Earnings call transcript Q1 2023

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Operator

Good day, and welcome to the Bilibili First Quarter 2023 Financial Results and Business Update Conference Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Juliet Yang, Executive Director of Investor Relations. Please go ahead.

Juliet Yang

Thank you, operator.

discuss outlook we'll statements. make call, this our and business forward-looking During comments predictions our based expectations These on today. and are as of or of Hong Exchange. most risks recent materially Kong differ uncertainties, including news Stock this results with in mentioned and due events our mentioned discussion number today's in release the from a to filing those in and Actual those could SEC and

for are comparison and The in purpose Definitions provide non-GAAP financial we measures table measures of release a news are reconciliation today. available we the these earlier only. issued

reminder, As conference a this recorded. call is being

an webcast call Bilibili conference presentation addition, In on website IR investor and replay of the available be a this ir.bilibili.com. at will

Executive from are Fan, Vice senior management Li, today and Chairman Chairwoman Mr. of us the of Officer. Operating Financial Bilibili Sam Ms. and Mr. Officer; Officer; and Board Carly Chen, Joining Chief Chief Chief Rui the Board

to the Mr. And call the who over I of behalf Fan, on read now will Chen. remarks Mr. will turn prepared

Rui Chen

[Interpreted] And thank pleased for quarter opening XXXX everyone Thank Mr. you, our remarks conference I'm today's deliver Chen. to Juliet. behalf participating first of call. in on you

top commercialization efficiency losses. improve priority to our for our narrow Our and XXXX is

that goals. demonstrate results making quarter on are these first Our progress solid we

First, business. from over year-on-year our we delivered revenue growth XX% advertising

the Our year-over-year. a in margin gross gross improved from increase to by XX% first XX% profit up quarter, XX% year to ago, driving

take to continue measures to expense strengthen we controls. of Second, execution the our

first expenses operating the total quarter XX% reduced we in result, a year-over-year. by As

narrowed the by target. The In have the gives break-even our that Specifically, strengthening bottom-line. effective These quarter, us proving by our to on we year-over-year right we actions in are we XX% while continuing cut our achieve DAUs. progress our to XX% expand and we sales made expenses loss track marketing our confidence year-over-year. net first are

to to on from ago. grew the the XX.X and focus year-over-year our to our a by improving first quarter, DAUs more XX levels driving we continue engagement XXX our MAUs our metrics, XX.X% In our reached % enhance ratio attract XX% we million, financial up million, of while While users community. D/M year

continue quarter. Our user the spent our our the first on daily minutes the This and year-over-year. content platform with users up diverse time Bilibili brought to reaching time in on total XX% average value XX spent evolving

move our our and in further and will year, improve we cost-effective As through we solidify we more creator to efficiency. help base continue working way, resources Namely, creators our the are that commercialization areas In overall our to streamline expand can we better our cultivate our to this allocate organization money. our can DAUs manner, a community. make

further invest video We games, as will community. ad live opportunities including operations, improving in well infrastructure, AIGC and our our also continue content developing to high-quality integrating capabilities, exploring commercialization in-house in as broadcasting

more build us potential platform. help will of community and which of unleash our All commercial tighter a

With to content, update a brief on that our progress, pillars: our overview of core and provide commercialization. I'd community now three like

with Starting content.

an content ecosystem. essential component our are of creators Our

recognized be that We enables to a to community are and building rewarded. them be dedicated

as commercial content and traffic avenues. distribution our paid advertising, improved with In platform. user-friendly online can XX% both we to to value submissions, that Different realize broadcasting, increase ecosystem, our mid-tail at, integrating further first our within creators, can their creators are talent continued professional year-over-year live creators content content mechanisms diverse on a content channels and the in basis. the through their from creators to workshops. creators courses more attract content and we number empower quarter, of As active by content content monthly good XX% our monetize volume commercial what By a they such operations we long- more provide favor tools, creation support, increased content of more editing to the daily increase

over who support, XX% creators income number in year-over-year. and content earned income over them, XX% Among via incentive the creators increase an platform the X.X of of multiple earned our our year-over-year. through first million by increased content channels, quarter, channels Leveraging than program, cash other

to achieve more Going we our enable continue products channels value. and will commercial creators content their to develop forward, to

