BILIBILI(BILI)2023-06-01 15:38Financial Data and Key Metrics Changes - Total net revenue for Q1 2023 was RMB5.1 billion, flat compared to the same period last year [17] - Gross profit increased by 37% year-over-year to RMB1.1 billion, with gross margin improving to 22% from 16% [17][18] - Net loss narrowed by 72% year-over-year to RMB630 million, with a net loss ratio of 12%, down from 45% a year ago [18] Business Line Data and Key Metrics Changes - Advertising revenue grew by 22% year-over-year to RMB1.3 billion, driven by improvements in ad infrastructure [13][17] - VAS revenue increased by 5% year-over-year to RMB2.2 billion, primarily due to growth in live broadcasting [12] - Game revenue for Q1 was RMB1.1 billion, with plans to release eight new titles in domestic markets [14] - Revenue from IP derivatives decreased by 15% year-over-year to RMB510 million, but margins improved significantly [15] Market Data and Key Metrics Changes - Daily Active Users (DAUs) grew by 18% year-over-year to 93.7 million, while Monthly Active Users (MAUs) reached 315 million [5][17] - The DAU to MAU ratio improved to 29.7% from 27% a year ago [5] - Average daily time spent on the platform remained stable at 96 minutes, with monthly interactions up 15% year-over-year to 14.2 billion [10] Company Strategy and Development Direction - The company aims to improve commercialization efficiency and narrow losses, focusing on high-quality DAU growth [4][22] - Plans to expand the creator base and enhance monetization opportunities for content creators [6][8] - Continued investment in ad infrastructure, live broadcasting integration, and exploring AIGC opportunities [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving break-even targets and improving financial metrics [4] - The advertising market in China is expected to achieve double-digit growth, with Bilibili capturing more market share [26] - The gaming industry is anticipated to see regular issuance of licenses, benefiting Bilibili's distribution capabilities [50] Other Important Information - The company has a strong cash position with RMB19.4 billion (US$2.8 billion) available to cover liabilities and fund operations [18] - The 2022 annual ESG report highlights the company's commitment to social responsibility and community building [15] Q&A Session Summary Question: User growth outlook and strategy - Management emphasized a quality-oriented approach to user growth, focusing on DAU rather than MAU, with a goal to improve retention and engagement [22][23] Question: Advertisement growth and strategy - Management noted a 22% year-over-year growth in ad revenue, driven by improvements in ad products and efficiency, and expressed confidence in capturing more market share [26][27] Question: Live streaming business strategy - Management highlighted the integration of live streaming with video content, noting significant growth in both areas and optimistic about future prospects [35][39] Question: Monetization for content creators - Management clarified efforts to improve monetization for creators, stating that 1.5 million creators earned income in Q1, up 50% year-over-year [43][45] Question: Gaming pipeline and outlook - Management shared plans for launching 13 games in the coming quarters, with a focus on high-quality self-developed titles [50][51] Question: Measures for improving gross profit margin - Management outlined strategies for improving gross margin through operational efficiency and cost control, with a focus on maintaining a healthy revenue mix [56]