Bilibili Inc. Announces Second Quarter 2024 Financial Results
Rhea-AI Summary
Bilibili Inc. (NASDAQ: BILI and HKEX: 9626) reported strong financial results for Q2 2024. Total net revenues increased 16% year-over-year to RMB6.13 billion (US$843.1 million). Notably, advertising revenues grew 30% to RMB2.04 billion, and mobile games revenues rose 13% to RMB1.01 billion. The company's gross profit margin improved to 29.9% from 23.1% in the same period last year. Net loss narrowed by 61% to RMB608.1 million, while adjusted net loss decreased by 72% to RMB271.0 million. Bilibili's user base continued to grow, with daily active users (DAUs) increasing 6% to 102.3 million. The company also reported strong operating cash flow of RMB1.75 billion, a significant improvement from the previous year.
Positive
- Total net revenues increased 16% year-over-year to RMB6.13 billion
- Advertising revenues grew 30% year-over-year to RMB2.04 billion
- Mobile games revenues increased 13% year-over-year to RMB1.01 billion
- Gross profit margin improved to 29.9% from 23.1% in the same period last year
- Net loss narrowed by 61% year-over-year
- Adjusted net loss decreased by 72% year-over-year
- Daily active users (DAUs) increased 6% year-over-year to 102.3 million
- Operating cash flow improved to RMB1.75 billion from negative RMB21.2 million in the same period last year
Negative
- The company still reported a net loss of RMB608.1 million
- Revenues from IP derivatives and others decreased by 4% year-over-year
News Market Reaction – BILI
In the trading session that priced this news, BILI declined 7.56%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
SHANGHAI, China, Aug. 22, 2024 (GLOBE NEWSWIRE) -- Bilibili Inc. (“Bilibili” or the “Company”) (NASDAQ: BILI and HKEX: 9626), an iconic brand and a leading video community for young generations in China, today announced its unaudited financial results for the second quarter ended June 30, 2024.
Second Quarter 2024 Highlights:
- Total net revenues were RMB6.13 billion (US
$843.1 million ), representing an increase of16% year over year.
- Advertising revenues were RMB2.04 billion (US
$280.4 million ), representing an increase of30% year over year. - Mobile games revenues were RMB1.01 billion (US
$138.6 million ), representing an increase of13% year over year.
- Advertising revenues were RMB2.04 billion (US
- Gross profit was RMB1.83 billion (US
$252.3 million ), representing an increase of49% year over year. Gross profit margin reached29.9% , improving from23.1% in the same period last year. - Net loss was RMB608.1 million (US
$83.7 million ), narrowing by61% year over year. - Adjusted net loss1 was RMB271.0 million (US
$37.3 million ), narrowing by72% year over year. - Operating cash flow was RMB1.75 billion (US
$240.9 million ) in the second quarter of 2024, compared with negative RMB21.2 million for the same period last year. - Average daily active users (DAUs) were 102.3 million, representing an increase of
6% year over year.
“Our second quarter results highlight how we are accelerating our financial performance while cultivating a vibrant community,” said Mr. Rui Chen, chairman and chief executive officer of Bilibili. “This quarter, our DAUs increased by
Mr. Sam Fan, chief financial officer of Bilibili, said, “We further strengthened our commercialization capabilities in the second quarter, delivering accelerated year-over-year revenue growth, continued margin expansion and remarkable loss reduction. Total net revenues for the second quarter increased by
Second Quarter 2024 Financial Results
Total net revenues. Total net revenues were RMB6.13 billion (US
Value-added services (VAS). Revenues from VAS were RMB2.57 billion (US
Advertising. Revenues from advertising were RMB2.04 billion (US
Mobile games. Revenues from mobile games were RMB1.01 billion (US
IP derivatives and others. Revenues from IP derivatives and others were RMB516.4 million (US
Cost of revenues. Cost of revenues was RMB4.29 billion (US
Gross profit. Gross profit was RMB1.83 billion (US
Total operating expenses. Total operating expenses were RMB2.42 billion (US
Sales and marketing expenses. Sales and marketing expenses were RMB1.04 billion (US
General and administrative expenses. General and administrative expenses were RMB488.0 million (US
Research and development expenses. Research and development expenses were RMB894.7 million (US
Loss from operations. Loss from operations was RMB585.1 million (US
Adjusted loss from operations1. Adjusted loss from operations was RMB283.9 million (US
Total other (expenses)/income, net. Total other expenses were RMB29.2 million (US
Income tax (expense)/benefit. Income tax benefit was RMB6.2 million (US
Net loss. Net loss was RMB608.1 million (US
Adjusted net loss1. Adjusted net loss was RMB271.0 million (US
Basic and diluted EPS and adjusted basic and diluted EPS1. Basic and diluted net loss per share were RMB1.46 (US
Net cash provided by operating activities. Net cash provided by operating activities was RMB1.75 billion (US
Cash and cash equivalents, time deposits and short-term investments. As of June 30, 2024, the Company had cash and cash equivalents, time deposits and short-term investments of RMB13.91 billion (US
Convertible Senior Notes. As of June 30, 2024, the aggregate outstanding principal amount of April 2026 Notes, 2027 Notes and December 2026 Notes was US
1 Adjusted loss from operations, adjusted net loss, and adjusted basic and diluted EPS are non-GAAP financial measures. For more information on non-GAAP financial measures, please see the section “Use of Non-GAAP Financial Measures” and the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results.”