Our multi-scenario Story products, attention broad also as and users continue to such attract video-watching satisfy preferences. from their diversified Mode, our

first For video XX% views on year-over-year and a the quarter, billion. increased basis. views daily in daily video by were XX% X.X Mode's video first up quarter, PUGV by views our total grew to XX% Story the both

well community consumption ongoing trends to increasing are present opportunities our levels, our in as as commercialization and continue potential. Solid engagement enhancing Story more cultivating DAUs, Mode for

life experience. content we AI integration and our and addition, and promise enhance AIGC effectively. user for visions more great industry. the holds efficiency video can evolving their to enrich our further potential content the content supply, We are tremendous ecosystem. of easily these technologies, believe In Leveraging our bring exploring applications both to our we it Utilizing creators creation can into empowering

new features by to enhance user beta testing also powered are We AIGC experience. further

for user up show Bilibili and interactions to spent stability were year-over-year to XX% community, XX.X sticky base As remains continued engaged. daily XX users' at The our time on also average billion. our Monthly highly minutes.

Our members year-over-year. million first around retention remained for also XX-month core official user XX%. quarter, the of increase showing official The reached a members XXX in cohort rate XX%

more exclusive community products and community-based active opening services, to us opportunities. allows loyal up more further Our diverse commercial and and explore

let's margin improving our Now, our commercialization, how narrow our review losses. where expansion offerings drive and we are to monetize we

quarter, the reached billion. our revenues first For RMBX.X total

advertising our year-over-year. from increased XX% by revenues Specifically, business

our at take continued improve level. and company margin support steps to We efficiency proactive to our to the increase commercialization top-line our gross

at Looking detail. in this more

first business mainly growth our live the year-over-year from to of for X% increased VAS broadcasting revenues driven by quarter, billion business. the by RMBX.X our First,

live integrate to our continue We capabilities within ecosystem. video broadcasting our

are the first broadcasting the live year-over-year. number number to their the to making and year-over-year primary In As broadcasting one monthly creators broadcasting paying of by the the ways live increased creators increased transition hosts by of XX% monetize XX% live active talent, hosts. quarter, more of for users

gross sequential live on the both of continue. improved expect business broadcasting have year-on-year the margin We and basis, and we trend will also

XX% members. offerings. these in or represents had brand Over By package of million our and trust XX.X annual which content of the end strong users' subscribers, March, were premium we auto-renew

advertising Turning our to business.

revenues quarter, resulting increased year-over-year RMBX.X XX% ad first from ad by the largely improvements. infrastructure our Our in to billion

Over encouraging. ROI our while in year-on-year the drive brand clients. recorded ad year, we to we improving revenue our past time, our also are Performance-based nearly growth. recorded the have optimized database native first product and growth XX% The positive offerings. quarter, for the expanded ads At our ad year-on-year building ad results and and ads algorithm been better same continuously ad have commercial

for consumption digital game, cosmetics, home life spending such verticals and to platform, as new e-commerce, as verticals grow performing into the first dynamic are appliances. automotive and advertisers attracting and top our diversified home from broader and appliances, Users were quarter stages. increased This they power needs Our automotive. more showing products and skincare is

now our business. Looking Revenues for RMBX.X at game were the quarter billion. first

