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Huya Inc. HUYA Inc. Reports Third Quarter 2021 Unaudited Financial Results GUANGZHOU , China , Nov. 9 , 2021 / PRNewswire / -- HUYA Inc. ( " Huya " or the " Company " ) ( NYSE : HUYA ) , a leading game live streaming platform in China , today announced its unaudited financial results for the third quarter ended September 30 , 2021 . Third Quarter 2021 Highlights • Total net revenues for the third quarter of 2021 increased by 5.7 % to RMB2,975.5 million ( US $ 461.8 million ) , from RMB2,814.8 million for the same period of 2020 . • Net income attributable to HUYA Inc. was RMB524.4 million ( US $ 81.4 million ) for the third quarter of 2021 , compared with RMB253.0 million for the same period of 2020 . • Non - GAAP net income attributable to HUYA Inc. [ 1 ] was RMB180.0 million ( US $ 27.9 million ) for the third quarter of 2021 , compared with RMB361.2 million for the same period of 2020 . • Average mobile MAUS [ 2 ] of Huya Live in the third quarter of 2021 increased by 14.7 % to 85.1 million , from 74.2 million in the same period of 2020 . • Total number of paying users [ 3 ] of Huya Live in the third quarter of 2021 reached 6.0 million , compared with 6.0 million in the same period of 2020 . " During the recent summer period , we saw robust growth in mobile users based on our comprehensive content offerings , strong operational capabilities and continued promotion efforts . Huya Live's average mobile MAUS reached 85.1 million in the third quarter of 2021 , representing a year - over - year increase of 14.7 % and a quarter - over - quarter increase of 9.7 % , " said Mr. Rongjie Dong , Chief Executive Officer of Huya . " In light of the dynamic business environment , reinforcing our competitive advantages is pivotal to our continuing success . In this spirit , we will strive to promote new game launches , further enrich our content library , and advance product and service upgrades through innovation to meet diverse user demands as we continue to ensure a great user experience . " Ms. Ashley Xin Wu , Vice President of Finance of Huya , commented , " We continued our sustained growth pathway in the third quarter by achieving 5.7 % year - over - year top - line growth . And , against the backdrop of an evolving landscape , we strengthened our investment in quality content and content creators to cement our leading market position . Going forward , we will remain dedicated to driving user growth , improving monetization and enhancing our ecosystem . " [ 1 ] " Non - GAAP net income attributable to HUYA Inc. " is defined as net income attributable to HUYA Inc. before share - based compensation expenses , and gain on fair value change and disposal of equity investments , net of income taxes . For more information , please refer to " Use of Non - GAAP Financial Measures " and " Reconciliations of GAAP and Non - GAAP Results " at the end of this press release . [ 2 ] Refers to average monthly active users on mobile apps . Average mobile MAUS for any period is calculated by dividing ( i ) the sum of active users on the mobile apps for each month during such relevant period , by ( ii ) the number of months during such relevant period . [ 3 ] Refers to the sum of user accounts that purchased various products and services on our platform at least once during such relevant period . Third Quarter 2021 Financial Results Total net revenues for the third quarter of 2021 increased by 5.7 % to RMB2,975.5 million ( US $ 461.8 million ) , from RMB2,814.8 million for the same period of 2020 . Live streaming revenues decreased by 2.1 % to RMB2,601.9 million ( US $ 403.8 million ) for the third quarter of 2021 , from RMB2,657.2 million for the same period of 2020 , primarily due to lower average spending per paying user on Huya Live . Advertising and other revenues increased by 137.1 % to RMB373.7 million ( US $ 58.0 million ) for the third quarter of 2021 , from RMB157.6 million for the same period of 2020 , primarily driven by the revenues from licensing of content . Cost of revenues increased by 12.6 % to RMB2,471.5 million ( US $ 383.6 million ) for the third quarter of 2021 from RMB2,194.3 million for the same period of 2020 , primarily due to the increase in revenue sharing fees and content costs . Revenue sharing fees and content costs increased by 16.3 % to RMB2,123.6 million ( US $ 329.6 million ) for the third quarter of 2021 from RMB1,826.7 million for the same period of 2020 , primarily due to the increase in revenue sharing fees in relation to certain broadcaster incentive programs , and the increase in spending on e - sports content