Bilibili Inc. · NASDAQ:BILI
Bilibili — Q2 2020 Earnings Presentation
26 slides from Bilibili's earnings presentation, Aug 26, 2020
Slide 1: Investor Presentation Aug 2020
Investor Presentation Aug 2020 1
Slide 2: Safe Harbor Statement
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,” “antici
Slide 3: Enrich the everyday life of young generations in China
Enrich the everyday life of young generations in China 172mn 153mn 51mn 12.9mn 79mins 55% YOY 59% YOY 52% YOY 105% YOY Avg. daily time spent (1) (4) (1) (2) (1) (2) MAU Mobile MAU DAU (1) MPU (1) (3) : 3
Slide 4: Our rapid growth
Our rapid growth Rapid user base expansion lays a solid foundation for fast revenue growth MAU (mn) Net revenue (RMB mn) 2,618 172 172 2,316 2,008 128 130 1,859 110 1,538 101 93 93 1,374 85 1,156 1,027 1,079 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 4
Slide 5: We have captured the golden cohort in a golden industry
We have captured the golden cohort in a golden industry Massive room for growth | Gen Z: future of the entertainment market 5G adaption will revolutionize Gen Z outgrows overall how people produce and consume content China’s online entertainment market (2) Online video users in China (mn) (1) Market
Slide 6: The story
The story Efficient with tremendous upside Commercialization Ever-growing supply of Highly engaged user generated content Users and sticky Content Community 6
Slide 7: We have become the welcoming home of diverse interests
Content Community Commercialization We have become the welcoming home of diverse interests... Vlog Fashion Lifestyle Science (1) E-Sports No.1 Tech & Knowledge Game (1) (1) No.5 No.2 Electronics ACG Mobile Games Anime, Comic and Game Anime Entertainment Cosplay (1) Pop Culture (1) No.4 No.3 Chinese
Slide 8: And ever-growing supply of creative PUG videos
Content Community Commercialization …And ever-growing supply of creative PUG videos Talented Content Creators Number of Monthly Average Active Content Creators 123% 1.9mn 0.9mn Create reate Encourage 19Q2 20Q2 (1) High-quality Content Creation 92% Loyal Fan Base Number of Monthly Video Submissions t
Slide 9: Continuous support to content creators in all layers
Content Community Commercialization Continuous support to content creators in all layers VIP Service Maximize influence Power Alliances Unlock commercial value Top 100 UP Award Reward Better incentive Cash Incentive Program (290,000+ enrolled) (1) Better recognition Tutor Higher quality New Star Pro
Slide 10: Our OGV strategy: form IP assets and fuel the growth of premium members
Content Community Commercialization Our OGV strategy: form IP assets and fuel the growth of premium members 10.5mn and growing premium members (mn) Up 100% YOY 10.9 10.5 Launching 40 Bilibili produced Chinese Anime titles throughout 2020 and 2021 7.6 6.1 5.3 4.8 3.6 2.7 2.1 More offerings in Jun-18
Slide 11: We foster highly engaged and sticky communities
Content Community Commercialization We foster highly engaged and sticky communities Highly engaged users： 1.2bn avg. daily video views in Q2 97% YoY growth 5.2bn interactions (1) generated monthly in Q2 190% YoY growth Notes: (1) Interactive features such as bullet-chats, commentaries, following, fa
Slide 12: We foster highly engaged and sticky communities
Content Community Commercialization We foster highly engaged and sticky communities 89mn official members (1) 80%+ 12th-month retention rate (1) (mn) Up 65% 100% YOY 90% 89 82 80% 68 70% 62 54 60% 49 42 45 38 50% 0 3 6 9 12 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19
Slide 13: Commercialization comes naturally
Content Community Commercialization Commercialization comes naturally: massive user demand intersects with high quality supply Demand Efficient match Supply Large and engaged driven by big data insights Mobile Games user base of user interests and Advertising with behaviors Live Broadcasting strong
