Online game live streaming platform HUYA Inc. (HUYA) has reported stronger-than-expected results for the second quarter ended June 30, 2021. The solid results can be primarily attributed to the growth witnessed in net revenues.
Following the earnings, shares of the company remained unchanged to close at $9.50 on Tuesday.
The company reported quarterly net revenues of $458.8 million, up 9.8% from the same period last year and the Street’s estimates of $441.06 million. The rise was mainly driven by 189.9% year-over-year growth in Advertising and other revenues, which stood at $59.4 million.
Huya’s quarterly earnings per share (EPS) stood at $0.16, down 27.3% year-over-year. The figure, however, surpassed analysts estimates of $0.14 per share.
In some other operating metrics, the average monthly active users (MAU) of Huya Live rose 2.6% to 77.6 million from 75.6 million. However, the total number of paying users for the same decreased to 5.6 million from 6.2 million last year.
The CEO of Huya, Rongjie Dong, said, “In the second quarter, we amplified our efforts in enriching our content offerings and attracting users, which drove steady growth of mobile users. Going forward, it is crucial for us to continue to expand our content ecosystem and optimize user experience in order to solidify our foundation for future growth opportunities.” (See Huya stock chart on TipRanks)
On August 17, CLSA analyst Nathan Wang reiterated a Buy rating on the stock. The analyst, however, lowered the price target from $16.50 to $10, which implies upside potential of 5.3% from current levels.
Consensus among analysts is a Strong Buy based on 6 Buys and 2 Holds. The average Huya price target of $20.20 implies upside potential of 112.7% from current levels. Shares have declined 62.8% over the past year.
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