After many twists and turns, Douyu finally rings the bell.
investment world news, Douyu was successfully listed on Nasdaq tonight, with an issue price of US$11.50 per share of American Depositary Stocks (ADS), and based on this, the market value exceeded US$3.7 billion.
was founded in 2014. Douyu has personally experienced the most restless history of the Chinese Internet - the Thousand Broadcast War. Now, this war seems to be approaching its end, and Douyu has become the largest game live broadcast platform in China with its nearly 160 million active users in the first quarter of 2019.
This entrepreneurial journey is full of capital. Since its establishment, Douyu has received at least 6 rounds of financing, and investors include Sequoia China, Shenzhen Venture Capital, Guozhong Venture Capital, Tencent , etc. The prospectus shows that Douyu founder and CEO O Chen Shaojie holds 13.3% of the shares, and its net worth will reach US$490 million.
Entrepreneurship is fierce like Douyu ,
The birth history of the largest live game platform in China
Time back to 2014, Chen Shaojie and Zhang Wenming founded Douyu TV. These two are both Internet veterans, and they are classmates in elementary and middle school.
Before this, Chen Shaojie and Zhang Wenming jointly founded the "Header" game battle platform, and then sold it to Shanda's Hangzhou winger . Chen Shaojie immediately became the general manager of the winger Wuhan branch. During this period, Chen Shaojie bought AcFun from the founder of AcFun for 1.4 million yuan.
In 2014, Amazon acquired Twitch, an online game live broadcast platform in the United States for US$970 million, which allowed Chen Shaojie to see the prospects of game live broadcast. He changed the name of AcFun's Sheng Broadcast Live to Douyu TV, and since then he began to focus on game live broadcast.
Douyu is actually a kind of fish in Thailand. Two heroes will definitely bite each other when they meet. Chen Shaojie also has the ferocity of Douyu in his business. He once told the media that the only idea when he started is to be fast and to expand the market before others understand.
After receiving angel investment of 20 million yuan from Cai Dongqing, chairman of Aofei Animation, Chen Shaojie was generous and signed a contract with anchors, sponsor teams, and advertising. He spent 15 million in the first month. Although Chen Shaojie's disposal is radical, it has a significant effect. In just a few months, Douyu became famous.
Then in September 2014, Sequoia China invested US$20 million in a Series A financing, allowing Douyu , which had just entered the starting line, to quickly surpass YY Live. When the predecessor of Douyu , AcFun Sheng Broadcast, just sprouted, had not yet been separated from YY, and the game player pool with unique voice has already had 100 million users and nearly 30 million monthly active users. But no one expected that the plot would change so quickly.
Since then, Douyu has been in the first echelon of game live broadcast. The prospectus shows that the registered users of Douyu in the past three years were 98.7 million, 182.1 million and 253.6 million, respectively, with the average total monthly active users increasing from 85.6 million in 2016 to 112.6 million in the same period of 2017, and 136.4 million in the same period of 2018. In the first quarter of 2019, the number of active users (MAU) of Douyu html in February reached 159.2 million, a significant increase of 25.7% year-on-year. Among them, the monthly active users from the PC end reached 110.1 million, a year-on-year increase of 21%; the monthly active users from the mobile end reached 49.1 million, a year-on-year increase of 37.5%, a growth rate faster than the PC end.
compared with Huya 's monthly active users in the first quarter were 123.8 million. From the perspective of user base, Douyu is undoubtedly the largest game live broadcast platform in China.
decoding prospectus:
2019 turned losses into profits in the first quarter of 2019
As a game live broadcast platform, the top anchors are the key to their traffic. The reason why Douyu has grown into the largest game live broadcast platform in China is that it has obvious advantages in leading anchors.
Douyu has particularly obvious advantages in this regard. At present, Douyu has signed an exclusive live broadcast contract with 51 of the top 100 game anchors in China, and this includes 8 of the top 10 anchors.
But signing a large number of top anchors is also a double-edged sword. While bringing traffic, it also means high costs, and both liquidity and management costs are burdened.
