Q4 2024 DouYu International Holdings Ltd Earnings Call
Speaker Change: Good morning and good evening, ladies and gentlemen. Thank you and welcome to Douyu International Holdings Limited's fourth quarter and four-year 2020-24 earnings conference call. At this time, all participants are in a listen only mode. We will be hosting a question and answer session after management's prepared remarks.
Speaker Change: Please note, today's event is being recorded. I will now turn the call over to the first speaker today, Miss Lingling Kong, IR Director, Douyu. Please go ahead, ma'am.
[inaudible]
Thank you.
Speaker Change: Hello everyone, welcome to our fourth quarter and full year, 2024 earnings call. Join us today, Mr. Simeon Ren, Co-Chief Executive Officer, Mr. Miming Su, Chief Strategy Officer, and Mr. Hao Cao, Vice-President of Finance.
Speaker Change: You can refer to our fourth quarter, 2024 Financial Results on our IR website at rr.douyu.com You can also check a replay of this call when it becomes available in a few hours on our IR website
Speaker Change: Before we start, please note that this comic-continuous looking statement made a suing to the state proper provision for the private security litigation reform act of 1995.
Speaker Change: These four-looking statements are based on management's current expectations and observations that involve known and unknown risks and certain needs in other factors, not under the
Speaker Change: which may cause actual results, performance, or achievements of the company to be materially different from the results, performance, or expectations implied by this for looking
Speaker Change: Overall looking statement, I stressly qualified in their entirety by the cautionary statement, and details of the company's fouling with the SEC.
Speaker Change: The company undertakes no duty to revise or update any forward-looking statements for selective events or circumstances after the date of this conference call.
Speaker Change: With that, I will turn the call over to our co-chief executive officer, Miss Dimension for Business Update. Miss Dim, please go ahead.
Ziming Zhen: In 2020, I meet the dual challenge of a soft, micro-economic landscape and intensified market competition. We remain focused on strengthening our game-centric content ecosystem.
We adopted more flexible operational strategies.
Ziming Zhen: Swissly adjusting how we allocate our resources and diversifying our revenue streams while revodiously controlling costs and expenses, achieving incremental progress.
Ziming Zhen: First, we were pleased with the early success of our revenue diversification efforts.
Ziming Zhen: No ramp up off our voice-based social networking business and game membership services grow revenues from our innovative business, advertising and others to reach 28% of our total revenues for the year.
Ziming Zhen: Marking at 63.6% increase in revenue contribution year over year. These growth partially offset the decline of our live streaming revenues.
Ziming Zhen: Second, we continue to drive cost optimization. We proactively cut back on inefficient business and fine-tuned the compensation structure for streamers.
Reducing over-content cost by 19% year-over-year
Ziming Zhen: Additionally, by streamlining our business flow and aligning our staff structure, we achieve a 17% year-over-year decrease on in sales and marketing, research and development and general and administrative expenses.
Third, we considerably bolstered Shearhold Returns.
Ziming Zhen: Joining on the company's historical catch surplus and future plans, we declared two special cash dividends totaled 600 million U.S.
Ziming Zhen: This distribution highlights our commitment to rewarding shareholders and also reflects our confidence in the company's stable growth potential over the long term.
Ziming Zhen: In addition, we continued to enhance our platform's ecosystem governance, strengthening compliance standards and fostering a healthy content and consumption ecosystem to support long-term sustainable development.
Ziming Zhen: 2025 Gross Plans. I'd like to share a brief snapshot of our performance in the fourth quarter.
Ziming Zhen: In the fourth quarter of 2024, our mobile AMA youth were 44.5 million.
Ziming Zhen: 5.9% quarter-over-quarter and decreasing 13.9% year-over-year. The year-over-year decline remains largely a result of the evolving gaming video content industry dynamics.
Ziming Zhen: However, the quarter of a quarter increase exceeded our expectations and shows the benefits of our content-driven growth strategy.
Ziming Zhen: Our platform's content innovation and operational activities have consistently drawn in and retained high quality users with these quarters sequential MAU growth lead by three key drivers.
