Chinese video sharing social network Bilibili Inc (NASDAQ: BILI, HKEX: 9626), now has more than 62 million active daily users and has just posted a new quarterly revenue record
The Chinese tech firm’s stock price is up around 50% in the past 12 months, but is has retreated significantly from record highs seen earlier this year.
Second quarter highlights include:
- Total net revenues reached RMB4,495.3 million (US$696.2 million), a 72% increase from the same period in 2020.
- Net loss was RMB1,121.8 million (US$173.7 million), compared with RMB570.9 million in the same period of 2020.
- Average monthly active users (MAUs) reached 237.1 million, and mobile MAUs reached 220.5 million, representing increases of 38% and 44%, respectively, from the same period in 2020.
- Average daily active users (DAUs) reached 62.7 million, a 24% increase from the same period in 2020.
- Average monthly paying users (MPUs1) reached 20.9 million, a 62% increase from the same period in 2020.
Rui Chen, Chairman of the Board and Chief Executive Officer of Bilibili said the average user time spent on Bilibili has risen risen to 81 minutes per user per day, the most Bilibili has seen in a second quarter throughout its operating history.
“Having celebrated our 12-year anniversary in June, we are proud to say we have stayed true to our mission and root, that is to create an outstanding community for our users and content creators, and promote Chinese original content worldwide,” said Chen.
Looking ahead, we hope to take on more social responsibility, increasing our facilitation of social development, bringing more fulfilling and positive cultural influence to society and introducing more ‘Made-in-China’ content to the world.”
Sam Fan, Chief Financial Officer of Bilibili, said the company’s record high revenue was driven by a “more balanced revenue mix”
He highlighted the advertising business, which grew by over 200% year-over-year, representing 23% of total net revenues.
“Our fundamentals continue to be strong with a cash reserve of RMB27.6 billion to support our long-term growth strategy,” said Fan.
For the third quarter of 2021, the Company currently expects net revenues to be between RMB5.1 billion and RMB5.2 billion.
The above outlook is based on the current market conditions and reflects the Company’s preliminary estimates, which are all subject to various uncertainties, including those related to the ongoing COVID-19 pandemic.
More key Bilibili investment takeaways from the second quarter financial results
- Revenues from mobile games were RMB1,233.2 million (US$191.0 million), compared with RMB1,248.0 million in the same period of 2020.
- Revenues from VAS were RMB1,634.9 million (US$253.2 million), representing an increase of 98% from the same period of 2020, mainly attributable to the Company’s enhanced monetization efforts, led by increases in the number of paying users for the Company’s value-added services including the premium membership program, live broadcasting services and other value-added services.
- Revenues from advertising were RMB1,049.1 million (US$162.5 million), representing an increase of 201% from the same period of 2020. This increase was primarily attributable to further recognition of Bilibili’s brand name in China’s online advertising market, as well as Bilibili’s improved advertising efficiency.
- Revenues from e-commerce and others were RMB578.0 million (US$89.5 million), representing an increase of 195% from the same period of 2020, primarily attributable to the increase in sales of products through the Company’s e-commerce platform.
- Cost of revenues was RMB3,506.3 million (US$543.1 million), representing an increase of 74%, compared with the same period of 2020. Revenue-sharing cost, a key component of cost of revenues, was RMB1,746.7 million (US$270.5 million), representing an increase of 70% from the same period in 2020.
- Gross profit was RMB989.0 million (US$153.2 million), representing an increase of 64% from the same period in 2020, which was primarily due to increased net revenues.
- Total operating expenses were RMB2,509.5 million (US$388.7 million), representing an increase of 107% from the same period of 2020.
- Sales and marketing expenses were RMB1,399.9 million (US$216.8 million), representing a 107% increase year-over-year. The increase was primarily attributable to increased channel and marketing expenses to promote Bilibili’s app and brand, as well as promotional expenses for the Company’s mobile games and an increase in headcount in sales and marketing personnel.
- General and administrative expenses were RMB435.9 million (US$67.5 million), representing a 109% increase year-over-year. The increase was primarily due to increased headcount in general and administrative personnel, increased share-based compensation expenses, higher rental expenses and other general and administrative expenses.
- Research and development expenses were RMB673.7 million (US$104.3 million), representing a 104% increase year-over-year. The increase was primarily due to increased headcount in research and development personnel and increased share-based compensation expenses.
- Loss from operations was RMB1,520.6 million (US$235.5 million), compared with RMB610.1 million in the same period of 2020.
- Income tax expense was RMB21.7 million (US$3.4 million), compared with RMB11.9 million in the same period of 2020.
- Adjusted net loss, which is a non-GAAP measure that excludes share-based compensation expenses, amortization expense related to intangible assets acquired through business acquisitions and income tax related to intangible assets acquired through business acquisition, was RMB857.8 million (US$132.9 million), compared to RMB475.7 million in the same period of 2020.
- Basic and diluted net loss per share were RMB2.91 (US$0.45), compared with RMB1.63 in the same period of 2020. Adjusted basic and diluted net loss per share were RMB2.23 (US$0.35), compared with RMB1.35 in the same period of 2020.
- As of June 30, 2021, the Company had cash and cash equivalents, time deposits, as well as short-term investments of RMB27.6 billion (US$4.3 billion), compared with RMB12.8 billion as of December 31, 2020.