Station B at the top of feelings, accelerate commercialization

Produced ｜ Pai Finance

Text ｜ Rolly Editor ｜ Edit Son

On September 8th, Station B released the second quarter of 2022 financial reports. The financial report showed that the second quarter revenue of Station B reached 4.9 billion yuan, an increase of 9%year -on -year; net loss was 2.01 billion yuan. The year -on -year expanded 79.3%.

In terms of user growth, station B has made a good answer. In the second quarter, the number of households in station B exceeded 300 million for the first time, reaching 306 million, an increase of 29%year -on -year. The number of daily live users was 83.5 million, and the average monthly payment user reached 27.5 million, with a payment rate of 9%.

Like other Internet companies, cost reduction and efficiency are also reflected in the second quarter financial report of station B, but the results are very small. The market and sales costs in the second quarter decreased by 16%year -on -year, but the cost of operating B of station B increased by 19%to 4.17 billion yuan in the second quarter, mainly from income division and content costs.

At the same time, the revenue growth rate of station B is also slowing down, and the game business has declined year -on -year. The other two major revenue pillar advertising and value -added service business growth rate was lower than the first quarter in the second quarter, and the performance of the e -commerce business was still mediocre.

In the fourth quarter of last year, Station B proposed a profit target, and plans to achieve NON-GAAP profit and loss balance in 2024. In the first quarter of this year, Chen Rui, chairman and CEO of Station B, reiterated again at the financial report and telephone that the profit target of 2024 will not change. However, at the second quarter of the financial report, the profit expectations were not mentioned.

At the financial report, Chen Rui said that in the recent internal conference, the company first mentioned the same position as the community ecology.

Station B, which is "generated for love", finally started talking about money.

1. User growth, but it is difficult to make a profit

In the second quarter financial report of Station B, the most conspicuous achievement was that the number of users exceeded 300 million for the first time.

According to the financial report, in the second quarter, the average number of active users (MAUs) of Station B in the second quarter reached 306 million, exceeding 300 million for the first time, an increase of 29%year -on -year, and the average daily active users reached 83.5 million. The average daily use of users is 89 minutes, and the overall traffic of the community increases by 48%year -on -year. As of the end of the second quarter, the number of "big members" reached 21 million, a year -on -year increase of 19%.

Chen Rui once said that by 2023, the number of monthly use households in station B can reach 400 million. Today, this goal is constantly approaching, but behind the high growth of users, it is corresponding high cost investment.

As a content interest community, in order to maintain the stickiness and growth of users, we must increase investment in creators. For the UP master, in addition to the creative incentive plan, Station B also provides a variety of commercial channels, including live broadcast, flower fire commercial platform, UP master recommendation advertisement and user rewards.

In the second quarter, the number of active UPs in Station B was 3.6 million, an increase of 50%year -on -year, but decreased compared to the first quarter; the average monthly contribution reached 13.2 million, a month -on -month increase, a year -on -year increase of 56%; more than 10,000 powder or above. The main number of UPs increased by 46%year -on -year; the main growth of the UPs with a million powder increased faster, an increase of 58%year -on -year; more than 1.1 million UP owners obtained revenue on station B through live broadcast, advertising, creative incentive plan and other methods.

Reflected in financial data, in the second quarter, the cost of operating B of station B increased by 19%year -on -year to 4.17 billion yuan, mainly due to the increase in income division and content cost. Among them, the income division cost reached 2.068 billion yuan, an increase of 18%year -on -year.

It is worth mentioning that the high -speed growth of the user's scale does not mean that the user value of station B is maximized.

From the perspective of the average monthly payment rate, in the second quarter, the average monthly paid user (MPU) of Station B reached 27.5 million, a year -on -year increase of 32%. In fact, since 2021, the growth rate of MPU on station B has begun to slow. According to the financial report data, after the monthly paid users of Station B exceeded 200 million in the first quarter of 2021, their year -on -year growth rate has been from 50%and has slipped to this day.

This means that the scale of the existing paid group in station B has gradually peaked.

