Beijing time on September 8 (East Time on September 8), Bilibili (NASDAQ: BILI, HKEX:9626; hereinafter referred to as "B site ") announced the Unaudited financial reports for the second quarter. According to the financial report, Bilibili's revenue in the second quarter reached RMB 4.91 billion, with an average monthly active user base exceeding 300 million, and an average daily active user base of 83.5 million.
In the second quarter, B station continued to provide users with high-quality video content with rich categories and multi-scenario coverage, promoting the improvement of community activity and bringing new potential to business growth. In the second quarter, the average monthly active users of Bilibili reached 306 million, a year-on-year increase of 29%, and the average daily active users reached 83.5 million, a year-on-year increase of 33%. For two consecutive quarters, the average daily active users increased by more than the monthly active users growth rate. , community stickiness has been further enhanced. In the second quarter, the average daily usage time of users reached 89 minutes, and the overall community traffic increased by 48% year-on-year. Diversified content also promotes user retention and payment. In the second quarter, the average monthly payment user count reached 27.5 million, with a payment rate of 9.0%.
B Station Chairman and CEO Chen Rui said: "Faced with the macro environment in the second quarter and the challenges brought by the epidemic, we have adopted a steady growth strategy, continued to pay attention to cost reduction and efficiency improvement, and achieved high quality of users Growth. On the occasion of the 13th anniversary of the establishment of Bilibili, the number of monthly active users exceeded 300 million for the first time, and the number of daily active users increased by 33% year-on-year. We continue to provide users with high-quality content in multiple scenarios, using Story-Mode vertical videos The new content form represented by it effectively meets the fragmented use needs of users and further promotes the improvement of community activity. In the second quarter, under the severe macro environment, Bilibili's advertising revenue still achieved a year-on-year 10% reverse Market growth. With the improvement of the macro environment, we will continue to implement the strategy of healthy growth, and while accelerating commercialization, we will continue to control costs, increase gross profit margins, and narrow losses."
1. Monthly active users exceeded 300 million for the first time. The average daily active users increased by 33% year-on-year
In the second quarter of 2022, the average monthly active users of Bilibili reached 306 million, a year-on-year increase of 29%, and the average daily active users reached 83.5 million, a year-on-year increase of 33%. The proportion of daily active users to monthly active users increased from 26.4% in the same period last year to 27.3%, and the community stickiness continued to increase.
B website has created a multi-scene and multi-terminal video ecosystem such as PUGV, Story-Mode vertical video, smart TV, etc., meeting users' needs to obtain high-quality content anytime and anywhere. In the second quarter, the overall traffic of B station community increased by 48% year-on-year. The good community atmosphere and the continuous emergence of high-quality content have promoted high interaction and high retention of B station users. In this quarter, the average daily video playback volume of community reached 3.1 billion times, an increase of 83% year-on-year; the average monthly interaction number reached 12.5 billion times, an increase of 73% year-on-year. The average daily usage time of users is up to 89 minutes. Story-Mode vertical video continues to bring new playback increments to the platform, with its average daily playback volume increasing by more than 400% year-on-year. While the overall traffic of the community is growing, vertical videos provide users with a new entrance to discover high-quality live content, and become a new scenario for advertising monetization, bringing more commercial opportunities.
As of the end of the second quarter, the number of formal members who passed 100 community examination questions increased by 41% year-on-year to 170 million, with a retention rate of 83% in the twelfth month. The retention rate of the first batch of formal members who passed the community examination 13 years ago was still as high as that of the first batch of formal members who passed the community examination 13 years ago 65%, reflecting users' long-term sense of belonging to the B station community.
On June 26 this year, the 13th anniversary of the establishment of Bilibili. Chen Rui shared the treasure UP host emerging on B station through a speech. He said that being able to continuously generate treasure UP host is not only the vitality of B station, but also the value of B station. In his speech, B station vice chairman and COO Li Ni also announced that B station has established the fifth Bilibili Primary School, "Bilibili Yili Primary School", to continue to support the development of rural education.
Actively assume social responsibilities and enrich the daily lives of the younger generation of China is the unchanging mission of Bilibili. In May, B station released the "2021 Bilibili Environmental, Social and Governance Report", announcing the management measures and performances in ESG in the past year, and detailed the company's corporate governance, product responsibility, user communication, We have made efforts in the fields of social care, green and environmental protection, and for the first time fully meet the relevant requirements of the Hong Kong Stock Exchange for the disclosure of ESGs of listed companies.The report disclosed that more than 380,000 rural students benefited from the Bilibili course, and the energy gas station provided 86,000 users to relieve psychological problems.
2. Over 1.1 million UP owners have gained profits, and millions of fans UP owners have increased by 58% year-on-year
PUGV (Professional User Generated Video, video created by professional users) has laid the foundation for the content ecosystem of B station and is also the core driving force for the continuous growth of the B station community. In the second quarter of 2022, with the rapid growth of community scale and the virtuous cycle of content ecology, the average monthly number of active UP owners on Bilibili reached 3.6 million, a year-on-year increase of 50%; the average monthly submission volume reached 13.2 million, a year-on-year increase of 56%. The number of UP owners with more than 10,000 fans increased by 46% year-on-year, while UP owners with more than 1 million fans increased faster, with a year-on-year growth of 58%. In the second quarter, life, games, entertainment, animation and knowledge became the top five most popular content categories among users.
