Leading online entertainment platform Bilibili Inc. (NASDAQ: BILI) announced Wednesday its unaudited financial results for the third quarter ending on Sept. 30, revealing strong user growth as well as a rise in revenue.
As the company rolled out more premium content and services, more of the platform’s traffic was converted to paying users, resulting in an average of 15 million monthly paying users (MPUs), an 89% surge year-on-year.
“Our strong user growth continues fueling our top-line expansion. In the third quarter, we achieved another quarter of record-high revenue, which reached RMB3.2 billion, up 74% year-over-year, once again beating the top end of our guidance,” said Bilibili Chief Financial Officer Sam Fan.
Revenue of the company mainly came from four pillar units, including mobile games, value-added services (VAS, also formerly known as live broadcasting and VAS), advertising, e-commerce and others.
The report revealed other recent developments, too. In August 2020, Bilibili entered into a subscription agreement with HKEX-listed Huanxi Media Group Limited, subscribing 347 million newly issued ordinary shares of Huanxi Media for approximately HK$513 million. The company will hold about 9.9% of Huanxi’s shares once the transaction is completed.
The two parties also reached a five-year business cooperation agreement to jointly produce films, TV dramas and television IP. Finally, Bilibili will obtain exclusive broadcasting rights over Huanxi’s films and TV series.
The platform on Thursday released a video titled Bilibili 2020Q3 Financial Report: You Can Rap about Everything, in which a young man wearing a cartoon TV headgear and a shiny outfit rapped about the highlights of the quarterly financial results.
The video echoed Bilibili’s hip-hip competition show Rap for Youth, which was released in August. As a dynamic video community popular among the Gen-Zers, the platform opened a rap channel in June to welcome more rap culture videos uploaded by content creators across the country.
For the next quarter of 2020, Bilibili expects net revenue to be between 3.6 billion yuan and 3.7 billion yuan, taking into account the effect of covid on the market as well as the company’s preliminary estimates.