News Release
Event Title: | Bilibili Inc. Third Quarter 2020 Earnings Conference Call |
Conference ID: | 4395658 |
Registration Link: | http://apac.directeventreg.com/registration/event/4395658 |
All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers, an event passcode, and a unique registrant ID, which will be used to join the conference call.
Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.bilibili.com.
A replay of the conference call will be accessible by phone two hours after the conclusion of the live call at the following numbers, until November 25, 2020:
United States: | +1-855-452-5696 |
International: | +61-2-8199-0299 |
Hong Kong: | 800-963-117 |
China: | 400-632-2162 |
Replay Access Code: | 4395658 |
About Bilibili Inc.
Bilibili represents an iconic brand of online entertainment with a mission to enrich the everyday life of young generations in China. Bilibili is a full-spectrum online entertainment world covering a wide array of genres and media formats, including videos, live broadcasting and mobile games. Bilibili provides an immersive entertainment experience and high-quality content that caters to the evolving and diversified interests of its users and communities, and has built its platform based on the strong emotional connections of Bilibili’s users to its content and communities.
For more information, please visit: http://ir.bilibili.com.
Use of Non-GAAP Financial Measures
The Company uses non-GAAP measures, such as adjusted net loss, adjusted net loss per share and per ADS, basic and diluted, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, amortization expense related to intangible assets acquired through business acquisitions and income tax related to intangible assets acquired through business acquisitions, which are non-cash charges. The Company believes that the non-GAAP financial measures provide useful information about the Company’s results of operations, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company’s operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP.
The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.
For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB6.7896 to US$1.00, the exchange rate on September 30, 2020 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue,” or other similar expressions. Among other things, Outlook and quotations from management in this announcement, as well as Bilibili’s strategic and operational plans, contain forward-looking statements. Bilibili may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Bilibili’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the impact of the COVID-19 pandemic on the Bilibili’s business, results of operations, financial condition, and stock price; Bilibili’s strategies; Bilibili’s future business development, financial condition and results of operations; Bilibili’s ability to retain and increase the number of users, members and advertising customers, provide quality content, products and services, and expand its product and service offerings; competition in the online entertainment industry; Bilibili’s ability to maintain its culture and brand image within its addressable user communities; Bilibili’s ability to manage its costs and expenses; PRC governmental policies and regulations relating to the online entertainment industry, general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and the Company undertakes no duty to update such information, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
Bilibili Inc.
Juliet Yang
Tel: +86-21-2509 9255 Ext. 8523
E-mail: ir@bilibili.com
The Piacente Group, Inc.
Emilie Wu
Tel: +86-21-6039-8363
E-mail: bilibili@tpg-ir.com
In the United States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: bilibili@tpg-ir.com
BILIBILI INC. Unaudited Condensed Consolidated Statements of Operations (All amounts in thousands, except for share and per share data) |
|||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | |||||||
2019 | 2020 | 2020 | 2019 | 2020 | |||||||
RMB | RMB | RMB | RMB | RMB | |||||||
Net revenues: | |||||||||||
