Bilibili Inc. (NASDAQ:BILI) Q3 2023 Earnings Call Transcript

For example, we’ve seen positive performance from automotive and healthcare industry, which also grew by 20% quarter-over-quarter. Going forward, we will continue to strengthen on those industries’ performance. We have also improved our ad efficiency on a platform level on leasing more commercial value across different scenarios. And particularly, performance-based ads grew by 40% year-over-year in the third quarter, which has become the main growth driver of our ads business. So in terms of the Double 11 shopping festival performances, we think the overall experience, overall performances has exceeded our expectations. Ad revenue from the main e-commerce platforms grew by over 80% year-over-year. We’ll continue to appear until the open-loop strategy and continue to deepen our data collaboration with the top e-commerce platforms.

For example, ad revenue generated by the revolver (inaudible) project, grew over 160% compared with the June 18 shopping festival this year. We’ve worked with more than 70 brands advertisers to bring new users to the advertisers. Over 50% of the traffic converted to Alibaba Jinko project grew over 160% compared with the June 18, festival this year. We’ve worked with more than 70 brand advertisers to bring new users to both – to the advertisers. Over 50% of the traffic converted to Alibaba were new users to those brand owners, and this ratio even reached 89% for baby and maternity verticals. [Foreign Language] The incremental ad budget brought by Alibaba’s Jinko [ph] project has actually proven the conversion value of Bilibili’s performance ads.

That’s why, our in-addition to Alibaba’s Jinko project, we launched Jinko project, a collaboration program with Jindal recently. During the 11.11 shopping festival, the GMV generated from our video and live e-commerce increased more than 250% year-over-year. And we have gradually built up our consumption and trading atmosphere within our content community. During the shopping season, the number of video, e-commerce related video increased by over 230% and the number of live e-commerce session has also grew by 100%. Our Bilibili content creator, Mr. [indiscernible], his live e-commerce GMV has reached 81.68 billion, which increased by over 400%. From the trading atmosphere as well as the revenue growth, we’re confident we can continue to build on this momentum and continue to grow our e-commerce-related advertising revenue.

As for the fourth quarter and to 2024’s advertising revenue growth trajectory, we remain confident. Here are some ways we are hoping to continue to enhance and improve. First of all is, that we all know Bilibili’s content can deeply influence users’ mindset and brand perception. We will be very focused and continue to build our brand ad capability, the Spark platform will be delivered and performance-based that will be our growth accelerator. [Foreign Language] And secondly is we will continue to upgrade our advertising model. We’ve been emphasizing that the integrated marketing solutions will be Bilibili’s strong advantage. The reason why is that we can reach user from multiple media scenario and achieve multiple ad revenue growth. And in 2024, we’ll continue to upgrade and help our ad clients to build their brand equity within Bilibili content community and help them to build a sustainable and measurable growth model.

Thirdly is to improve the effectiveness and efficiency of our traditional ad scenarios and find new scenarios that’s simple for different advertising strategy. Going forward, we’ll continue to find a way to better collaborate between natural traffic and commercial traffic to improve our overall ad efficiency. Lastly is that we’ll pay close attention to the four key needs of our brand — of our ad customers. Number one, new product launch. Number two, fear of staging. Number three, transaction-based ad needs. Lastly is the seasonal marketing campaigns. We will build on these four key needs and to continue to build a very effective advertising solution. That’s why I’m still very confident of our advertising revenue growth in the fourth quarter and the year forward, we aim to continue to expand our market share going forward.

Juliet Yang: Operator, next question.

Operator: We’ll move to the next question. Our next question comes from the line of Felix Liu from UBS. Please go ahead.

Felix Liu: [Foreign Language] Let me translate myself. So we noticed that my question is on the game business. We noticed that the game competitive landscape remained — continue to be in Tencent, one of our peer recently exited their game business. So your thoughts on your own in-house game R&D progress? How you think of the game business from here? And any update on our game Pretty Derby? Thank you. So firstly, I’ll talk about the Pretty Derby. We really value this game and at the same time, we value user experience. So that’s why we will conduct minor content refinement and technical upgrade as soon as possible and bring the game back to the App Store. And one thing I want to add is that for user already download the game, on their feedback and experience, the feedback has been very positive.