HUYA Inc. (NYSE: HUYA ) Q4 2024 Earnings Conference Call
On March 18, 2025, HUYA Inc. (NYSE: HUYA ), a leading video game live streaming platform in China, held its Fourth Quarter and Fiscal Year 2024 Earnings Webinar. The call was hosted by Hanyu Liu, Investor Relations, and featured key executives: Junhong Huang, Director, Acting Co-Chief Executive Officer, and Senior Vice President, Raymond Peng Lei, Acting Co-Chief Executive Officer, and Chief Financial Officer. The call was attended by several analysts, including Thomas Chong from Jefferies, Nelson Cheung from Citi, Ritchie Sun from HSBC, and Yiwen Zhang from China Renaissance.
Key Business Highlights
During the call, HUYA’s executives shared several business highlights from the past year:
- Total net revenues for FY2024 were RMB3.9 billion, representing a year-over-year increase of 37.2%.
- Active users reached 181.5 million, up 53.4% year-over-year.
- Average monthly active users (MAUs) were 70.3 million, an increase of 55.1% year-over-year.
- Total paying users reached 18.5 million, up 53.3% year-over-year.
- Total game revenue from paying users was RMB3.7 billion, accounting for 94.4% of HUYA’s total net revenues.
Financial Performance
Raymond Peng Lei, CFO, provided an in-depth analysis of HUYA’s financial performance:
“Our strong financial performance in FY2024 was driven by the growth of our paying users and their increased spending on our platform. Our total net revenues grew by 37.2% year-over-year to RMB3.9 billion, primarily due to the increase in game revenue from paying users, which increased by 38.9% year-over-year to RMB3.7 billion. Our gross margin was 85.6%, an increase of 2.9 percentage points year-over-year, driven by the optimization of our cost structure and the growth of our high-margin game revenue. Our operating expenses increased by 37.8% year-over-year, primarily due to increased marketing and technology development expenses. Our net income was RMB1.1 billion, representing a year-over-year increase of 42.5%.”
Impact on Individuals
For individuals, HUYA’s strong financial performance and growing user base could lead to an increased availability of high-quality gaming content and a more engaging user experience. Furthermore, the company’s focus on optimizing its cost structure could result in lower prices for users, making the platform more accessible to a wider audience. Additionally, the growth of HUYA’s paying user base could lead to more opportunities for content creators to monetize their streams and build a career on the platform.
Impact on the World
On a larger scale, HUYA’s strong financial performance and growing user base could contribute to the continued growth of the video game industry, particularly in China. The company’s focus on innovation and user experience could help to drive the adoption of live streaming as a primary means of consuming gaming content. Additionally, the growth of the gaming industry could create new opportunities for businesses and entrepreneurs, particularly in the areas of technology development, marketing, and content creation.
Conclusion
In conclusion, HUYA’s strong financial performance and growing user base during FY2024 demonstrate the company’s continued success in the video game live streaming market in China. The increase in paying users and their spending on the platform, as well as the optimization of HUYA’s cost structure, contributed to the company’s robust net income growth. For individuals, this growth could lead to a more engaging user experience, lower prices, and more opportunities for content creators. On a larger scale, HUYA’s success could contribute to the continued growth of the video game industry and create new opportunities for businesses and entrepreneurs.
“We are committed to continuing our focus on innovation and user experience, and we believe that we are well positioned to capitalize on the growing demand for gaming content and live streaming in China,” said Junhong Huang, Acting Co-CEO and Senior Vice President of HUYA. “We look forward to continuing to serve our users and creating value for our shareholders in the coming year.”
