Bilibili, a leading online entertainment platform for Generation Z in China, saw a 40% growth in monthly active users (MAU) in Q4 2019, which exceeded 130 million.
Bilibili’s total net revenues reached RMB 2,007.8 million (US$288.4 million), a 74% increase from the same period in 2018.
Its average MAU reached 130.3 million and mobile MAUs reached 116.1 million, representing increases of 40% and 46% YoY, respectively. The average daily active users (DAUs) reached 37.9 million, a 41% increase from the same period in 2018.
Revenue per MAU was RMB15.4, a 24% increase YoY. Non-game revenue per MAU was RMB8.7, an 83% increase from the same period in 2018. And, Bilibili’s average monthly paying users reached 8.8 million, a 100% increase YoY.
Financial Results in Q4 2019
Total net revenues were RMB 2,007.8 million (US$288.4 million), representing an increase of 74% YoY.
Revenues from mobile games were RMB 871.4 million (US$125.2 million), representing an increase of 22% YoY. The increase was primarily due to the increasing popularity of both existing and newly launched mobile games.
Revenues from live broadcasting and VAS were RMB 570.9 million (US$82.0 million), representing an increase of 183% YoY, mainly attributable to its enhanced monetization efforts, led by increases in the number of paying users for live broadcasting services and Bilibili’s premium membership program and other VAS.
Revenues from advertising were RMB 289.6 million (US$41.6 million), representing an increase of 81% YoY. This increase was primarily attributable to the increase in revenues from brand advertising and performance-based advertising, driven by the enhancement of recognition of Bilibili’s brand name in China’s online advertising market.
Revenues from e-commerce and others were RMB 275.9 million (US$39.6 million), representing an increase of 241% YoY, primarily attributable to the increase in sales of products through its e-commerce platform.
The cost of revenues was RMB 1,609.9 million (US$231.2 million), representing an increase of 68% compared to the same period of 2018. Revenue-sharing cost, a key component of cost of revenues, was RMB 705.1 million (US$101.3 million), representing an increase of 63% from the same period in 2018.
Gross profit was RMB 397.9 million (US$57.2 million), representing an increase of 102% from the same period in 2018.
Total operating expenses were RMB 817.9 million (US$117.5 million), representing an increase of 68% YoY.
Sales and marketing expenses were RMB 413.2 million (US$59.3 million), representing a 127% increase year-over-year.
The increase was primarily attributable to the increased channel and marketing expenses associated with Bilibili’s app and brand, including promotional activities for offline events, for example, the 2020 New Year’s Eve Gala, as well as promotional expenses for the mobile games.
The increase was also attributed to the increase in headcount in sales and marketing personnel and the increase in fulfillment costs associated with Bilibili’s e-commerce business.
General and administrative expenses were RMB 159.5 million (US$22.9 million), representing a 6% increase year-over-year.
Research and development expenses were RMB 245.2 million (US$35.2 million), representing a 60% increase year-over-year. The increase was primarily due to increased headcount in research and development personnel and increased share-based compensation expenses.
Loss from operations was RMB 419.9 million (US$60.3 million), compared to RMB 288.8 million in Q4 2018. Income tax expense was RMB 6.9 million (US$1.0 million), compared to RMB 9.0 million in Q4 2018.
Net loss was RMB 387.2 million (US$55.6 million), compared to RMB 190.8 million in Q4 2018.
Adjusted net loss, which is a non-GAAP measure that excludes share-based compensation expenses and amortization expense related to intangible assets acquired through business acquisitions, was RMB 336.9 million (US$48.4 million), compared to RMB 152.0 million in Q4 2018.
Basic and diluted net loss per share was RMB 1.17 (US$0.17), compared to RMB 0.59 in the same period of 2018. Adjusted basic and diluted net loss per share was RMB 1.01 (US$0.15), compared to RMB 0.46 in the same period of 2018.
As of December 31, 2019, Bilibili had cash and cash equivalents, time deposits, as well as short-term investments of RMB 8.1 billion (US$1,158.9 million), compared to RMB 5.2 billion as of December 31, 2018.
Financial results for the fiscal year 2019
Total net revenues. Total net revenues increased to RMB 6,777.9 million (US$973.6 million), representing an increase of 64% from 2018.
Revenues from mobile games increased to RMB 3,597.8 million (US$516.8 million), representing an increase of 23% from 2018. The increase was primarily due to the increased number of paying users for mobile games.
Revenues from live broadcasting and VAS increased to RMB 1,641.0 million (US$235.7 million), representing an increase of 180% from 2018, mainly attributable to its enhanced monetization efforts, led by the increases in the number of paying users for Bilibili’s live broadcasting services, as well as its premium membership program and other VAS.
Revenues from advertising increased to RMB 817.0 million (US$117.4 million), representing an increase of 76% from 2018. This increase was primarily attributable to increased revenues from brand advertising and performance-based advertising.
Revenues from e-commerce and others were RMB 722.1 million (US$103.7 million), representing an increase of 403% from 2018, primarily attributable to the increase in sales of products through Bilibili’s e-commerce platform.
Cost of revenues increased by 71% to RMB 5,587.7 million (US$802.6 million), compared to RMB 3,273.5 million in 2018. Revenue-sharing cost, a key component of cost of revenues, was RMB 2,494.4 million (US$358.3 million), representing an increase of 53% from 2018.
Gross profit increased to RMB 1,190.2 million (US$171.0 million), representing an increase of 39% from 2018.
Total operating expenses increased to RMB 2,685.4 million (US$385.7 million), representing an increase of 69% from 2018.
Sales and marketing expenses were RMB 1,198.5 million (US$172.2 million), representing a 105% increase year-over-year.
General and administrative expenses were RMB 592.5 million (US$85.1 million), representing a 28% increase year-over-year.
Research and development expenses were RMB 894.4 million (US$128.5 million), representing a 66% increase year-over-year. The increase was primarily due to increased headcount in research and development personnel and increased share-based compensation expenses.
Loss from operations was RMB 1,495.2 million (US$214.8 million), compared to RMB 729.0 million in 2018.
Interest expense was RMB 46.5 million (US$6.7 million), mainly derived from the convertible senior notes Bilibili offered in April 2019.
Income tax expense was RMB 35.9 million (US$5.2 million), compared to RMB 26.0 million in 2018.
Net loss was RMB 1,303.6 million (US$187.2 million), compared to RMB 565.0 million in 2018.
Adjusted net loss, which is a non-GAAP measure that excludes share-based compensation expenses and amortization expense related to intangible assets acquired through business acquisitions, was RMB 1,081.5 million (US$155.3 million), compared to RMB 377.4 million in 2018.
Basic and diluted net loss per share was RMB 3.99 (US$0.57), compared to RMB 2.64 in 2018. Adjusted basic and diluted net loss per share was RMB 3.30 (US$0.47), compared to RMB 1.84 in 2018.