Bilibili Inc. (“Bilibili” or the “Company”) (NASDAQ: BILI), a
leading online entertainment platform for young generations in
China, today announced its unaudited financial results for the
first quarter ended March 31, 2019.
First Quarter 2019
Financial and Operational
Highlights:
- Total net revenues reached RMB1,373.5
million (US$204.7 million), a 58% increase from the same period in
2018.
- Net loss was RMB195.6 million (US$29.2
million) and net loss margin was 14%, compared to net loss of
RMB57.8 million and net loss margin of 7% in the same period in
2018.
- Adjusted net loss1 was
RMB145.4 million (US$21.7 million) and adjusted net loss margin1
was 11%, compared to adjusted net loss of RMB3.2 million and
adjusted net loss margin of 0.4% in the same period in 2018.
- Average monthly active users (MAUs2)
reached 101.3 million, mobile MAUs reached 88.6 million,
representing increases of 31% and 39% from the same period in 2018,
respectively.
- Average monthly paying users3
reached 5.7 million, a 132% increase from the same period in
2018. Average monthly paying users for mobile games
reached 1.0 million, a 23% increase from the same period in
2018.
“We began the year on a strong note with
continued growth of both our user base and topline,” said Mr. Rui
Chen, Chairman of the Board and Chief Executive Officer of
Bilibili. “With an increasing number of talented content creators
producing diverse, high quality content, along with our expanding
live-broadcasting and comics offerings, we are attracting more
users to our platform and gaining substantial traction. For the
first quarter, our MAUs grew by 31% to 101.3 million and our mobile
MAUs grew by 39% to 88.6 million, both on a year-over-year basis.
At the same time, our user engagement is higher than ever, reaching
a milestone of 30 million DAUs in the first quarter. Looking ahead,
our focus for 2019 remains on continued user growth and enhancing
our commercialization capabilities. We have a number of initiatives
underway to support this goal, including rolling out new and
diversified games titles, further advancing our live broadcasting
and value-added service streams, and progressing our new business
initiatives for our growing community.”
Mr. Sam Fan, Chief Financial Officer of
Bilibili, said, “During the first quarter, our total net revenues
increased 58% year-over-year reaching RMB1.37 billion, exceeding
the high-end of our guidance. We maintained a healthy revenue mix,
with our non-games business lines growing by 179%, year-over-year.
As our commercialization strategy progresses, the number of average
monthly paying users more than doubled in the first quarter
reaching 5.7 million, particularly across our games, premium
memberships and comic businesses. We are also pleased to have
successfully raised approximately US$734 million of net proceeds in
our recent capital raise after deducting the underwriting discounts
and commissions and estimated offering expenses payable by the
Company. With these funds, we expect to have sufficient cash
reserves to support our growth initiatives.”
First Quarter 2019
Financial Results
Total net revenues. Total net
revenues were RMB1,373.5 million (US$204.7 million), representing
an increase of 58% from the same period of 2018.
Mobile games. Revenues from mobile games were
RMB873.5 million (US$130.2 million), representing an increase of
27% from the same period of 2018. The increase was primarily due to
the increasing popularity of mobile game Fate/Grand Order (“FGO”),
particularly with the major content update Chapter 2.0, which was
revealed in early February 2019.
Live broadcasting and Value-added services
(VAS). Revenues from live broadcasting and VAS were RMB291.7
million (US$43.5 million), representing an increase of 205% from
the same period of 2018, mainly attributable to the Company’s
enhanced monetization efforts, led by increases in the number of
paying users for the live broadcasting services and the Company’s
premium membership program.
Advertising. Revenues from advertising were
RMB112.5 million (US$16.8 million), representing an increase of 60%
from the same period of 2018. This increase was primarily
attributable to the ramp-up of brand advertising and
performance-based advertising driven by further recognition of
Bilibili’s brand name in China’s online advertising market.
E-commerce and others. Revenues from e-commerce
and others were RMB95.9 million (US$14.3 million), representing an
increase of 621% from the same period of 2018, primarily
attributable to the increase in sales of products through the
Company’s e-commerce platform.
Cost of revenues. Cost of
revenues increased by 81% to RMB1,184.2 million (US$176.5 million),
compared to RMB654.9 million in the same period of 2018.