and content creators . Bandwidth costs decreased by 14.2 % to RMB178.0 million ( US $ 27.6 million ) for the third quarter of 2021 from RMB207.6 million for the same period of 2020 , primarily due to improved bandwidth cost management and continued technology enhancement efforts . Gross profit decreased by 18.8 % to RMB504.0 million ( US $ 78.2 million ) for the third quarter of 2021 from RMB620.6 million for the same period of 2020 , primarily due to the increased cost of revenues driven by higher revenue sharing fees and content costs . Gross margin was 16.9 % for the third quarter of 2021 , compared with 22.0 % for the same period of 2020 . Research and development expenses increased by 12.9 % to RMB206.2 million ( US $ 32.0 million ) for the third quarter of 2021 from RMB182.7 million for the same period of 2020 , primarily due to increased personnel - related expenses . Sales and marketing expenses increased by 59.5 % to RMB229.4 million ( US $ 35.6 million ) for the third quarter of 2021 from RMB143.8 million for the same period of 2020 , primarily due to increased marketing expenses to promote the Company's content , products , services and brand name , particularly including promotional activities for e - sports events and cooperation with various marketing channels during the summer vacations . General and administrative expenses decreased by 32.6 % to RMB80.1 million ( US $ 12.4 million ) for the third quarter of 2021 from RMB118.7 million for the same period of 2020 , primarily due to lower share - based compensation expenses . Operating income decreased by 62.7 % to RMB83.1 million ( US $ 12.9 million ) for the third quarter of 2021 from RMB222.9 million for the same period of 2020. Operating margin was 2.8 % for the third quarter of 2021 , compared with 7.9 % for the same period of 2020 . Interest and short - term investments income were RMB62.6 million ( US $ 9.7 million ) for the third quarter of 2021 , compared with RMB75.9 million for the same period of 2020 , primarily due to decreased interest rates . Income tax expenses decreased by 19.9 % to RMB40.6 million ( US $ 6.3 million ) for the third quarter of 2021 from RMB50.7 million for the same period of 2020 . Share of income in equity method investments , net of income taxes was RMB378.7 million ( US $ 58.8 million ) for the third quarter of 2021 , compared with RMBO.2 million for the same period of 2020 , primarily due to the investment income related to a disposal of equity investment . Net income attributable to HUYA Inc. for the third quarter of 2021 was RMB524.4 million ( US $ 81.4 million ) , compared with RMB253.0 million for the same period of 2020 . Non - GAAP net income attributable to HUYA Inc. for the third quarter of 2021 , which excludes share - based compensation expenses , and gain on fair value change and disposal of equity investments , net of income taxes , was RMB180.0 million ( US $ 27.9 million ) , compared with RMB361.2 million for the same period of 2020 . Diluted net income per American depositary share ( " ADS " ) was RMB2.17 ( US $ 0.34 ) for the third quarter of 2021 , compared with RMB1.05 for the same period of 2020. Each ADS represents one Class A ordinary share of the Company . Non - GAAP diluted net income per ADS was RMB0.75 ( US $ 0.12 ) for the third quarter of 2021 , compared with RMB1.50 for the same period of 2020 . As of September 30 , 2021 , the Company had cash and cash equivalents , short - term deposits and short - term investments of RMB11,119.6 million ( US $ 1,725.7 million ) , compared with RMB10,738.2 million as of June 30 , 2021 , primarily due to a cash inflow from a disposal of equity investment . Conference Call The Company's management will host an earnings conference call at 7:00 a.m. U.S. Eastern Time on November 9 , 2021 ( 8:00 p.m. Beijing / Hong Kong time on November 9 , 2021 ) . For participants who wish to join the call , please complete online registration using the link provided below 20 minutes prior to the scheduled call start time . Upon registration , participants will receive the conference call access information , including dial - in numbers , Direct Event passcode , a unique registrant ID and an e - mail with detailed instructions to join the conference call . Participant Online Registration : http://apac.directeventreg.com/registration/event/4691866 After registration is complete , please dial - in 10 minutes before the scheduled start time of the earnings call and enter the Direct Event passcode and registrant ID as instructed to connect to the call . Additionally , a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.huya.com .