Investor Presentation - Aug 2021 - BILI's Investor Relations
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Investor
Presentation
Aug 2021
1
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 Effects of COVID-19, 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 interim and annual reports to shareholders, in announcements, circulars or other
publications made on the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), 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: the effect of the COVID-19 pandemic on Bilibili’s business, results of operations,
financial condition, and stock price; 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 and the Hong Kong Stock Exchange. All information provided in this presentation is as of the date of the presentation,
and the Company undertakes no duty to update such information, except as required under applicable law.
2
Enrich the everyday life of young generations in China
237mn 220mn 63mn 21mn 81mins
38% YOY 44% YOY 24% YOY 62% YOY
Avg. daily time spent (1) (4)
(1) (2) (1) (2)
MAU Mobile MAU DAU (1) MPU (1) (3)
:
3
Bilibili Outstanding Growth Track Record
Rapid user base expansion sets solid foundation for fast revenue growth
MAU (mn) Net revenue (RMB mn)
Y-o-Y Growth 38% Y-o-Y Growth 72%
4,495
237
223
3,840 3,901
197 202
3,226
172 172
2,618
128 130 2,316
110 2,008
1,859
1,538
19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2
4
Golden Opportunity from Videolization
Video becomes fundamental to information, entertainment and communication
Massive Video-based Industry(1) More Video Users, More Time Spent (2)
RMB bn mn Hours per day
1,180
Infrastructure
1,877 +27%
3.6
5G and
930 +41%
video production tools
2.4x 2.5
Supply
More diversified content, 797
more video content creators
Demand
Rising demand and
spending power
for video-based content
2020 2025E 2020 2025E 2020 2025E
Source: iResearch
Notes:
(1) Refers to industry related to video content on video-centric platforms and non-video-centric platforms as well as mobile games. Non-video-centric platforms include social media, instant messaging, e-commerce, browser, and other kind of platforms
(2) Average daily time spent on video-based content by China mobile internet users
5
Our Unparalleled Leadership in Gen Z+
The golden cohort and future of the video-based industry
Our Core User Base Gen Z+ Key Characteristics
Gen Z+ (1985-2009)
Key driving force of consumption
450+ mn 67%
Gen Z+ contribution to China’s
Gen Z+ population
video-based industry revenue (1)
86%
of our users More time spent & more value
aged 35 and below (1)
+83 mins +99%
More time spent(2) Higher per capita value(3)
Source: iResearch
Notes:
(1) In 2020
6
(2) Gen Z+ is expected to spend 5.0 hours daily on video-based content, compare with 3.6 hours for overall mobile users in 2025.
(3) Per capita value of Gen Z+ in China’s video-based industry is expected to reach RMB3,042, compared with RMB1,527 for overall users in 2025 .
The story
User-centric with
massive opportunities
Commercialization
Ever-growing ecosystem
Users Highly engaged,
Aspiring and
centered around PUGV fast growing
interactive and sticky
Content Community
7
Content Community Commercialization
A Welcoming Video Community for All the Videos You Like
Multi-categories Multi-scenarios
Fashion Vlog
PGC
Lifestyle
OGVs
Cosplay Pop Culture
Anime Entertainment
Chinese
Anime
Interests Celebrity PUGC Live Broadcasting
Electronics E-Sports
Tech
PUGVs
& Games
Knowledge
Story Mode
UGC
How-to Mobile Games
Fragmented Time Immersive Experience
8
Content Community Commercialization
Ever-growing Supply of Creative PUG videos
Talented Content Creators
Number of Monthly Average Active Content Creators
25%
1.9mn 2.4mn
Create
reate Encourage
20Q2 21Q2
(1)
High-quality Content Creation
93% Loyal Fan Base
Number of Monthly Video Submissions
total video views Number of Content Creators with more than 10,000 Fans
contributed by PUG videos
47%
41% 8.4mn
6.0mn
20Q2 21Q2 Jun 30, 2020 Jun 30, 2021
Notes: Engage
(1) In 21Q2 9
Content Community Commercialization
Robust Mechanism Continuously Attracts and Supports Content Creators
High Quality Traffic Unlock Value Continuous Creation
