On August 22, Bilibili unveiled its unaudited financial results for the second quarter ending June 30, 2024. Bilibili’s total revenue for the quarter climbed 16% YoY to RMB 6.13 billion (USD 861 million), with advertising revenue surging 30% and gaming revenue up 13%.
The expansion of high-margin segments like advertising and gaming drove a 49% year-on-year (YoY) increase in Bilibili’s gross profit, which reached a margin of 29.9%—the eighth consecutive quarter of improvement. Additionally, Bilibili generated RMB 1.75 billion (USD 245.8 million) in positive operating cash flow this quarter, bringing the first half’s cumulative positive cash flow to RMB 2.4 billion (USD 337.1 million).
Breaking down the numbers, value-added services accounted for 42% of revenue, advertising contributed 33%, gaming added 17%, and IP derivatives and other businesses made up 8%.
In advertising, second-quarter revenue jumped 30% YoY to RMB 2.04 billion (USD 286.6 million). The first half of the year saw a 50% YoY increase in the number of advertisers on Bilibili, with a significant influx from emerging industries. Notably, over 90% of artificial intelligence companies are now advertising on the platform. Bilibili continued to show robust growth in e-commerce and gaming ads, alongside double-digit YoY gains in newer sectors like online services, AI, and education. The platform’s “open loop” strategy shined during the 618 shopping festival, where transaction volumes soared over 140% YoY, with new customer rates surpassing 70% in maternal care and household daily necessities.
Gaming revenue for the second quarter rose 13% YoY to RMB 1.01 billion (USD 141.9 million). Long-running games like Fate/Grand Order—now in its eighth year—reentered the top ten on iOS game sales charts in July, while Azur Lane saw record user engagement during its seventh anniversary celebration.
Bilibili’s first foray into strategy gaming with Three Kingdoms: Conquer the World made a strong debut, landing third on the iOS game sales chart and maintaining a top-ten position for a month. The game, which returned to third place when its second season launched on August 3, has captured the attention of simulation gaming fans and has quickly become a favorite among younger gamers.
Value-added services also posted steady growth, up 11% YoY to RMB 2.57 billion (USD 361 million). Looking forward, Bilibili plans to deepen the synergy between its live streaming and video ecosystems, leveraging its community’s diverse interests to enrich live streaming content. The premium membership segment continued to grow, with active premium members exceeding 22.3 million by the end of the quarter, over 80% of whom are annual or auto-renewal subscribers.
With the growth of high-margin businesses and improved operational efficiency, Bilibili’s gross profit increased by 49% YoY to RMB 1.8 billion (USD 252.8 million). The gross profit margin rose from 23.1% in the same period last year to 29.9% this quarter, marking the eighth consecutive quarter of margin growth. Adjusted operating loss and adjusted net loss for the quarter narrowed by 69% and 72% YoY, respectively. Additionally, the company generated RMB 1.75 billion in positive operating cash flow during the quarter, contributing to a total positive cash flow of RMB 2.4 billion for the first half of the year.
As of June 30, 2024, Bilibili held RMB 13.9 billion (USD 1.9 billion) in cash, cash equivalents, term deposits, and short-term investments.
User growth remained strong, with average daily active users reaching 102 million in the second quarter, up 6% YoY, while average monthly active users hit 336 million. The average daily time spent on the platform increased from 94 minutes last year to 99 minutes this year.
The platform saw an 18% YoY rise in daily video views, surpassing 4.8 billion views, alongside over 16.5 billion monthly interactions. By the end of the second quarter, 243 million users had passed the platform’s entrance exam, earning “official member” status, with a 12-month retention rate consistently around 80%.
In June, Bilibili marked its 15th anniversary. According to official figures, Bilibili now boasts the highest concentration of young users in China, with over 70% of its users born in the 1990s actively engaging on the platform. Last year, 10 million users logged into Bilibili for more than 360 days.
During the second quarter, Bilibili experienced rapid growth in video views for categories like gaming and knowledge, with technology content views up nearly 30% YoY. Every day, tens of millions of users tuned in for cutting-edge AI content. Meanwhile, viewership for content related to automotives, home decor, and fitness grew over 40% YoY. As demand for cars among young people grows, more than 17 million users now watch automotive content on Bilibili daily. Female users are also showing a strong appetite for content, driving rapid increases in daily views for fashion and beauty, as well as maternal and child care content, the latter seeing over 80% YoY growth.
In the first half of the year, nearly 2.1 million content creators on Bilibili earned income, with total revenue from advertising and value-added services rising 30% YoY. As more users are willing to pay for quality content, creators saw income from classes rise over 40% YoY, with revenue from workshops and fan-funded services posting triple-digit YoY growth.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Wang Yuchan for 36Kr.