Bilibili Inc. Announces First Quarter 2024 Financial Results
Bilibili (NASDAQ: BILI, HKEX: 9626) announced its unaudited financial results for Q1 2024, revealing a 12% year-over-year increase in total net revenues to RMB5.66 billion (US$784.5 million). Advertising revenues surged by 31% to RMB1.67 billion (US$231.1 million), while Value-added services (VAS) increased by 17% to RMB2.53 billion (US$350.3 million). Gross profit rose by 45% to RMB1.61 billion (US$222.3 million), with the gross profit margin improving to 28.3%. However, the net loss widened to RMB764.6 million (US$105.9 million), despite a narrowed adjusted net loss of RMB455.9 million (US$63.1 million). Operating cash flow turned positive at RMB637.7 million (US$88.3 million). Average daily active users (DAUs) grew by 9% to 102.4 million. The company aims to continue enhancing its commercialization strategies and profitability.
- Total net revenues increased by 12% YoY to RMB5.66 billion (US$784.5 million).
- Advertising revenues surged 31% YoY to RMB1.67 billion (US$231.1 million).
- Value-added services (VAS) revenues increased by 17% YoY to RMB2.53 billion (US$350.3 million).
- Gross profit rose 45% YoY to RMB1.61 billion (US$222.3 million).
- Gross profit margin improved to 28.3%, up from 21.8% in Q1 2023.
- Adjusted net loss narrowed by 56% YoY to RMB455.9 million (US$63.1 million).
- Operating cash flow turned positive at RMB637.7 million (US$88.3 million), compared to negative RMB630.0 million last year.
- Average DAUs increased by 9% YoY to 102.4 million.
- Net loss widened to RMB764.6 million (US$105.9 million) from RMB629.6 million YoY.
- Total operating expenses slightly decreased by 2% YoY but remain high at RMB2.42 billion (US$335.7 million).
- Revenues from mobile games decreased by 13% YoY to RMB982.8 million (US$136.1 million).
- Revenues from IP derivatives and others decreased by 5% YoY to RMB484.3 million (US$67.1 million).
- Basic and diluted net loss per share increased to RMB1.80 (US$0.25) from RMB1.53 last year.
Insights
The first quarter financial results for Bilibili Inc. show several noteworthy metrics that retail investors should understand. The most eye-catching figure is the 12% year-over-year increase in total net revenues, reaching
While the company reported a net loss of
Another critical metric is the gross profit margin, which improved markedly to
Investors should also pay attention to the company's engagement metrics. The average daily active users (DAUs) increased by
However, the continuous net losses, despite narrowing, remain a concern. The company needs to demonstrate a clear path to profitability to maintain investor confidence over the long term.
Bilibili's performance in the technological domain focuses on user engagement and content diversity. Average daily active users (DAUs) reached 102.4 million, signaling a
These metrics highlight Bilibili's success in maintaining and increasing user engagement through diverse and appealing content. The company's investment in live broadcasting and other value-added services is paying off, as evidenced by the
The planned release of the exclusively licensed strategy game, 'San Guo: Mou Ding Tian Xia,' on June 13, 2024, is another noteworthy point. While revenues from mobile games decreased by
Overall, Bilibili's technological advancements in content delivery and user engagement reflect positively on its business model. However, it’s important to continue innovating and diversifying content to stay competitive in the rapidly evolving digital entertainment landscape.
SHANGHAI, China, May 23, 2024 (GLOBE NEWSWIRE) -- Bilibili Inc. (“Bilibili” or the “Company”) (NASDAQ: BILI and HKEX: 9626), an iconic brand and a leading video community for young generations in China, today announced its unaudited financial results for the first quarter ended March 31, 2024.
First Quarter 2024 Highlights:
- Total net revenues were RMB5.66 billion (US
$784.5 million ), representing an increase of12% year over year.- Advertising revenues were RMB1.67 billion (US
$231.1 million ), representing an increase of31% year over year. - Value-added services (VAS) revenues were RMB2.53 billion (US
$350.3 million ), representing an increase of17% year over year.