First, Stronger Quot Content Partnership [inaudible]
Improve Market Awareness [inaudible]
Overall, despite short-term pressure on the platform to use their base.
Ziming Zhen: We have been focusing resources on strengthening our core user base. At the same time, promoting our new business ventures, particularly GameProp Sales has helped us acquire new users.
During the quarter, we both casted over 50 large-scale official tournaments.
Ziming Zhen: During the oftism, we both casted nearly 40 self-produced e-sport tournaments, extending
Ziming Zhen: Core Creation Partnerships. We wrote out collaborative events across diverse game segments.
Ziming Zhen: For example, the owner of Kim's Thunder Glory Cup S2, which we co-produced with multiple content partners featuring multiple top professional players from different platforms
Ziming Zhen: further strengthened its IP recognition. In addition, we gradually roll out diverse self-produced tournaments for the Laurent featuring professional teams and streamer communities, effectively maintaining high activity levels.
Ziming Zhen: Moreover, we tailored tournament productions to allow with streamer resources, new game launches, and their unique gameplay characteristics.
Ziming Zhen: A notable example is the Douyu Golden Rush Cup for Delta Action by implementing cross-platform content sharing. We effectively enhance the tournament's visibility.
Ziming Zhen: Beyond gaming content, we launched an array of entertaining annual events around the year-end holiday season, enriching the platform's content ecosystem and successfully maintaining user engagement.
Moving on to monetization
Ziming Zhen: Our total number of paying users in the fourth quarter was 3.3 million.
Ziming Zhen: with a courtly ARPPU of RMB 246. The year-over-year decline in paying user was partly caused by
Ziming Zhen: leading to a continued contraction in the spending willingness of transient users on our platform.
Ziming Zhen: More importantly, we proactively adapted our user acquisition strategy, scaling back high cost initiatives such as cash subsidies. Well, these activities typically attract users in the short term.
Ziming Zhen: They failed to drive sustained user spending and drive up our operational costs.
Ziming Zhen: The total number of paying users remains stable, quarter over quarter highlighting the incremental progress of our adjusted user operations strategies and successfully stabilizing the spending patterns of our core user.
Ziming Zhen: We also launched products under a tiered pricing model for our core users to help promote our membership system with premium benefits and gaming product, increasing their payment frequency.
For the Border User Base, we promoted pricing friendly revenue-generating product.
Ziming Zhen: Combined with the diverse game content and our platforms, incentives and benefits.
Ziming Zhen: These strategies boosted user engagement, and we maintained our all-all-paying user base.
Despite a year-over-year decline, our quarterly ARPPU slightly increased quarter-over-quarter.
Belidating the effectiveness of our refined strategies.
Ziming Zhen: Furthermore, our innovative business continue to grow in the fourth quarter, gaining initial monument of scalability.
Ziming Zhen: Ling Well, our voice based social networking business expanded rapidly, driven by our well-structured product design, effective recruitment mechanism, and high-precision user targeting.
Ziming Zhen: Overall, in 2024, more intense industry competition and weaker consumer spending leads to a contraction in our total net revenues for the year. These factors placed greater pressure on allocating our over a sixth cost.
resulting in decreased growth margin and increased net loss.
Ziming Zhen: In light of this, the company's core strategy for 2025 will center on cost reduction, efficiency improvement and narrowing losses, emphasizing three key areas to improve our structure.
Ziming Zhen: First, we will reinforce our revenue resilience by unlocking monetization opportunities within our niche-dame ecosystem.
Ziming Zhen: Advancing the commercialization of new business ventures. We will ramp up product innovation and marketing around game props. In terms AI capabilities and user conversion efficiency for our voice based social networking business.
Ziming Zhen: and continue to increase the revenue contribution from our innovative business. These will reduce our dependency on revenues from our live streaming business and improve our ability to weather micro economic fluctuations.
Ziming Zhen: Our second priority is optimizing our host structures to mitigate the adverse impact of kill in efficiencies.
Ziming Zhen: Over the past year, we performed an indexed ROI analysis of our content and tested multiple approaches to enhance returns.