Eruthyll. game and Derby Cygames' approvals welcomed game of our eight rate into highly to normalize, romance the our to genre, titles our pipeline. These release coming domestic game plan the Pretty in more anticipated we game first [Foreign self-developed new quarters. Language] include We begins ACG markets in card As self-developed female in titles

our April Star Rail [Foreign co-published strong In capabilities. XXXX addition, Reverse: in [Foreign May, successfully distribution Language] Language] we HonKai: demonstrating and in

meaningfully this a IP as RMBXXX going margin continue first quarter, and to e-commerce and proactive forward. Turning The by derivatives due and others derivatives others, focus were year-over-year. on quarter for for to a XX% revenue approach In increasing decrease improved known shift others. previously IP decrease expect we Revenues will was the improve million, in mainly our profitability. strategy to it the first and to of

and young the in generations recently annual XXXX our to report Lastly, create we bring which we published highlights China. ESG value

committed fostering a users responsibilities, community to and towards for shouldering creators, all. sustainable are We working for our welcoming our a future and social

we execute continue actions margin operating are performance further our have will strategy taken continue expand our and dynamic this while In to our Throughout financial our capabilities, summary, year, narrow losses. and effectively we grow and our improving to we community. gross the

of provide Chen's This brief our a our quarter the and overview financial XXXX concludes results I now of outlook for the for year. Mr. remarks. first will

Sam Fan

with was flat the for first compared year. last revenue period net Total quarter same RMBX.X billion,

revenue breakdown and XX% XX% our and XX% from IP others. games; derivatives VAS; approximately XX% mobile stream net advertising; revenue total Our was by

up Our decreased continued by revenue year-over-year, from up cost while billion, throughout year-over-year, XX%, gross we improvement our margin was to of year. period XX% show controlled our expect X% margin the RMBX.X XXXX. last tightly driving same gross cost structure, profit With for to our XX%

Our total operating were year-over-year quarter. quarter-over and down XX% XX% expenses

control XX% DAUs XX% maintaining while tight our our sales year-over-year. year-over-year, and of increase prospects. cut our We to commercial we by work grew expenses marketing expenses by We while are

XX%, was last marketing revenue, same As year. a XX% and of percent in total with the period sales compared

expenses million, up were RMBX a increase were billion, R&D expenses representing G&A X% RMBXXX year-over-year. X% year-over-year.

of expenses operating expect We going strict control to our forward. continue

and loss net net million XX%, by RMBX and were billion, Our adjusted XX% RMBXXX respectively. and year-over-year, narrowing loss

the Our ago. same year net quarter a XX%, period was in the from ratio loss narrowed for XX% first

CB rights liabilities that this a total has of put Among our XXXX year. upcoming which have CBs to these, $XXX and US$X.X capital of an of allocation outstanding Turning currently June exercisable We management. billion. through are million total three amount principal

CBs cover believe and As time sufficient cash RMBXX.X cash this all of of our the investments We billion, March put equivalents, or billion. we fund our remaining short-term is future had convertible including rights and our CBs. deposits XXXX XX, to -- on XXXX, and US$X.X operations, amount

RMBXX our revenues for to be and billion year With of we billion. between for expectations reiterate that RMBXX mind, XXXX net full in the

to Thank ahead. please you like to open your attention. would call Operator, for now the We your questions. go

Operator

going Instructions] comes you. line from first question of our the Thank JPMorgan. And Chan question. Daniel take [Operator to we're from the Now,

question. your line is Please open. Your ask

Daniel Chan

Language] [Foreign

I will translate myself.

related a growth. So, I have question the to user

of the we saw and actually the in we the that user -- higher quarter. and quarter quarter, ratio that DAU a first the situation MAU growth have daily active marketing have first we first of sales lower to under in in -- expense So, sustainable

user strategy? and Thank on So, maybe a growth also could future you. little management outlook bit share the

Rui Chen

[Foreign Language]

approach specifically more growth. previous user to referring I said DAU quality, Like adopted quality we have growth. to by [Interpreted] And I'm on earnings calls, a oriented

engagement top strengthening At one and commercialization. is of our of to this cornerstone DAU of improve growth priorities the current are stage, efficiency commercialization, user high-quality the

last MAU several QX, while our down And This XX.X In expense by DAU the strategy we and growth continued by quarters, achieved we a XX% XX%, marketing DAU million. quality-oriented sales climb marketing pivot our to to from DAU. that reductions over to sales expense user but have number away and up. increased have was means to