Revenue-sharing cost, a key component of cost of revenues, was
RMB551.7 million (US$82.2 million), representing an increase of 65%
from the same period in 2018.
Gross profit. Gross profit was
RMB189.3 million (US$28.2 million), representing a decrease of 11%
from the same period of 2018.
Total operating expenses. Total
operating expenses were RMB496.0 million (US$73.9 million),
representing an increase of 73% from the same period of 2018.
Sales and marketing expenses. Sales and marketing
expenses were RMB181.5 million (US$27.0 million),
representing a 130% increase year-over-year. The increase was
primarily attributable to the increased channel and marketing
expenses associated with Bilibili’s app and brand, including
promotional activities for offline events, as well as promotional
expenses for the Company’s mobile games, and an increase in
headcount in sales and marketing personnel.
General and administrative expenses. General and administrative
expenses were RMB128.5 million (US$19.1 million), representing
a 25% increase year-over-year. The increase was primarily due to
increased general and administrative personnel related expenses and
increased amortization expense related to intangible assets
acquired through business acquisitions, and partially offset by
one-time share-based compensation expense with an IPO condition
recorded in the first quarter of 2018.
Research and development expenses. Research and development
expenses were RMB186.1 million (US$27.7 million), representing
a 76% increase year-over-year. The increase was primarily due to
increased headcount in research and development personnel and other
increased research and development expenses.
Loss from operations. Loss from
operations was RMB306.7 million (US$45.7 million), compared to
RMB74.3 million in the same period of 2018.
Investment income, net.
Investment income, net was RMB82.0 million (US$12.2 million),
representing an increase of 222% from the same period of 2018. The
increase was primarily due to the gain arising from the disposal of
the Company’s interest in one of its investees during the first
quarter of 2019.
Income tax expense. Income tax
expense was RMB8.2 million (US$1.2 million), compared to RMB3.2
million in the same period of 2018.
Net loss. Net loss was RMB195.6
million (US$29.2 million), compared to RMB57.8 million in the same
period of 2018.
Adjusted net loss.1 Adjusted
net loss, which is a non-GAAP measure that excludes share-based
compensation expenses and amortization expense related to
intangible assets acquired through business acquisitions, was
RMB145.4 million (US$21.7 million) compared to RMB3.2 million in
the same period of 2018.
Basic and diluted EPS and
adjusted basic and diluted EPS.
Basic and diluted net loss per share were RMB0.60 (US$0.09),
compared to RMB1.73 in the same period of 2018. Adjusted basic and
diluted net loss per share were RMB0.44 (US$0.06),
compared to RMB0.94 in the same period of 2018.
Cash and cash equivalents and time
deposits. As of March 31, 2019, the Company had cash and
cash equivalents, as well as time deposits of RMB3.5 billion
(US$519.1 million), compared to RMB4.3 billion as of December 31,
2018.
Recent Developments
On April 5, 2019, the Company completed the
offering of US$500 million in aggregate principal amount of
convertible senior notes due 2026 (the “Notes”), with interest at a
rate of 1.375% per year, including US$70 million in aggregate
principal amount to cover overallotments.
The Company also closed the concurrent offering
of 14,173,813 American depositary shares (the “ADSs”), at US$18.00
per ADS on the same day (the “Primary Offering”). In addition,
certain selling shareholders completed the offering of 6,526,187
ADSs of the Company at the same price.
The Company received a total of approximately
US$733.9 million of net proceeds from the Primary Offering and the
Notes, after deducting the underwriting discounts and commissions
and estimated offering expenses payable by the Company.
The Company plans to use the new proceeds from
the Primary Offering and the Notes for enriching contents
offerings, investing in research and development, and other general
corporate purposes.
Outlook
For the second quarter of 2019, the Company
currently expects net revenues to be between RMB1.45 billion and
RMB1.49 billion.
The above outlook is based on the current market
conditions and reflects the Company’s preliminary estimates of
market and operating conditions, and customer demand, which are all
subject to change.
1 Adjusted net loss, adjusted net loss margin
and adjusted basic and diluted EPS are non-GAAP financial
measures. For more information on non-GAAP financial measures,
please see the section of “Use of Non-GAAP Financial Measures” and
the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP
Results” set forth at the end of this press release.
