DouYu International Holdings Limited (DOYU) CEO Shaojie Chen on Q2 2022 Results - Earnings Call Transcript

DouYu International Holdings Limited (NASDAQ:DOYU) Q2 2022 Earnings Conference Call August 15, 2022 7:00 AM ET

Company Participants

Lingling Kong - Investor Relations Director

Shaojie Chen - Chairman and Chief Executive Officer

Mingming Su - Chief Strategy Officer

Hao Cao - Vice President, Finance

Conference Call Participants

Lei Zhang - Bank of America

Alex Poon - Morgan Stanley

Thomas Chong - Jefferies

Yiwen Zhang - China Renaissance

Brian Gong - Citigroup

Operator

Good morning and good evening, ladies and gentlemen. Thank you and welcome to DouYu International Holdings Limited’s Second Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note today’s event is being recorded. I will now turn the call over to the first speaker today, Ms. Lingling Kong, IR Director at DouYu. Please go ahead, ma’am.

Lingling Kong

Thank you. Hello, everyone. Welcome to our second quarter 2022 earnings call. Joining us today are Mr. Shaojie Chen, Chairman and Chief Executive Officer; Mr. Mingming Su, Chief Strategy Officer; and Mr. Hao Cao, Vice President of Finance. You can refer to our second quarter 2022 financial results on our IR website at ir.douyu.com. You can also check a replay of this call when it becomes available in a few hours on our IR website.

Before we start, please note that this call may contain forward-looking statements made pursuant to the Safe Harbor provision for the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations and observations that involve known and unknown risks, uncertainties and other factors not under the company’s control, which may cause actual results, performance or achievements of the company to be materially different from the results, performance or expectations implied by these forward-looking statements. All forward-looking statements are expressly qualified in their entirety by the cautionary statements, risk factors and details of the company’s filings with the SEC. The company undertakes no duty to revise or update any forward-looking statements for selected events or circumstances after the date of this conference call.

I will now speak on behalf of our Chairman and CEO, Mr. Shaojie Chen.

Shaojie Chen

[Foreign Language]

Lingling Kong

In the second quarter, we continued to explore new growth drivers while increasing our investment in self-produced content. In addition, we tightened our cost control and improved revenue quality by structural adjustment of our revenue stream, resulting in a profit turnaround for the quarter. This quarter, our mobile MAU was 55.7 million. Total net revenues were RMB1.83 billion and quarterly paying user count was 6.6 million. By prudently adjusting our copyright procurement strategy and deftly implementing cost control, we increased our gross margin to 6.9%. Meanwhile, we made solid progress to improving operating efficiencies as our adjusted net income reached RMB23.5 million.