Q1 financial report released by Bilibili: total revenue reached 5.07 billion yuan, net loss decreased by 72% year-on-year by 630 million yuan

On June 1st, Bilibili (NASDAQ: BILI, HKEX: 9626; hereinafter referred to as "B Station") released its unaudited financial report for the first quarter ended March 31, 2023. According to the financial report, the total revenue of Bilibili in the first quarter reached 5

On June 1st, Bilibili (NASDAQ: BILI, HKEX: 9626; hereinafter referred to as "B Station") released its unaudited financial report for the first quarter ended March 31, 2023. According to the financial report, the total revenue of Bilibili in the first quarter reached 5.07 billion yuan, with an average daily active user of 93.7 million, an increase of 18% year-on-year. The results of the first quarter's loss reduction were significant, with a net loss of 630 million yuan, a year-on-year decrease of 72%.

In the first quarter, driven by the growth of live streaming business, the value-added service revenue in the first quarter reached 2.16 billion yuan. In the first quarter, the monthly average number of active anchors on Bilibili increased by 34% year-on-year, while live streaming paid users increased by 15% year-on-year.

In the first quarter, the advertising market share of Bilibili further expanded, with advertising revenue reaching 1.27 billion yuan, a year-on-year increase of 22%. Bilibili continues to improve advertising efficiency, improve algorithm capabilities, optimize advertising conversion effects, and drive a year-on-year increase of over 50% in effective advertising revenue in the first quarter. The top five advertising industries on Bilibili are gaming, digital home appliances, e-commerce, beauty and skincare, and automobiles.

In the first quarter, the revenue from the gaming business of Bilibili reached 1.13 billion yuan. With the resumption of game version approval, B Station will release 8 new games in China in the coming quarters.

As of March 31, 2023, the company holds cash and cash equivalents, term deposits, and short-term investments totaling RMB 19.4 billion or USD 2.8 billion, providing sufficient funds for the company's operations. At the same time, Bilibili will further promote commercialization, increase gross profit margin, reduce losses, and steadily move towards the goal of breaking even.

In the financial report, Bilibili reiterated its outlook for the full year 2023 revenue, which is expected to be between 24 billion yuan and 26 billion yuan.

Chen Rui, Chairman and CEO of Bilibili, stated: In the first quarter of 2023, while maintaining the healthy development of our community, our gross profit margin steadily increased and our losses significantly narrowed. In the first quarter, the daily active users increased by 18% year-on-year to 93.7 million, and the proportion of daily active users in the community to monthly active users further increased to 29.7%, reflecting a steady increase in user stickiness. At the same time, we further improved operational efficiency, with our gross profit margin increasing from 16% in the same period last year to 22%. In daily use On the basis of continuous improvement of households, market and marketing expenses decreased by 30% year-on-year, and net loss significantly narrowed by 72% year-on-year. In 2023, we will continue to adhere to our mission to provide users with high-quality content, build a stage for creators to showcase themselves, and allow more creators to earn income. At the same time, accelerate commercialization, improve profit margins, and steadily advance towards the goal of breaking even

In the first quarter, the daily average number of active users on Bilibili reached 93.7 million, an increase of 18% year-on-year; The average monthly active users are 315 million. The user stickiness and activity have steadily increased, with an average daily usage time of 96 minutes and a year-on-year increase of 19% in total usage time. The monthly average number of interactions reached 14.2 billion, a year-on-year increase of 15%.

In the first quarter, the daily average video playback on Bilibili reached 4.1 billion, a year-on-year increase of 37%. Among them, the daily average playback of Story-Mode vertical screen videos increased by 82% year-on-year.

As of the end of the first quarter, the number of formal members who answered 100 community exams increased by 29% year-on-year, reaching 205 million. The retention rate of formal members in the 12th month remained stable at 80%.

In the first quarter, the daily active UP content of Station B increased by 42% year-on-year, and the monthly average submission volume reached 22.5 million, a year-on-year increase of 79%. In the first quarter, over 1.5 million UP users received revenue from Station B, an increase of 50% year-on-year. Among them, the number of creators who received income through channels other than creative incentive plans increased by over 55% year-on-year.

Bilibili continues to launch high-quality OGV (Occupationally Generated Video) content with a wide range of categories, consolidating users' understanding of the "boutique" nature of Bilibili's OGV content. In 2022, 160 million people watched documentaries on Bilibili.

As of the end of the first quarter, the number of major members on Bilibili reached 20.2 million, of which over 80% were annual major members or automatic renewal users, reflecting users' loyalty to Bilibili's brand and content.