Customized Engaging and interactive community
premium services
AI-powered algorithm
promotes original and high Cash Incentive
Positive feedback & encouraging culture
quality content Program
Sparkle Platform
Peer creators inspire each other
Tutorials & Tools
Help creators quickly build Opportunity to unlock Motivation and support for
fan base and gain influence commercial value lifelong content creation
10Content Community Commercialization
OGV: High Quality Content with Multiple Commercial Avenues
Fueling the Growth of Premium Members
High Quality OGV
Up 66%
(mn) YOY
17.4
16.1
Supplement Strengthen
Expand User Base 14.5
Content Ecosystem Commercialization
12.8
10.9 10.5
Valuable IP Assets in Long Term Multiple Derivatives
7.6
Mobile Games
IP Licensing 6.1
5.3
Merchandise
Movie
Anime
Comic
Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21
11Content Community Commercialization
Highly Engaged and Interactive Community
Interactive Features Frequently Engaged by Our Users
One Click Triple-function Combo
Coin- Add to Bullet-chat Commentary Share Following Virtual Moment
Like Gifting
casting Favorite
Highly Engaged Highly Interactive
1.7bn avg. daily video views (1)
7.3bn monthly interactions (1)(2)
48% YoY growth 39% YoY growth
Note:
(1) In 21Q2
(2) Interactive features such bullet chats, comments, likes, bilibili moment posts and virtual gifting etc. 12Content Community Commercialization
Highly Sticky Community with a Strong Sense of Belonging
121mn official members (1) ~80% 12th-month retention rate (1)
(mn)
Up 35% 100%
YOY
80%
121 60%
112
103
97 40%
89
82
20%
62 68
54
0%
0 3 6 9 12
Jul-19 Aug-19 Sep-19 Oct-19
Nov-19 Dec-19 Jan-20 Feb-20
Mar-20 Apr-20 May-20 Jun-20
19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2
Notes:
(1) To become an official member, user needs to take and pass a community entrance exam consists of 100 questions covering community etiquette and various topics 13Content Community Commercialization
Commercialization Comes Naturally around Users’ Interests
Users’ diverse, expanding interests Desired content and services fulfilling needs
Mobile Games
Advertising
Efficient match powered by
Diverse
Big data insights
of user interests VAS
Interest
and behaviors
E-commerce
……
14Content Community Commercialization
Integrated Mobile Game Licensing, Development, and Joint Operation Capabilities
Exclusive licensed games Self-developed games Jointly operated games
Strategic focus on self-developed games
Proven game selection and for next-generation gamers
6 in-house studios, 1,000+ team members Strong distribution capabilities
long life-cycle operation abilities
Launched Robust domestic and international pipeline 15Content Community Commercialization
Mobile Games Revenue: Long Operation Cycle and Robust Pipeline Drive Stable Growth
(RMB mn)
1,248 1,275
1,233
1,151 1,171
1,130
920 933
871
19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2
16Content 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 platform
17Content Community Commercialization
VAS Revenue: Strong Growth with Great Potential
(RMB mn) Up 98%
YOY
1,635
1,497
1,247
980
825
794
571
453
326
19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2
18Content Community Commercialization
Advertising: Bilibili is Becoming a Go-to Platform for Advertisers
Splash ad Sponsorship Inline
Immersive and interactive brand ads Customized and innovative native ads Performance-based ads
19Content Community Commercialization
Advertising Revenue: Strong Growth with Great Potential
(RMB mn)
Up 201%
YOY
1,049
722 715
558
349
290
247
214
168
19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2
20Our Growth Strategies
Pursue healthy and
1 high-quality user growth 33 Reinforce our ever-growing
content ecosystem
Strengthen our user-centric
2 Put our community first 4 commercialization capabilities
21OUR
FINANCIALS
22Expanding User Base Drives Revenue Growth
Total MAUs Diversified Revenue Mix
(mn) (RMB mn)
Y-o-Y Growth 38% Y-o-Y Growth 72%
4,495
237
223
3,840 3,901
197 202
172 172 3,226
2,618
128 130 2,316
110
2,008
1,859
1,538
19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2
Mobile Game VAS Advertising E-commerce and Others
