May 28, 2023

Bilibili’s 2022 Q3 financial report: revenue reached 5.8 billion yuan, net loss significantly narrowed by 36% year-on-year

On November 29th, Beijing time (November 29th, Eastern Time), Bilibili (NASDAQ: BILI, HKEX: 9626; hereinafter referred to as “Bilibili”) announced that the third quarter ending September 30, 2022 will not be completed. Audited financial reports. According to the financial report, Bilibili’s revenue in the third quarter reached 5.79 billion yuan, an increase of 11% year-on-year. The average number of daily active users reached 90.3 million, and the average monthly active users reached 333 million, an increase of 25% year-on-year.

In the third quarter, the expansion of high-quality content in the Bilibili community and the creation of a full-category and full-scenario content ecology have further promoted community activity. This quarter, the average daily usage time of users reached a record high of 96 minutes, an increase of 8 minutes over the same period last year. At the same time, the total usage time of users in this quarter increased by 37% year-on-year.

Chen Rui, Chairman and CEO of Bilibili, said: “In the third quarter, our business maintained steady growth. The number of daily active users increased by 25% year-on-year, exceeding 90 million, which further enhanced the platform’s influence and commercialization potential. At the same time , user stickiness and activity continued to increase, and the average daily usage time of users reached a record high of 96 minutes. While achieving revenue growth, our gross profit margin further increased month-on-month, and losses were significantly narrowed. Facing the challenges of the macro environment, We will accelerate the commercialization process, focus on efficient business development, strictly control expenses, and promote the healthy development of the company. In this quarter, marketing and sales expenses decreased by 25% year-on-year, and net losses narrowed by 36% year-on-year. We will continue to strictly control expenses , increase profit margins and narrow losses.”

Daily active users increased by 25% year-on-year,Commercial value of the platformpromote

In the third quarter of 2022, the average daily active users of Station B will reach 90.3 million, and the average monthly active users will reach 333 million, both a year-on-year increase of 25%. The high-quality growth of daily active users has promoted the enhancement of platform influence and commercial value. In this quarter, the value-added service business and advertising business revenue both increased by 16% year-on-year.

The multi-scenario video ecology of station B allows users to obtain rich video content anytime and anywhere, which drives the continuous improvement of station B’s user stickiness and the overall traffic of the community. In this quarter, the average daily video playback volume in the community increased by 64% year-on-year. With the improvement of Story-Mode vertical screen video distribution capabilities, UP owners can share their creativity with fans in a more convenient and efficient way. The average playback volume increased by 473% year-on-year. In this quarter, the total usage time of users increased by 37% year-on-year, and the average number of monthly interactions reached 14.4 billion, an increase of 41% year-on-year.

As of the end of the third quarter, the number of official members who have passed the 100 community exams has increased by 37% year-on-year to 183 million, and the 12-month retention rate of official members has stabilized at more than 80%.

On November 6, S12 of the 2022 League of Legends Global Finals officially came to an end. As the exclusive copyright owner of the domestic live broadcast platform of the event, Station B has broadcast the entire event live for three consecutive years, and the game live broadcast content ecology on the platform continues to prosper. During S12, the peak popularity of the official live broadcast room of station B exceeded 300 million, and more than 100 million users watched League of Legends related content at station B. Station B also launched the “Tower Guardian Public Welfare Program” in conjunction with the China Siyuan Engineering Foundation, allowing users to provide assistance to Shanxi cultural relics protection personnel through public welfare support barrage.

With the help of the strong influence of the community, Bilibili has invested in public welfare undertakings for a long time, spread positive values ​​in the community, and actively assumed social responsibilities. In September of this year, the Bilibili public welfare platform has been launched for half a year. A total of 50 public welfare fundraising projects have been launched, raising 4.25 million yuan and over 290,000 donations. The Bilibili public welfare platform is also the third batch of Internet fundraising information platforms for charitable organizations designated by the Ministry of Civil Affairs.

The average monthly active UP masters reached 3.8 million,More than 1.25 million UP owners earn income on Bilibili

PUGV (Professional User Generated Video) content is the core driving force for the vigorous development of the Bilibili community. Bilibili continues to provide users with new content categories and new scenarios to help users discover useful and interesting high-quality content faster. In addition to games, animation, music and other content categories that users liked in the past, emerging vertical content such as automobiles, home furnishing, decoration, mother and baby is also becoming more and more abundant.

In the past year, with the increasing age of users and the increasing demand for car purchases, the number of searches for car brands on Bilibili exceeded 120 million times, and the number of car videos played exceeded 14.5 billion, a year-on-year increase of 116%. Station B is also committed to providing users with cutting-edge content in categories of interest. In July of this year, Jay Chou’s new song “The Greatest Work” album MV was released on station B, triggering a large number of users to participate in the creation of adaptations, and the cumulative playback volume of the second creation exceeded 1.57 billion.

Useful and informative content has always been loved by Bilibili users. This year’s Teacher’s Day, Station B invited 9 academicians and famous teachers UP to shoot a short film “The Man Who Sent the Moon” to pay tribute to the teachers. At present, 198 million users have browsed knowledge content on Station B, and more than 5,000 teachers have settled in the knowledge area of ​​Station B, bringing high-quality learning content to more users.

