By SHE Xiaochen
Bilibili’s Q3 report shows another net loss, this time 13 billion yuan (US$180 million), 22 percent less than the same period last year. Revenue stood at 58 billion yuan, the same as last year.
Although Bilibili reduced losses this quarter, both gaming and IP businesses fared badly. Bilibili is now focused on growth through reduced marketing expenses and cutting costs across the board
Bilibili’s advertising revenue reached 16.4 billion yuan in Q3, up 21 percent, accounting for 28 percent of total revenue. The revenue from advertising and live streaming, both correlated with user growth, is then reinvested.
Gaming business revenue reached 9.9 billion yuan in Q3, down by a third from last year.
Gaming used to contribute notable growth to Bilibili, but not since 2020 when live streaming became the main growth point. Additionally, IP-derived products and other revenue experienced a 23 percent year-over-year decline in Q3.
Bilibili now relies on live streaming and advertising on an increasingly uphill and lengthy path to profitability. Due to lower-than-expected revenue from mobile games, the company anticipates its full-year net revenue for 2023 to fall in the range of 225 yuan billion to 235 billion yuan.
As of September 30, Bilibili held total cash and cash equivalents, time deposits, and short-term investments amounting to 14.5 billion yuan.
Following the financial report release, Bilibili’s US stock price briefly dropped over 6 percent in pre-market trading.
