BILIBILI(HK:09626)2022-11-29 10:01Financial Performance - Total net revenue reached RMB 5.8 billion (USD 814.5 million), an increase of 11% year-over-year[3] - Net loss was RMB 1.7 billion (USD 241.2 million), a reduction of 36% compared to the same period in 2021[5] - Total net revenue for the third quarter of 2022 reached RMB 5,793,651 thousand, representing a 11.5% increase from RMB 5,206,574 thousand in the same period of 2021[14] - The company reported a net loss of RMB 1.72 billion for the three months ended September 30, 2022, compared to a net loss of RMB 2.68 billion for the same period in 2021, indicating a reduction in losses by about 35.5%[38] - The adjusted net loss for the nine months ended September 30, 2022, was RMB 6.01 billion, compared to RMB 4.71 billion for the same period in 2021, reflecting a 27.5% increase in losses[19] User Engagement - Daily active users (DAUs) reached 90.3 million, a 25% increase year-over-year[3] - Monthly active users (MAUs) reached 332.6 million, also a 25% increase year-over-year[3] - Average monthly paying users reached 28.5 million, a 19% increase year-over-year[3] Revenue Breakdown - Mobile games generated RMB 1,471,331 thousand in revenue for the third quarter of 2022, up from RMB 1,391,666 thousand in the same quarter of 2021, marking a 5.7% increase[14] - Value-added services revenue was RMB 2.2 billion (USD 310.6 million), a 16% increase year-over-year[23] - Advertising revenue was RMB 1.4 billion (USD 190.5 million), a 16% increase year-over-year[23] - Mobile gaming revenue was RMB 1.5 billion (USD 206.8 million), a 6% increase year-over-year[23] Expenses - Sales and marketing expenses decreased by 25% year-over-year, amounting to RMB 1.2 billion (USD 172.7 million)[4] - Research and development expenses increased by 43% year-over-year, totaling RMB 1.1 billion (USD 159.0 million)[4] - Operating expenses totaled RMB 2.9 billion (USD 408.1 million), remaining flat compared to the same period in 2021[23] - The company reported a total operating expense of RMB 2,903,084 thousand for the third quarter of 2022, compared to RMB 2,896,491 thousand in the same quarter of 2021, indicating a slight increase[14] Cash and Assets - Cash and cash equivalents, term deposits, and short-term investments amounted to RMB 23.9 billion (USD 3.4 billion) as of September 30, 2022[5] - The company's cash and cash equivalents decreased to RMB 5.47 billion from RMB 7.52 billion, representing a decline of 27.3%[18] - As of September 30, 2022, Bilibili's total assets amounted to RMB 47.6 billion, a decrease of 8.5% from RMB 52.1 billion on December 31, 2021[18] Shareholder Information - The average number of weighted ordinary shares for basic earnings per share was 395,062,497 for the third quarter of 2022, compared to 387,921,805 in the same quarter of 2021[14] - The company incurred RMB 251.33 million in share-based compensation expenses for the third quarter of 2022, compared to RMB 238.44 million in the same quarter of 2021, reflecting a 5.5% increase[19] Future Projections - The company projects Q4 2022 net revenue to reach between RMB 6 billion and RMB 6.2 billion[7] - The management will hold an earnings conference call on November 29, 2022, at 7 AM EST[8] Strategic Goals - The company aims to enrich the daily lives of young people in China through its video community platform[9] - The company has established a strong emotional bond among users, content creators, and high-quality content, enhancing community engagement[9] Risks and Challenges - The company continues to face risks and uncertainties, including competition in the online entertainment industry and the impact of government policies in China[13]