Mobile games | 933,133 | 1,247,977 | 1,275,136 | 2,726,444 | 3,673,726 | ||||||
Value-added services (formerly known as Live broadcasting and VAS) |
452,518 | 825,251 | 979,633 | 1,070,183 | 2,598,437 | ||||||
Advertising | 247,186 | 348,572 | 557,510 | 527,421 | 1,120,348 | ||||||
E-commerce and others | 226,126 | 195,801 | 413,434 | 446,105 | 766,338 | ||||||
Total net revenues | 1,858,963 | 2,617,601 | 3,225,713 | 4,770,153 | 8,158,849 | ||||||
Cost of revenues | (1,507,684 | ) | (2,013,588 | ) | (2,464,138 | ) | (3,977,819 | ) | (6,262,797 | ) | |
Gross profit | 351,279 | 604,013 | 761,575 | 792,334 | 1,896,052 | ||||||
Operating expenses: | |||||||||||
Sales and marketing expenses | (363,859 | ) | (675,092 | ) | (1,190,354 | ) | (785,350 | ) | (2,471,403 | ) | |
General and administrative expenses | (163,217 | ) | (208,411 | ) | (253,475 | ) | (432,973 | ) | (633,263 | ) | |
Research and development expenses | (247,308 | ) | (330,628 | ) | (401,030 | ) | (649,243 | ) | (1,028,993 | ) | |
Total operating expenses | (774,384 | ) | (1,214,131 | ) | (1,844,859 | ) | (1,867,566 | ) | (4,133,659 | ) | |
Loss from operations | (423,105 | ) | (610,118 | ) | (1,083,284 | ) | (1,075,232 | ) | (2,237,607 | ) | |
Other income/(expenses): | |||||||||||
Investment income, net | 513 | 31,423 | 14,245 | 97,028 | 19,187 | ||||||
Interest income | 52,018 | 23,504 | 18,150 | 126,396 | 68,306 | ||||||
Interest expense | (16,047 | ) | (22,671 | ) | (35,961 | ) | (31,685 | ) | (73,804 | ) | |
Exchange (losses)/gains | (5,640 | ) | 4,213 | 11,406 | (8,588 | ) | 28,329 | ||||
Others, net | (5,362 | ) | 14,734 | (8,176 | ) | 4,663 | 23,891 | ||||
Total other income/(expenses), net | 25,482 | 51,203 | (336 | ) | 187,814 | 65,909 | |||||
Loss before income tax | (397,623 | ) | (558,915 | ) | (1,083,620 | ) | (887,418 | ) | (2,171,698 | ) | |
Income tax | (8,082 | ) | (11,939 | ) | (17,277 | ) | (28,941 | ) | (38,608 | ) | |
Net loss | (405,705 | ) | (570,854 | ) | (1,100,897 | ) | (916,359 | ) | (2,210,306 | ) | |
Accretion to redeemable noncontrolling interests | - | (1,760 | ) | (1,262 | ) | - | (4,292 | ) | |||
Net (gain)/loss attributable to noncontrolling interests | (1,652 | ) | 5,966 | 20,143 | 10,227 | 30,693 | |||||
Net loss attributable to the Bilibili Inc.'s shareholders | (407,357 | ) | (566,648 | ) | (1,082,016 | ) | (906,132 | ) | (2,183,905 | ) | |
Net loss per share, basic | (1.24 | ) | (1.63 | ) | (3.08 | ) | (2.82 | ) | (6.36 | ) | |
Net loss per ADS, basic | (1.24 | ) | (1.63 | ) | (3.08 | ) | (2.82 | ) | (6.36 | ) | |
Net loss per share, diluted | (1.24 | ) | (1.63 | ) | (3.08 | ) | (2.82 | ) | (6.36 | ) | |
Net loss per ADS, diluted | (1.24 | ) | (1.63 | ) | (3.08 | ) | (2.82 | ) | (6.36 | ) | |
Weighted average number of ordinary shares, basic | 327,231,439 | 348,634,400 | 351,301,703 | 321,634,678 | 343,156,614 | ||||||
Weighted average number of ADS, basic | 327,231,439 | 348,634,400 | 351,301,703 | 321,634,678 | 343,156,614 | ||||||
Weighted average number of ordinary shares, diluted | 327,231,439 | 348,634,400 | 351,301,703 | 321,634,678 | 343,156,614 | ||||||
Weighted average number of ADS, diluted | 327,231,439 | 348,634,400 | 351,301,703 | 321,634,678 | 343,156,614 | ||||||
The accompanying notes are an integral part of this press release.
BILIBILI INC. NOTES TO UNAUDITED FINANCIAL INFORMATION (All amounts in thousands, except for share and per share data) |
||||||
For the Three Months Ended | For the Nine Months Ended | |||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||
2019 | 2020 | 2020 | 2019 | 2020 | ||
RMB | RMB | RMB | RMB | RMB | ||
Share-based compensation expenses included in: | ||||||
Cost of revenues | 6,381 | 7,256 | 10,296 | 17,566 | 24,427 | |
Sales and marketing expenses | 3,424 | 11,212 | 10,757 | 10,324 | 28,728 | |
General and administrative expenses | 21,855 | 41,421 | 41,509 | 52,210 | 109,346 | |
Research and development expenses | 19,688 | 26,758 | 33,804 | 50,896 | 76,036 | |
Total | 51,348 | 86,647 | 96,366 | 130,996 | 238,537 | |
