Bilibili Inc. Reports Second Quarter 2024 Results
Bilibili Inc. (NASDAQ: BILI and HKEX: 9626), a prominent brand and leading video community for the younger generation in China, has announced its unaudited financial results for the second quarter of 2024.
Second Quarter 2024 Highlights
The second quarter of 2024 showcased remarkable growth and enhanced financial performance:
- Total net revenues: RMB6.13 billion (US$843.1 million), marking a 16% increase compared to the previous year.
- Advertising revenues: RMB2.04 billion (US$280.4 million), reflecting a 30% rise from the prior year.
- Mobile games revenues: RMB1.01 billion (US$138.6 million), showing a 13% year-over-year increase.
- Gross profit: RMB1.83 billion (US$252.3 million), which is a 49% increase year-over-year, resulting in a gross profit margin of 29.9%.
- Net loss: RMB608.1 million (US$83.7 million), a significant improvement, narrowing by 61% year-over-year.
- Adjusted net loss: RMB271.0 million (US$37.3 million), which is a 72% reduction year-over-year.
- Operating cash flow: RMB1.75 billion (US$240.9 million), a notable improvement compared to negative RMB21.2 million from the previous year.
- Average daily active users (DAUs): 102.3 million, reflecting a 6% year-over-year increase.
Comments from Management
Mr. Rui Chen, chairman and CEO, stated, "Our results for the second quarter underscore our commitment to accelerating financial performance while nurturing a vibrant community. With over 102 million daily active users and 336 million monthly active users, we see strong engagement on our platform. Our monetization efficiency has also improved, as evidenced by the 30% growth in advertising revenues. The successful launch of our new strategy game, San Guo: Mou Ding Tian Xia, attracted a large player base, highlighting our operational capabilities beyond anime, comics, and games (ACG). Our focus on community development and commercial offerings will continue to unlock value and support sustainable growth moving forward."
Mr. Sam Fan, CFO, added, "During this quarter, we enhanced our commercialization capabilities, achieving a 16% year-over-year revenue growth. Additionally, we experienced margin expansion for the eighth consecutive quarter, with our gross profit rising by 49% year-over-year. The positive operating cash flow reflects a stronger financial foundation, paving the way for increased profitability in the future."
Comprehensive Financial Overview
Total Net Revenues
Total net revenues for the second quarter of 2024 reached RMB6.13 billion (US$843.1 million), which is a 16% increase compared to the same quarter in 2023.
Value-Added Services
Revenues from value-added services amounted to RMB2.57 billion (US$353.1 million), marking an 11% year-over-year increase driven by a rise in premium memberships and live broadcasts.
Advertising Insights
Advertising revenues soared to RMB2.04 billion (US$280.4 million), a 30% increase attributed to improved advertising efficiency and product offerings.
Mobile Gaming Performance
Revenue from mobile games reached RMB1.01 billion (US$138.6 million), primarily fueled by new game launches, including the highly popular San Guo: Mou Ding Tian Xia.
Operating Cash Flow and Financial Health
The company generated RMB1.75 billion (US$240.9 million) in operating cash flow, a substantial improvement from negative RMB21.2 million a year earlier. As of June 30, 2024, cash, cash equivalents, and short-term investments totaled RMB13.91 billion (US$1.91 billion).
Future Outlook
Bilibili remains dedicated to its vision of enriching young lives through a wide range of engaging content. The results from this quarter reflect ongoing efforts to optimize operational efficiencies and create a sustainable environment for both creators and users. The company anticipates continued growth in engagement and revenue, aiming for enhanced profitability in the upcoming quarters.
Frequently Asked Questions
What were the total net revenues for Bilibili in Q2 2024?
Total net revenues for Bilibili in Q2 2024 were RMB6.13 billion (US$843.1 million), a 16% increase from the same period in the previous year.
How much did advertising revenues increase?
Advertising revenues increased by 30% in Q2 2024, reaching RMB2.04 billion (US$280.4 million).
What was the adjusted net loss for Bilibili in Q2 2024?
Bilibili reported an adjusted net loss of RMB271.0 million (US$37.3 million), narrowing by 72% year-over-year.
How did the average daily active users change?
The average daily active users (DAUs) increased by 6% year-over-year, reaching 102.3 million in Q2 2024.
What are Bilibili's future growth expectations?
Bilibili expects to maintain strong growth by enhancing monetization and expanding its community impact while working toward profitability.
