HUYA Inc. (NYSE: HUYA) reported Q2 EPS of $0.14, $0.03 worse than the analyst estimate of $0.17. Revenue for the quarter came in at $381.8 million versus the consensus estimate of $377.89 million.

Second Quarter 2020 Highlights

• Total net revenues for the second quarter of 2020 increased by 34.2% to RMB2,697.2 million (US$381.8 million), from RMB2,010.5 million for the same period of 2019.
• Net income attributable to HUYA Inc. was RMB226.8 million (US$32.1 million) for the second quarter of 2020, representing an increase of 86.2% from RMB121.8 million for the same period of 2019.
• Non-GAAP net income attributable to HUYA Inc.[1] was RMB351.0 million (US$49.7 million) for the second quarter of 2020, representing an increase of 106.0% from RMB170.4 million for the same period of 2019.
• Average mobile MAUs[2] of Huya Live in the second quarter of 2020 reached 75.6 million, representing an increase of 35.2% from 55.9 million in the second quarter of 2019.
• Average MAUs[3] of Huya Live in the second quarter of 2020 reached 168.5 million, representing an increase of 17.1% from 143.9 million in the second quarter of 2019.
• Total number of paying users[4] of Huya Live in the second quarter of 2020 reached 6.2 million, representing an increase of 26.5% from 4.9 million in the second quarter of 2019.

"I'm glad to deliver a strong second quarter. Revenues for the period exceeded our expectations, further illustrating our growth potential," said Mr. Rongjie Dong, Chief Executive Officer of Huya. "Average mobile MAUs and MAUs in the second quarter reached 75.6 million and 168.5 million, respectively, demonstrating our commitment to expanding our user communities. With a healthy track record in both monetization and user growth, we expect to continue to broaden our user community as we strengthen our market leadership in the game live streaming industry."

Mr. Dong added, "Since Tencent became our largest shareholder, our cooperation has deepened in many aspects. For example, Huya's live streaming content is now available in an increasing number of Tencent's games and products, tapping into an expanded pool of viewers. We are in the process of building one-click streaming services within some of Tencent's games to attract more broadcasters. We are also rolling out the cooperation in various dimensions relating to e-sports tournaments. Additionally, we continued to diversify and enrich our product offerings in the second quarter. Harnessing the strengthened collaboration with Tencent and our product deployment strategy, we look forward to further user growth, engagement and monetization in 2020 and beyond."

Ms. Catherine Liu, Chief Financial Officer of Huya, commented, "Our gross profit in the second quarter of 2020 grew by 71.3% year-over-year, reflecting our fast business growth and improved profitability. We also continued to enhance operating efficiencies. Our operating margin increased to 7.5% in the second quarter of 2020, compared to 3.4% in the second quarter of 2019, while our non-GAAP operating margin increased to 12.1%, compared to 5.8% in the second quarter of 2019. Our solid financial position supports our ability to make key investments in our future growth and deliver long-term shareholder value."

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