In fact, Douyu 's revenue is highly dependent on top anchors. In 2018, the revenue brought by top anchors accounted for about 50% of the total live broadcast revenue. Therefore, the bargaining power of top anchors is very high, and the exclusive signing fee is top in the industry. The existence of these top anchors has pushed up operating costs. In the first quarter of 2019, the total share expenditure of anchors and content expenditure of Douyu was 1.067 billion yuan, accounting for more than 80% of its total operating expenses, an increase of 121.1% year-on-year.
From the perspective of overall revenue, the operating income of Douyu from 2016 to 2018 was 787 million, 1.886 billion and 3.654 billion yuan, respectively, showing a rapid growth trend. However, the losses are even more serious. From 2016 to 2018, the losses of Douyu were 756 million yuan, 594 million yuan and 819 million yuan respectively, with a total loss of about 2.7 billion yuan in three years.
However, according to the latest prospectus, Douyu finally turned losses into profits in the first quarter of 2019. In the first quarter, Douyu 's revenue was 1.489 billion yuan, an increase of 123.24% compared with 667 million yuan in the same period last year, and a net profit of 18.2 million yuan, an increase of 111.67% compared with 156 million yuan in the same period last year.
Although the net profit turned a profit, it mainly relied on the interest brought by book cash and the income brought by currency exchange, and Douyu profit and operating profit were still negative.
In addition to signing contracts for anchors and anchors, investment in the game industry chain is also a huge investment. Over the years, Douyu 's investment in this area has gradually increased to help the platform continuously produce excellent content to attract game live broadcast users. From 2016 to the present, Douyu has obtained exclusive live broadcast rights for 29 global and national e-sports events, including "League of Legends", "PUBG", "DOTA2", etc.
Not only that, since the second half of 2016, Douyu has successively invested in 11 live broadcast and game-related companies, including LCD-Gaming, logging, NonoLive, etc. It is understood that 35% of the funds raised by Douyu this IPO will be used for e-sports content investment.
Douyu 's continuous investment, coupled with the development and maturity of the e-sports industry, users' willingness to pay on the game live broadcast platform has gradually increased, and the average income per paid user will also increase from 226 yuan in 2019 to 581 yuan.
From the revenue structure of Douyu , its revenue is mainly composed of live broadcast, advertising and game promotion revenue. Among them, live broadcast revenue accounted for 77.7%, 80.7% and 86.1% of revenue in 2016, 2017 and 2018, respectively, and advertising and game promotion revenue accounted for 22.3%, 19.3% and 13.9% respectively.
It can be seen that most of the revenue of Douyu relies on live streaming, and the proportion of revenue brought by advertising is still at a low level, but it is also better than other platforms in the industry.
has received at least 6 rounds of financing
Tencent , Sequoia China, Shenzhen Venture Capital, Guozhong Venture Capital and other
In the development journey of Douyu , VC/PE is indispensable. According to incomplete statistics from the investment community, Douyu has previously received at least 6 rounds of financing, with a financing amount of approximately RMB 7.6 billion. Investors include Sequoia China, Shenzhen Venture Capital, Guozhong Venture Capital, Tencent , etc.
It is worth mentioning that Douyu is the fourth company listed in Sequoia China this year. is one of the earliest investment institutions to support the development of Douyu , Sequoia China invested in Douyu in the A round stage and was the only institutional investor in this round. After that, Sequoia continued to increase its investment in multiple rounds and played an important role in several key strategic moments in the development of the company.
Sequoia China partner Cao Xi said: "As one of the earliest live broadcast platforms in China, the Douyu team led by Chen Shaojie has a firm belief and always believes that it is the mission of bringing joy to all users. Even in the fierce competition, it is extremely focused on improving products, services and user experience. This is one of the important reasons why Sequoia China continues to be optimistic about the development of Douyu . We look forward to Douyu to maintain a long-term mentality, constantly create greater value, and bring laughter and fun to more users."
Speaking of investing in Douyu , Dr. Shi Xin, vice president of Guozhong Venture Capital, said bluntly, "Whether it is live video or audio broadcast, online live broadcast and anchor economy have always been the track we are optimistic about." On the one hand, the cost of content production is getting higher and higher, and user preferences are becoming more and more diverse. The threshold for traditional video websites to meet user needs by relying on self-made content and hot drama purchases is already very high; on the other hand, the cost of acquisition of users is increasing, but the competition for traffic is becoming very fierce. How can we obtain at a lower cost Taking active users with high stickiness has become the key to winning the Internet platform. In this context, the national anchor economy and game live broadcast platform with high stickiness characteristics that have grown up by grassroots has the inevitability of success.