- Advertising revenues were RMB1.67 billion (US
- Gross profit was RMB1.61 billion (US
$222.3 million ), representing an increase of45% year over year. Gross profit margin reached28.3% , improving from21.8% in the same period last year. - Net loss was RMB764.6 million (US
$105.9 million ), compared with RMB629.6 million in the same period last year. The year over year increase was mainly due to debt extinguish gain of RMB336.5 million recorded in the first quarter of 2023. - Adjusted net loss1 was RMB455.9 million (US
$63.1 million ), narrowing by56% year over year. - Operating cash flow was RMB637.7 million (US
$88.3 million ) in the first quarter of 2024, compared with negative RMB630.0 million for the same period last year. - Average daily active users (DAUs) were 102.4 million, representing an increase of
9% year over year.
“We are off to a good start in 2024. The first quarter was marked by healthy community growth across the board and a solid financial performance,” said Mr. Rui Chen, chairman and chief executive officer of Bilibili. “Our community is thriving with our increasingly diverse content, driving DAUs up
Mr. Sam Fan, chief financial officer of Bilibili, said, “Our commercialization and operational efficiency enhancement initiatives continued to yield great results. In the first quarter, total net revenues increased by
First Quarter 2024 Financial Results
Total net revenues. Total net revenues were RMB5.66 billion (US
Value-added services (VAS). Revenues from VAS were RMB2.53 billion (US
Advertising. Revenues from advertising were RMB1.67 billion (US
Mobile games. Revenues from mobile games were RMB982.8 million (US
IP derivatives and others. Revenues from IP derivatives and others were RMB484.3 million (US
Cost of revenues. Cost of revenues was RMB4.06 billion (US
Gross profit. Gross profit was RMB1.61 billion (US
Total operating expenses. Total operating expenses were RMB2.42 billion (US
Sales and marketing expenses. Sales and marketing expenses were RMB927.1 million (US
General and administrative expenses. General and administrative expenses were RMB531.8 million (US
Research and development expenses. Research and development expenses were RMB965.1 million (US
Loss from operations. Loss from operations was RMB818.6 million (US
Adjusted loss from operations1. Adjusted loss from operations was RMB512.2 million (US
Total other income, net. Total other income was RMB55.5 million (US
Income tax expense. Income tax expense was RMB1.6 million (US
Net loss. Net loss was RMB764.6 million (US
Adjusted net loss1. Adjusted net loss was RMB455.9 million (US
Basic and diluted EPS and adjusted basic and diluted EPS1. Basic and diluted net loss per share were RMB1.80 (US
Cash and cash equivalents, time deposits and short-term investments. As of March 31, 2024, the Company had cash and cash equivalents, time deposits and short-term investments of RMB12.92 billion (US
1 Adjusted loss from operations, adjusted net loss and adjusted basic and diluted EPS are non-GAAP financial measures. For more information on non-GAAP financial measures, please see the section of “Use of Non-GAAP Financial Measures” and the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results.”
Repurchase of Convertible Senior Notes
In March 2024, the Company completed the repurchase right offer for its
Conference Call
The Company’s management will host an earnings conference call at 8:00 AM U.S. Eastern Time on May 23, 2024 (8:00 PM Beijing/Hong Kong Time on May 23, 2024). Details for the conference call are as follows:
Event Title: | Bilibili Inc. First Quarter 2024 Earnings Conference Call |
Registration Link: | https://register.vevent.com/register/BIdb280fdab7884a4497749497e7afe731 |
All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers and a personal PIN, which will be used to join the conference call.
Additionally, a live webcast of the conference call will be available on the Company’s investor relations website at http://ir.bilibili.com, and a replay of the webcast will be available following the session.
About Bilibili Inc.
Bilibili is an iconic brand and a leading video community with a mission to enrich the everyday lives of young generations in China. Bilibili offers a wide array of video-based content with All the Videos You Like as its value proposition. Bilibili builds its community around aspiring users, high-quality content, talented content creators and the strong emotional bonds among them. Bilibili pioneered the “bullet chatting” feature, a live comment function that has transformed our users’ viewing experience by displaying the thoughts and feelings of audience members viewing the same video. The Company has now become the welcoming home of diverse interests among young generations in China and the frontier for promoting Chinese culture across the world.