Conference Call
The Company’s management will host an earnings conference call at 8:00 AM U.S. Eastern Time on August 22, 2024 (8:00 PM Beijing/Hong Kong Time on August 22, 2024). Details for the conference call are as follows:
| Event Title: | Bilibili Inc. Second Quarter 2024 Earnings Conference Call |
| Registration Link: | https://register.vevent.com/register/BIe979e5cdf4c845e4949ba649f1d33fa5 |
All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers and a personal PIN, which will be used to join the conference call.
Additionally, a live webcast of the conference call will be available on the Company’s investor relations website at http://ir.bilibili.com, and a replay of the webcast will be available following the session.
About Bilibili Inc.
Bilibili is an iconic brand and a leading video community with a mission to enrich the everyday lives of young generations in China. Bilibili offers a wide array of video-based content with All the Videos You Like as its value proposition. Bilibili builds its community around aspiring users, high-quality content, talented content creators and the strong emotional bonds among them. Bilibili pioneered the “bullet chatting” feature, a live comment function that has transformed our users’ viewing experience by displaying the thoughts and feelings of audience members viewing the same video. The Company has now become the welcoming home of diverse interests among young generations in China and the frontier for promoting Chinese culture across the world.
For more information, please visit: http://ir.bilibili.com.
Use of Non-GAAP Financial Measures
The Company uses non-GAAP measures, such as adjusted loss from operations, adjusted net loss, adjusted net loss per share and per ADS, basic and diluted and adjusted net loss attributable to the Bilibili Inc.’s shareholders in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, amortization expense related to intangible assets acquired through business acquisitions, income tax related to intangible assets acquired through business acquisitions, gain/loss on fair value change in investments in publicly traded companies, and gain/loss on repurchase of convertible senior notes. The Company believes that the non-GAAP financial measures provide useful information about the Company’s results of operations, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP and therefore may not be comparable to similar measures presented by other companies. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company’s operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP.
The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.
For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results.”
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB 7.2672 to US
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue,” or other similar expressions. Among other things, outlook and quotations from management in this announcement, as well as Bilibili’s strategic and operational plans, contain forward-looking statements. Bilibili may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its interim and annual reports to shareholders, in announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Bilibili’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: results of operations, financial condition, and stock price; Bilibili’s strategies; Bilibili’s future business development, financial condition and results of operations; Bilibili’s ability to retain and increase the number of users, members and advertising customers, provide quality content, products and services, and expand its product and service offerings; competition in the online entertainment industry; Bilibili’s ability to maintain its culture and brand image within its addressable user communities; Bilibili’s ability to manage its costs and expenses; PRC governmental policies and regulations relating to the online entertainment industry, general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission and the Hong Kong Stock Exchange. All information provided in this announcement and in the attachments is as of the date of the announcement, and the Company undertakes no duty to update such information, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
Bilibili Inc.
