HUYA Inc. (NYSE:HUYA) Q1 2020 Earnings Conference Call - Final Transcript

May 20, 2020 • 08:00 pm ET

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HUYA Inc. (NYSE:HUYA) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by for the 2020 First Quarter Earnings Conference Call for HUYA Inc. [Operator Instructions]

I will now turn the call over to Ms. Dana Cheng, company Investor Relations. Please go ahead.

Executive
Dana Cheng

Hello, everyone, and welcome to Huya'a 2020 first quarter earnings conference. The company's financial and operational results were issued earlier today and are posted online. You can also view the earnings press release by visiting the IR website at ir.huya.com. A replay of the call will be available on the IR website in few hours.

Participants on today's call will be Mr. Rongjie Dong, Chief Executive Officer of Huya; and Ms. Catherine Liu, Chief Financial Officer. Management will begin with prepared remarks, and the call will conclude with a Q&A session.

Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the company's prospectus and other public filings as filed with the US SEC. The company does not assume any obligation to update any forward-looking statements except as required under applicable law.

Please also note that Huya's earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Huya's press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures.

I will now turn the call over to our CEO, Mr. Rongjie Dong. Please go ahead.

Executive
Rongjie Dong

Hello, everyone. Thank you for joining our conference call today. Since the beginning of this year COVID-19 has caused a lot of uncertainties worldwide. We remain hopeful and dedicated to helping people stay connected and providing them with rich online entertainment content during this critical time.

Despite the macro environment challenges brought on by the pandemic, Q1 was another solid quarter for us. We saw accelerated growth of mobile users in the first quarter, which further strengthened our leadership position and increased our market share. Average mobile MAUs of Huya Live grew 39% year-over-year, reaching 74.7 million exceeding our previous target and hitting an all-time high. We had over 13 million net additions to our mobile users from Q4. So that growth was mainly driven by the rich content on our platform and our comprehensive and self-reinforcing ecosystem as well as the lockdown period and the extended school holidays during the coronavirus outbreak.

Due to the closure of off-line Internet cafes during the coronavirus outbreak, our nonmobile users were negatively impacted. However, our total users still continued to grow. Average MAUs of Huya Live in Q1 increased 22% year-over-year, reaching 151.3 million, representing over 1 million net additions from Q4. While our user community experienced faster expansion, we were still able to achieve a high level of user retention