BILIBILI(BILI)2024-08-22 16:17Financial Data and Key Metrics - Total revenues increased by 16% year-over-year to RMB 6.13 billion in Q2 2024 [5] - Gross profit rose by 49% year-over-year to RMB 1.8 billion, with gross profit margin reaching 29.9%, up from 23.1% in Q2 2023 [6] - Adjusted operating loss and adjusted net loss narrowed by 69% and 72% year-over-year, respectively [6] - Operating cash flow reached a record RMB 1.75 billion in Q2 2024 [6] - Deferred revenue balance increased by RMB 738 million from Q1 2024 [6] Business Line Data and Key Metrics - Advertising revenue grew by 30% year-over-year, contributing 33% of total revenue [5][20] - Games revenue increased by 13% year-over-year to RMB 1.01 billion, driven by new launches and legacy titles [15][20] - Value-added services (VAS) revenue grew by 11% year-over-year to RMB 2.57 billion, with premium members reaching 22.3 million [18][20] Market Data and Key Metrics - DAUs increased by 6% year-over-year to 102 million, while MAUs grew to 336 million [7] - Users spent an average of 99 minutes daily on the platform, up from 94 minutes in Q2 2023 [11] - Video views increased by 18% year-over-year to over 4.8 billion daily [9] Company Strategy and Industry Competition - The company focuses on content, community, and commercialization, with a strategy to attract high-quality creators and expand monetization channels [9][10] - The success of the strategy game "San Guo: Mou Ding Tian Xia" marks a breakthrough in genre diversification and long-term game operation [16][17] - The company aims to achieve non-GAAP breakeven in Q3 2024 and improve profitability thereafter [6][21] Management Commentary on Operating Environment and Future Outlook - Management highlighted the strong growth in advertising and games businesses, driven by improved infrastructure and user engagement [12][15] - The company is confident in maintaining above-industry average advertising growth in the second half of 2024 [31] - Management emphasized the potential of AI applications in content creation and user experience enhancement [53][57] Other Important Information - The company celebrated its 15th anniversary, with nearly 70% of China's Gen Z+ population using the platform [8] - Bilibili held offline events "Bilibili World" and "Bilibili Macro Link," attracting over 250,000 participants [11] Q&A Session Summary Question: Drivers behind robust advertising growth and outlook for H2 2024 - Advertising growth was driven by healthy traffic growth and unlocking the commercial value of users, with a focus on infrastructure and vertical industry solutions [25][27][31] Question: Drivers for the successful launch of "San Guo: Mou Ding Tian Xia" and future game genres - The game's success was attributed to the company's strategy of reinventing games for younger audiences, with a focus on long-term operation and addressing user pain points [35][37][39] Question: Content strategy and consumption trends as user demographics evolve - The company is expanding content categories to cater to evolving user needs, with significant growth in consumption-related content such as home decor, automotive, and fashion [43][44][46] Question: Financial outlook for H2 2024 and mid-to-long term profitability - The company expects strong revenue growth in Q3 2024, driven by games and advertising, and aims to achieve meaningful operating profit on a non-GAAP basis [51] Question: AI applications and future potential - AI is being used to enhance content creation and user experience, with significant user engagement in AI-related content and partnerships with leading AI companies [53][57][59]