Disassembling US stock financial report ｜ The monthly use households in the second quarter of station B exceeded 300 million, and the net loss expanded to 2.01 billion yuan

Southern Finance and Economics All -Media Council Reporter Zhang Yuxiao Shanghai reported

Before September 8th, Eastern Time, Bilibili (hereinafter referred to as "station B") released the latest second quarter financial report. The financial report shows that the company's total revenue in the second quarter reached RMB 4.9 billion, an increase of 9.2%year -on -year, which was higher than the market expectations of 4.89 billion yuan. decline. The net loss expanded from 1.12 billion yuan or 291 yuan per share in the same period last year to 2.01 billion yuan or 5.08 yuan per share.

In recent years, Station B is gradually transforming from the former "two -dimensional" sub -cultural content community to YouTube, Douyin and other more diversified youth communities. For many early users, this transformation symbolizes the "out of the circle" of station B. The user growth brought by the "out of the circle" is significant: the second quarter financial report shows that the monthly active users (MAU) of station B exceeded 300 million, reaching 305.7 million, a year -on -year increase of 29%. Chen Rui, chairman and CEO of Bilibili, said that he was still confident that he achieved the goal of 400 million MAU in 2023.

In the financial report, station B also announced the results of its "cost reduction and efficiency" measures. The financial report shows that the market and sales costs in the second quarter decreased by 16%year -on -year. The main reason for the decrease was that the promotion expenditure in the first half of 2022 was reduced, and some of them were offset by the increase in the number of sales and marketing personnel. However, at the same time, the operating cost of the big head of station B increased by 19%year -on -year to 4.17 billion yuan. Among them, the income division cost reached 2.068 billion yuan due to the increase in income division cost and content cost, an increase of 18%year -on -year.

The content of station B is mainly based on professional users to generate video (PUGV), supplemented by live broadcasts, professional institutions to generate video (OGV), etc. The profit and loss of the financial report shows that good content still needs a lot of capital investment.

Various products improve advertising efficiency

In terms of sub -business, the revenue of mobile game in the second quarter of station B was 1.04 billion yuan, which was lower than 1.23 billion yuan in the same period last year; the revenue of value -added services (VAS) was RMB 2.1 billion, an increase of 29%year -on -year; advertising revenue was 1.16 billion yuan , Year -on -year increased by 10%; e -commerce and other revenue were 601 million yuan, a year -on -year increase of 4%.

According to station B, the growth of advertising business is mainly due to the further improvement of Bilibili's brand in the Chinese online advertising market and the improvement of Bilibili's advertising efficiency. Among them, the Story-Mode video stream of station B brought new benefits to advertisements. Story-Mode is a short video viewing method similar to "Douyin" at station B, using user fragmented time to output content. Due to the decrease in video production and viewing thresholds, the average daily playback volume of Story-Mode's vertical screen video increased by 400%year-on-year, bringing bright content growth to station B, and also played "pulling live" and "pulling users. The role of advanced ". For advertisements, the ECPM of the Story-Mode vertical screen advertising (the advertising income that can be obtained per thousand times) is also higher than that of other types of advertising ECPM.

Li Yan, Vice Chairman and Chief Operating Officer of Bilibili, said that although the brand budget in the second half of the year will be affected by the great uncertainty of the macroeconomic economy, the integration of Story-Mode and the ecological multi-scenario of station B will be station B Bring a certain amount of increment, the conversion advertisement will also get a new advertising budget.

In addition, the "flower fire" platform on station B is also an important measure to improve the advertising business. It is reported that the main role of "flower fire" is to connect the brand party and "UP master" (that is, video bloggers). The service fee is charged. Because there are many different video partitions in Station B, the "UP Master" classification is clear, and advertisers using the "Flower Fire" platform can also advertise the corresponding partition more accurately. This not only increases the activity of video producers, but also strengthens the advertising monetization ability of station B.

In addition to the "flower fire", the "take -off plan" of station B also uses public domain traffic to promote the "UP Lord" business single video, which is equivalent to selling its own advertising position to advertising "UP Lord". The "take -off plan" operation method is more similar to our familiar Internet platform advertising services. Different from the partition, the product uses "labels" to achieve accurate release. The main display form is homepage recommendation position, play page recommendation position, etc., and according to CPM (thousand exposure costs) or CPC (single click costs) Methods to bid for fees.