In the second quarter, Bilibili continued to broaden its channels and release the monetization potential of UP owners. More than 1.1 million UP hosts have earned revenue from Bilibili through live broadcasts, advertising, creative incentive plans, etc. With the continuous growth of penetration rate of in the community ecosystem, live streaming has become an important form for UP owners to obtain revenue and expand their vertical influence.
On the other hand, OGV (Occupationally Generated Video, created by professional institutions) not only complements and enriches PUGV content, but also becomes an important help to drive user growth and expand community influence. In the second quarter, B station adhered to the strategy of boutique content and worked with well-known domestic and foreign platforms such as Disney to create high-quality works to promote user payment growth. As of the end of the second quarter, the number of "big members" reached 21 million, an increase of 19% year-on-year.
documentary " Second Time in Life ", Guochuang "Chinese Diary 3", variety show "90 Marriage Agency 2022" and other high-quality OGV content have consolidated users' understanding of the quality of OGV content on B station; in terms of film and television content, B The station jointly produced the original series "The Algorithm of Justice" with Disney, and jointly incubated the high-quality short film series " World Gaming Machine " with Bad Monkey Pictures to help young directors grow.
3. Commercialization capabilities have been further improved, advertising revenue has grown against the market
2022, while maintaining healthy growth of users, Bilibili continues to accelerate the commercialization process. In the second quarter, Bilibili's revenue reached 4.91 billion yuan, a year-on-year increase of 9%, of which advertising business revenue and value-added service business revenue increased by 10% and 29% year-on-year respectively. At the same time, B station has initially achieved results in reducing costs and increasing efficiency. On the basis of the 48% year-on-year increase in the overall community traffic, market and sales expenses fell by 16% year-on-year in this quarter.
In the second quarter, the revenue of the game business reached 1.05 billion yuan. Bilibili is continuing to lay out its own game development capabilities and focus on the research and development of high-quality games. In the second quarter, with the self-developed game " Mobile War Ji " released overseas, the proportion of self-developed game revenue has reached 5% of the total game revenue. At present, Bilibili has obtained 4 new game versions, and 6 games will be launched in overseas markets, including 2 self-developed games. With the recovery of the approval process for game version number , Bilibili will bring more high-quality game works to domestic and foreign users.
Thanks to the continued growth of live broadcast and other businesses, the revenue of B station's value-added service business reached 2.1 billion yuan in the second quarter, an increase of 29% year-on-year. Bilibili continues to build the integration of live broadcast and PUGV ecosystems, inspiring more UP hosts to become anchors and form a virtuous content cycle within the community. In the second quarter, the number of active anchors on Bilibili increased by 107% year-on-year, which promoted the continuous increase in live broadcast penetration rate of monthly active users and further promoted the conversion of paid users. The average monthly paid users in live broadcast business increased by nearly 70% year-on-year.
Under the challenges of macro factors such as the epidemic, Bilibili's advertising revenue in the second quarter reached 1.16 billion yuan, a year-on-year increase of 10%. The top five advertisers are games, 3C digital, beauty and skin care, e-commerce and food and beverage. We continue to promote the integration of marketing strategies, enrich advertising scenarios, and further improve advertising efficiency by optimizing advertising conversion components. In particular, Story-Mode vertical screen advertising products have grown rapidly and are welcomed by advertisers.
On the basis of ensuring healthy growth of users and healthy business development, the company will continue to promote cost reduction and efficiency improvement. In the quarter, market and sales expenses fell 16% year-on-year. At the same time, we further improved technical efficiency, and the unit cost of server and bandwidth decreased by 37% year-on-year in the second quarter.In the second quarter, the company adjusted its organizational structure to promote the integrated operation of live broadcast and video content, and further integrated the commercialization system to promote the healthy development of the content ecology and the improvement of commercialization level.
As of June 30, 2022, the company held cash and cash equivalents , fixed deposits and short-term investments totaled RMB 24.9 billion. In the second quarter, Bilibili's adjusted non-US accounting standards (Non-GAAP) net loss was RMB 1.96 billion.
In early March this year, Bilibili announced that it would conduct a stock repurchase plan of US$500 million in the next 24 months. As of June 30, 2022, Bilibili has repurchased about 2.6 million American depositary shares under the plan, with a total cost of approximately US$53.6 million. In addition, in order to continuously optimize the debt level, the company repurchased the convertible priority notes with a total principal of US$71.4 million in the second quarter, with a total cash cost of US$49.8 million. As of the second quarter, the company repurchased and cancelled convertible priority notes with a total principal of US$275 million, due in December 2026, with a total cash cost of US$198 million.
B website has applied to convert to a major listing on the main board of the Hong Kong Stock Exchange, and has been confirmed by the Hong Kong Stock Exchange. All issues related to the conversion have been approved at the company's annual shareholders' meeting on June 30, 2022. The expected time for the conversion to take effect is October 3, 2022. After the effect comes into effect, the company will become a dual major listed company listed on the Hong Kong Stock Exchange and the Nasdaq in the United States, which will effectively expand the size of investors and provide the company with more flexibility in the capital market. In the financial report of
, Bilibili made an outlook for the third quarter of 2022 revenue, which is expected to reach RMB 5.6 billion to RMB 5.8 billion.