Juliet Yang
Tel: +86-21-2509-9255 Ext. 8523
E-mail: ir@bilibili.com
Piacente Financial Communications
Helen Wu
Tel: +86-10-6508-0677
E-mail: bilibili@tpg-ir.com
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: bilibili@tpg-ir.com
| BILIBILI INC. Unaudited Condensed Consolidated Statements of Operations (All amounts in thousands, except for share and per share data) | |||||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | ||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
| 2023 | 2024 | 2024 | 2023 | 2024 | |||||||||||||||
| RMB | RMB | RMB | RMB | RMB | |||||||||||||||
| Net revenues: | |||||||||||||||||||
| Value-added services (VAS) | 2,301,741 | 2,528,909 | 2,565,888 | 4,457,965 | 5,094,797 | ||||||||||||||
| Advertising | 1,572,840 | 1,668,584 | 2,037,491 | 2,844,644 | 3,706,075 | ||||||||||||||
| Mobile games | 890,884 | 982,810 | 1,007,367 | 2,022,503 | 1,990,177 | ||||||||||||||
| IP derivatives and others | 538,734 | 484,297 | 516,398 | 1,048,698 | 1,000,695 | ||||||||||||||
| Total net revenues | 5,304,199 | 5,664,600 | 6,127,144 | 10,373,810 | 11,791,744 | ||||||||||||||
| Cost of revenues | (4,076,665 | ) | (4,059,240 | ) | (4,293,943 | ) | (8,042,344 | ) | (8,353,183 | ) | |||||||||
| Gross profit | 1,227,534 | 1,605,360 | 1,833,201 | 2,331,466 | 3,438,561 | ||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Sales and marketing expenses | (918,197 | ) | (927,059 | ) | (1,035,596 | ) | (1,798,383 | ) | (1,962,655 | ) | |||||||||
| General and administrative expenses | (539,699 | ) | (531,777 | ) | (488,039 | ) | (1,111,394 | ) | (1,019,816 | ) | |||||||||
| Research and development expenses | (1,047,321 | ) | (965,120 | ) | (894,701 | ) | (2,074,033 | ) | (1,859,821 | ) | |||||||||
| Total operating expenses | (2,505,217 | ) | (2,423,956 | ) | (2,418,336 | ) | (4,983,810 | ) | (4,842,292 | ) | |||||||||
| Loss from operations | (1,277,683 | ) | (818,596 | ) | (585,135 | ) | (2,652,344 | ) | (1,403,731 | ) | |||||||||
| Other (expenses)/income: | |||||||||||||||||||
| Investment (loss)/income, net (including impairments) | (278,081 | ) | (21,249 | ) | (94,684 | ) | 8,321 | (115,933 | ) | ||||||||||
| Interest income | 152,026 | 133,207 | 100,344 | 298,300 | 233,551 | ||||||||||||||
| Interest expense | (47,976 | ) | (31,574 | ) | (19,809 | ) | (105,682 | ) | (51,383 | ) | |||||||||
| Exchange losses | (8,840 | ) | (58,060 | ) | (15,275 | ) | (16,552 | ) | (73,335 | ) | |||||||||
| Debt extinguishment (loss)/gain | (54,043 | ) | (20,980 | ) | - | 282,442 | (20,980 | ) | |||||||||||
| Others, net | (9,677 | ) | 54,183 | 256 | 63,328 | 54,439 | |||||||||||||
| Total other (expenses)/income, net | (246,591 | ) | 55,527 | (29,168 | ) | 530,157 | 26,359 | ||||||||||||
| Loss before income tax | (1,524,274 | ) | (763,069 | ) | (614,303 | ) | (2,122,187 | ) | (1,377,372 | ) | |||||||||
| Income tax (expense)/benefit | (23,858 | ) | (1,562 | ) | 6,154 | (55,590 | ) | 4,592 | |||||||||||
| Net loss | (1,548,132 | ) | (764,631 | ) | (608,149 | ) | (2,177,777 | ) | (1,372,780 | ) | |||||||||
| Net loss/(income) attributable to noncontrolling interests | 1,425 | 16,086 | (551 | ) | 3,384 | 15,535 | |||||||||||||
| Net loss attributable to the Bilibili Inc.’s shareholders | (1,546,707 | ) | (748,545 | ) | (608,700 | ) | (2,174,393 | ) | (1,357,245 | ) | |||||||||
| Net loss per share, basic | (3.74 | ) | (1.80 | ) | (1.46 | ) | (5.28 | ) | (3.26 | ) | |||||||||
| Net loss per ADS, basic | (3.74 | ) | (1.80 | ) | (1.46 | ) | (5.28 | ) | (3.26 | ) | |||||||||
| Net loss per share, diluted | (3.74 | ) | (1.80 | ) | (1.46 | ) | (5.28 | ) | (3.26 | ) | |||||||||
| Net loss per ADS, diluted | (3.74 | ) | (1.80 | ) | (1.46 | ) | (5.28 | ) | (3.26 | ) | |||||||||
| Weighted average number of ordinary shares, basic | 413,446,005 | 415,274,340 | 416,287,273 | 412,013,005 | 415,780,807 | ||||||||||||||
| Weighted average number of ADS, basic | 413,446,005 | 415,274,340 | 416,287,273 | 412,013,005 | 415,780,807 | ||||||||||||||
| Weighted average number of ordinary shares, diluted | 413,446,005 | 415,274,340 | 416,287,273 | 412,013,005 | 415,780,807 | ||||||||||||||
| Weighted average number of ADS, diluted | 413,446,005 | 415,274,340 | 416,287,273 | 412,013,005 | 415,780,807 | ||||||||||||||
The accompanying notes are an integral part of this press release.