spent time So, focus use you will more this user DAU/MAU engagement drive user And our and is a DAU and our continue potential. MAU, will to forward? on indicator compared strategy up indicator performance average And commercialization going data and to better ratio. to of DAU monitor

stable a spent minutes. on to DAU now Building want daily XX and grew MAU improve engagement. XX.X% and retention QX average to In to further time MAU, we ratio user reached

we forward, DAU see increase in MAU the to to ratio. expect further Going

Going think means here will creates stay engaged, content that generate one able content. and business creators forward, community I is quality to they that users for the the users. cycle, of and better a because content virtuous high-quality here Bilibili's supply remain those And momentum content and attract then, the creators, the that of we're to even content model means will

So, our user we'll future. our grow think why continue cycle. I at able this be virtuous the is trend, to a looking in like DAU to That's growth

Operator

Thank you.

of question to take line China we're our comes standby. Now, the next question. from Zhang Renaissance. the going Please And Yiwen next from

open. is ask line question. your Your Please

Yiwen Zhang

[Foreign Language]

My question advertisement. regarding is

our growth market? delivered Can efficiency? XXXX faster you improved ads on was ad XX% view in (ph) observed [advantages] what is average. lastly, you. we adopt And video in how products ad revenue, on What -- there? kind our than share we many and streaming industry of e-commerce Y-o-Y market? is shall strategy which we or recently, color Thank in progress explorations Correspondingly, format more this what You live either And format. then, our

Carly Li

[Foreign Language]

in QX started average. and in I to But capture [Interpreted] is at industry double-digit So, our (ph) saw China advertising And market managed was [warm the to of expected than XX%, that achieve up] which we to share. we is market greater more growth believe Bilibili, QX, course, in growth.

year-on-year If was growth ads you higher look us specifically, than XX%, the at the for five-zero. performance

and growth, new this feedback growth. by by Mr. confident specifically, like And healthy as very our in horizontal well opportunities business in revenue vertical into DAU Just our ad is of think that the mentioned, I that Chen community. with will advertising improvements driven both transactions vibrant context come our we're as

for platform the By data to improvement, technical efficiency. horizontal referring middle I'm and greater capabilities strengthening ad on

of ratio ratio conversion. example, the to optimization the industry, has deep eCPM First, help gaming increased now can algorithm shallow higher so-called than conversion, increase XX%. which for commands Take

commercial now load. of We one the the ensure dynamic we traffic. want Second, LTV user make we indicators of behavior Users' want to increase while management. the leveraging for commercial model ad sound supply to experience to the adjustments traffic user monitor is in the

operation (ph) marketing science-backed and them outcome also structure] advertising put help model was and the which is [data methodology. also in purchase, measure lastly, then Thirdly, conversion We've In refine forward And the model, the contribute their to ad AIGC we clients this the efficiency. and But FMCG prior in further helps a to XXXX, essential. afterwards. established sector will ad validated Make auto plans QX.

said the So that's horizontal platform. talking about improvement I by middle what I'm when

users that and can right models so their creating for Bilibili. last six As industries, improvements, vertical ads building we've been the key tailored at target for starting year,

-- are are examples. Here two some here

our for For towards user In of or together is on more Impact also that weeks the first latest content, watched paves distribution outcomes. teams the highly-active, users Impact for of goals, conversion in and times live of for ad revenue the better-than-expected and QX, two is timeframe The now broadcasting basis. which game than and gamers. X.X work week. in-depth high-value timeframe. concentration branding game result, that closely the the than in daily over way HonKai: are instance, our Rail higher gaming, Genshin views for And Star same game video game initial game known a as And advertising Genshin XX% our our distribution responsible mobile a same game, Bilibili for shared videos

ad could during even including potentially a and XX matrix, meaningfully with with e-commerce has festival ads, performance revenue As project our Sparkle, JD, that for marketing partnerships we June efficiency e-commerce, data triple year-on-year thanks the Alibaba, XXX% and or to QX revenue improved by more with growing PDD ads, well-rounded shopping branding than our quadruple.