2 Starting from the first quarter of 2019, we
count mobile MAUs of Bilibili Comic and Maoer towards our MAUs.
Bilibili Comic is a mobile application offering comic content the
Company launched in November 2018. Maoer is a platform that offers
audio drama. In December 2018, Company increased its shareholdings
to 80.5% in Maoer Inc., operator of Maoer app. In the first quarter
of 2019, Bilibili Comic and Maoer in an aggregate contributed to
3.2 million of our MAUs.
3 The paying users are calculated by number of users who paid
for games, live broadcasting, premier membership, Bilibili Comics
services and Maoer, after eliminating duplicates of users paid for
multiple services other than users of Maoer. We add the number of
paying users of Maoer towards our total paying users without
eliminating duplicates.
Conference Call
The Company’s management will host an earnings
conference call at 9:00 PM U.S. Eastern Time on May 13,
2019 (9:00 AM Beijing/Hong Kong time on May 14,
2019).
Dial-in details for the earnings conference call
are as follows:
United States: +1-866-519-4004International:
+65-6713-5090Hong Kong: 800-906-601China: 400-620-8038Conference
ID: 1966695
Participants should dial-in at least 5 minutes
before the scheduled start time and ask to be connected to the call
for “Bilibili Inc.”
Additionally, a live and archived webcast of the
conference call and investor presentation will be available on the
Company’s investor relations website at http://ir.bilibili.com.
A replay of the conference call will be
accessible approximately two hours after the conclusion of the live
call through May 20, 2019, by dialing the following telephone
numbers:
United States: +1-855-452-5696International:
+61-2-8199-0299Hong Kong: 800-963-117China: 400-632-2162Replay
Access Code: 1966695
About Bilibili Inc.
Bilibili represents the iconic brand of online
entertainment with a mission to enrich the everyday life of young
generations in China. Bilibili is a full-spectrum online
entertainment world covering a wide array of genres and media
formats, including videos, live broadcasting and mobile games.
Bilibili provides an immersive entertainment experience and
high-quality content that caters to the evolving and diversified
interests of its users and communities, and has built its platform
based on the strong emotional connections of Bilibili’s users to
its content and communities.
For more information, please visit: http://ir.bilibili.com.
Use of Non-GAAP Financial Measures
The Company uses non-GAAP measures, such as
adjusted net loss, adjusted net loss margin and adjusted net loss
per share, basic and diluted, 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 and amortization expense related
to intangible assets acquired through business acquisitions, which
are non-cash charges. 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.
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” set forth at the end of this press
release.
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 6.7112 to US$1.00, the exchange rate on March 29, 2019 set
forth in the H.10 statistical release of the Federal Reserve Board.
The Company makes no representation that the RMB or US$ amounts
referred could be converted into US$ or RMB, as the case may be, at
any particular rate or at all.
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, the 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 annual
report to shareholders, 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: 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. All
information provided in this press release and in the attachments
is as of the date of the press release, 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 YangTel: +86-21-2509 9255
