1 station B has formed an excellent ecology of content creation, forming a large community with a monthly life of 270 million people, and most of them are the most creative and dynamic young people in China. Therefore, I think station B is indeed one of the most suitable ecosystems to realize the yuan universe.
All discussions about the binary universe are at the level of capital and media. I hardly hear people who really make products discussing this, because this is really a distant goal. It requires breakthroughs in products and technology to realize this concept, not in the last two or three years.
3. We have previously set the user volume target for the next three years. Next year, we will move forward according to the rhythm of the target. We are confident that we will reach the target of 400 million in three years.
On November 17, BiliBili (NASDAQ: Bili, HKEx: 9626; hereinafter referred to as “station B”) published its unaudited financial report for the third quarter ended September 30, 2021. According to the financial report, the revenue of station B in the third quarter reached 5.21 billion yuan, a year-on-year increase of 61%. [the revenue of station B in the third quarter was 5.21 billion yuan, an increase of 61% year-on-year, with a pre market decline of more than 9%]
In this quarter, the average monthly active users of station B reached 267 million, with a year-on-year increase of 35%; The average daily active users reached 72 million, a year-on-year increase of 35%. The average monthly paying users of station B increased by 59% year-on-year to 24 million, and the payment rate increased to 8.9%.
After the release of the financial report, Chen Rui, chairman and Chief Executive Officer (CEO), Li Ni, vice chairman and chief operating officer (COO), fan Xin, chief financial officer (CFO) and Juliet Yang, senior director of investor relations attended the financial report teleconference and answered the questions of analysts on the spot.
Analyst: how to comment on the concept of “meta universe”?
Chen Rui: if you hear the concept of meta universe and enter or layout these companies of meta universe, I think it should be too late, because I think among these elements, as I mentioned earlier, neither social system nor ecosystem can be laid out in a few months or a year or two.
I think there is a very important thing in the concept of meta universe, that is, it needs a self circulating content ecology. The concept of meta universe can not be completed independently by any company. No company has such content capacity. Therefore, in this product system, a group of people must deeply create content, And can profit from the content it creates in this system.
For example, the virtual anchor, our up host, can become another role in another world through motion capture and other technologies, and these roles can sing, dance, practice and tell jokes. The content of these virtual role performances can be supported and loved by many users. This is an example of ecology within the system.
If there is an infinitely broad world described by the concept of meta universe, in which there are millions of people and tens of millions of people, it must require more content creators than the current station B to continuously produce content, so that these viewers can linger in it and think that this is an attractive world, so I think this is a creative ecology that needs self circulation.
At present, station B has formed an excellent ecology of content creation, and around this ecology, we have formed a large community with a monthly life of 270 million people, and most of them are the most creative and dynamic young people in China. Therefore, I think station B is indeed one of the most suitable ecosystems for realizing the meta universe. I think metauniverse is actually a long-term goal. To be honest, all discussions about metauniverse are at the level of capital and media. I hardly hear people who really make products discuss this, because this is really a far away goal. It requires breakthroughs in products and technology to realize this concept, not in the last two or three years.
I think this is really a very beautiful vision, because it can really bring people a truly upgraded user experience, just as we saw the number one player and the realm of swords and swords before.
I saw some media articles criticizing the concept of the meta universe with “number one player”. He said that the world played by “number one player” is problematic, but I see it this way. I think technology itself is just a tool, talents are motivation, and people decide whether a tool will benefit the society or bring harm to the society.
I think the meta universe brings us broad imagination space and more choices. One more choice is always good. Just like after the emergence of TV, you can still watch drama and movies, but you have one more choice to watch TV. After the emergence of mobile phone, you can still watch TV, but also one more choice to watch mobile phone, Some time ago, I went to the Shanghai planetarium, which is known as the best planetarium in the world. After looking at it, I found that a large number of scenes can be better done if they are done with virtual reality and metauniverse. After all, only children in Shanghai can go to the Shanghai planetarium, If I can realize the meta universe through the Internet, there is an planetarium in it. I can let all Chinese children see the sun, Mars and Saturn’s rings and see comets. Therefore, I think the key to whether a technology is addictive or informative is to see who is using it.
Analyst: my question is about user growth. The user growth in the third quarter was better than the previous guidelines, reaching 267 million, and the duration also reached 88 minutes, which was the highest in history. I would like to ask what specific things we did in the third quarter to achieve this achievement. The second question is our outlook for user growth next year?
Chen Rui: over the years, the source of user growth of station B has not changed. It is through our healthy and vigorous content that ecology produces high-quality content to drive the growth of the number of users. We will focus on purification every year. For example, last year, our focus is actually on the expansion of categories. For this year, in addition to the further expansion of categories, we also have the expansion of scenes. This year, we hope to achieve the video community of the whole scene and category.
I always think that the home of video is not just mobile phones. Although mobile phones are the most frequently used device, with the expansion of bandwidth and the continuous improvement of video quality in the future, I think more screens will also become the home of video, such as TV screens. Now our TV Mau has surpassed the PC terminal and become the second largest device in our current row of Mau, and we believe that the TV terminal has further growth potential.
Moreover, our TV terminal not only increases the number of users, but also plays longer on TV than other terminals. Station B must be the most self configured video platform in China. I think this is why station B is suitable for watching on TV. For another example, we also launched the story mode this year. In fact, our up owners can also cast small videos on the vertical screen of mobile phones. This part is also very popular with users and another scene growing up under our ecology. This is our growth strategy for all categories and scenarios. I would also like to point out that Q3 is not only better for user data, but also more attention should be paid to our user quality reflected in the middle. Our average service time is increasing, and the number of interactions is also increasing. The monthly average number of user interaction in Q3 has exceeded 10 billion. Moreover, the growth of our paying users is very healthy, the number of paying users has reached 24 million, and our paying rate has increased continuously in the past few quarters, and Q3 has reached 8.9%.
In 2017, I predicted that the platform payment rate of station B will break through the double digits. I still maintain this idea. Our number of users is growing rapidly and the user quality is very high, so these people like our content and are willing to pay for our content. The number of payments will eventually grow faster than the number of users.
For Q4, according to the annual trend of station B, the number of users to Q4 should be stable and increase steadily, greater than or equal to Q3. As for next year, because we have previously set the user volume target for the next three years, next year we will move forward according to the rhythm of the target. We are confident that we will reach the target of 400 million in three years.
We have been discussing how much we can get from the penetration of users in station B. We have seen a group of data on the TV side, and the coincidence degree of users from the app side is less than 20%. Most users are still in the third, fourth and fifth tier cities. This completely differentiated user is active, which makes us more confident, The existing content reserve of station B will change in the future, including changes in multiple scenarios. There should be other growth space at the penetration growth end of users.