在业绩向好的拐点之际，1. In the third quarter, bilibili reported an adjusted net income of 0.24 billion yuan, marking its first quarterly profit since going public. 2. bilibili plans to repurchase stocks valued at no more than 0.2 billion USD over the next 24 months.
According to The Star Daily on November 14 (Reporter Zhang Yangyang), bilibili has finally begun to make a profit.
This afternoon, bilibili released its financial report for the third quarter of 2024, showing a year-on-year revenue growth of 26%, totaling 7.31 billion yuan. The adjusted net income of 0.24 billion yuan also marks bilibili's first quarterly profit since going public.
At this turning point of improved performance, bilibili also announced a new stock repurchase plan today, planning to repurchase stocks valued at no more than 0.2 billion USD over the next 24 months.
This year is a target year for bilibili to achieve non-GAAP breakeven. During the evening conference call, bilibili's CEO Chen Rui described this performance as a 'milestone.'
Among various businesses, value-added services, advertising, games, and IP derivatives and other businesses contributed 38%, 29%, 25%, and 8% of the revenue respectively, resulting in a relatively balanced income structure.
The primary drivers of bilibili's profitability this quarter were still advertising and games. Especially in the gaming business, after shaking off previous declines, it reached 1.82 billion yuan in the third quarter, a year-on-year increase of 84%.
bilibili's gaming business performed excellently this quarter, partly due to the steady income from long-term operational games like FGO and Azur Lane, and more importantly, it was driven by the strong performance of the exclusive licensed game, Romance of the Three Kingdoms: Strategy of the World.
This game is currently a hit in the gaming industry and is also the fastest game in bilibili's gaming operation history to reach one billion in revenue, having entered the top three of the iOS game bestseller list for three consecutive seasons.
A certain internet plus-related media team believes that "Three Kingdoms: Strategize the World" can still expect high growth in the short term, but there is a problem that needs to be addressed for medium to long-term growth — whether the current game reserves are sufficient to support growth after the second half of next year.
The long-term planning of the gaming business was also one of the focal points of concern for investors during the evening conference call.
In response, Chen Rui stated that bilibili's game goal is long-term operation, with a life cycle of at least five years. One of the most important tasks for bilibili's gaming business next year is to focus on "Three Kingdoms: Strategize the World", operating it to perfection, with the overseas version of this game set to be released in the second half of next year. At the same time, efforts will be made to expand other game categories and enrich game reserves.
Another pillar business — advertising, bilibili continues to explore commercialization opportunities, achieving a revenue of 2.09 billion yuan in the third quarter, representing a year-on-year increase of 28%.
Gaming, e-commerce, digital appliances, internet services, and autos have become the top five industries contributing to advertising revenue. During the november 11 shopping festival-related period, bilibili's GMV saw a rapid growth of 154% year-on-year compared to last year's promotional period, with the number of advertisers being 6.6 times that of the same period last year. For the next quarter, a certain internet plus-related media team believes that due to the peak season of the november 11 shopping festival-related, advertising is expected to maintain high growth.
In terms of user indicators, bilibili's daily active users reached 0.107 billion in the third quarter, and monthly active users reached 0.348 billion, with the monthly growth rate continuing to slow down. However, for existing users, the stickiness of using bilibili has continued to improve, with daily usage duration increasing from 100 minutes in the same period last year to 106 minutes.
According to the financial report, bilibili achieved a positive operating cash flow of 2.23 billion yuan in the third quarter. As of September 30, 2024, bilibili holds a total of 15.2 billion yuan in cash and cash equivalents, time deposits, and short-term investments.