For more information, please visit: http://ir.bilibili.com.
Use of Non-GAAP Financial Measures
The Company uses non-GAAP measures, such as adjusted loss from operations, adjusted net loss, adjusted net loss per share and per ADS, basic and diluted and adjusted net loss attributable to the Bilibili Inc.’s shareholders in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, amortization expense related to intangible assets acquired through business acquisitions, income tax related to intangible assets acquired through business acquisitions, gain/loss on fair value change in investments in publicly traded companies, gain/loss on repurchase of convertible senior notes, expenses related to organizational optimization, and termination expenses of certain game projects. The Company believes that the non-GAAP financial measures provide useful information about the Company’s results of operations, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company’s operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP.
The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.
For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results.”
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB 7.2203 to US
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue,” or other similar expressions. Among other things, outlook and quotations from management in this announcement, as well as Bilibili’s strategic and operational plans, contain forward-looking statements. Bilibili may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its interim and annual reports to shareholders, in announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Bilibili’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: results of operations, financial condition, and stock price; Bilibili’s strategies; Bilibili’s future business development, financial condition and results of operations; Bilibili’s ability to retain and increase the number of users, members and advertising customers, provide quality content, products and services, and expand its product and service offerings; competition in the online entertainment industry; Bilibili’s ability to maintain its culture and brand image within its addressable user communities; Bilibili’s ability to manage its costs and expenses; PRC governmental policies and regulations relating to the online entertainment industry, general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission and the Hong Kong Stock Exchange. All information provided in this announcement and in the attachments is as of the date of the announcement, and the Company undertakes no duty to update such information, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
Bilibili Inc.
Juliet Yang
Tel: +86-21-2509-9255 Ext. 8523
E-mail: ir@bilibili.com
Piacente Financial Communications
Helen Wu
Tel: +86-10-6508-0677
E-mail: bilibili@tpg-ir.com
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: bilibili@tpg-ir.com
BILIBILI INC. | ||||||||
Unaudited Condensed Consolidated Statements of Operations | ||||||||
(All amounts in thousands, except for share and per share data) | ||||||||
For the Three Months Ended | ||||||||
March 31, | December 31, | March 31, | ||||||
2023 | 2023 | 2024 | ||||||
RMB | RMB | RMB | ||||||
Net revenues: | ||||||||
Value-added services (VAS) | 2,156,224 | 2,857,079 | 2,528,909 | |||||
Advertising | 1,271,804 | 1,929,164 | 1,668,584 | |||||
Mobile games | 1,131,619 | 1,006,858 | 982,810 | |||||
IP derivatives and others | 509,964 | 555,995 | 484,297 | |||||
Total net revenues | 5,069,611 | 6,349,096 | 5,664,600 | |||||
Cost of revenues | (3,965,679 | ) | (4,689,114 | ) | (4,059,240 | ) | ||
Gross profit | 1,103,932 | 1,659,982 | 1,605,360 | |||||