| BILIBILI INC. Notes to Unaudited Financial Information (All amounts in thousands, except for share and per share data) | |||||||||||||
| For the Three Months Ended | For the Six Months Ended | ||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||
| 2023 | 2024 | 2024 | 2023 | 2024 | |||||||||
| RMB | RMB | RMB | RMB | RMB | |||||||||
| Share-based compensation expenses included in: | |||||||||||||
| Cost of revenues | 17,440 | 13,677 | 18,370 | 29,902 | 32,047 | ||||||||
| Sales and marketing expenses | 14,662 | 12,560 | 13,361 | 29,166 | 25,921 | ||||||||
| General and administrative expenses | 153,597 | 157,824 | 139,032 | 291,213 | 296,856 | ||||||||
| Research and development expenses | 115,115 | 80,525 | 88,716 | 211,267 | 169,241 | ||||||||
| Total | 300,814 | 264,586 | 259,479 | 561,548 | 524,065 | ||||||||
| BILIBILI INC. Unaudited Condensed Consolidated Balance Sheets (All amounts in thousands, except for share and per share data) | ||||
| December 31, | June 30, | |||
| 2023 | 2024 | |||
| RMB | RMB | |||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | 7,191,821 | 3,732,504 | ||
| Time deposits | 5,194,891 | 5,151,832 | ||
| Restricted cash | 50,000 | 50,000 | ||
| Accounts receivable, net | 1,573,900 | 1,605,884 | ||
| Prepayments and other current assets | 2,063,362 | 1,929,941 | ||
| Short-term investments | 2,653,065 | 5,027,593 | ||
| Total current assets | 18,727,039 | 17,497,754 | ||
| Non-current assets: | ||||
| Property and equipment, net | 714,734 | 703,578 | ||
| Production cost, net | 2,066,066 | 1,945,917 | ||
| Intangible assets, net | 3,627,533 | 3,425,849 | ||
| Goodwill | 2,725,130 | 2,725,130 | ||
| Long-term investments, net | 4,366,632 | 4,303,083 | ||
| Other long-term assets | 931,933 | 717,182 | ||
| Total non-current assets | 14,432,028 | 13,820,739 | ||
| Total assets | 33,159,067 | 31,318,493 | ||
| Liabilities | ||||
| Current liabilities: | ||||
| Accounts payable | 4,333,730 | 4,566,128 | ||
| Salary and welfare payables | 1,219,355 | 1,165,433 | ||
| Taxes payable | 345,250 | 311,821 | ||
| Short-term loan and current portion of long-term debt | 7,455,753 | 4,846,173 | ||
| Deferred revenue | 2,954,088 | 3,725,443 | ||
| Accrued liabilities and other payables | 1,795,519 | 2,541,153 | ||
| Total current liabilities | 18,103,695 | 17,156,151 | ||
| Non-current liabilities: | ||||
| Long-term debt | 646 | 731 | ||
| Other long-term liabilities | 650,459 | 579,908 | ||
| Total non-current liabilities | 651,105 | 580,639 | ||
| Total liabilities | 18,754,800 | 17,736,790 | ||
| Total Bilibili Inc.’s shareholders’ equity | 14,391,900 | 13,584,871 | ||
| Noncontrolling interests | 12,367 | (3,168 | ) | |
| Total shareholders’ equity | 14,404,267 | 13,581,703 | ||
| Total liabilities and shareholders’ equity | 33,159,067 | 31,318,493 | ||
| BILIBILI INC. Unaudited Selected Condensed Consolidated Cash Flows Data (All amounts in thousands, except for share and per share data) | |||||||||||||
| For the Three Months Ended | For the Six Months Ended | ||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||
| 2023 | 2024 | 2024 | 2023 | 2024 | |||||||||
