On December 7th, Douyu released its unaudited financial report for the third quarter of 2023. In the third quarter, Douyu persisted in building a diversified content ecosystem platform with games as its core, continued to implement long-term sustainable development strategies, made the platform ecosystem healthier, significantly improved operational efficiency, and achieved profitability for three consecutive quarters.
In the third quarter, the average MAU of Douyu mobile increased to 51.7 million month on month, with 3.9 million paying users. While cultivating the community gaming ecosystem, Douyu also continues to optimize the platform's profitability, with gross profit margin and net profit increasing for three consecutive quarters. During the reporting period, Douyu's total revenue was 1.359 billion yuan, with a gross profit of 192 million yuan, corresponding to a gross profit margin of 14.2%. Under non US GAAP, the platform's net profit was 71.9 million yuan, a year-on-year increase of 180% and a month on month increase of 17.2%.
The Douyu Temporary Management Committee pointed out in its financial report that: "In the third quarter of 2023, we actively implemented and optimized our growth strategy, and our company's business achieved steady development, in line with our goal of continuously building a healthy and sustainable gaming community ecosystem. This quarter, we continued our stable marketing strategy and strengthened our efforts in game promotion and cooperation with manufacturers through the launch of new games. Through high-quality game content and efficient operations, we continuously optimized the user experience."
In the context of market stock competition, Douyu particularly focused on deepening the exploration of profit models in the third quarter, and made diversified attempts in areas such as fan drilling services, paid gameplay, and new game promotion. According to the financial report, in the third quarter, Douyu's total net revenue was 1.359 billion yuan, of which live streaming revenue was 1.151 billion yuan. Advertising and other revenue increased by 123.2% from 93.3 million yuan in the same period last year to 208 million yuan; The gross profit is 192 million yuan, corresponding to a gross profit margin of 14.2%; Under the general accounting standards in the United States, the net profit achieved was 76.4 million yuan, an increase of 83 million yuan compared to the same period last year; Under non US GAAP accounting standards, the net profit achieved was 71.9 million yuan, a year-on-year increase of 180% and a month on month increase of 17.2%. The positive changes in financial report data highlight the outstanding achievements made by Douyu in exploring its profit model this quarter.
In terms of platform ecological health management, Douyu also utilizes technological means to practice refined management. In the third quarter, Douyu continued to strengthen its platform content management and review mechanism on the basis of its existing risk identification technology system, improving the accuracy of system audits and expanding the scope of system audits. While significantly improving the accuracy and efficiency of content audits, it also effectively reduced the pressure of manual audits.
Overall, in the third quarter, Douyu's profitability and operational efficiency further improved, with innovative content richness and experiential gameplay, resulting in positive feedback on performance. For the future development of the platform, the Douyu Temporary Management Committee also pointed out that, "In the future, we will continue to devote ourselves to the long-term growth and sustainable development of the platform. On the basis of strengthening compliance construction, we will build a 'game centered diversified content ecosystem platform', provide higher quality content and services through product upgrading and innovation, and explore new growth points to ensure the stable development of the company's business and finance, in order to consolidate Douyu's comprehensive competitiveness and leading position in the domestic game content industry."