HUYA Inc. (NYSE: HUYA) saw its stock price plummet 5.12% in pre-market trading on Wednesday following the release of its Q4 2024 earnings report and subsequent earnings call. The company's mixed financial results and cautious outlook for 2025 appear to have disappointed investors.
During the earnings call, HUYA's management revealed that live streaming revenue, a key component of the company's business, continues to face challenges due to macroeconomic headwinds and industry-wide pressures. The company's CFO, Raymond Peng Lei, stated that users' willingness to spend on gifting has yet to recover, contributing to the weak performance in this segment. Additionally, HUYA expects a seasonal decline in live streaming revenue for Q1 2025 compared to Q4 2024.
Looking ahead, HUYA anticipates significantly lower interest income in 2025 due to its proactive shareholder return policy and declining market interest rates. The company emphasized that its bottom-line performance in 2025 will primarily depend on improvements in operating results. Despite these challenges, HUYA announced a new dividend plan for 2025-2027, aiming to distribute at least $400 million to shareholders over the next three years. However, this shareholder-friendly move was not enough to offset concerns about the company's near-term financial outlook, leading to the sharp decline in stock price.
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