Bilibili (09626) releases 2024 Q4 and full-year financial report: advertising and game revenue continues to grow rapidly to achieve full profit

The Zhitong Finance App learned that on February 20, Bilibili (09626) (hereinafter referred to as “Station B”) announced unaudited financial reports for the fourth quarter and full year ending December 31, 2024. Financial reports show that in 2024, Station B's total annual revenue reached RMB 26.83 billion, up 19% year on year, of which total revenue for the fourth quarter reached 7.73 billion yuan, up 22% year on year.

In the fourth quarter, Station B's advertising revenue was 2.39 billion yuan, up 24% year on year; game business revenue was 1.8 billion yuan, up 79% year on year. The rapid growth of high-margin business led to a sharp increase of 68% year-on-year in gross profit, and gross margin increased to 36.1% for 10 consecutive quarters. Adjusted net profit and net profit under US accounting standards were 450 million yuan and nearly 89 million yuan respectively, achieving full profit correction.

While commercialization efficiency continues to improve, the B station community is still booming and achieving year-on-year growth. In the fourth quarter, the average daily active users of Station B reached 103 million, and the average monthly active users reached 340 million. The average daily usage time increased from 95 minutes in the same period last year to 99 minutes.

Chen Rui, Chairman and CEO of Station B, said, “In the fourth quarter, we maintained continuous growth in community ecology and commercial revenue, and achieved overall profit in a single quarter. All of this is inseparable from Station B's long-standing insistence on high-quality content, which is the driving force behind the community's ecological prosperity and commercial revenue growth. We believe that with the support of AI technology, the threshold for content creators will be further lowered, spawning more high-quality content and continuing to amplify the unique value of Station B.”

High-quality content, healthy ecological development, and rich and diverse income for creators

Healthy community ecological growth is the foundation for Webmaster B's development. In the fourth quarter, the average number of daily video views on Station B exceeded 4.8 billion, and the average number of monthly interactions exceeded 15.5 billion. By the end of the fourth quarter, 258 million users had passed the inbound test and became “regular members” of Site B, and the retention rate remained stable at 80% for the 12th month.

Over the past 15 years, Station B has not only been a paradise for young people's interests, but also a gathering place for lifestyle consumption. In 24 years, the number of broadcasts in categories such as games, knowledge, and technology all increased by more than 20% over the same period last year. At the same time, consumer content is booming, with an average number of daily viewers exceeding 40 million. Among them, the number of broadcasts in the automotive category increased by nearly 40% year on year, and the sports and fitness category increased by more than 30% year on year. At the same time, female users showed strong demand for content consumption. The number of broadcasts in the fashion category increased by nearly 30% year on year, and the number of broadcasts in the mother and child category increased by more than 70% year on year.

As the community with the highest density of young people in China, 70% of the post-90s are active on Station B, which is the main consumer group for Site B content, and AI is one of their biggest concerns. The rise of DeepSeek led to a 60% increase in the number of broadcasts in the AI category, with users under 30 accounting for over 70%, and spawned a number of popular manuscripts similar to large-scale model deployment tutorials, tool evaluation, technical analysis, and AI entrepreneurship practices. Meanwhile, holidays such as New Year's Day and Spring Festival have further boosted the activity of young users. During the Spring Festival this year, Station B became CCTV's exclusive pop-up video platform for the Year of the Snake Spring Festival Gala, live streaming of the Spring Festival Gala for the first time. On New Year's Eve, the proportion of viewers under the age of 30 in the Spring Festival Gala live broadcast room was 83%, driving station B's daily activities that night to a new high, an increase of 20% over the previous year. After the replay of the gala went live, the number of viewers exceeded 37 million, triggering a barrage of young people from around the world checking in for “team building.”

Content consumption continues to prosper, driving UP owners to continue to create at Station B. According to the data, the number of creators who have been posting on Station B for more than 5 years is over 2 million. Continuous and stable updates have also made the quality of the main content of UP continue to improve, and the number of fans continues to grow. Of the “Top 100 Upgraders” of Station B in '24, nearly 90% continued to be updated for over 5 years. By the end of 2024, the number of UP subscribers with over 100,000 fans increased by nearly 30% year-on-year.

Station B also provides creators with more diversified monetization channels, continuously increasing creators' revenue. In 2024, nearly 3.1 million UP owners received revenue from Station B, of which total revenue from advertising and value-added services increased 21% year over year; the value of high-quality content continues to be recognized by users, and there are more than 8 million users who pay for charging throughout the year.

Advertising and game revenue continued to grow to achieve full profit in a single quarter

In the fourth quarter, Station B's total revenue increased 22% year-on-year to 7.73 billion yuan. Value-added services, advertising, games and IP derivatives and other businesses contributed 40%, 31%, 23%, and 6% of revenue respectively, with a healthy and diverse revenue structure. Total revenue for the year increased 19% year over year to 26.83 billion yuan.

In terms of advertising, advertising revenue in the fourth quarter increased 24% year on year to 2.39 billion yuan, and annual revenue was 8.19 billion yuan, up 28% year on year. Among them, performance ads increased by more than 40% year over year. Games, digital appliances, e-commerce, internet services, and automobiles have become the top five industries contributing to advertising revenue. Building brand influence at Station B and carrying out full-link integrated marketing has become a must-have move for digital home appliance manufacturers. At the same time, as young people enter a new stage of starting a family and starting a business, consumer demand continues to increase, driving Station B to increase the number of cooperative brands by 30% throughout the year.

At the AD TALK marketing partner conference at the beginning of the year, Station B announced a series of upgrade plans covering ecological strategies, advertising products, commercial technology, and measurement tools around how to better build brand influence for customers. This includes but is not limited to optimizing integrated marketing products to enhance the influence of high-quality advertising; strengthening AIGC, deep transformation, and automated advertising capabilities to help advertisers improve advertising efficiency; and upgrading data asset models to enhance accurate delivery capabilities.

In terms of games, game business revenue in the fourth quarter increased sharply by 79% year on year to reach 1.8 billion yuan. Annual revenue was 5.61 billion yuan, up 40% year on year. “Three Kingdoms: Designing the World” is about to enter its sixth season. The number of users remains stable. With continuous content updates and feature upgrades, its long-term value will be further unleashed. Subsequently, Station B will continue to explore the possibilities of rejuvenating the game category, aim for long-term operation, and continue to bring high-quality, long-life games to users.

In addition, the value-added services business also achieved steady growth, with revenue of 3.08 billion yuan in the fourth quarter and annual revenue of 11 billion yuan. In the future, Station B will continue to optimize live streaming operation capabilities and drive continuous growth in the number of users and revenue. In terms of membership, the number of subscribers has continued to grow steadily. By the end of the fourth quarter, the number of active members was 22.7 million, of which over 80% were annual subscriptions or automatically renewed members.

In the fourth quarter, the company's high-margin advertising and game revenue continued to grow rapidly, while operating efficiency continued to improve, and gross profit increased 68% year over year. Gross margin increased 10 percentage points year over year to 36.1%. In the fourth quarter, the company achieved full profit. The adjusted net profit and net profit under US accounting standards were 450 million yuan and nearly 89 million yuan respectively.

In 2024, the company achieved a positive operating cash flow of more than 6 billion yuan and completed about 860 million US dollars in convertible bonds and stock repurchases to enhance shareholder returns. As of December 31, 2024, the total amount of cash and cash equivalents, time deposits and short-term investments held by the company was RMB 16.5 billion.