In the third quarter, the average monthly active UP masters of Station B reached 3.8 million, a year-on-year increase of 40%, and the average monthly contribution reached 15.6 million, a year-on-year increase of 54%. Station B continues to provide rich monetization channels for UP owners, so that UP owners can not only efficiently create their favorite content, but also obtain commercial returns. In the third quarter, more than 1.25 million UP owners obtained income from Bilibili through various channels, a year-on-year increase of 74%.

OGV (Occupationally Generated Video) content complements PUGV content, providing users with high-quality content including Guochuang animation, documentaries, variety shows, and TV dramas.

In October, Bilibili held the 2022-2023 Guochuang Animation Work Conference, announcing that the “Three-Body” animation will be officially scheduled for December, and launched 49 national animations such as “The Third Season of Town Soul Street” and “Convex Transformation Hero X”. Create new content. The TV series “Sanyue Has a New Job” heals people’s hearts with warm stories, and the word-of-mouth fermentation has broken the circle, with a score of 8.5 points on Douban. High-quality works such as the documentary “Land of the Gods” and the variety show “I Am a Super Voice·Theatrical Troupe Season” not only meet the content consumption needs of users, but also boost the growth of user payment. In addition, the “2021 Most Beautiful Night” New Year’s Eve party was also nominated for the “Best TV Variety Show” at the 31st China TV Golden Eagle Awards. In the third quarter, the number of large members of station B increased by 12% year-on-year to 20.4 million.

Continue to promote cost reduction and efficiency increase,accomplishLoss narrowed sharply

In the third quarter, Bilibili’s revenue reached 5.79 billion yuan, of which, value-added service business and advertising business revenue both increased by 16% year-on-year. The company’s cost reduction and efficiency increase have begun to show results. The gross profit margin of this quarter increased by 3.2 percentage points from the previous quarter, reaching 18.2%. While users continue to grow at a high quality, marketing and sales expenses have shrunk by 25% year-on-year, and the proportion of total revenue has dropped from 31% in the same period last year to 21%, and the net loss has narrowed sharply by 36% year-on-year. Facing the challenges of the macro environment, the company will further focus on its core business, continue to optimize its organizational structure, and strictly control costs to achieve the goal of breaking even.

Thanks to the steady growth of the live broadcast business, the value-added business revenue in the third quarter reached 2.21 billion yuan, a year-on-year increase of 16%. By continuing to create the ecological integration of live broadcast and PUGV, Station B further combines live broadcast and video in depth to promote the formation of a positive cycle of community content ecology. In the third quarter, the average number of monthly active anchors at station B increased by 67% year-on-year, and the average monthly paying users of the live broadcast business increased by 79% year-on-year.

Despite the challenging macro environment, Bilibili’s advertising business revenue in the third quarter still increased by 16% year-on-year to 1.35 billion yuan. The top five advertiser industries are games, digital home appliances, beauty and skin care, automobiles, and food and beverage. Bilibili continues to improve its commercial infrastructure capabilities and improve advertising efficiency. Story-Mode vertical screen videos have brought new growth in advertising revenue. In the third quarter, the “Huahuo” platform upgraded six major functions, the number of UP owners who settled in Huahuo increased by 121% year-on-year, and the number of UP owners who obtained business orders increased by 96% year-on-year. During Double Eleven in 2022, the commercialization revenue of Bilibili’s e-commerce industry will increase by more than 100% year-on-year.

In the third quarter, Station B launched several new games in domestic and overseas markets, driving the revenue of the game business to increase by 6% year-on-year to 1.47 billion yuan. Focusing on the game business strategy of “self-developed high-quality goods, global distribution”, at present, two games of Station B have obtained version numbers and are planned to be launched in China, and several games are in the final approval stage. Next year, Station B is expected to release a number of self-developed new ACG-themed games at home and abroad.

As of September 30, 2022, the company held cash and cash equivalents, term deposits and short-term investments totaling RMB 23.9 billion. In the third quarter, the net loss was 1.72 billion yuan, a year-on-year decrease of 36% and a quarter-on-quarter decrease of 15%. With the improvement of operating efficiency and the control of expenses, the net loss will continue to narrow in the future.

As of October 31, the company has accumulatively repurchased convertible senior notes with a face value of US$329 million at market prices, with a total cash expenditure of US$247 million. In addition, Chairman and CEO Chen Rui has personally increased his holdings of American depositary shares worth US$10 million in the open market according to his previously disclosed intention, reflecting his confidence in the company’s future development.

Station B has changed from secondary listing to primary listing on the Hong Kong Stock Exchange on October 3, 2022, and has become a dual primary listing company on the Hong Kong Stock Exchange and NASDAQ in the United States. This conversion is expected to further expand the investor base of Bilibili, improve the liquidity of the company’s stock and the flexibility of the capital market.

In the financial report, Station B forecasted the revenue in the fourth quarter of 2022, which is expected to reach 6 billion to 6.2 billion yuan.

Ewen Eagle

I am the founder of Urbantechstory, a Technology based blog. where you find all kinds of trending technology, gaming news, and much more.

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