HUYA Shares Gain on Q3 EPS Beat, Mobile User Growth

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City on Oct. 15, 2021. (Spencer Platt/Getty Images)

HUYA Inc (HUYA) reported third-quarter FY21 revenue growth of 5.7 percent year-on-year to $461.8 million, missing the consensus of $475.5 million.

Segments

HUYA’s Live streaming revenues declined by 2.1 percent Y/Y to $403.8 million from lower average spending per paying user on Huya Live.

HUYA’s advertising and other revenues rose 137.1 percent Y/Y to $58 million, driven by content licensing revenue.

Drivers: Average mobile MAUs of Huya Live rose 14.7 percent Y/Y to 85.1 million. The total number of paying users of Huya Live remained flat at 6 million.

Margin

HUYA’s gross margin contracted 510 bps to 16.9 percent. The operating margin also contracted 510 bps to 2.8 percent.

HUYA’s adjusted EPS of $0.12 beat the consensus of $0.04.

HUYA held $1.7 billion in cash and equivalents.

“During the recent summer period, we saw robust growth in mobile users based on our comprehensive content offerings, strong operational capabilities and continued promotion efforts,” said CEO Rongjie Dong.

Price Action

HUYA’s shares traded higher by 5.41 percent at $8.97 in the premarket session on the last check Tuesday.

By Anusuya Lahiri

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