Our reporter Yuan Chuanxi
On June 5th, Douyu released its unaudited financial report for the first quarter of 2024. According to financial report data, in the first quarter of 2024, the average MAU (monthly active users) of Douyu Mobile was 45.3 million, with a total of 3.4 million paying users. The total revenue was 1.04 billion yuan, with a gross profit of 109 million yuan and a gross profit margin of 10.5%. The net loss was 88 million yuan, and the adjusted net loss was 85.7 million yuan.
The Douyu Temporary Management Committee stated, "In the first quarter of 2024, Douyu will continue to strengthen the company's diversified business capabilities and strengthen refined operational management by optimizing the company's structure and adjusting operational strategies. Douyu is more focused on the needs and experiences of core platform users, while providing high-quality content, fully utilizing the platform's anchor resources and content ecosystem, actively exploring cooperation opportunities with more game manufacturers, and providing users with richer game related services."
In fact, in the first quarter of 2024, although Douyu faced pressure from the adjustment of its live streaming business, significant progress has been made in its commercialization transformation. By deepening services and cooperation in the gaming industry, Douyu successfully promoted platform revenue diversification and healthy growth by focusing on game prop sales, game advertising, and distribution services. In the first quarter of 2024, advertising and other business revenue was 239 million yuan, accounting for 23% of the revenue contribution, a significant increase from 7.7% in the same period of 2023.
Zhang Yi, CEO and Chief Analyst of iMedia Consulting, told Securities Daily that Douyu's advertising and other revenue has increased rapidly, and its advertising revenue has also shown a certain degree of upward trend, indicating that it has achieved significant results in its commercial transformation after compliant operation.
"From the first quarter financial report, the main challenge facing Douyu is how to leverage its huge user base to transform and extend the monetization model of entertainment live streaming and game live streaming, especially in the entertainment live streaming field. This is also an urgent problem that Douyu needs to solve." Zhang Yi further stated.
Specifically, currently, in response to the needs of platform link manufacturers and game players, Douyu is exploring a diversified profit model based on manufacturer resources while obtaining more exclusive resources and high-quality content. On the one hand, game props are promoted through platform anchors, content creation, and operational activities. On the other hand, platform game membership business is carried out based on game props, forming an effective commercial path for Douyu to sell game props.
For example, during the Cross Fire Zone CFS Championship Welfare Season, the Douyu platform and anchor limited skins were launched in the game, and related game props were promoted in the Douyu live broadcast room, effectively promoting the activity of the game ecosystem. The data shows that the conversion rate of Douyu game promotion is higher than the market average, which increases the income sources of anchors besides salary and live streaming rewards. Douyu's income structure has also been further optimized.
At the same time, Douyu utilized the platform's anchor resources and content ecosystem in the first quarter of 2024 to carry out multiple operational activities covering the entire site, further mobilizing user interaction willingness and stabilizing live streaming tipping revenue. And Douyu platform integrates multi zone resources, promoting related operational activities to gradually cover more waist hanging anchors from top anchors, maximizing platform resource advantages, and driving the growth of anchor traffic at different levels.
Douyu stated that the above activities not only effectively activated user interaction, but also covered 80% of daily active paying users with a single activity. They also formed a word-of-mouth effect, driving users to break through the ice and return. Low resource consumption led to a revenue increase of over 150% for medium and long tail anchors.
In addition, to meet the increasingly diverse viewing needs of users, Douyu has also upgraded its product functions in the first quarter. The content recommendation second level column has added a "competition" category, which integrates the competition content of the top game zones, including the annual schedule and schedule of various competitions, game replays, player ratings, etc.
Looking ahead to the future, Douyu stated that it will actively explore cooperation opportunities with more game manufacturers, further improve its revenue structure, and achieve its long-term value as a game ecosystem platform through the continuous creation and growth of new products and models.
An anonymous industry analyst told Securities Daily that in the future, Douyu should continue to strengthen its advertising business and explore more diversified sources of income, such as esports derivative sales, virtual gift sales, offline event organizations, etc., to reduce reliance on live streaming rewards and reduce business risks. At the same time, Douyu should strengthen cooperation with game manufacturers, obtain more exclusive resources and high-quality content, and enhance the platform's competitiveness and attractiveness.