23Rapid Growth of Paying Users and Paying Ratio
Impressive growth of paying users MPU / MAU
MPUs (mn)
Y-o-Y Growth 62%
9.2%
8.9% 8.8%
20.5 20.9 7.8%
7.5% 7.6%
17.9
6.8%
15.0 6.2%
13.4 12.9 5.7%
8.8
7.9
6.3
19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2
24Cost of Revenue and Operating Expenses
Gross Margin (1) Operating Expenses (1)
(Non-GAAP, as a percentage of revenue %) (Non-GAAP, RMB mn; as a percentage of revenue %)
Gross margin % Operating expense as percentage of revenue %
23.4% 23.9% 24.9% 24.4% 22.4% 43.4% 54.5% 44.6% 45.3% 50.9%
2,287
4.8% 4.8% 4.8% 6.4% 5.8%
10.7% 9.0% 7.9% 8.2% 8.1% 6.7%
1,759 1,713 1,769
13.6% 14.2% 13.5% 13.7%
19.2% 13.3%
6.6% 7.0% 6.7%
8.3% 11.5% 11.6% 11.1% 1,135 11.4%
10.2% 11.3% 13.3%
6.4%
11.6%
39.2% 30.9%
36.6% 35.9% 38.9% 36.6%
33.1% 26.3% 25.3%
25.4%
20Q2 20Q3 20Q4 21Q1 21Q2 20Q2 20Q3 20Q4 21Q1 21Q2
(2) (3) (4) (5) (6)
Revenue-sharing costs E-commerce and others Content costs Server and bandwidth costs Staff costs Sales and marketing expenses Research and development expenses General and administrative expenses
Notes:
(1) Excluding Share-based compensation
(2) Revenue-sharing costs consist of fees paid to game developers, distribution channels (app stores) and payment processors, as well as fees we pay to hosts of our live broadcasting program and content creators in accordance with our revenue-
sharing arrangements.
(3) E-commerce and others include cost of goods sold associated with our E-commerce business, depreciation and others.
(4) Content costs consist of amortized costs of self-produced and licensed content.
(5) Server and bandwidth costs are the fees we pay to telecommunication carriers and other service providers for telecommunication services, hosting our servers at their internet data centers, and providing content and application delivery services. 25
(6) Staff costs mainly consist of salaries and benefits for our employees involved in the operation of our app/websites, mobile game services and live broadcasting program.Consolidated Balance Sheets
(RMB MM) Dec 31, 2020 June 30, 2021
Assets
Cash and cash equivalents 4,678 11,494
Time deposits 4,720 4,497
Accounts receivable, net 1,054 1,378
Prepayments and other current assets 1,931 3,945
Short-term investments 3,357 11,582
Total current assets 15,740 32,896
Property and equipment, net 762 1,087
Production cost, net 668 812
Intangible assets, net 2,357 2,882
Goodwill 1,296 1,595
Long-term investments, net 2,233 3,080
Other long-term assets 810 941
Total non-current assets 8,126 10,397
Total assets 23,866 43,293
Liabilities
Accounts payable 3,074 3,628
Salary and welfare payables 734 690
Taxes payable 127 123
Short-term loans 100 388
Deferred revenue 2,118 2,613
Accrued liabilities and other payables 1,239 1,956
Total current liabilities 7,392 9,398
Long-term debt 8,341 8,174
Other long-term liabilities 351 286
Total noncurrent liabilities 8,692 8,460
Total liabilities 16,084 17,858
Total Bilibili Inc.’s shareholders’ equity 7,600 25,389
Non controlling interests 182 46
Total shareholders’ equity 7,782 25,435
Total liabilities and shareholders’ equity 23,866 43,293 26Consolidated Statements of Operations and Comprehensive Loss
(RMB MM, unless otherwise stated)
20Q2 21Q1 21Q2 YoY Change
Net revenues
Mobile games 1,248 1,171 1,233 -1%
Value-added services 825 1,497 1,635 98%
Advertising 349 715 1,049 201%
E-commerce and others 196 518 578 195%
Total net revenues 2,618 3,901 4,495 72%
Cost of revenues -2,014 -2,963 -3,506 74%
Gross profit 604 938 989 64%
Sales and marketing expenses -675 -1,000 -1,400 107%
General and administrative expenses -208 -389 -436 109%
Research and development expenses -331 -580 -674 104%
Total operating expenses -1,214 -1,969 -2,510 107%
Loss from operations -610 -1,031 -1,521 149%
Investment income, net 31 168 455 1349%
Interest income 24 11 14 -39%
Interest expense -23 -33 -36 57%
Exchange gains/(losses) 4 -28 20 386%
Others, net 15 21 -34 -330%
Loss before income tax -559 -892 -1,100 97%
Income tax -12 -13 -22 82%
Net loss -571 -905 -1,122 97%
Adjusted net loss -476 -666 -858 80% 27THANK 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
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