Operating expenses: | ||||||||
Sales and marketing expenses | (880,186 | ) | (1,125,464 | ) | (927,059 | ) | ||
General and administrative expenses | (571,695 | ) | (511,906 | ) | (531,777 | ) | ||
Research and development expenses | (1,026,712 | ) | (1,327,282 | ) | (965,120 | ) | ||
Total operating expenses | (2,478,593 | ) | (2,964,652 | ) | (2,423,956 | ) | ||
Loss from operations | (1,374,661 | ) | (1,304,670 | ) | (818,596 | ) | ||
Other income: | ||||||||
Investment income/(loss), net (including impairments) | 286,402 | (199,004 | ) | (21,249 | ) | |||
Interest income | 146,274 | 126,450 | 133,207 | |||||
Interest expense | (57,706 | ) | (29,181 | ) | (31,574 | ) | ||
Exchange (losses)/gains | (7,712 | ) | 4,848 | (58,060 | ) | |||
Debt extinguishment gain/(loss) | 336,485 | - | (20,980 | ) | ||||
Others, net | 73,005 | 110,007 | 54,183 | |||||
Total other income, net | 776,748 | 13,120 | 55,527 | |||||
Loss before income tax expenses | (597,913 | ) | (1,291,550 | ) | (763,069 | ) | ||
Income tax | (31,732 | ) | (5,140 | ) | (1,562 | ) | ||
Net loss | (629,645 | ) | (1,296,690 | ) | (764,631 | ) | ||
Net loss attributable to noncontrolling interests | 1,959 | 206 | 16,086 | |||||
Net loss attributable to the Bilibili Inc.'s shareholders | (627,686 | ) | (1,296,484 | ) | (748,545 | ) | ||
Net loss per share, basic | (1.53 | ) | (3.13 | ) | (1.80 | ) | ||
Net loss per ADS, basic | (1.53 | ) | (3.13 | ) | (1.80 | ) | ||
Net loss per share, diluted | (1.53 | ) | (3.13 | ) | (1.80 | ) | ||
Net loss per ADS, diluted | (1.53 | ) | (3.13 | ) | (1.80 | ) | ||
Weighted average number of ordinary shares, basic | 410,564,084 | 414,793,013 | 415,274,340 | |||||
Weighted average number of ADS, basic | 410,564,084 | 414,793,013 | 415,274,340 | |||||
Weighted average number of ordinary shares, diluted | 410,564,084 | 414,793,013 | 415,274,340 | |||||
Weighted average number of ADS, diluted | 410,564,084 | 414,793,013 | 415,274,340 |
The accompanying notes are an integral part of press release.
BILIBILI INC. | |||||
NOTES TO UNAUDITED FINANCIAL INFORMATION | |||||
(All amounts in thousands, except for share and per share data) | |||||
For the Three Months Ended | |||||
March 31, | December 31, | March 31, | |||
2023 | 2023 | 2024 | |||
RMB | RMB | RMB | |||
Share-based compensation expenses included in: | |||||
Cost of revenues | 12,462 | 15,014 | 13,677 | ||
Sales and marketing expenses | 14,504 | 13,960 | 12,560 | ||
General and administrative expenses | 137,616 | 150,226 | 157,824 | ||
Research and development expenses | 96,152 | 87,859 | 80,525 | ||
Total | 260,734 | 267,059 | 264,586 |
BILIBILI INC. | |||||
Unaudited Condensed Consolidated Balance Sheets | |||||
(All amounts in thousands, except for share and per share data) | |||||
December 31, | March 31, | ||||
2023 | 2024 | ||||
RMB | RMB | ||||
Assets | |||||
Current assets: | |||||
Cash and cash equivalents | 7,191,821 | 6,037,409 | |||
Time deposits | 5,194,891 | 5,050,823 | |||
Restricted cash | 50,000 | 50,000 | |||
Accounts receivable, net | 1,573,900 | 1,278,323 | |||
Prepayments and other current assets | 2,063,362 | 1,877,483 | |||
Short-term investments | 2,653,065 | 1,833,458 | |||
Total current assets | 18,727,039 | 16,127,496 | |||
Non-current assets: | |||||
Property and equipment, net | 714,734 | 757,663 | |||
Production cost, net | 2,066,066 | 2,023,621 | |||
Intangible assets, net | 3,627,533 | 3,491,750 | |||
Goodwill | 2,725,130 | 2,725,130 | |||
Long-term investments, net | 4,366,632 | 4,365,225 | |||
Other long-term assets | 931,933 | 758,373 | |||
Total non-current assets | 14,432,028 | 14,121,762 | |||
Total assets | 33,159,067 | 30,249,258 | |||
Liabilities | |||||
Current liabilities: | |||||