So far the results have been low this [inaudible]
Ziming Zhen: Moving into 2025, our focus will be on adjusting fixed cost components, especially content in order to improve growth margin.
https://www.youtube.com.ac
Ziming Zhen: This has allowed us to achieve a year-over-year reduction in streamer compensation costs, nervous list, given our current revenue size, streamer compensation costs still account for a large portion of our total revenues.
Ziming Zhen: In 2005, we will continue to optimize our streamer resources through ongoing adjustment.
Lava Raging Flexibility Flexible Contracting Models
Ziming Zhen: We will actively explore cross-platform content, co-creation, unleashing streamers' traffic and commercial potential, while significantly reducing streamer compensation costs.
Ziming Zhen: With more platforms both casting official tournaments in 2024, the typical traffic driven to our platform from official tournaments content gradually declined.
Ziming Zhen: Our historical data suggests that large-scale e-sports events have not significantly boosted our revenue and, in some cases, my have had an active effect.
Ziming Zhen: Although we experiment with direct monetization activities in 2024, such as promoting game props in official tournaments.
Ziming Zhen: Live streaming channels. These initiatives do not not only improve the ROI for copyrighted content.
Thank you for watching!
We will focus on acquiring official tournaments copyrights with higher...
Ziming Zhen: R.O.I. potential and work with copyright holders to secure more advantages, pricing.
Ziming Zhen: Optimizing our copyright cost. Additionally, we are ramping up our AI initiatives to drive efficiency.
Ziming Zhen: Our Intelligent Content Review System continues to evolve with integrators at advancement in large models, improving the accuracy of identifying risk content and shortening processing time.
Ziming Zhen: At the same time, our R&D Center is applying AI-powered programming productivity tools, which enable content-based.
and Ring Friends Driving Coach Generation, boosting overall R&D efficiency.
Ziming Zhen: In February , we completed the technical research and development of open source models based on deep sick. We expect our development efficiency to increase as AI programming tools become more deeply integrated.
Optimizing costs by reducing efficiencies and further streamlining the workforce.
Ziming Zhen: These initiatives are designed to boost productivity, reduce operating expenses and free up more resources to grow and innovative within our core business.
Ziming Zhen: Naturally, these adjustments might help achieve cost optimization goals, but they might also lead to a noticeable decline in our user base and revenue for a period of time.
Ziming Zhen: Additionally, favourable macro-economic dynamic may extend the timeline for narrowing
Ziming Zhen: We have developed an array of contingency plans to mitigate these challenges.
Ziming Zhen: These include consolidating platform resources for more content collaborations, to ease traffic pressure, and trimming key costs to ensure margin improvement among others.
Ziming Zhen: We believe that these initiatives will narrow or not lost in 2025, securing financial stability through cyclical, market fluctuation, while balancing business growth.
Ziming Zhen: With that, I will now turn the call over to our Vice President of Finance, Mr. Hao Cao, to go through the details of our financial performance in the quota.
Thank you for watching!
Thank you, Miss Lin. Hello, everyone.
Ziming Zhen: In 2024, we continue to navigate challenges posed by macroeconomic headwinds.
Ziming Zhen: and involving industry landscape. In response, our financial focus has been on revenue diversification, cost control, and expense optimization.
Ziming Zhen: with revenues from our innovative business, advertising, and others increasing by 63.6% every year to RMB 1.2 billion for the 40th of 2024.
Ziming Zhen: However, both our question margin and then margin were negatively impacted by an increase in overall revenue. Capote was rapidly fixed cost components.
Ziming Zhen: Looking ahead to 2025, our top financial priority is modern improvement to restore financial
Ziming Zhen: Let's take a closer look at our financial performance for the fourth quarter.
Thank you for watching!
Ziming Zhen: Our total net revenues decreased by 10.3% every year in the first quarter, the R&B 1.14 billion from R&B 1.3 billion in the same period of 10.3.
Ziming Zhen: The decline was primarily driven by a decrease in life-streaming revenues, which dropped by 28.4% to RMB 0.73 billion compared with RMB 1.02 billion in the same period of 10.3.
Ziming Zhen: The ongoing macroeconomic softness and evolving user spending patterns with key factors impacting
to address these challenges.