| RMB | RMB | RMB | RMB | RMB | |||||||||
| Net cash (used in)/provided by operating activities | (21,181 | ) | 637,697 | 1,750,540 | (651,158 | ) | 2,388,237 | ||||||
| BILIBILI INC. Unaudited Reconciliations of GAAP and Non-GAAP Results (All amounts in thousands, except for share and per share data) | |||||||||||||||
| For the Three Months Ended | For the Six Months Ended | ||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||
| 2023 | 2024 | 2024 | 2023 | 2024 | |||||||||||
| RMB | RMB | RMB | RMB | RMB | |||||||||||
| Loss from operations | (1,277,683 | ) | (818,596 | ) | (585,135 | ) | (2,652,344 | ) | (1,403,731 | ) | |||||
| Add: | |||||||||||||||
| Share-based compensation expenses | 300,814 | 264,586 | 259,479 | 561,548 | 524,065 | ||||||||||
| Amortization expense related to intangible assets acquired through business acquisitions | 48,151 | 41,776 | 41,776 | 96,302 | 83,552 | ||||||||||
| Adjusted loss from operations | (928,718 | ) | (512,234 | ) | (283,880 | ) | (1,994,494 | ) | (796,114 | ) | |||||
| Net loss | (1,548,132 | ) | (764,631 | ) | (608,149 | ) | (2,177,777 | ) | (1,372,780 | ) | |||||
| Add: | |||||||||||||||
| Share-based compensation expenses | 300,814 | 264,586 | 259,479 | 561,548 | 524,065 | ||||||||||
| Amortization expense related to intangible assets acquired through business acquisitions | 48,151 | 41,776 | 41,776 | 96,302 | 83,552 | ||||||||||
| Income tax related to intangible assets acquired through business acquisitions | (5,625 | ) | (5,407 | ) | (5,407 | ) | (11,250 | ) | (10,814 | ) | |||||
| Loss/(gain) on fair value change in investments in publicly traded companies | 186,687 | (13,186 | ) | 41,311 | (181,233 | ) | 28,125 | ||||||||
| Loss/(gain) on repurchase of convertible senior notes | 54,043 | 20,980 | - | (282,442 | ) | 20,980 | |||||||||
| Adjusted net loss | (964,062 | ) | (455,882 | ) | (270,990 | ) | (1,994,852 | ) | (726,872 | ) | |||||
| Net loss/(income) attributable to noncontrolling interests | 1,425 | 16,086 | (551 | ) | 3,384 | 15,535 | |||||||||
| Adjusted net loss attributable to the Bilibili Inc.’s shareholders | (962,637 | ) | (439,796 | ) | (271,541 | ) | (1,991,468 | ) | (711,337 | ) | |||||
| Adjusted net loss per share, basic | (2.33 | ) | (1.06 | ) | (0.65 | ) | (4.83 | ) | (1.71 | ) | |||||
| Adjusted net loss per ADS, basic | (2.33 | ) | (1.06 | ) | (0.65 | ) | (4.83 | ) | (1.71 | ) | |||||
| Adjusted net loss per share, diluted | (2.33 | ) | (1.06 | ) | (0.65 | ) | (4.83 | ) | (1.71 | ) | |||||
| Adjusted net loss per ADS, diluted | (2.33 | ) | (1.06 | ) | (0.65 | ) | (4.83 | ) | (1.71 | ) | |||||
| Weighted average number of ordinary shares, basic | 413,446,005 | 415,274,340 | 416,287,273 | 412,013,005 | 415,780,807 | ||||||||||
| Weighted average number of ADS, basic | 413,446,005 | 415,274,340 | 416,287,273 | 412,013,005 | 415,780,807 | ||||||||||
| Weighted average number of ordinary shares, diluted | 413,446,005 | 415,274,340 | 416,287,273 | 412,013,005 | 415,780,807 | ||||||||||
| Weighted average number of ADS, diluted | 413,446,005 | 415,274,340 | 416,287,273 | 412,013,005 | 415,780,807 | ||||||||||
