HUYA Inc. (NYSE: HUYA) shares plunged 5.18% in pre-market trading on Wednesday after the Chinese game live streaming platform reported disappointing third-quarter results and provided a cautious outlook. The company's financial performance fell short of investor expectations, raising concerns about its growth trajectory and profitability.

For the third quarter, HUYA reported total net revenues of RMB1,688.3 million (US$237.1 million), representing a 9.8% increase year-over-year but showing signs of slowing growth. More alarmingly, net income attributable to HUYA Inc. plummeted to RMB9.6 million (US$1.3 million), compared to RMB23.6 million in the same period last year. Non-GAAP net income also declined sharply to RMB36.3 million (US$5.1 million) from RMB78.0 million a year ago. The company's bottom line was significantly impacted by lower interest income, which fell to RMB34.7 million from RMB96.6 million in the prior year period, primarily due to a lower time deposit balance following special cash dividend payments.

Adding to investor concerns, HUYA's management provided a cautious outlook for the future. Mr. Raymond Peng Lei, Acting Co-Chief Executive Officer and Chief Financial Officer, stated that the company will "continue to explore opportunities in a measured way, pursuing growth thoughtfully while preserving earnings quality." This conservative stance, coupled with the weaker-than-expected financial results, has likely contributed to the sharp sell-off in HUYA's stock. As the company faces challenges in maintaining its growth momentum and profitability in the competitive Chinese live streaming market, investors appear to be reassessing their expectations for HUYA's future performance.