electronics, our growth healthy that of and with verticals, for trend going And we're forward. confident sector, able continue be to auto FMCG we'll the

of community. with So, content the broadcasting of incremental as and I ad incomes. last the for regard is other content growth building year, e-commerce, view result that with other about foster to vibrant This is platforms, creators' committed revenue it all here. think opportunities remained out all transactions both our to users' systems, video Since live open and we're to as closed there. for loop shopping to sites for the Bilibili building ecommerce place an we have is ecosystem shaping as the connected e-commerce transactions and a It mindset in their capacity

also in The a that QX. product every on listing million about performance users and over QX we and which expectations. XX% were transaction, QX, In of XX e-commerce for Bilibili both placing exceeded orders launched performance facilitates day, in there ads accounted wish dual performance our

now workflow and and XX,XXX for categories content E-commerce is e-commerce also as there basis food content QX, stream creators. monthly electronics. is in a for cosmetics, About a such in smooth a on sales creators new income engaged e-commerce

even momentum the get forward, consumption transactions and at stronger for Going Bilibili. will

on that's take on broadcasting my will e-commerce how the evolve platform. live and So, video

Next question?

Operator

Thank you.

next to take Now, we're our going question.

us a next moment. Kong Just of And the comes give from from Sachs. the line question Goldman Lincoln

Your line ask question. is Please open. your

Lincoln Kong

[Foreign Language]

for Thank you taking management my question.

terms think quickly streaming of strategy about question live we you. the the gross We've should for for is as live business? overall margin the the on-demand been live well the in streaming Thank streaming seeing relatively streaming. How of especially about business and our trend the and a growing integration live as outlook, So, business. future

Rui Chen

[Foreign Language]

ecosystem. our is always extension We've [Interpreted] live streaming said natural video a of that

operation. have whole of broadcasting integral considered we the as operationally, live So, total our always

on last business and the integration live same to and have overlap and we fusion often broadcasting empower since demographics And the sometimes and on broadcasting creators. there a from the year year video And live been Bilibili the category in are was -- as target live as the last between momentum well. ecosystem. live broadcasters the of times, focusing so videos videos with a lot broadcasting of video So, lot

achieve to been streaming precisely by number streams In XX% with either of new creators. and video is XX% were the success put average efforts the streamers video video or live in due have to ecosystems. think live live broadcasting of we have able creators who also increased integrate to we live the do I and QX, users

The video and of XX% streamers increased ecosystem content and in through streaming is number active by XX%. of number QX, the business. our live grew MPUs a vitality are our source video the live of for empowering how streaming live ecosystem. we by That's And

home also video -- of One So, diversity content, has content. Bilibili of VTuber, of are our this streaming to to And and hallmark extension of Bilibili our bodes categories of income the that group which side. the diversified in important is video this now the for China. is live of ACG is contributed natural content our very from a is And VTubers streaming. live largest VTubers today, source

VTubers a and on AIGC, be even The the able the and interactive whole Bilibili. group of the generate the as users they streamers to users active more experience images I more with be well. lively And help very live of are will content and can vivid for think for

So, I'm optimistic prospects. very about personally

to as legal cover Bilibili. you And many category believe matters possible. very diversified also popular and and be verticals as that, wouldn't Bilibili is And but aims on a lawyers

streamers answering lawyers, the on also to they platform, legal double Some questions live our as viewers.

answer Bilibili want it's tiny insignificant, to ask very that questions, also inconsequential, have viewers them, the they offers. and to whatever Sometimes something

be (ph). [golf] example Another would

niche even of And players even our Taiwan thousands platform. China, the the whom golf community players ended joined interacting roughly already very of majority as have have with on they lot province the a users on somehow from our golf up Bilibili though of We together have it's and streamers. platform. vast hobby, We in a live the

