HUYA Inc. (NYSE:HUYA) reported better-than-expected earnings for Q3 2023, with an EPS of $0.42 compared to expectations of $-0.02. The company's financial and operational results were discussed in a webinar led by Hanyu Liu from HUYA's Investor Relations. The call included prepared remarks from Acting Co-CEOs Mr. Junhong Huang and Ms. Ashley Wu, followed by a Q&A session.
During the call, Mr. Junhong Huang highlighted HUYA's strategic transformation plans, which aim to shift the company's commercialization focus towards game-related services such as game distribution, in-game item sales, and game advertising. He shared details of the company's efforts in enhancing game distribution capabilities, improving in-game item sales, and exploring various operational activities around advertising services.
Mr. Junhong Huang also discussed HUYA's progress in utilizing AI technology to improve content creation quality and user engagement. The company has developed an AI assistant feature that offers intelligent chat, game analysis, and content creation tools. The AI assistant can imitate a broadcaster's style and engage with viewers during live sessions. Additionally, HUYA is exploring the application of AI across the entire content production chain.
Ms. Ashley Wu provided updates on HUYA's operating metrics and financials. Despite being affected by users' time spent on offline entertainment activities, HUYA's live mobile monthly active users (MAUs) reached 86 million in Q3, demonstrating high user stickiness. The company continued to focus on licensed e-sports events and self-produced content to enrich its professional content offerings.
Ms. Ashley Wu also discussed HUYA's financial performance, highlighting a decline in total net revenues due to the challenging market environment and proactive business adjustments. However, the company's gross margin remained resilient at 13.9% in Q3. She provided details on HUYA's revenues, costs, and expenses, as well as its operating loss and net income for the quarter.
Overall, HUYA's Q3 earnings call showcased the company's strategic transformation plans, progress in game-related services, utilization of AI technology, and financial performance. The call concluded with a Q&A session where participants had the opportunity to ask questions.