Slide 14: Compelling core competency of our mobile game business
Content Community Commercialization Compelling core competency of our mobile game business We have massive gamers We know what they want Ability to pick and operate User interest & behavior 1 Self developed Game is the 2nd most popular quality user data video genre on our platform 36 Exclusively dis
Slide 15: Robust game revenue growth
Content Community Commercialization Robust game revenue growth Up 36% (RMB mn) YOY 1,248 1,151 920 933 873 871 791 744 713 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 15
Slide 16: Value-Added Services: multi-faceted commercialization
Content Community Commercialization Value-Added Services: multi-faceted commercialization Bilibili Comic Pay to view comic platform Premium membership Live broadcasting Maoer Enjoy exclusive or advanced Natural extension of our Premium high quality content diversified content platform audio drama pl
Slide 17: VAS revenue: strong growth with great potential
Content Community Commercialization VAS revenue: strong growth with great potential (RMB mn) Up 153% YOY 825 794 571 453 326 292 202 169 119 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 17
Slide 18: Advertising: Bilibili is becoming more attractive to advertisers
Content Community Commercialization Advertising: Bilibili is becoming more attractive to advertisers App opening ad Top view Inline Immersive and interactive brand ads Customized and innovative native ads 18
Slide 19: Advertising revenue: strong growth with great potential
Content Community Commercialization Advertising revenue: strong growth with great potential (RMB mn) Up 108% YOY 349 290 247 214 168 160 137 112 96 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 19
Slide 20: Our Financials
OUR FINANCIALS 20
Slide 21: Expanding user base drives revenue growth
Expanding user base drives revenue growth Total MAUs Diversified Revenue Mix (mn) (RMB mn) Y-o-Y Growth % 55% Y-o-Y Growth % 70% 172 172 2,618 2,316 128 130 2,008 110 1,859 101 93 93 1,538 85 1,374 1,156 1027 1,079 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1
Slide 22: Rapid growth of paying users and paying ratio
Rapid growth of paying users and paying ratio Impressive growth of paying users MPU / MAU MPUs (mn) Y-o-Y Growth % 105% 7.8% 13.4 7.5% 12.9 6.8% 6.2% 5.7% 5.7% 8.8 4.8% 7.9 3.8% 6.3 3.5% 5.7 4.4 3.5 3.0 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 22
Slide 23: Cost of revenue and operating expenses
Cost of revenue and operating expenses Cost of Revenue (1) Operating Expenses (1) (Non-GAAP, RMB mn; as a percentage of revenue %) (Non-GAAP, RMB mn; as a percentage of revenue %) Gross margin % Operating expense as percentage of revenue % 16.8% 19.2% 20.1% 23.2% 23.4% 36.3% 39.2% 38.9% 44.3% 43.4%
Slide 24: Consolidated balance sheets
Consolidated balance sheets (RMB MM) Dec 31, 2019 Jun 30, 2020 Assets Cash and cash equivalents 4,963 6,094 Time deposits 1,845 4,822 Accounts receivable, net 745 773 Prepayments and other current assets 1,511 1,936 Short-term investments 1,261 4,639 Total current assets 10,324 18,264 Property and e
Slide 25: Consolidated statements of operations and comprehensive loss
Consolidated statements of operations and comprehensive loss (RMB MM, unless otherwise stated) 19Q2 20Q1 20Q2 YoY Change Net revenues Mobile games 920 1,151 1,248 36% Value-added services 326 794 825 153% (formerly known as Live broadcasting and VAS) Advertising 168 214 349 108% E-commerce and other
Slide 26: Thank You!
THANK YOU! IR Contacts Bilibili Inc. Juliet Yang Tel: +86-21-2509 9255 Ext. 8523 E-mail: ir@bilibili.com The Piacente Group, Inc. Tel: +86-21-6039-8363 (In China) Tel: +1-212-481-2050 (In U.S.) E-mail: bilibili@tpg-ir.com 26