Bilibili Inc. (NASDAQ:BILI)

First Quarter 2019 Financial Results

• Total net revenues reached RMB1,373.5 million (US$204.7 million), a 58% increase from the same period in 2018.
• Net loss was RMB195.6 million (US$29.2 million) and net loss margin was 14%, compared to net loss of RMB57.8 million and net loss margin of 7% in the same period in 2018.

“We began the year on a strong note with continued growth of both our user base and topline,” said Mr. Rui Chen, Chairman of the Board and Chief Executive Officer of Bilibili. “With an increasing number of talented content creators producing diverse, high quality content, along with our expanding live-broadcasting and comics offerings, we are attracting more users to our platform and gaining substantial traction. For the first quarter, our MAUs grew by 31% to 101.3 million and our mobile MAUs grew by 39% to 88.6 million, both on a year-over-year basis. At the same time, our user engagement is higher than ever, reaching a milestone of 30 million DAUs in the first quarter. Looking ahead, our focus for 2019 remains on continued user growth and enhancing our commercialization capabilities. We have a number of initiatives underway to support this goal, including rolling out new and diversified games titles, further advancing our live broadcasting and value-added service streams, and progressing our new business initiatives for our growing community.”

Mr. Sam Fan, Chief Financial Officer of Bilibili, said, “During the first quarter, our total net revenues increased 58% year-over-year reaching RMB1.37 billion, exceeding the high-end of our guidance. We maintained a healthy revenue mix, with our non-games business lines growing by 179%, year-over-year. As our commercialization strategy progresses, the number of average monthly paying users more than doubled in the first quarter reaching 5.7 million, particularly across our games, premium memberships and comic businesses. We are also pleased to have successfully raised approximately US$734 million of net proceeds in our recent capital raise after deducting the underwriting discounts and commissions and estimated offering expenses payable by the Company. With these funds, we expect to have sufficient cash reserves to support our growth initiatives.”

SHANGHAI, Dec. 12, 2018 (GLOBE NEWSWIRE) -- Bilibili Inc. (“Bilibili” or the “Company”) (NASDAQ: BILI), a leading online entertainment platform for young generations in China, today announced that it has signed an agreement with certain affiliates of NetEase, Inc. to acquire major assets from NetEase Comics, one of China's largest online comic platforms, including relevant copyrights of a large number of established and well-followed storylines from leading publishers and comic artists.

“NetEase Comics’ extensive comic resources and reputation for a great user experience make it an exciting addition to our newly launched Bilibili comic business,” said Ms. Carly Lee, Chief Operating Officer of Bilibili. “The addition of this extensive library of well-known content deeply enriches our online comic offerings. It not only complements our core users’ growing appetite for premium licensed ACG content, but also solidifies our leading position in China’s ACG industry.”

Third Quarter 2018 Financial Results

• Total net revenues1 reached RMB1,078.8 million (US$157.1 million), a 48% increase from the same period in 2017.
• Basic and diluted EPS and Adjusted basic and diluted EPS2. Basic and diluted net loss per share were RMB0.88 (US$0.13), compared to RMB1.20 in the same period of 2017. Adjusted basic and diluted net loss per share were RMB0.72 (US$0.10), compared to RMB1.03 in the same period of 2017.

“Our growing library of diverse content continues to attract new members driving growth throughout our business,” said Mr. Rui Chen, Chairman of the Board and Chief Executive Officer of Bilibili. “During the quarter and in recent months, we have enhanced and expanded our content through our robust PUGV ecosystem and a number of cooperation agreements. In October, we have entered into a strategic collaboration with Tencent to extend our partnership in anime projects as well as to jointly operate more Tencent games. Meanwhile, our community is flourishing with a higher-than-ever level of user engagement, leading to a remarkable increase in time spent per DAU to 85 minutes, compared to 75 minutes in the preceding quarter. Looking ahead, we will continue to raise the bar for content quality and improve user experience, solidifying our position as the leading entertainment platform for young generations in China.”

“For the third quarter, our total revenues increased 48% year-over-year reaching RMB1.1 billion,” said Mr. Sam Fan, Chief Financial Officer of Bilibili. “As our commercialization strategy progresses, we are seeing a more balanced revenue mix with increased revenue contribution from advertising and live broadcasting and value-added services streams. The number of paying users more than tripled in just one year to 3.5 million in the third quarter, demonstrating our heightened monetization potential. We are excited to discover the opportunities that reside within our growing community and the online entertainment industry being shaped by Generation Z.”

Outlook

For the fourth quarter of 2018, the Company currently expects net revenues to be between RMB1.04 billion and RMB1.08 billion.

The above outlook is based on the current market conditions and reflects the Company’s preliminary estimates of market and operating conditions, and customer demand, which are all subject to change.

1 The Company has adopted ASU No. 2014-09, ''Revenue from Contracts with Customers (Topic 606)”, using the modified-retrospective transition approach beginning January 1, 2018. The adoption did not have a significant impact on the Company’s operating results for the three months and nine months ended September 30, 2018 and comparable periods.

2 Adjusted net loss, adjusted net loss margin and adjusted basic and diluted EPS are non-GAAP financial measures. For more information on non-GAAP financial measures, please see the section of “Use of Non-GAAP Financial Measures” and the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.

Bilibili Inc. (NASDAQ: BILI) ($13.31, marked up ~15%; $3.7B market cap), an iconic brand of online entertainment for young generations in China, announced Tencent Holdings (OTC:TCTZF)will make an equity investment of $317.6 million in cash, for roughly 25 million new Class Z shares.  Tencent will own ~12.3% of BILI.

China IPO - Bilibili Inc. (NASDAQ: BILI), an iconic brand of online entertainment for young generations in China, announced the pricing of its IPO of 42 million ADSs at a price of US$11.50 per ADS for a total offering size of US$483 million, assuming the underwriters do not exercise their option to purchase additional ADSs. Each ADS represents one Class Z ordinary share of the Company. The ADSs are expected to begin trading on the Nasdaq Global Select Market today under the symbol “BILI.”