In fact, Station B in the second quarter, like other Internet companies, also adopted a "cost reduction and efficiency" strategy. The financial report shows that the market and sales costs in the second quarter decreased by 16%year -on -year, and the cost of server and bandwidth units decreased by 37%year -on -year.

At the financial report, Chen Rui said that in the first half of the year, he emphasized "focusing" within the company, that is, "do less things, more important things, and non -core things can do it." The so -called core work means Video and growth.

However, cost reduction and efficiency have made a minor effect on station B to turn losses.

2. Value -added services and advertising revenue slowly

The core that leads to the dilemma of Station B is still the continuous slowdown in the growth rate of core business revenue.

The game business used to be the strength of station B and its income pillar. However, in the second quarter, the original strong business game was also losing the aura, becoming the only business that was declining year -on -year.

In the second quarter, the game business revenue of station B reached 1.05 billion yuan, a year -on -year decrease of 15%. In this regard, station B explained that it was mainly due to the lack of exclusive release of station B in the first half of 2022.

But at the same time, station B also disclosed that as the self -developed game "Motor War Girl" was released overseas, the revenue of self -developed game revenue accounted for 5%of the total game revenue. At present, Station B has won 4 new game numbers, and 6 games will land on overseas markets, including two self -developed games.

In fact, since the Q4 of 2020, the game business is no longer the main revenue pillar of station B, instead of replacing the live broadcast business -oriented value -added service business. Among the revenue composition in the second quarter, the value -added service revenue of Station B reached 2.1 billion yuan, accounting for 43%of the total revenue ratio. , Account for 12%of the revenue ratio.

The value -added service revenue at station B includes large members, live broadcast services, and paid income of other value -added services. The financial report shows that as of the end of the second quarter, the number of members of the B station reached 21 million, a slight increase of 4.47%from the previous quarter in the previous quarter.

In the financial report, the revenue growth of the value -added business attributes to the development of the live broadcast business. It is understood that at present, the strategy of station B in the live broadcast is to continue to create ecological integration of live broadcast and PUGV (ProfessionalUser Generated Video, professional user creation video) to inspire more UP owners to become anchors. In the second quarter, the number of active anchors in Station B increased by 107%year -on -year, and the average monthly paid users of the live broadcast business increased by nearly 70%year -on -year.

As of the end of 2021, the heavy coordination rate of the Millions of Fan UP and the live broadcast anchor of station B was 70%, and more than 600,000 content creators throughout the year received revenue through live broadcast.

In June of this year, station B tried the paid video function at the station, and many UP chose to test water. Among them, the video of the UP master "Hook Hand Hand Hand" caused a high dissatisfaction with fans due to quality problems. Some netizens said that B is getting farther and farther away from its original intention.

As of now, this commercialized attempt is not very successful. According to the feedback from netizens, the business attempt for paid video has many issues such as charging video qualifications, UP main fans, and user resistance.

In addition to the value -added business, the advertising business has also become a new force for station B. At present, the top five advertisers industry in station B is games, 3C digital, beauty skin care, e -commerce and food and beverages.

With the overall decline of the advertising industry and the intensification of competition, the advertising revenue of station B in the second quarter increased by 10%year -on -year, but stretched the timeline. The growth rate in the first quarter was 46%. In the fourth quarter of 2021, it was 120%. The growth rate of the revenue of the station advertising business is slowly declining.

In order to improve the efficiency of advertising, Station B started learning Douyin fast hands. Since the end of 2020, the Story-Mode vertical screen video mode has been launched. Click on the upper left user avatar in the upper left corner of the APP station in station B to jump to the short video interface.

In the first quarter of 2022, Station B has emphasized the stait-Mode vertical screen video to bring new playback to the platform. As of the first quarter, Story-Mode has exceeded 20%at the daily penetration rate of station B.

The second quarter financial report showed that the average daily playback volume of Story-Mode's vertical screen video increased by more than 400%year-on-year. Since the beginning of this year, Station B has increased the recommendation of the vertical screen video in the homepage information stream. About 3 to 4 vertical screen videos are designed for the vertical screen video mode for the vertical screen video mode.

