Author丨He Hongyuan.
Editor丨Luo Yifan.
Figure source丨Figure worm.
Bilibili seems to think that it has found a positive cycle of profitability.
According to the company's financial report released on the evening of November 29, 2023, in the third quarter, its revenue was 5.8 billion yuan, basically the same as the same period last year;The net loss was 1.3 billion yuan, a year-on-year decrease of 22%.
During the same period, the daily active users of station B exceeded 100 million.
We have run through the positive cycle from user growth to business growth. At the financial report meeting on November 29, Chen Rui, chairman and CEO of the company, said.
The loss of station B continues to narrow, data**: the company's financial report.
The monthly activity exceeded 100 million
For station B, the biggest progress in the financial report comes from the monthly activity exceeding 100 million.
In the third quarter, the daily activity of station B increased by 14% year-on-year to 10.3 billion, an increase of 65%。In the same period, the average daily volume of the platform was 4.7 billion, a year-on-year increase of 26%, and the average monthly interaction was 17 billion, a year-on-year increase of 18%. The average daily usage time of users is 100 minutes, a record high.
In addition, as of the end of the third quarter, the number of "full members" who passed the exam at station B was 22.4 billion, a year-on-year increase of 23%, and the 12-month retention rate of full members has always been stable at around 80%.
Behind it is the richness and activity of the creator ecology of Station B. From the perspective of the mainstream traffic **PU** (professional user creation**) sector, in the third quarter, the average daily active UP master of station B increased by 21% year-on-year, and the number of UP masters with more than 10,000 fans increased by 36% year-on-year;The average number of monthly contributions** increased by 37% year-on-year to 21 million.
Specifically, in the third quarter, the average daily number of submissions in the science and technology category of station B increased by 80% year-on-year, of which the number of million** manuscripts increased by nearly 50% year-on-year. In the same period, the average daily contribution volume of the household appliances category of station B increased by 89% year-on-year, and the number of maternal and infant parent-child categories increased by 170% year-on-year.
Bilibili also disclosed that 1.68 million UP owners received revenue on the platform this quarter, a year-on-year increase of 34%. Among them, the number of up owners who obtain income through ** and live streaming increased by more than 160% year-on-year.
In terms of O** (created by professional institutions**) content, Bilibili continues to focus on the two core strategic layouts of high-quality and IP. In September, it held a press conference for domestic animation works, announced 68 domestic works, and announced that it would launch the popular high-scoring work "China Strange Tan Season 2".
As of the end of the third quarter, the number of large members of Bilibili was 21.1 million, of which more than 80% were annual subscription or auto-renewal users. In the same period last year, the number of large members of station B was 20.4 million, and the number of large members in the second quarter of this year was 20.45 million. The number of large members increased year-on-year and month-on-month.
Achieve a positive cycle?
On this basis, the advertising and value-added service business of Bilibili maintained growth.
In the third quarter, driven by the live broadcast business, the value-added service business of Station B increased by 17% year-on-year to 2.6 billion yuan. Specifically, in the current period, the number of monthly anchors on station B was nearly one million, the total broadcast time increased by 26% year-on-year, and the number of anchors with average daily revenue increased by 39% year-on-year. On November 19, the 2023 League of Legends World Championship S13 officially came to an end, with more than 1200 million users on station b**League of Legends related content.
In the third quarter, the advertising revenue of station B increased by 21% year-on-year to 16400 million yuan. According to its disclosure, the top five advertiser industries are games, digital home appliances, e-commerce, food and beverage, and automobiles.
The company also made a special announcement on Singles' Day. During this period, the advertising flow of station B from the head e-commerce platform increased by more than 80% year-on-year, and the GMV of up masters** and live streaming increased by more than 250% year-on-year. Among them, the UP master of station B "MR Mi Gaze" paid a total of 16 in the omni-channel live broadcast of the Double 11 Home Decoration Festival800 million yuan, a year-on-year growth rate of more than 400%.
With the growth of advertising monetization efficiency and live broadcasting, part of the revenue will also be transmitted to the monetization of creators, and creators will have more investment after getting this part of the income, thus forming a positive cycle of ecology. Chen Rui explained the current growth model of station B advertising and value-added services.
According to the company's vice chairman and chief operating officer Li Ni revealed at the financial report meeting, recently, Ali's Spark plan has achieved a growth of more than 160% compared with the 618 period, with more than 70 brands cooperated, and the new customer rate brought by station B to merchants exceeded 50%. In the future, Bilibili will cooperate with other platforms, and the Jinghuo plan will be launched in the near future.
Facing the ceiling?
It should be noted that e-commerce platforms are also facing a ceiling.
According to Xingtu data, during this year's Double 11, the total sales of the whole network were 11,386 trillion yuan, an increase of only 2 percent year-on-year08%。As the trend of market stock becomes more obvious, this means that the advertising and marketing of station B has become more difficult.
In fact, not only e-commerce, but also the overall consumer market is slowing down. According to data from the National Bureau of Statistics, from January to October, the total retail sales of consumer goods in the country grew at a compound growth rate of 37%, which is still far from the normalization level of about 8%.
In addition, the executives of the head catering, beverage, and outdoor brands admitted to the 21st Century Business Herald reporter that in terms of monetization efficiency, the short ** is the highest, and Station B is better than the long-term ** platforms such as iQiyi, but it is still not the focus of investment.
All of the above limit the advertising business space of station B.
During the same period, the company's once cash cow game segment was in a declining stage of revenue. In the third quarter, the mobile game revenue of station B was 99.1 billion yuan, a year-on-year decrease of 33%, mainly due to the high revenue base of "Time and Space Hunter 3" launched in June 2022. The good news is that since the third quarter, a number of products reserved by station B have been launched one after another, "Shine!"."Handsome Girl" is still actively adjusting and revising.
The game market has entered the stage of standard stock competition. Even if the quality of the game is good, it may not work, you either do it at your best, or you have to be very different from others. Chen Rui described the current state of the game market. As a result, Bilibili is adjusting and streamlining some of the internal team's research projects, and the follow-up R&D expenses may be optimized.
Of course, station B still has a natural advantage in game traffic. In the third quarter, more than 40% of the platform's daily active users had game-related PU or live content.
It should also be noted that Station B continued to turn around.
In the third quarter, its gross profit margin improved for five consecutive quarters, from 18% in the same period last year to 25%. Total operating expenses decreased 12% year-over-year, and both adjusted operating loss and adjusted net loss narrowed 51% year-over-year. During the current period, Station B achieved positive operating cash flow. Fan Xin, the company's CFO, said that with the recent completion of the structural adjustment of Station B, operating expenses, including R&D expenses, will decline next year. All these circumstances indicate that the company is on track to break even in 2024.
Overall, Station B is moving towards a small and beautiful positive cycle, although the ceiling may not be as high as imagined.
On November 30, station B reported 899 Hong Kong dollars shares, down 1099%。
sfc
Editor of this issue: Jiang Peipei, Xi student, Zhang Baoyi.
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