality and augmenting our cost control initiatives."
Price Action: DOYU shares closed higher by 0.76% at $1.32 on Friday.