Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizen Xiao Zhan for the clue delivery! On March 2, bilibili (hereinafter referred to as bilibili) handed in his transcripts for the fourth quarter and the whole year of 2022. In fiscal year 2022, bilibili's revenue rose 13% year-on-year to 21.9 billion yuan, of which revenue in the fourth quarter reached 6.14 billion yuan, up 6% from the same period last year.

Under the high content and traffic costs, bilibili's revenue is still growing and user activity is also increasing. The number of monthly active users is 326 million, the average daily active users is 92.8 million, and the average daily use time is 96 minutes.

In 2022, bilibili will focus on high-quality user growth and profitability improvement. In the fourth quarter, bilibili posted a net loss of 1.5 billion yuan, a sharp decrease of 29% compared with the same period last year. However, the full-year loss widened again, by about 10 per cent year-on-year to 7.5 billion yuan.

In the fourth quarter of 2021, bilibili put forward a profit target for the first time. He plans to narrow the operating loss rate of Non-GAAP (non-American General Accounting Standards) for the whole year from 2022, and achieve Non-GAAP break-even by 2024 in the medium term. In this earnings call, bilibili CEO Chen Rui reiterated that the profit target for 2024 will remain unchanged.

Bilibili's revenue mainly includes advertising, value-added services, games, e-commerce and other four sectors, among which value-added services and advertising are the main drivers of bilibili's revenue growth. In 2022, bilibili's total revenue was 21.9 billion yuan, an increase of 13% over the same period last year. Among them, value-added services and advertising revenue increased by 26% and 12% respectively from the same period last year to 8.72 billion yuan and 5.1 billion yuan respectively.

Among bilibili's value-added services, the live broadcast business is growing rapidly, with annual revenue growing by more than 30 per cent compared with the same period last year. In 2022, bilibili further promoted the integrated operation of LVB and video ecology, encouraged more UP hosts to become anchors, improved the penetration of LVB in the station, and turned more users into LVB paying users. In the fourth quarter, the number of monthly active anchors increased by 70% compared with the same period last year, and the number of households paying monthly fees for live broadcasting business increased by more than 40% compared with the same period last year.

It is worth mentioning that the growth in revenue from value-added services also reflects the increase in user activity and stickiness. As of the fourth quarter, the average number of monthly active users on site B increased by 20 per cent year on year to 326 million, the average number of daily active users increased by 29 per cent to 92.8 million, and the average daily use time reached 96 minutes, driving the total use time of users in bilibili by 51 per cent year-on-year.

In 2022, the whole advertising market environment is full of challenges, and bilibili's advertising business continues to grow steadily. In 2022, bilibili's annual advertising revenue increased 12% year-on-year to 5.1 billion yuan, advertising revenue reached 1.51 billion yuan in the fourth quarter, and effect advertising revenue increased by more than 50% year-on-year. The new advertising scenes and efficient effect conversion components brought about by Story-Mode vertical screen video have brought new impetus to the improvement of effective advertising revenue.

At the earnings call, bilibili COO Li Mi said that advertisers began to regain confidence in 2023 and expected the industry as a whole to have a chance to achieve a double-digit growth rate, but advertisers would still be more cautious and more concerned about the effectiveness of the delivery.

Bilibili's e-commerce and other businesses earned 3.1 billion yuan in 2022, an increase of 9 percent over the same period last year. This is mainly due to the increase in turnover from e-sports 's copyright delegation. Li Mi revealed that bilibili will recently integrate the entire system of video and live streaming, explore the open-loop trading model that belongs to bilibili, and will quickly boost the budgets of the e-commerce industry and merchants this year.

Among the four major business segments, games are the only business with negative growth compared with the same period last year. In 2022, bilibili's game business revenue of 5 billion yuan, down 1% from the same period last year, of which revenue in the fourth quarter fell 12% to 1.1 billion yuan. This is mainly due to the lack of new games in the fourth quarter.

Bilibili said that in the first half of this year, bilibili will release two self-developed games and six agent games at home and abroad. With the gradual resumption of the approval of domestic game version numbers, the development of game business will usher in more opportunities.

Continue to reduce costs and increase efficiency Q4 net loss narrowed by the epidemic and the macro environment, bilibili's revenue performance last year is not poor. But high costs are a drag on profit performance. In 2022, bilibili posted a net loss of 7.5 billion yuan, an increase of about 10 per cent over the same period last year. Under the continuous cost reduction and efficiency, bilibili's net loss in the fourth quarter narrowed significantly, down 29% from the same period last year to 1.5 billion yuan.

According to the financial report, bilibili's operating cost in 2022 was 18 billion yuan, an increase of 18% over the same period last year, mainly due to the increase in revenue-sharing costs and content costs. Among them, the revenue-sharing cost increased 18% to 9.1 billion yuan compared with the same period last year, and the revenue-sharing was mainly the incentive / share given to UP owners in the live broadcast and advertising business.

Among the operating expenses, bilibili's operating expenses increased by 17% to 12.2 billion yuan in 2022 compared with the same period last year. Of this total, R & D expenditure increased 68 per cent year-on-year to 4.8 billion yuan, general and administrative expenditure increased 37 per cent to 2.5 billion yuan, and sales and marketing expenditure decreased 15 per cent to 4.9 billion yuan.

The increase in R & D expenditure was mainly due to an increase in expenditure of $525.8 million on the termination of certain game projects and an increase in depreciation of servers and equipment. The increase in general and administrative expenditure is mainly due to the severance payment of $341.4 million related to the optimized organization in 2022. The reduction in promotion expenditure leads to a decline in sales and marketing expenditure.

In addition, bilibili took a series of measures to manage debt and improve balance sheet in 2022. In the fourth quarter, bilibili bought back and wrote off convertible bonds with a total face value of about $550 million at a total cash cost of $420 million. In January this year, bilibili completed a $410 million plan to issue new shares, of which $330 million was used to buy back convertible bonds with a total face value of $380 million, and the rest was used to replenish the company's cash reserves.

Bilibili executives said that after the 2022 adjustment, bilibili will focus more on core business development and improve the efficiency of the company. This year, bilibili will continue to accelerate commercialization, increase gross profit margin and narrow losses, so as to break even with non-Non-GAAP in 2024.

In the financial report, bilibili looked forward to the annual income in 2023, which is expected to be between 24 billion yuan and 26 billion yuan.

As of March 2, bilibili's US stock was up 9.66% at US $21.57, with a market capitalization of US $8.71 billion. Bilibili's Hong Kong shares rose more than 10 per cent to HK $168.5 at the start of trading today, with a market capitalization of HK $68.6 billion.

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