Ziming Zhen: and prioritizing the promotion of more affordable product offerings to encourage consistent spending.
Ziming Zhen: As a result, we saw a year-of-year decline in post-Tuton number of pain users and are caught up, which decreased by 11.5% to RMB 246 from RMB 278 in the same period last year.
Thank you for watching!
Ziming Zhen: Our positive note, our revenue diversification efforts, I show you momentum.
Ziming Zhen: Innovative Business, advertising and other revenues increased significantly in the fourth quarter by 47.2% to RMB 45.1 million
Ziming Zhen: Up from R&B to 175.2 million in the same period of 10 to 3.
Marking a significant milestone in our revenue diversification strategy.
Ziming Zhen: Cost of revenues in the fourth quarter of 2024 decreased by 8.8% to RMB 1.07 billion, compared to RMB 1.17 billion in the same period of 2023.
Ziming Zhen: for comparison purposes. We reclassified certain costs related to innovative business from other [inaudible]
After this reclassification,
Ziming Zhen: Revenue Sheriffies and Accountant Costs in the fourth quarter of 2024, decreased by 9.3% to R&B
Ziming Zhen: 896.2 million compared with RMB 988.6 million in the same period of 2023
Ziming Zhen: The decrease was primarily driven by a reduction in content costs as well as a decrease in revenue
Ziming Zhen: However, this decrease was partially offset by increased revenue shown fees related to revenue
Ziming Zhen: Bandwidth costs in a force quarter of 24, decreased by 30%.
Ziming Zhen: R&B 70.3 million from R&B 100.5 million in the same period of 1023, primarily due to a year of year decrease in peak bandwidth usage.
Ziming Zhen: Gross profit in the fourth quarter of 2024 was RMB 69.8 million compared with RMB 126.2 million in the same period of 10th
Ziming Zhen: The decline in gross profit was primarily driven by a faster decrease in left-streaming revenues relative to the cost of revenues resulting in reduced gross margin efficiency.
Ziming Zhen: Gross Margin in the fourth quarter of 34 was 6.1% compared with 9.7% in the same period of [inaudible]
Ziming Zhen: However, we observed a slight quarter of a quarter increase in gross margin, primarily due to decreased content costs.
Ziming Zhen: The sequential improvement in gross margin not only highlights or ongoing efforts to optimize content costs, but also reinforces a strategy for 2025 of continuously fine tuning a cost structure to enhance gross margin.
Thank you for watching!
Ziming Zhen: Sales and marketing expenses declined by 5.5% in the fourth quarter of 2024 to RMB 79.3 million from RMB 84 million in the same period of 2023.
Ziming Zhen: The decrease was mainly attributable to a decrease in stuff related expenses.
Ziming Zhen: Research and development expenses were reduced by 42.2% to R&B 34.2 million from R&B 59.1 million in the same period of Pantanistry.
Again, mainly due to a decrease in staff's related expenses.
Ziming Zhen: General and Administrative Expansions decreased by 10.4% in the fourth quarter of 2024, to RMB 71.7 meter from RMB 80 meter in the same period of 10.3%
Ziming Zhen: The decrease was mainly attributable to reductions in staff-related expenses and provision for receivables and was partially offset by expense related to ongoing employee streamlining initiatives.
Ziming Zhen: Alas from operations was RMB 183.5 million in the fourth quarter of 1024 compared with RMB 120.5.4 million in the same period of 1023.
Al-Adjustive, Lars from Operations [inaudible]
which excludes impairment loss of goodwill and intangible assets.
Ziming Zhen: Our net loss for the fourth quarter of 2024 was RMB 163.7 million compared with RMB 62.2 million in the same period of 103.
Thank you for watching!
Ziming Zhen: I'll adjust the nail loss, which excludes sharp loss in optimized investments.
Imperman Laws of Investments [inaudible]
Ziming Zhen: Gains from failed value changes in long-term investments and impairment loss of goodwill and intangible assets was RMB 144.3 million in the fourth quarter of 2024.
Ziming Zhen: Compared with on beat 5 minutes in the same period of 10-10-3.