These revenue it not video grows I to our for expand to and dynamic will business has examples another is believe us, live streaming able business diversified show tremendous also offer It's to improve. go bigger, stream potential. itself of as and actually and lot broadcasting And Bilibili. that very be content streaming, live stronger just and on hold a our live

potential as Bilibili, I've call, enhance. to During continue will could And this at and to said be for business could live viewer and can between live XXX,XXX streaming streaming user previous a creators well video streaming double video make every video the viewer least at content as the live also as potentially stream the at well In calls, Theoretically, QX, creators. live has I And earnings every double. able live the income is say fusion again income from least that important can were streaming believe stream broadcaster at this as live I now and generate the streaming. content. that to

could streaming between live drive believe even fusion and bandwidth their and will as being for live streaming to spread further. own live business And gross also the ordinary are the out users our continue and of more cost out margin videos We margin reduce doing gross Thank on you. cost streams improve.

Operator

you. Thank

our Now, we're to going take question. next

moment. Just from comes next question Bank the America Securities. of give from line Lei Zhang us of a And the

Please line ask your Your open. is question.

Lei Zhang

Language] [Foreign

the question. monetization Internet. Want that noted mainly for previously management have which we of some taking discussion content my on widely creator, to Thanks about ask

Bilibili? color the the value or us total improve creators content how either we Thank share more the income can commercial you. on you can So on for

Rui Chen

Language] [Foreign

platform. uploading video have mentioned paused of actually three their millions this Out -- to I think Bilibili and content update read new I have this we I article many two referring content stopped article you're to an the three. claims since article who but Well, about the mentioned paused article released creators nothing And updates. their on And in on only those myself, the [Interpreted] article many creators April misleading. of content it released Bilibili, then. content content of think new is that -- three creators

and the the think though content And in has reasoning so, the even was misleading. I article clickbait a quite article this title,

that we And proof on went closely, topic down hot -- this to and up. think creators why Bilibili I heated of have and some commercialization a to we are reports to It's at Weibo. content even back making And article. have that internally, Bilibili very the that's and on start derivative a been paying improve able we lot that numbers media efforts to debate. list for people attention article of this was be discussion to ended write

QX income alone, We have payment a they're streaming the the to creators making meaningfully. help and amount our by has from and XX% advertising, live user X.X work lot content million content also Bilibili done In of up on creators earned year-on-year, also increased monetize.

incentives initial we themselves. for also them help some not misleading, have And programs that to their content in for Basically, for the Bilibili we is this said tide again is generate creation, money followers. over them content which incentive with period than to could help cutting content have on to content we subsidy This article, did followers, XX,XXX more that XX,XXX find than an very have ability it is tools creators fewer income provide because has of the have ramifications. the they only them creators own. And the creation make when for the

the creators doesn't on our for the this program majority of platform. incentive So, really vast matter

a been always has monetize creators our priority work. in our Helping

to Sparkle system content help a established commercial have We creators deals. get

video been they empowering so also can make there. live to stream to have creators that an income We switch

because We'll generating believe will only income. So, that's content. energy into this our about creators to high-quality able to make why to never don't more up step worry will they we That's effort -- be content when efforts have invest stop. the help those them money,

of high-caliber of be creators our the content able shows the in and we're is And the operation. article always has will actually in this why such creators. such discussion. concentration the a believe always of a been we high-quality users able to This And guiding reason to have power high value a creators lot and because care principle a platform. So, Bilibili and trigger it about that

we because spare we you. and nicely an in work continuously. going helping creators out carry them those they we'll a to understand earn income their effort creators supporting treated no always This and needs deserve. that are is have We Thank

Operator

Thank you.

next question. going we're to take Now, our

a next give CICC. Just question Zhang Xueqing of from moment. the us comes And line the from

Your question. open. is Please line ask the

Xueqing Zhang

Language] [Foreign

is Thanks management. question. And my for my business. mainly the taking about evening, gaming Good question

that approved You Bilibili some games. has (ph) remarks [mainly] mentioned in the prepared

gaming share management you. us with can outlook? the pipeline what's and and So, [indiscernible] Thank