Ext. 8523E-mail: ir@bilibili.com
The Piacente Group, Inc.Emilie WuTel: +86-21-6039-8363E-mail:
bilibili@tpg-ir.com
In the United States:
The Piacente Group, Inc.Brandi PiacenteTel:
+1-212-481-2050E-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 |
| |
March
31, |
December
31, |
March
31, |
|
|
2018 |
2018 |
2019 |
| |
RMB |
RMB |
RMB |
| Net
revenues: |
|
|
|
|
Mobile games |
688,496 |
|
712,842 |
|
873,455 |
|
|
Live broadcasting and VAS |
95,764 |
|
201,824 |
|
291,652 |
|
|
Advertising |
70,444 |
|
159,917 |
|
112,499 |
|
|
E-commerce and others |
13,304 |
|
80,962 |
|
95,901 |
|
| Total net
revenues |
868,008 |
|
1,155,545 |
|
1,373,507 |
|
|
Cost of revenues |
(654,927 |
) |
(958,501 |
) |
(1,184,191 |
) |
| Gross
profit |
213,081 |
|
197,044 |
|
189,316 |
|
| |
|
|
|
| Operating
expenses: |
|
|
|
|
Sales and marketing expenses |
(78,894 |
) |
(182,257 |
) |
(181,487 |
) |
|
General and administrative expenses |
(102,557 |
) |
(150,063 |
) |
(128,487 |
) |
|
Research and development expenses |
(105,906 |
) |
(153,483 |
) |
(186,075 |
) |
| Total operating
expenses |
(287,357 |
) |
(485,803 |
) |
(496,049 |
) |
| Loss from
operations |
(74,276 |
) |
(288,759 |
) |
(306,733 |
) |
|
|
|
|
|
| Other
income: |
|
|
|
|
Investment income, net |
25,460 |
|
75,113 |
|
82,047 |
|
|
Interest income |
842 |
|
26,347 |
|
24,407 |
|
|
Exchange losses |
(9,967 |
) |
(4,525 |
) |
(2,101 |
) |
|
Other, net |
3,312 |
|
10,046 |
|
14,930 |
|
| Total other
income |
19,647 |
|
106,981 |
|
119,283 |
|
| Loss before income
tax |
(54,629 |
) |
(181,778 |
) |
(187,450 |
) |
| Income tax |
(3,174 |
) |
(9,046 |
) |
(8,188 |
) |
| Net loss |
(57,803 |
) |
(190,824 |
) |
(195,638 |
) |
| Accretions to Pre-IPO
preferred shares redemption value |
(63,197 |
) |
- |
|
- |
|
| Net loss attributable to
noncontrolling interests |
950 |
|
10,852 |
|
9,678 |
|
| Net loss attributable
to the Bilibili Inc.'s shareholders |
(120,050 |
) |
(179,972 |
) |
(185,960 |
) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| Net loss per share, basic |
(1.73 |
) |
(0.59 |
) |
(0.60 |
) |
| Net loss per ADS, basic |
|
(0.59 |
) |
(0.60 |
) |
| Net loss per share,
diluted |
(1.73 |
) |
(0.59 |
) |
(0.60 |
) |
| Net loss per ADS, diluted |
|
(0.59 |
) |
(0.60 |
) |
| Weighted average number of
ordinary shares, basic |
69,336,926 |
|
307,015,929 |
|
311,841,813 |
|
| Weighted average number of
ADS, basic |
|
307,015,929 |
|
311,841,813 |
|
| Weighted average number of
ordinary shares, diluted |
69,336,926 |
|
307,015,929 |
|
311,841,813 |
|
| Weighted average number of
ADS, diluted |
|
307,015,929 |
|
311,841,813 |
|
| |
|
|
|
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 |
| |
March 31, |
|
December 31, |
|
March 31, |
|
| |
2018 |
|
2018 |
|
2019 |
|
| |
RMB |
|
RMB |
|
RMB |
|
|
|
|
|
|
|
|
|
| Share-based compensation expenses included
in: |
|
|
|
|
|
|
| Cost of revenues |
8,680 |
|
5,019 |
|
5,074 |
|
| Sales and marketing expenses |
3,548 |
|
2,890 |
|
3,122 |
|
| General and administrative expenses |
33,515 |
|
14,939 |
|
13,225 |
|
| Research and development expenses |
7,876 |
|
12,571 |
|
13,827 |
|
| Total |
53,619 |
|
35,419 |
|
35,248 |
|
|
|
|
|
|
BILIBILI INC. Unaudited Condensed
Consolidated Balance Sheets(All amounts in
thousands, except for share and per share data) |
| |
|
|
| |
December 31, |
March 31, |
| |
2018 |
2019 |
| |
RMB |
RMB |
|
|
|
|
| Assets |
|
|
| Current assets: |
|
|
|
Cash and cash equivalents |
3,540,031 |
2,714,625 |
|
Time deposits |
749,385 |
769,229 |
|
Accounts receivable, net |
324,392 |
541,558 |
|
Receivables due from related parties |
- |
23,867 |
|
Prepayments and other current assets |
