Shulou(Shulou.com)06/03 Report--

"The little broken station is out of the circle again. "This is probably something that B station users have often lamented recently.

From "the party that knows the most young people" to the screen of "afterwave,""Broken Circle" seems to have become the title song of Station B in 2020. After breaking the circle, Station B obviously ushered in another rise. On May 19, Station B released the first quarter of 2020 earnings report, but also let its share price set a new record. Station B shares closed at $35.22 that day, with a market value of about $12.2 billion.

But breaking the circle for Station B is not all icing on the cake. The marketing of "afterwave" makes many old users send out "don't want to break the circle like 'afterwave'. "The voice. Station B has changed and has become a word that appears frequently. With the minority label, the road to breaking the circle is also stumbling.

And now "after the wave rush" B station, the road to break the circle is not smooth.

Hidden dangers under the broken circle financial report

Station B is in high spirits in the first quarter of 2020, just as Station B often shouts "Pig Rush" in the drama "Ghost Blade."

First of all, in terms of revenue, station B performance can be remarkable.

In the first quarter of 2020, Station B achieved revenue of RMB 2.32 billion yuan, an increase of 69% compared with the same period last year. Among them, the revenue from game business was RMB 1.15 billion yuan, with a year-on-year growth of 32%; the revenue from live broadcasting and value-added services was RMB 790 million yuan, with a year-on-year growth of 172%; the revenue from advertising business was RMB 214.3 million yuan, with a year-on-year growth of 90%; and the revenue from e-commerce business was RMB 157 million yuan, with a year-on-year growth of 64%.

Secondly, under the influence of the acceleration of epidemic house economy, the user data of Station B is soaring.

According to the financial report data, the average monthly active users (MAU) of Station B reached 172.4 million, and the number of mobile monthly active users reached 156.4 million, up 70% and 77% year-on-year respectively; the number of daily active users (DAU) reached 50.58 million, up 69% year-on-year; and the average monthly paid users (MPU) reached 13.4 million, up 134% year-on-year.

At the same time, the average daily usage time of users reached 87 minutes, an increase of 10 minutes compared with the previous month. In the face of B station, a series of achievements have been made in user data. Chen Rui, CEO of Station B, said: The epidemic situation has accelerated the growth of users and user activity to some extent, but it is not the main reason. The continuous efforts of Station B in content ecology, community experience and brand building have also played an important role for a long time.

In April this year, Station B received Sony investment, and Station B will launch more products in the ACG field. At the same time, the star effect generated by the star stationing activities of Station B is also increasing resources for Station B. The cooperation with MCN institutions has introduced many UP masters for Station B, and its content ecology is being further improved in the fields of food, finance and games.

It is called "Station B that understands users most." After the New Year's Eve party, it broke the circle with the video "After Wave" of May 4th Youth Day. The repeated breaking of the circle of Station B is also an important reason for the continuous growth of its users.

However, in this broken circle of good financial report,"the most understand user B station" still has a lot of problems. Although breaking the circle brings a certain amount of traffic to Station B, Station B is still in a state of no incremental profit. Small broken station or not able to fill the holes, and the more torn the bigger the hole.

Small broken station is still broken

Small broken station is B station user to B station love name, but also like this love name, B station money bag broke open.

In 2019, the annual net loss of Station B reached CNY 1.304 billion, and the net loss in 2018 was CNY 556 million, an increase of 130.7% year-on-year.

By the first quarter of 2020, Station B is still in a state of loss. Financial report data shows, The latest quarter B station net loss reached 538 million yuan, Year-on-year expansion 175%. Without taking into account the cost of employee equity incentives and the amortized cost of intangible assets acquired, the net loss of Station B under non-GAAP still reached 471 million yuan.

This is the eighth consecutive quarter of losses since Station B went public in the United States in March 2018.

From "the party that understands young people most" to the "afterwave" after infiltrating 70s and 80s, the cost mountain behind the broken circle of Station B is also constantly accumulating.

In the first quarter of 2020, the total operating expenditure of Station B was 1.074 billion yuan, up 117% year-on-year. Among them, sales and marketing expenses reached 606 million yuan, up 234% year-on-year.

Station B broke the circle road is not easy to go, the cost soaring also did not achieve profitability. At the same time, Station B, which gets dividends in the epidemic house economy, is inevitably affected by some negative effects. Among the four sectors constituting the revenue of Station B, the revenue of advertising business and e-commerce business decreased month-on-month.

Under the background of net loss expansion and soaring costs, the old problems existing in the four major sectors of station B revenue are also the checkpoints that station B must face on the road to promote diversification of revenue structure.

The game is still half the sky.

In Station B's first quarter 2020 earnings report, the shadow of the "game company in the coat of video website" appeared again.

Financial report data shows, B station game business income for game business income of 1.15 billion yuan, Year-on-year growth of 32%, In the total revenue accounted for 49.6%.

Since the listing of Station B, it has been criticized for a single revenue structure. In order to strengthen the ability to resist risks, Station B has to try its best to lay out other businesses, but until now it still cannot deny that game business revenue is still the top priority.

Moreover, in this game business, which accounts for the bulk of station B's revenue, the revenue of station B's agent game business far exceeds the revenue of its self-developed games.

The data shows that the revenue generated by Station B's agent "Destiny-Crown Designation"(i.e. FGO) in the past game business revenue is still as high as 58% until 2019. FGO has been online for nearly four years, and both downloads and kryptonite levels have reached a certain saturation.

According to Qimai data, in 2017 FGO ranked in the top 100 on the iOS best-selling list, but in 2020 its ranking dropped to between 100 and 150.

Although on April 17, the game Princess Link, exclusively represented by Station B, achieved the top ten positions in the best-selling list of business iOS mobile games in China as soon as it was launched, it is unclear whether Princess Link will become another support point for Station B's game business after FGO.

While still relying heavily on revenue generated by proxy games, the multidimensionality brought about by ring breaking is also impacting Station B.

Sea water and fire at station B

The success of Station B has brought about a series of user data climbs, which is very envious of others in the Internet industry, which currently regards traffic as king.

However, for B stations labeled with "secondary elements,""niche," etc., breaking the circle does not mean sitting and enjoying it. For the old users,"Station B has changed," the user's sense of belonging becomes a problem, and Station B, which accepts more cultural influx, also faces the impact brought by other cultures.

One of the typical problems is that in April, users of station B switched to station A. After breaking the circle, many old users of Station B returned to Station A on a large scale after star fans swiped tickets on a large scale and Station B calmed down. Station A even played the feeling card of "AC has always been there, love has always been there", which made many users feel "home" one after another.

After breaking the circle, the "secondary element" of station B is diluted, while station A is acquired by fast hand to cooperate with its layout and concentrate the "secondary element" circle layer.

Station B, which used to be the "garden behind Station A," can now be said to be better than blue. Station B, which is on the road of commercialization, has to face the problem of walking from the trail to the road. Chen Rui, CEO of Station B, once said,"Station B may close down in the future, but it will never deteriorate." However, there is no station B that can realize profit so far, and it may have to face the loss and how to maintain the same quality.

Wen/Liu Kuang public account, ID: liukuang110

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