At the financial report, Station B stated that there will be some new progress in advertising in the third quarter, which is reflected in the "deep opening" of Station B on other partners. "Now we have reached preliminary cooperation with e -commerce platforms such as Taobao, Tmall, JD.com, Pinduoduo. We are actively trying to conduct native advertisements on station B, that is, the advertisement of UP Lord '," Li Yan said Essence

However, Li Yan also admitted at the conference call that the global macroeconomic changes and the repeated period of epidemics have significantly affected the advertising industry in the short term, and in the middle and long term, there will be continuous impact. "The budget of the advertisers during this period is obviously shrinking, and the launch will be more cautious. At this stage, the development of emerging industries will be more difficult than ever," Li Yi said. "At present, in our opinion, the advantages of platforms with high user value and high conversion efficiency will be more obvious. But in any case, the situation will definitely be more difficult than before 2021."

In addition to the highly anticipated advertising industry, another major head of revenue in station B is the value -added service. According to station B, the increase in value -added services is mainly due to the company's strengthening of commercialization capacity, and the number of paid users including "big members" and live broadcast services increased.

At the conference call, Li Yan also emphasized that in the future, Station B will pursue the core strategy of "centered on growth and adhere to the community priority, ecological and commercial dual -drive". This is the first time that Station B has mentioned the same position as the community ecology.

If the advertising business has taken one end of the commercialization of station B, then the user pays the other end. The paid at Station B is mainly concentrated in value -added services and players recharge consumption in the game. Specifically, value -added services include large members, music payment, live broadcast rewards, comics, etc. Therefore, maintaining the growth of active users and transforming active users into paid users is also a way for station B to increase income.

In the second quarter, the average number of active users (MAUs) at Station B reached 306 million, an increase of 29%year -on -year, and 83.5 million daily active users (DAU) reached 83.5 million, an increase of 33%year -on -year. In terms of user activity, Station B has achieved MAU growth rates exceeding the DAU growth rate for two consecutive quarters. In addition, the average daily use time of station B in the second quarter was 89 minutes, an increase of 9 minutes over the same period last year, and the overall traffic in the same community increased by 48%year -on -year. From the perspective of paying, the average monthly payment user in the second quarter was 27.5 million, and the payment rate reached 9.0%.

Many anime, comics and film resources played by many B stations make users willing to "pocket their pockets" and buy "big members" to watch. In addition, Station B also acquired some anime studio with a call IP, which aims to attract more paid users through Guochuang Explosive models. Among them, there is a creative company "A Monster" comics with "100,000 Cold jokes", and the dream animation of animations such as "Below of One Man" and "Blessing of Heaven".

The layout of the pan -entertainment industry may also be the main measure of "out of the circle" and increasing revenue. In addition to animation, Station B is still launching self -made variety shows and documentaries such as "One Strings of Life".

However, such a layout is also facing threats from other video websites. In recent years, video sites led by Tencent Video and iQiyi have performed strongly in solo film and television, homemade variety shows, and original episodes. In the first half of the year, the "Fit", "The Tap of the Hunter" and the "Cang Lanjue" in the second half of the year have received a good ratings, and the B station has no similar "explosion".

In addition, the income of station B in the second quarter decreased by 15%year -on -year. The company said that it was mainly due to the lack of new games released by Station B in the first half of 2022. This may also be related to the strict number of game version number distribution in the first half of the year. At the same time, station B is also increasing the income of its game business through investment game companies.

But investment requires costs. The current loss status of station B may require the company to consider more measures to "reduce costs and increase efficiency". Bilibili CFO Fan Xin said that the company's revenue is expected to resume a month -on -month growth momentum in the third and fourth quarters of the second half of this year, and the gross profit margin in the fourth quarter will gradually improve to about 20%. "In the future, we will continue to take strict cost reduction measures. In addition, we expect the company's Non-Gaap net loss rate in the fourth quarter will also narrow from about 40%in the second quarter to 30%."

However, such a commitment does not seem to effectively boost investors' confidence. After the financial report was issued, the stock B stock fell and fell to $ 20.07 at the closing of the US stock on the day, a drop of more than 15%.

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