On the evening of August 22nd, Bilibili Co., Ltd. (hereinafter referred to as "Bilibili") released its performance announcement for the first half of 2024. Data shows that as of June 30th, Bilibili achieved a net turnover of 11.79 billion yuan in the first half of the year, a year-on-year increase of 14%; Gross profit of 3.44 billion yuan, a year-on-year increase of 47%, gross profit margin of 29.2%, an increase of 6.7%; The net loss was 13.7%, a year-on-year decrease of 37%, and the adjusted net loss was 720 million yuan, a year-on-year decrease of 64%.
From the data, Bilibili is one step closer to its profit target. In the second quarter, we further strengthened our commercialization capabilities, achieved accelerated year-on-year revenue growth, sustained improvement in profit margins, and significant narrowing of losses, "said Fan Xin, CFO of Bilibili, in the financial report
From the perspective of revenue structure, value-added service revenue accounts for the largest proportion of Bilibili's revenue, while advertising revenue has the highest growth rate. In the first half of the year, the value-added service revenue of Bilibili reached 5.09 billion yuan, a year-on-year increase of 14%. The main reason for the growth was the increase in revenue from live streaming, VIP membership, and other value-added services; The advertising revenue was 2.037 billion yuan, a year-on-year increase of 30%, mainly due to the company's optimization of advertising products and improvement of advertising efficiency.
In terms of value-added services, as of the end of June, the number of paying members on Bilibili exceeded 22.3 million, a year-on-year increase of 9%, of which over 80% were annual subscribers or automatic renewal package subscribers. In terms of advertising, Station B said that at present, the five major advertising vertical industries in the station are games, e-commerce, digital products and home appliances, cars, food and drinks. In addition, revenue in emerging vertical fields such as Internet services, AI and education has also increased. In the first half of 2024, the number of advertisers on Bilibili increased by over 50% year-on-year.
Bilibili CEO Chen Rui stated during a conference call that the advertising business achieved a 30% year-on-year growth, with quarterly revenue exceeding 2 billion for the first time, contributing one-third of the company's total revenue. Essentially, this is due to the growth of platform traffic and the gradual release of user commercial value. Looking ahead to the second half of the year, Bilibili is confident that its advertising revenue will continue to maintain a growth rate higher than the industry.
Source: Bilibili Half Year Report
In addition, Bilibili achieved positive operating cash flow in the first half of the year. As of June 30th, the operating cash flow of Bilibili was 2.39 billion yuan, compared to an outflow of 65.12 million yuan in the same period last year.
At the user level, Bilibili has achieved growth in multiple data points. According to the financial report, as of June 30th, the average daily active users of Bilibili were 102.3 million, an increase of 8% year-on-year; The average monthly active users reached 338.6 million, a year-on-year increase of 6%; The average daily usage time per active user in the first half of the year was 102 minutes, an increase of 7% year-on-year; The average monthly interaction volume of users reached about 16.46 billion times, a year-on-year increase of 13%. As of the end of June, the number of official members on Bilibili has increased to 24.31 million, a year-on-year increase of 13%.
As of June 30th, Bilibili had a total of 8137 employees, while by the end of 2023, Bilibili had 8801 employees. The reporter noticed that as of June 30, 2023, the total number of employees at Bilibili was 10354, which means that the number of Bilibili employees decreased by 2217 in one year.
Bilibili stated in its financial report that in the second half of the year, the platform will further invest in enhancing its commercialization capabilities, strengthen its advertising infrastructure, integrate various value-added service products with the platform ecosystem, and unleash more monetization potential. At the same time, it will attract young audiences through reshaping strategy games to obtain more game revenue. The management stated that with the growth of advertising and gaming businesses, there is still significant room for improvement in gross profit margin, and it is expected to achieve breakeven in the third quarter.
As of the close on August 23, Bilibili Hong Kong stocks were trading at HKD 107.1, up 0.75%.