Ziming Zhen: For the fourth quarter of 2024, basic and diluted net loss per ADS were both RMB 5.43, while adjusted basic and diluted net loss per ADS were both RMB 4.78.
Dapeng Gong,
Ziming Zhen: As of December 31, 2024, we had cash and cash equivalence, restricted cash, restricted cash in other non-coron assets.
Ziming Zhen: and the short-term and long-term bank deposits of RMB 4.47 billion, or your dollar 612.1 million.
Compound of his RMB $6.86 billion as of December 31, 2023
Ziming Zhen: Both of which reflect a commitment to returning value to shareholders while maintaining a healthy catch position.
Ziming Zhen: Looking ahead, we are focused on improving margins and achieving financial resilience.
Ziming Zhen: We will continue to refine our operational efficiency and pursue profitable growth, particularly by lowering our current costs and growing our innovative business.
Ziming Zhen: This concludes our prepared remarks for today. Operator, we are now ready to take questions.
Speaker Change: Thank you. To ask a question, please press start on the one on your telephone keypad.
Speaker Change: If you'd like to remove yourself from Q, please press stars in two. For the benefit of all participants on today's call, if you wish to ask your question of the management in Chinese, please immediately repeat your question in English.
Speaker Change: Today's first question comes from Nelson Jiang with Citibank. Please go ahead.
Thank you.
Nelson Cheung: Thank you, administrator, for accepting my question. I have two questions. First, my first question is about the company's innovative business because I see this business as a growth driver in 2025. Could the administrator provide a detailed introduction to our voice business? Also, what are the future expectations for our voice business and the business of selling game items?
Nelson Cheung: My second question is, could you please share with us your plan for the current update?
Nelson Cheung: So, let me translate myself in English. So, that's right, we're taking that question. I have two questions.
Nelson Cheung: The first question is regarding the new business school striker entering into 2035. The learning can then, if management can introduce on your audio business and what is your expectation regarding the audio business and doing pop's business.
Nelson Cheung: And then the second question is, what's the two, what's your plan on the future use of cash? Thank you.
Speaker Change: Thank you, Neil, so I'm going to answer your first question in 2024.
Speaker Change: Our voice-based social networking business and game membership program are the two key drivers of our revenue diversification strategy.
Speaker Change: In 2025, we plan to allocate more resources to our innovative business.
Further propelling revenue growth.
Let me breathe outline our Voice Face social networking business.
Speaker Change: Our chat room livestreaming and other voice-based interaction formats bringing users and aimers social on your experience.
Speaker Change: Streamers can interact with users in real-time within their chat rooms [inaudible]
Well, users can engage [inaudible]
Speaker Change: by sending voice messages and joint voice chat with streamers and other participants.
Speaker Change: In terms of commercialisation, our voice-based social networking business mainly generates revenue from virtual gift sales with a small portion coming from subscription-based membership services and virtual customisation options.
Speaker Change: In 2022, sorry, in 2025, our voice-based social networking business will focus on
Speaker Change: First, we will adopt more refined traffic distribution strategies to improve the efficiency of traffic utilization, specifically targeting higher user conversion rates.
Speaker Change: Second, we will integrate AI capability into the voice-based social networking scenarios to enhance social matching efficiency and overall user experience.
Speaker Change: Third, we will continue innovating product features and revenue generating activities to expand user-conscious scenarios and increase overall revenue.
Speaker Change: All are relatively established game prop cells. We will continue to advance the following three business models.
Speaker Change: First, we will partner with Game Developers on joint large-scale promotional campaigns to increase business visibility and dual-ing traffic from external channels.
Speaker Change: Second, we will extend the multi-platform marketing approach lead by game developers to more streamers, encouraging them to engage in more commercialization ventures.
Speaker Change: Third, we will strengthen our game membership program by combining platform benefits and incentives with GameProp to drive product innovation.
Speaker Change: At the same time, we will expand the membership program to more gaming segments for continued revenue growth.
Speaker Change: Overall, in 2025, we expect revenue from innovative business advertising and others to remain a healthy growth trajectory and contribute approximately 35% of our total revenue.
Let me answer a second question regarding that outcast usage.