BILIBILI INC. Unaudited Condensed Consolidated Balance Sheets (All amounts in thousands, except for share and per share data) |
||
December 31, | September 30, | |
2019 | 2020 | |
RMB | RMB | |
Assets | ||
Current assets: | ||
Cash and cash equivalents | 4,962,660 | 5,927,471 |
Time deposits | 1,844,558 | 4,910,762 |
Accounts receivable, net | 744,845 | 1,186,171 |
Prepayments and other current assets | 1,511,191 | 1,810,870 |
Short‑term investments | 1,260,810 | 3,260,895 |
Total current assets | 10,324,064 | 17,096,169 |
Non‑current assets: | ||
Property and equipment, net | 516,087 | 787,701 |
Production cost, net | 443,533 | 666,281 |
Intangible assets, net | 1,657,333 | 2,368,253 |
Goodwill | 1,012,026 | 1,295,786 |
Long‑term investments, net | 1,251,129 | 1,548,769 |
Other long-term assets | 312,395 | 583,488 |
Total non‑current assets | 5,192,503 | 7,250,278 |
Total assets | 15,516,567 | 24,346,447 |
Liabilities | ||
Current liabilities: | ||
Accounts payable | 1,904,042 | 2,932,801 |
Salary and welfare payables | 355,936 | 530,305 |
Taxes payable | 67,856 | 111,132 |
Short-term loan | - | 100,000 |
Deferred revenue | 1,369,000 | 2,117,864 |
Accrued liabilities and other payables | 575,763 | 1,217,655 |
Total current liabilities | 4,272,597 | 7,009,757 |
Non-current liabilities: | ||
Long-term debt | 3,414,628 | 8,699,504 |
Other long-term liabilities | 192,882 | 226,949 |
Total non-current liabilities | 3,607,510 | 8,926,453 |
Total liabilities | 7,880,107 | 15,936,210 |
Total Bilibili Inc.’s shareholders’ equity | 7,052,484 | 8,212,321 |
Noncontrolling interests | 583,976 | 197,916 |
Total shareholders’ equity | 7,636,460 | 8,410,237 |
Total liabilities and shareholders’ equity | 15,516,567 | 24,346,447 |
BILIBILI INC. Unaudited Reconciliations of GAAP and Non-GAAP Results (All amounts in thousands, except for share and per share data) |
|||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | |||||||
2019 | 2020 | 2020 | 2019 | 2020 | |||||||
RMB | RMB | RMB | RMB | RMB | |||||||
Net loss | (405,705 | ) | (570,854 | ) | (1,100,897 | ) | (916,359 | ) | (2,210,306 | ) | |
Add: | |||||||||||
Share-based compensation expenses | 51,348 | 86,647 | 96,366 | 130,996 | 238,537 | ||||||
Amortization expense related to intangible assets acquired through business acquisitions |
11,305 | 8,472 | 16,007 | 40,795 | 32,951 | ||||||
Income tax related to intangible assets acquired through business acquisitions |
- | - | (1,514 | ) | - | (1,514 | ) | ||||
Adjusted net loss | (343,052 | ) | (475,735 | ) | (990,038 | ) | (744,568 | ) | (1,940,332 | ) | |
Net loss attributable to the Bilibili Inc.'s shareholders | (407,357 | ) | (566,648 | ) | (1,082,016 | ) | (906,132 | ) | (2,183,905 | ) | |
Add: | |||||||||||
Share-based compensation expenses | 51,348 | 86,647 | 96,366 | 130,996 | 238,537 | ||||||
Amortization expense related to intangible assets acquired through business acquisitions |
11,305 | 8,472 | 16,007 | 40,795 | 32,951 | ||||||
Income tax related to intangible assets acquired through business acquisitions |
- | - | (1,514 | ) | - | (1,514 | ) | ||||
Adjusted net loss attributable to the Bilibili Inc.'s shareholders | (344,704 | ) | (471,529 | ) | (971,157 | ) | (734,341 | ) | (1,913,931 | ) | |
Adjusted net loss per share, basic | (1.05 | ) | (1.35 | ) | (2.76 | ) | (2.28 | ) | (5.58 | ) | |
Adjusted net loss per ADS, basic | (1.05 | ) | (1.35 | ) | (2.76 | ) | (2.28 | ) | (5.58 | ) | |
Adjusted net loss per share, diluted | (1.05 | ) | (1.35 | ) | (2.76 | ) | (2.28 | ) | (5.58 | ) | |
Adjusted net loss per ADS, diluted | (1.05 | ) | (1.35 | ) | (2.76 | ) | (2.28 | ) | (5.58 | ) | |
Weighted average number of ordinary shares, basic | 327,231,439 | 348,634,400 | 351,301,703 | 321,634,678 | 343,156,614 | ||||||
Weighted average number of ADS, basic | 327,231,439 | 348,634,400 | 351,301,703 | 321,634,678 | 343,156,614 | ||||||
Weighted average number of ordinary shares, diluted | 327,231,439 | 348,634,400 | 351,301,703 | 321,634,678 | 343,156,614 | ||||||
Weighted average number of ADS, diluted | 327,231,439 | 348,634,400 | 351,301,703 | 321,634,678 | 343,156,614 |