BILI Q3 FY24

As of September 30, 2024, Bilibili's (BILI) operating revenue reached Rmb7.306 billion, up approximately 25.83% from Rmb5.805 billion as of September 30, 2023. This significant growth reflects the company's enhanced competitiveness in the market and positive performance in content diversity and user engagement.

## Key Financial Data

1. Revenue Growth: Operating revenue grew by approximately 25.83%, demonstrating the company's successful strategies in users and content.

2. User Growth: Daily active users (DAU) reached 107 million, up 4% YoY; monthly active users (MAU) were 348 million, up 2% YoY.

3. Advertising Revenue: Advertising revenue was Rmb2.094 billion, up 28% YoY. The growth of effect advertising revenue was close to 50%.

4. Content Diversity: The launch of the Taobao Flash Sale live streaming e-commerce channel enhanced the platform's appeal in e-commerce content.

5. Interactive Data: Monthly average interactions reached 19.3 billion, up 14% YoY, indicating an increase in user engagement.

# Industry Comparison

1. Overall Industry Analysis:

- The overall video sharing industry is currently showing a rapid development trend, especially driven by short videos and live content, resulting in increased user viewing time and advertising spending. According to Statista, the global online video market is expected to reach US$108.5 billion in 2024, driving revenue growth for major platforms.

2. Peer Comparison Analysis:

- Compared to competitors like YouTube and TikTok, Bilibili has a higher market share among young users. Although YouTube has a higher overall revenue, Bilibili's rapid growth rate shows its strong potential in specific markets. TikTok's rapid rise also poses a certain pressure on Bilibili, but Bilibili maintains its competitive advantage through its unique community culture and content features.

# Conclusion

Bilibili's financial performance in Q3 2024 is strong, with significant growth in operating revenue and advertising revenue, as well as an increase in user base and interaction frequency, laying a good foundation for future development. The overall industry's thriving development also provides a good external environment for the company.

# Opportunities

1. Expansion of User Base: The increase in young users and retention rate provides more market opportunities for the company.

2. Growth Potential in Advertising Revenue: With the increase in user activity, advertising demand on the platform increases, especially in emerging sectors such as e-commerce and education, resulting in significant growth in advertising revenue.

3. Content Diversity and Innovation: By launching new content services and optimizing the advertising ecosystem, Bilibili can attract more users and advertising budgets.

4. Technological Innovation: Integrating AI technology to enhance advertising efficiency brings new growth points for the company.

# Risks

1. Competition Pressure: Competition from large platforms like YouTube and TikTok may erode Bilibili's market share.

2. Risk of Slowing User Growth: If user growth slows down, it may negatively impact long-term revenue growth.

3. High Dependency on Advertising Revenue: The high dependency on advertising revenue may expose the company to risks during economic fluctuations.

4. Content Regulation and Compliance: In an increasingly strict content regulation environment, compliance risks may affect operations.

Through the above analysis, we can see that Bilibili faces both opportunities and challenges in the market, and investors need to closely monitor industry dynamics and changes in the company's strategies.