990,851 |
1,198,124 |
|
Short‑term investments |
945,338 |
1,059,509 |
|
Total current assets |
6,549,997 |
6,306,912 |
| Non‑current assets: |
|
|
|
Property and equipment, net |
394,898 |
362,931 |
|
Production cost |
204,231 |
218,585 |
|
Intangible assets, net |
1,419,435 |
1,363,524 |
|
Goodwill |
941,488 |
941,488 |
|
Long‑term investments |
979,987 |
1,228,060 |
|
Other long-term assets4 |
- |
252,513 |
|
Total non‑current assets |
3,940,039 |
4,367,101 |
| Total assets |
10,490,036 |
10,674,013 |
| Liabilities |
|
|
| Current liabilities: |
|
|
|
Accounts payable |
1,307,598 |
1,424,617 |
|
Salary and welfare payables |
246,815 |
148,219 |
|
Taxes payable |
38,505 |
40,904 |
|
Short‑term loans |
- |
100,000 |
|
Deferred revenue |
985,143 |
1,288,893 |
|
Accrued liabilities and other payables4 |
670,442 |
484,377 |
|
Amount due to related parties |
50,331 |
30,180 |
|
Total current liabilities |
3,298,834 |
3,517,190 |
| Non‑current liabilities : |
|
|
|
Other long-term liabilities4 |
- |
218,083 |
|
Total non-current liabilities |
- |
218,083 |
| Total liabilities |
3,298,834 |
3,735,273 |
| |
|
|
| Total Bilibili Inc.’s shareholders’ equity |
6,950,796 |
6,703,813 |
| Noncontrolling interests |
240,406 |
234,927 |
| Total shareholders’
equity |
7,191,202 |
6,938,740 |
| |
10,490,036 |
10,674,013 |
| Total liabilities and shareholders’
equity |
4. The Company has adopted
ASU No. 2016-02, “Leases,” beginning January 1,
2019 on a modified retrospective basis. As a result of adoption of
the standard, the Company recognized RMB252.5 million of other
long-term assets, RMB47.1 million of short-term leasing liabilities
recorded in accrued liabilities and other payables, and RMB218.1
million of other long-term liabilities on its consolidated balance
sheet as of March 31, 2019.
| |
|
|
BILIBILI INC. Unaudited Reconciliations of
GAAP and Non-GAAP ResultsAll amounts in thousands,
except for share and per share data |
| |
|
| |
For the Three Months Ended |
| |
March
31, |
December
31, |
March
31, |
|
|
2018 |
2018 |
2019 |
| |
RMB |
RMB |
RMB |
| |
|
|
|
|
Net loss |
(57,803 |
) |
(190,824 |
) |
(195,638 |
) |
| Add: |
|
|
|
| Share-based compensation
expenses |
53,619 |
|
35,419 |
|
35,248 |
|
| Amortization expense related
to intangible assets acquired through business acquisitions |
1,022 |
|
3,366 |
|
15,014 |
|
|
Adjusted net loss |
(3,162 |
) |
(152,039 |
) |
(145,376 |
) |
| |
|
|
|
| |
|
|
|
| Net loss attributable
to the Bilibili Inc.'s shareholders |
(120,050 |
) |
(179,972 |
) |
(185,960 |
) |
| Add: |
|
|
|
| Share-based compensation
expenses |
53,619 |
|
35,419 |
|
35,248 |
|
| Amortization expense related
to intangible assets acquired through business acquisitions |
1,022 |
|
3,366 |
|
15,014 |
|
|
Adjusted net loss attributable to the Bilibili Inc.'s
shareholders |
(65,409 |
) |
(141,187 |
) |
(135,698 |
) |
| Adjusted net loss per share,
basic |
(0.94 |
) |
(0.46 |
) |
(0.44 |
) |
| Adjusted net loss per ADS,
basic |
|
(0.46 |
) |
(0.44 |
) |
| Adjusted net loss per share,
diluted |
(0.94 |
) |
(0.46 |
) |
(0.44 |
) |
| Adjusted net loss per ADS,
diluted |
|
(0.46 |
) |
(0.44 |
) |
|
Weighted average number of ordinary shares, basic |
69,336,926 |
|
307,015,929 |
|
311,841,813 |
|
|
Weighted average number of ADS, basic |
- |
|
307,015,929 |
|
311,841,813 |
|
|
Weighted average number of ordinary shares, diluted |
69,336,926 |
|
307,015,929 |
|
311,841,813 |
|
|
Weighted average number of ADS, diluted |
- |
|
307,015,929 |
|
311,841,813 |
|
Bilibili (NASDAQ:BILI)
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Bilibili (NASDAQ:BILI)
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From Apr 2023 to Apr 2024