Rui Chen

[Foreign Language]

This year issued be gaming year [Interpreted] industry. is a going for Licenses games big every now to domestic are regularly for month.

games, handed of imported For live since broadcasting last year, distribution out batches as game have is our licenses which been and business, two great for not advertising for just also well. but

several quarters, be China. the in XX and be In game will published domestic and have abroad. which launched have Eight to next games them published will Five licenses we overseas. at be home of acquired of

game and distribute of We are which is now game, work to launch. Derby finish Alkaidland will working called preparing Records, before titles: are the high-profile the and card two the around also female for we we this be now which Eruthyll, for an bit the have later the romance clock game launch self-developed of this also Pretty game, published we last summer. localization And ACG

X.X many to us the year, ACG fans core base distributed ACG successfully also was yesterday, for Since titles boast feedback. home the first proving user download just Once which is Bilibili, distribution the our of very our group million great initial And worth. our game new for distribution beginning Rail Star Bilibili a distributing with published setting HonKai: the of day miHoYo and is achieved gamers of we've ACG games. young a business. on by channel that, a and again, game makes record largest whopping a Reverse: example great XXXX which

each be so published about will game will Alkaidland self-developed delivering examples the three and the for development, our more probably be mentioned since Records self-developed games. and But long interested Many just I development. games take games, we and relatively around have people self-developed pipeline Eruthyll, under cycle are want now years to after Two only and next the we are in next. year games, game will be high-quality

stick will global self-developed of quality distribution. strategy games We to the and

more such terms as card we forte In on focus genres, of game will games. ACG our

games well you. we're this Our develop front. manage achieve to top-ranking and long putting niche segments effort cycles, the goal needed on that life and is them to the Thank in over success hard

Operator

you. Thank

question. UBS. Now, our Please by. we're line of the going to comes last from from the take Felix stand And question Liu

question. line open. Your Please ask is your

Felix Liu

[Foreign Language]

and and drivers? little Thank my margin and management on on drivers a future measures bottom line. loss overall you. GP your congratulations notable bit improvement you, management, margin for question, the narrowing elaborate you on for Can Thank GP taking taken have and

Sam Fan

This will take your I question. is Sam.

of gross the same we focus reduce to improve margin, is the clear, year this time very Our net in will our loss.

So in XX% considerably quarter-over-quarter. and and about growth gross year-on-year grew narrowed quarter, the XX% our profit XX% first year-over-year net loss about

And at year-over-year, still cost to revenue. continue a margin so we a as the high side, total the of XX% by revenue end, operational year-on--year decrease and cost. we of the quality business. improve From the efficiency The of improved business, achieved advertising grew our it's we X% mentioned,

with so GP improved And by margin XX% the compared XX% and increase results that the GP to last XX% year.

fixed decline, for quarter-over-quarter. the continued about the And operational XX% technology to and the upgrading quarter-over-quarter. cost, also for down management, other label cost and XX% year-on-year to fell about [X%] cost, other (ph) and use operational So, example, year-on-year bandwidth example, --

So you increased year-on-year. decreased operating DAU from saw by the year-over-year XX% the about XX% expenses overall already expense side, and significantly,

operating keep marketing will already we which down our QX. expenses, are actively expenses, control So, year-on-year about XX% in the especially

quarter. the will trend in -- think continue following will I be that that

controlled and So, that the we've cost confident we expense. are quite

narrowing margin and our a profit of operating further to of net And will improve the will mainly gross loss. achieve expenses quarter-over-quarter, this also year-on-year decline Our year. Thank you. show meaningful a

Operator

Thank session. that and first Bilibili's financial results question-and-answer call you, today. the quarter concludes joining And again, update XXXX you. Thank once conference business for

China Contact further IR Communications. Bilibili's U.S. both in you found release. Yang, Juliet for be Director can and questions, have Financial great the please If day. today's on any information or Piacente contact a Executive press IR Have

Bilibili (BILI) 1 Jun 232023 Q1 Earnings call transcript