Shares of Huya Inc. (NYSE: HUYA) tumbled 9.03% in pre-market trading on Tuesday following the release of its fourth-quarter 2024 financial results. The Chinese live game streaming platform reported disappointing earnings and missed analyst revenue estimates, raising concerns about the company's growth prospects.
Huya reported a net loss of RMB 172.203 million (US$24.3 million) for the fourth quarter, with basic and diluted net loss per American Depositary Share (ADS) of RMB 0.75 (US$0.10). While the company managed to post a non-GAAP net income of RMB 0.01 per ADS, it fell significantly short of analyst expectations of RMB 0.27 per ADS, as reported by FactSet.
Revenue for the quarter came in at RMB 1,495.827 million (US$210.7 million), representing a 2.3% decrease from the same period last year. This figure also missed the analyst consensus estimate of RMB 1,526.88 million (US$215.25 million). The company's operating loss widened to RMB 92.692 million (US$13.1 million), further contributing to investor concerns. These disappointing results, coupled with increased operating expenses of RMB 267.165 million, have likely triggered the sharp sell-off in Huya's stock, as investors reassess the company's financial health and growth trajectory in the competitive Chinese gaming and live-streaming market.
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