In April, station B launched a special advertising product- "Bilibili immersion video stream promotion". The official introduction to this is that the user will enter the video stream from the homepage. Compared with other advertising forms, users can send barrage, likes, comment and other instant interaction in the process of watching the content of "immersion video stream promotion" content. Behavior.

Compared to graphic advertisements, the vertical screen advertisement is more immersive and the conversion efficiency is better.

However, for the B station that urgently needs to improve commercialization efficiency, Story Mode can indeed increase user stickiness and improve advertising efficiency. too much.

3. E -commerce business is difficult to improve

In the context of the growth of game business growth and the slowdown of live broadcast and advertising business, it is difficult for e -commerce business to support new growth stories.

In the second quarter financial report, the e -commerce business of station B was still low. In addition, other revenue achieved revenue of 601 million yuan, an increase of 4%year -on -year.

Station B's e -commerce business has been taken as early as 2017. Members purchase is the inner mall of station B's own station, but now it is still relying on the traditional e -commerce platform on the short video and live e -commerce in station B.

There are no mainstream store systems in station B. On the homepage of members, magic rewards are placed on a conspicuous recommendation. Magic reward is a online blind box -type shopping community created by the two -dimensional group. Users can experience immersive gameplay such as the demon challenge, wishing pool, mission map, daily fortune measurement, etc.

According to media news, Magic Awards contributed more than 80%of the revenue of station B's e -commerce. The proportion of the contribution of Magic Awards has verified the high stickiness of the second -dimensional community users in Station B, but on the other hand, it also reflects the limitation of the e -product category of Station B.

Recently, the news in the industry has reported the news that the e -commerce company will be launched on the selection square will be reported. It is similar to the Douyin selection alliance. Cat flagship store, this has made many other platform brands discouraged. In the "Monthly Report of Station B with the July 2022" released by the fire cloud data, it was mentioned that in July 2022, beauty care, food, beverages, and mobile digits became the TOP3 category of the blue chain with the B station, accounting for 35.4%, respectively, respectively, respectively, respectively, respectively, respectively. 16.4%, 9.0%, and 8.6%of home and daily use. In the TOP50 brand list in the above -mentioned goods report, the first -ranking brand residue ash was only 215 with goods in July.

Industry insiders analyzed that the e -commerce company B lacks its own gameplay. Douyin defines himself as "interest e -commerce", and Kuaishou is the "trust e -commerce" that focuses on the old iron economy, and Taobao is a traditional shelf e -commerce. At the current stage of station B's e -commerce, it is forced to label the two -dimensional e -commerce, but this label also means that it is destined to be niche. In the mass gameplay, the current strategy of station B is to carry the successful experience of other platforms.

For many users who have always been upset, they still cannot accept the UP main live broadcast and cargo behavior that they are concerned about.

On June 17, the UP owner "Daxiang Brother is here" with 5 million fans on station B opened the live broadcast of the live broadcast, but in the dynamic comment area of ​​the live broadcast live broadcast, some fans expressed their dissatisfaction and believed that it was "just bad money. "".

Station B, which has a 300 million monthly active household, has been trying a diversified monetization mode, from games, live broadcast to e -commerce and other various value -added services.

The diversified commercial attempt also makes the station B like a hodgepodge. In terms of homemade dramas and variety dimensions, it is benchmarking. , And the target, Weibo, Xiaohongshu.

Although the diversified income model has enhanced the ability to resist risk, it has also made it difficult for capital to evaluate the B station. As of September 8, the US stock market closed, the total market value of station B was US $ 7.84 billion, compared with the high point in March 2021, a total of more than $ 50 billion was fell.

However, at the same time, the dual listing time for station B has been finalized on October 3rd. Previously, according to the announcement issued by station B, the plan to raise funds for the second time to return to Hong Kong was as high as $ 3 billion. It can relieve the anxiety of profit B.

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