Accounts payable | 4,333,730 | 4,530,078 | |||
Salary and welfare payables | 1,219,355 | 932,820 | |||
Taxes payable | 345,250 | 279,637 | |||
Short-term loan and current portion of long-term debt | 7,455,753 | 4,941,485 | |||
Deferred revenue | 2,954,088 | 2,987,606 | |||
Accrued liabilities and other payables | 1,795,519 | 2,058,980 | |||
Total current liabilities | 18,103,695 | 15,730,606 | |||
Non-current liabilities: | |||||
Long-term debt | 646 | 732 | |||
Other long-term liabilities | 650,459 | 611,201 | |||
Total non-current liabilities | 651,105 | 611,933 | |||
Total liabilities | 18,754,800 | 16,342,539 | |||
Total Bilibili Inc.’s shareholders’ equity | 14,391,900 | 13,910,438 | |||
Noncontrolling interests | 12,367 | (3,719 | ) | ||
Total shareholders’ equity | 14,404,267 | 13,906,719 | |||
Total liabilities and shareholders’ equity | 33,159,067 | 30,249,258 |
BILIBILI INC. | ||||||||
Unaudited Selected Condensed Consolidated Cash Flows Data | ||||||||
(All amounts in thousands, except for share and per share data) | ||||||||
For the Three Months Ended | ||||||||
March 31, | December 31, | March 31, | ||||||
2023 | 2023 | 2024 | ||||||
RMB | RMB | RMB | ||||||
| ||||||||
Net cash (used in)/provided by operating | ||||||||
activities | (629,977 | ) | 640,396 | 637,697 |
BILIBILI INC. | ||||||||
Unaudited Reconciliations of GAAP and Non-GAAP Results | ||||||||
(All amounts in thousands, except for share and per share data) | ||||||||
For the Three Months Ended | ||||||||
March 31, | December 31, | March 31, | ||||||
2023 | 2023 | 2024 | ||||||
RMB | RMB | RMB | ||||||
Loss from operations | (1,374,661 | ) | (1,304,670 | ) | (818,596 | ) | ||
Add: | ||||||||
Share-based compensation expenses | 260,734 | 267,059 | 264,586 | |||||
Amortization expense related to intangible assets acquired through business acquisitions | 48,151 | 47,734 | 41,776 | |||||
Termination expenses of certain game projects | - | 354,811 | - | |||||
Adjusted loss from operations | (1,065,776 | ) | (635,066 | ) | (512,234 | ) | ||
Net loss | (629,645 | ) | (1,296,690 | ) | (764,631 | ) | ||
Add: | ||||||||
Share-based compensation expenses | 260,734 | 267,059 | 264,586 | |||||
Amortization expense related to intangible assets acquired through business acquisitions | 48,151 | 47,734 | 41,776 | |||||
Income tax related to intangible assets acquired through business acquisitions | (5,625 | ) | (5,563 | ) | (5,407 | ) | ||
(Gain)/loss on fair value change in investments in publicly traded companies | (367,920 | ) | 76,839 | (13,186 | ) | |||
(Gain)/loss on repurchase of convertible senior notes | (336,485 | ) | - | 20,980 | ||||
Termination expenses of certain game projects | - | 354,811 | - | |||||
Adjusted net loss | (1,030,790 | ) | (555,810 | ) | (455,882 | ) | ||
Net loss attributable to noncontrolling interests | 1,959 | 206 | 16,086 | |||||
Adjusted net loss attributable to the Bilibili Inc.'s shareholders | (1,028,831 | ) | (555,604 | ) | (439,796 | ) | ||
Adjusted net loss per share, basic | (2.51 | ) | (1.34 | ) | (1.06 | ) | ||
Adjusted net loss per ADS, basic | (2.51 | ) | (1.34 | ) | (1.06 | ) | ||
Adjusted net loss per share, diluted | (2.51 | ) | (1.34 | ) | (1.06 | ) | ||
Adjusted net loss per ADS, diluted | (2.51 | ) | (1.34 | ) | (1.06 | ) | ||
Weighted average number of ordinary shares, basic | 410,564,084 | 414,793,013 | 415,274,340 | |||||
Weighted average number of ADS, basic | 410,564,084 | 414,793,013 | 415,274,340 | |||||
Weighted average number of ordinary shares, diluted | 410,564,084 | 414,793,013 | 415,274,340 | |||||
Weighted average number of ADS, diluted | 410,564,084 | 414,793,013 | 415,274,340 |
FAQ
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