Bilibili Q2 Revenue Surges 70% to $370M, Beats Estimates

Bilibili Inc. on Wednesday announced that its net revenues in the second quarter of 2020 increased by 70% year on year to 2.61 billion ($370.5 million) yuan, surpassing the 2.55 billion yuan estimate average.

“We believe the content pool we offer is deep and diverse enough to host a much wider user base, and our friendly and vibrant community can retain those newcomers,” Bilibili Chairman and CEO Chen Rui said in the financial report.

He added that Bilibili has launched several marketing campaigns that successfully raised brand awareness and improved user growth.

“Looking ahead, our sights are set on further executing our growth strategy, building an even more dynamic and robust community, and bringing additional value to all of our stakeholders,” Chen said.

The platform said it had 171.6 million monthly active users and 50.5 million daily active users in the second quarter, a 55% and 52% increase respectively from the same period in 2019. Additionally, its monthly paying users doubled compared to the same time last year.

However, Bilibili‘s net loss also increased along with its revenue: 570.9 million yuan, a 81% increase compared to 315 million yuan in the same period of 2019.

The Shanghai-based company has four major revenue resources including mobile games, live streaming, advertising and e-commerce. 

Mobile games contributed the most to the second quarter’s total revenues, whose revenues surged 36% to 1.25 billion yuan from the same time of 2019, a result that is primarily due to the newly launched mobile game Princess Connect. 

Revenues from live streaming and value-added services saw the highest increase in Q2, rising 153% from last year to 825.3 million yuan.

Advertising generated 348.6 million yuan in revenue for the quarter, representing an increase of 108% from the same period of 2019, while e-commerce and other areas generated a revenue of 195.8 million yuan, an increase of 58% year over year.

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“Our growth strategy continues to pay off as our platform becomes more attractive for users and business partners,” Bilibili CFO Sam Fan said. “We are also pleased to have completed an offering of convertible senior notes in an aggregate principal amount of US$800 million, at a lower interest rate than last year, despite the volatile market. We expect these funds to support our strategic growth initiatives as we continue to invest in our future, while maintaining high quality, sustainable growth.”

The company expects its net revenues to be between 3.05 billion yuan and 3.10 billion yuan in the third quarter of 2020.