2024-11-15 03:29Financial Data and Key Metrics Changes - Total revenues in Q3 2024 reached RMB 7.3 billion, a 26% year-over-year increase [2][8] - Adjusted net profit for the quarter was RMB 236 million, marking the first quarterly adjusted net profit for the company [2][8] - Gross profit rose by 76% year-over-year to RMB 2.5 billion, with a gross profit margin increasing to 34.9% from 25% in the same period last year [2][8] Business Line Data and Key Metrics Changes - Game revenue surged by 84% year-over-year to RMB 1.8 billion, driven by the success of the strategy game "San Guo, Mou Ding Tian Xia, San Mou" [5][6] - Advertising revenue increased by 28% year-over-year to RMB 2.1 billion, with performance-based ads growing nearly 50% [5][6] - VAST business revenues grew by 9% year-over-year to RMB 2.8 billion, with fan-charging revenues surging over 500% [6][7] Market Data and Key Metrics Changes - Daily active users (DAUs) reached 107 million, while monthly active users (MAUs) hit 348 million, both record highs [2][4] - Average daily time spent per user increased to 106 minutes, up from 100 minutes in the same period last year [4] - Monthly interactions surpassed 19.3 billion, marking a 14% year-over-year increase [4] Company Strategy and Development Direction - The company aims to focus on core businesses such as advertising and games, which have higher income ceilings and profit margins [13][14] - Plans to continue investing in key infrastructure to support content creation and distribution, reinforcing its position in high-quality video content [3][4] - The company is committed to building a welcoming video community and curating diverse content to cater to evolving user needs [3][4] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the domestic economy in the mid to long term, despite short-term uncertainties in advertising budgets across different industries [20][21] - The company views its first quarter of profitability as a new starting point and expects to leverage this momentum for sustainable growth [7][15] - The average age of users is now 25, indicating increasing spending power and potential for future commercialization [3][13] Other Important Information - The company's MSCI ESG rating was upgraded to an A, reflecting improvements in its ESG practices [4] - The successful performance of the esports team Bilibili Games in the League of Legends S14 World Championship was highlighted as a significant achievement [4] Q&A Session Summary Question: Management's strategic view on Bilibili after achieving breakeven - Management emphasized that the recent profitability is a natural outcome of business model evolution and industry expansion, with a focus on community and commercial growth going forward [10][11] Question: Key driver behind advertising growth in Q3 - The strong performance in advertising revenue was attributed to nearly 50% growth in performance-based ads and effective platform infrastructure improvements [16][17] Question: Performance and future plans for the game "San Guo, Mou Ding Tian Xia, San Mou" - Management noted that the game is one of the best performers in the market, with plans for long-term operation and user engagement strategies [22][23]