Bilibili Inc., a video community for younger generations in China, announced its unaudited financial results for the third quarter, ended September 30, 2022.
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Total net revenues reached CNY 5.8 billion (USD 814.5 million), an 11 percent increase from the same period in 2021. Net loss was CNY 1.7 billion (USD 241.2 million), narrowed by 36 percent from the same period in 2021. Average daily active users (DAUs) reached 90.3 million, a 25 percent increase from the same period in 2021. Average monthly active users (MAUs) reached 332.6 million, a 25 percent increase from the same period in 2021. Average monthly paying users (MPUs) reached 28.5 million, a 19 percent increase from the same period in 2021.
“In the third quarter, we took steps to shore-up our business foundation and narrow our losses, while continuing to provide users with the products and services they love,” said Rui Chen, chairman and chief executive officer of Bilibili. “Our DAUs and MAUs each increased by 25 percent year-over-year to over 90 million and nearly 333 million, respectively. Users remained highly engaged and the average daily time spent on Bilibili reached a 96-minute record high. While our community remains key to our long-term success, we believe it is essential to stay adaptive to the increasingly challenging macro environment. Putting profitability first, we will take additional initiatives to accelerate our monetization and implement cost containment measures including rationalizing headcount planning and cutting sales and marketing expenses, with our goal set to improve our margins and narrow our losses.”
Sam Fan, chief financial officer of Bilibili, said, “Total net revenues increased by 11 percent year-over-year and 18 percent quarter-over-quarter in the third quarter. By improving operating efficiency and controlling our expenses, we expanded our gross margin and narrowed our losses, both on a sequential basis. Sales and marketing expenses as a percentage of revenues declined to 21 percent, compared with 24 percent in the prior quarter. Our non-GAAP adjusted net loss ratio also narrowed by 10 percentage points sequentially. Going forward, we will continue to implement strict cost control measures, while actively managing our liabilities.”
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For the fourth quarter, the company currently expects net revenues to be between CNY 6 billion and CNY 6.2 billion.