" And Douyu is a leader in the industry in terms of cultivation of well-known anchors, live broadcast culture and brand shaping, or in the in-depth operation of users. This is also an important reason why we chose to invest in Douyu among many live broadcast platforms at that time. "
In the subsequent financing of Douyu , China Central Venture Capital has many opportunities to withdraw. "Although the 'Thousand Broadcast War' in the past three years and the continuous losses of Douyu have shown many voices of dissatisfaction with Douyu , out of confidence in the management team and the continuous growth of various operational data, we have been sticking to the present day when Douyu is listed. "
and Tencent is the largest shareholder of Douyu . After the new stock is released, it still holds Douyu 237.2% of the shares. With the continuous increase in domestic copyright awareness, as a live broadcast platform with game live broadcast as the core, Douyu 's advantages are self-evident.
In November 2018, Tencent sued Xigua Video, a subsidiary of Toutiao , saying that it conducted live broadcast of the game " Honor of Kings " without obtaining authorization, seriously infringing on Tencent 's works Right. In February this year, the Guangzhou Intellectual Property Court ruled that Xigua Video should immediately stop broadcasting the game content of "Honor of Kings".
. The mainstream games on the live broadcast platform, including "League of Legends", "Dungeon and Warriors", "Cross Fire" and mobile game "PUBG" are all under Tencent , which can be said to occupy half of the game live broadcast.
Five-year ups and downs
Who is the opponent of the live broadcast platform?
in the past five years, the Chinese Internet has witnessed the ups and downs of the live broadcast platform. From the "Thousand Broadcast War" in 2016 to the industry reshuffle in 2017, and then the plan to go public in 2018, the war of live broadcast is like Almost approaching the final game.
According to iMedia Consulting data, the number of online live broadcast users reached 456 million in 2018, an increase of 14.57% from 2017, and is expected to exceed 500 million in 2019. Although the live broadcast industry is still growing, the industry's prospects are not optimistic - from 2017 to 2020, the growth rate of online live broadcast users will drop from 28% to less than 5%.
is obvious, and the live broadcast industry has polarized. The leading game live broadcast platform, in addition to Douyu successfully logged on to the New York Stock Exchange, Huya has also long opened the door to the capital market in 2018 and became the "first stock of game live broadcast". Pan-entertainment live broadcast platform Yingke logged on to Hong Kong Stock Exchange last year Therefore, Huajiao has also started the listing process.
, but in addition to the few remaining live broadcast platforms, most of them left sadly, including Panda Live, which once firmly sat firmly in the third place in game live broadcasts, and the comprehensive live broadcast that once claimed to be the "largest live broadcast platform in the country".
is not only scattered. Not only does the market growth meet the ceiling, but the greater challenge comes from cross-border live broadcasts of other Internet platforms. According to the special research on short video specially carried out by the Cool Goose User Research Institute, as of the first half of 2019, the number of independent short video users reached 640 million, and the number of monthly active users exceeded 500 million. As the live broadcast platform with the largest number of registered users, Douyu has 154 million monthly active users, less than one-third of Douyin.
On the one hand, the explosion of short videos has attracted a large amount of traffic from live streaming; on the other hand, these short video platforms monetize the traffic obtained through live streaming.It is understood that Kuaishou Live's monthly revenue in 2018 increased from 1 billion to 2 billion, and its annual live broadcast revenue was around 20 billion, and live broadcast became the majority of its revenue. In addition, Taobao, Momo , and even Douyu , Huya , Tencent , have also made a lot of money on live broadcasts.
Some investors said that short videos are mainly investing in content. As long as new people continue to make new things, people will continue to invest in short videos; live streaming is mainly investing in platforms, and the platform's head effect is very obvious. After the industry enters a reshuffle period, there are not many investment targets.
An indisputable fact is in front of you: the live broadcast has ended its period of wild growth, and where will the top platforms left on the field go?
This article comes from the investment world
For more exciting information, please come to the financial world website (www.jrj.com.cn)
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