In the third quarter, bilibili continued to improve commercialization efficiency, with significant year-on-year growth in revenue from mobile games and advertising business, leading to adjusted net income turning positive for the first time.
Cost of goods sold and operating expenses remained overall stable compared to the same period last year, while research and development expenses decreased by 15% year-on-year.
On Thursday, November 14, bilibili released its third quarter financial report for the period ending September 30:
Key financial data:
Net revenue: 7.306 billion yuan (1.041 billion USD), an increase of 26% year-on-year;
Gross profit: 2.547 billion yuan (0.363 billion USD), an increase of 76% year-on-year;
Gross margin: 34.9%, higher than 25.0% in the same period last year;
Net loss: 0.08 billion yuan (0.011 billion USD), a year-on-year narrowing of 94%;
Adjusted net income: 0.236 billion yuan, a year-on-year increase of 137.35%;
Daily active users: 0.1073 billion, up from 0.1028 billion during the same period last year.
Today, bilibili announced a share buyback plan, under which the company may repurchase no more than 0.2 billion USD of publicly traded securities over the next 24 months.
bilibili's chairman and CEO Chen Rui stated:
Our daily active users and monthly active users reached new highs of 0.107 billion and 348 million respectively, and the average daily usage time for users also reached a new high of 106 minutes, an increase of 6 minutes compared to the same period last year.
Total revenue for the third quarter reached 7.306 billion yuan, a year-on-year increase of 26%, especially our mobile game and advertising business revenues increased year-on-year by 84% and 28% respectively. In our continuous efforts to enhance commercialization efficiency, we achieved positive net income under non-GAAP for the first time this quarter.
After the financial report was released, bilibili's pre-market trading rose sharply before quickly falling back, now down more than 5%, having previously risen nearly 6%.
Revenue from mobile games and advertising business increased significantly year-on-year.
By business segment, the performance of mobile games and advertising is the most remarkable, value-added services continue to grow steadily, while mobile games and IP derivative businesses are shrinking.
Mobile game revenue: 1.823 billion yuan (0.26 billion USD), an increase of 84% year-on-year, mainly due to the strong performance of the exclusive licensed game "Three Kingdoms: Strategizing the World" launched by the company.
Advertising revenue: 2.094 billion yuan (0.298 billion USD), an increase of 28% year-on-year, mainly due to the optimization of advertising products and improvements in advertising efficiency provided by the company.
IP derivative and other revenue: 0.567 billion yuan (0.081 billion USD), a decrease of 2% compared to the same period in 2023.
Value-added services revenue: 2.821 billion yuan (0.402 billion USD), an increase of 9% compared to the same period in 2023, mainly due to the increase in revenue from live broadcasts and other value-added services.
The daily active users reached 0.1073 billion, an increase of 4.38% year-on-year, and the monthly active users reached 0.348 billion, both setting a new historical high. Users continue to maintain high activity, with an average daily usage time of 106 minutes, an increase of 6 minutes compared to the same period last year, also setting a new historical high.
Revenue sharing costs increased by 19% year-on-year.
Cost of goods sold and operating expenses remained generally stable compared to the same period last year.
In the third quarter, the cost of goods sold was 4.758 billion yuan, an increase of 9% compared to the same period in 2023, mainly due to higher revenue sharing costs. The revenue sharing cost was 2.911 billion yuan, an increase of 19% compared to the same period in 2023.
Total operating expenses were 2.614 billion yuan, an increase of 2% compared to the same period in 2023. Among them:
Sales and marketing expenses were 1.202 billion yuan, a year-on-year increase of 21%; general and administrative expenses were 0.505 billion yuan, a year-on-year increase of 1%;
R&D expenses were 0.906 billion yuan, a year-on-year decrease of 15%, mainly due to the higher expenses from terminating several game projects in the same period of 2023.
Editor/ping