Speaker Change: Following the dividend distribution in February 2025, we had cash and cash equivalence with a short-term and long-term deposit of RMB.
2.24 billion as of end of February 25th.
Speaker Change: In line with all business plans for 2025, we aim to substantially reduce our net losses.
Speaker Change: to manage business fluctuations and support the orderly development of our business initiatives. Thank you.
Thank you.
Richie Sun: Our next question comes from Ritchie Sun and HSBC. Please go ahead.
Richie Sun: Management, thank you for your time and for accepting my question. I just want to ask, actually, your company has made some adjustments to its operational strategy for some time now, and there have also been two recent large dividend distributions.
Richie Sun: So how should we interpret the strategy for long-term development that we are currently considering? What changes might there be, and how should we view this issue?
Richie Sun: Thank you, management for taking more questions. We have tweaked our strategy for a while and that also been to large, different payouts. So how should we interpret the long-term development strategy for the group going forward? Thank you.
Speaker Change: Thank you for your good friend. I think we outlined the match-up with the background and the direct shot of our Operation No Surrenderist adjustments in our prepared remarks.
Speaker Change: to build on that bit and giving the involving competitive environment and our current revenue skills is paramount for us to reiterate the ROI of our business.
Speaker Change: as a platform deeply engaged in the game centric diverse content industry. So, this is the strategy, it's not about the conjecture.
Speaker Change: The synthetic dampers that we are teaching will continue to strengthen the platforms called content of the monitors in niche segments and leave me to the pressure on our margins.
Speaker Change: Meanwhile, we continue to identify and go after opportunities that will grow our business and revenues.
[inaudible]
Since 2024, we have purchased a 20-minute US dollar.
Speaker Change: in Shared by Vex, and we have issued two special cash dividends of US $300,000, meaning yes dollar each.
Wait for you with that.
Speaker Change: Keshe Dividends are the optimal way to improve the utilization of our subclass Keshe.
Speaker Change: Oh oh, I would summarize what's rendered as the exchanging short-term operational adjustment
Speaker Change: Forester, particularly in 2025, we aim to embrow mountains by reducing contented causes.
Speaker Change: Then, we plan to enhance our revenue mix by growing innovative buildings.
Speaker Change: Building a healthy business equated some, and a striving for operational profitability in a long term.
Speaker Change: We remain committed to altering a vibrant game centering content ecosystem, focusing on different operations for call users and continuously optimizing our diverse content. Thank you.
Speaker Change: Thank you, and our next question today comes from Rafael Chen at B.O.C.I Research. Please go ahead.
Speaker Change: Thank you for accepting my question. My question is to understand the impact of the adjustment of the purchasing platform on the company's traffic and services. Thank you management for taking my question. I'm just wondering the user and the financial impact of tournament procurement and the streamer strategic adjustment on our platform. Thank you.
I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry.
Speaker Change: Thank you, Rafil. Regarding your question on cost restructuring, let me address copyrighted content and stream constant separately.
First, let's look at copyright content
Speaker Change: We have been applying a flexible approach to acquiring copyright since 2022 that aligns with our company's development goals, historical ROI from copyright content and copyright fees.
Speaker Change: In 2025, our primary goal is cost reduction and loss narrowing based on mobile focused operations.
After.
Speaker Change: Thoroughly assessing the contribution of official tournaments to traffic, revenue and associated costs.
We identified certain high-cost copyright tournaments.
that didn't meet our all-Istanders. [inaudible]
Speaker Change: where we couldn't just define making continued investment based on the elevated copyright fees and diminishing returns in incremental traffic roads.
Speaker Change: Much of our platform's traffic from these games have historically come from tournament users mostly users on PCs, TVs and other large screens
Speaker Change: which are less conducive to promoting and marketing our mobile business.
Speaker Change: Additionally, the potential for commercializing tournament traffic on a large scale was still limited.
Speaker Change: Singh's monetization mainly depends on redirecting autonomous traffic to other content on our platform. The process was long and inefficient, leading to lower monetization efficiency.
Speaker Change: With this in mind, we prioritized more cost-effective tournaments, such as Peacekeeper Elite, which boosted strong commercialization monument.
