Bilibili ((BILI)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Bilibili highlighted a generally positive sentiment, with the company showcasing impressive growth metrics in user engagement and advertising revenue. Despite a slight decline in game revenue, the overall outlook remains optimistic, driven by strategic innovations and a focus on expanding profitability and margins.
User Engagement Growth
Bilibili reported a significant increase in user engagement, with daily active users (DAUs) rising by 9% year over year to 117 million and monthly active users (MAUs) growing by 8% to 376 million. The average daily time spent per user also reached an all-time high of 112 minutes, underscoring the platform’s ability to capture and retain user attention effectively.
Record Monthly Paying Users
The company achieved a milestone with monthly paying users reaching a record high of 35 million, marking a 17% increase year over year. This growth reflects Bilibili’s success in converting its user base into paying customers, contributing significantly to its revenue streams.
Advertising Revenue Surge
Advertising revenue experienced a robust growth of 23% year over year, amounting to RMB 2.7 billion. This surge was driven by both brand and performance ads, highlighting Bilibili’s effective monetization strategies and its appeal to advertisers.
Profitability and Margin Improvement
Bilibili’s financial performance saw notable improvements, with gross profit increasing by 11% year over year and gross margin expanding to 36.7%. Adjusted operating and net profit margins also improved to 9% and 10.2%, respectively, indicating enhanced operational efficiency.
Successful Game Launch
The launch of the game ‘Escape from Duckoff’ proved successful, with over 3 million copies sold globally and receiving positive reviews. This success underscores Bilibili’s potential in the gaming sector despite the overall decline in game revenue.
AI-Driven Innovation
Bilibili is focusing on AI-driven innovations, with plans to introduce AI-powered applications, including multilingual video accessibility features. This strategic move positions AI as a key growth enabler for the company.
Decline in Game Revenue
Despite the success of ‘Escape from Duckoff,’ Bilibili experienced a 17% decline in game revenue year over year. This decrease was attributed to a high base from the previous year, suggesting a need for diversification in gaming offerings.
Forward-Looking Guidance
Looking ahead, Bilibili remains optimistic about its growth trajectory, driven by its strategic focus on high-quality content, community engagement, and investments in AI and gaming. The company expects continued growth in user engagement and financial performance, with a particular emphasis on expanding its advertising and AI capabilities.
In summary, Bilibili’s earnings call conveyed a positive sentiment, with strong growth in user engagement and advertising revenue. Despite challenges in the gaming sector, the company’s strategic initiatives in AI and content quality are expected to drive future growth and profitability.