Speaker Change: which leads a border audience space. Our official content-driven activities around these two events have shown promising results.
Speaker Change: For example, we successfully promoted game crops with within the official Peacekeeper Elite live streaming channel including marketing campaigns lead by game developers and Douyu's game specific membership program
Speaker Change: By linking these gaming accounts and completing specific in-game and interactive tasks in the live streaming channels, users aren't re-reward for redeeming game props.
Speaker Change: This approach not only boosted traffic to tournament content but also increased in-game engagement, creating valuable commercialization scenarios for both our platform and game developers.
Speaker Change: It offers us a pal opportunities for derivative content creation and operations to convert tournament viewers into game content users more effectively.
Thank you. Thank you.
Speaker Change: Furthermore, we have been in discussions with game developers to secure more favorable copyright pricing.
Speaker Change: At the same time, we are exploring ways to optimize our eye on copyrights through flexible partnerships.
Speaker Change: Based on these strategies, we expect that our 2025 4-year copyright cost to decrease the significant rate year-over-year
Speaker Change: We will closely monitor the dynamic in gaming segments missing copyright tournaments with the goal of offsetting any traffic decline with a diverse range of self-produced content
to help minimize the impact of overall engagement.
or no Raphael.
Then,
Let's turn to stream our content.
Speaker Change: The adjustment of streamer resources is a key initiative for optimizing the company's business efficiency in 2025 and at optimizing the cost structure, reducing fixed cost pressure and laying the groundwork for the company's long-term healthy growth.
These adjustments include adopting a more flexible streamer.
Actively Advising Content Conqueration
Speaker Change: and expanding content partners and models as we built on last year's cross-platform content to the content creation partnership.
Speaker Change: Accordingly, revenue from the live streaming virtual gifting might also face some pressure.
Thank you. Thank you.
Speaker Change: Nevertheless, we firmly believe that this adjustment is a crucial step in the company's proactive effort to break free from inefficient operations. A necessary measure to facilitate our long-term growth.
We will redirect resources towards cost effective streamer asset.
Self-produced content and commercialization initiated.
Speaker Change: These initiatives will improve content at ROI and enhance growth margin in the long run. The development focus will be directed towards our innovative business, giving growth in revenues from new business ventures.
Speaker Change: We will focus on diversified monetization streams such as game prop cells, voice-based social networking services and other opportunities.
Speaker Change: With the refined revenue structure, the improved growth margin and optimized operating expenses. We will achieve our goal of significant narrowing operational losses.
Speaker Change: At last, let's turn to the potential impact on our financials.
Speaker Change: Some adjustments, such as those to copyrighted content, will deliver immediate cost savings.
Well, others like streamer adjustment is a relatively ongoing process.
Speaker Change: These adjustments continue. We expect a noticeable year-over-year decrease in content cost, leading to a significant improvement in growth margin for 2020-25.
Thank you. Next question please.
Speaker Change: And our next question today comes from Thomas Chong and Jeffries. Please go ahead.
Speaker Change: Good evening, thank you to the management for accepting my question. My question is about the management expenses of our CGDU. I would like to know the reasons for the quarter-on-quarter increase, and also how we should view 2025.
Speaker Change: Thank you very much for taking my question. My first question is about the GNA expenses.
Thank you.
Okay, thank you for the question.
Speaker Change: Over all, in the fourth quarter, our sales and market expenses, G&A expenses, are specialized R&D expenses, or declined year over year.
Looking ahead to 2025.
Speaker Change: While our business adjustments may exert some pressure on revenue growth, we remain committed to optimizing a cost structure and controlling expenses to improve cost margin in house business efficiency and the reduced operating expenses.
Speaker Change: We expect some improvement in our operating losses for 2025 as compared to last year. Thank you
Speaker Change: Thank you. This concludes the question. That's all the time we have for questions today. I will now turn the call back over to management for closing remarks.
[inaudible]
Speaker Change: Thank you. On behalf of the management, thank you for joining our call today. We look forward to speaking with everyone next quarter.
Speaker Change: Thank you, this concludes today's conference call. You may now disconnect your lines and have a wonderful day.