Q4 2020 Bilibili Inc Earnings Call
Good day, and the welcome to the purely Billy 'twenty 'twenty fourth quarter and full year earnings Conference call. Today's conference is being recorded at this time I would like the churn to kind of a range over to Juliet Yang Senior director of Investor Relations. Please go ahead.
Ed.
Thank you operator.
Now the discussion today will contain forward looking statements relating to the company's future performance and are intended to qualify the safe harbor from liability as the established by the U S. Private Security Litigation Reform Act such statements are not guarantees of the future performance and are subject to sort of risks and all.
Ts assumptions and other factors.
Some of these risks are beyond the company's control and could cause actual results to differ materially from those mentioned in today's press of it and in this day discussion.
A general discussion of the risk factors that could affect daily believes the business and financial results is included in certain filings of the company with the Securities and Exchange Commission the.
The company does not undertake any obligation to update this forward looking information except as required by law. During today's call management will also discuss certain non-GAAP financial measures for comparison purpose only four of definition of non-GAAP financial measures and a reconciliation of GAAP to non.
GAAP financial results. Please see the 'twenty 'twenty fourth quarter and full year financial results news release issued earlier today.
As a reminder, this conference is being recorded in addition, an investor presentation on our webcast replay of this conference call will be available on the liberally Investor Relations website at IR day availability dotcom.
Joining us today on the call from Philly Billy's Senior management on Mr. Wei Chen Chairman of the Board and Chief Executive Officer, Mr. Collie, Vice chairwoman of the board and Chief operating officer, and mixture of Santana Chief Financial Officer.
And I will now turn the call over to Mr. Fan, who will read prepared remarks on behalf of Mr. Chen.
Thank you Giulia.
And thank you everyone for participating on the 24th quarter and first of all you end the conference call.
I'm pleased to deliver today's opening remarks on behalf of.
Mr Chair.
We had an exceptional year in terms of your country.
Through our tonnage of micro environment, we remain focused on other growth strategies and the achieved record results.
In the fourth quarter.
Our of youth reached 202 million of fee.
55% year over year.
Lucky on your starting point for our growth journey.
In addition, mobile and the use of 51% year over year to 187 million.
On the user engagement front, we had 54 million of the use of 42, but then the year over year.
Our users of them in a highly engaged and it's been average share with you five minutes on one platform daily in the fourth quarter, reflecting the strong appeal ability the content offering and the thickness of the growing community.
The high quality on record growth of our user base laid a solid foundation for all of the commercialization efforts.
In the fourth quarter, our Permian culture of services continue to drive putting the user conversion.
N P. You've reached 18 million of 100 of three per cent of yoga.
Our overall paying ratio increased to eight 9% compared with six 1% same period last year.
At the same taught.
Morgan as part of the attorney to be the BD, the reach and engage all of massive audience base of young generation.
All of our advertising business grow by 149% in the fourth quarter year over year.
Marking the seventh consecutive quarter of accelerating the growth on a year over year basis.
On the back of this momentum our total revenues reached another record high of RMB, three 8 billion in the fourth quarter.
And the RMB 12 billion for the full year.
This represents impressive year over year of growth of 91% of 77% respectively.
We attribute our success to our broad content library engaging community experience and the variety of ground where it is.
In 2020, we may sort of tee move the other resulted in thickness the boost to our breath.
We kicked off 2020 is the broke roster of new you you'd gala followed by all of a whole lot of CRU Hot.
One of them marketing trial of <unk>.
And the introduced our brand the proposition all the video with you liked we categorize these efforts into the fourth quarter and the growth a year with all of a second new year's Eve gala. The most of the beautiful nine of 2020.
During the LIBOR caused the night the popularity index more than tripled compared with our 2019 you bet on <unk>.
Moving 120 million playback within 48 hours.
The successful marketing initiatives have allowed us to connect and the resonate with more user and the reach of more diverse on.
Yes.
And we believe.
We can continue with the strong momentum and totally tied to what.
Building on the success of our total tons of use of growth one of the thing is clear our appeal of the much broader on the reach of young Gen Z. We.
We are now widely recognized by a larger audience now include those born between 1985 to 2000 and not pop.
Popularly referred to as the Gen Z plus demographic.
This group of users share of similar attributes and the we have established and paralyze of Marcia among these fibroids Gen Z plus community.
According to the eye research of latest report, although 86 per cent of our and May you were below the age of 35 in 2020.
This group is the driving force for all kinds of consumption in China, especially the video based consumption market.
In 2019 Gen Z plus contributed 65 per cent of the video base Mark dollar.
Video continues to be integrated with more and more aspects of daily lives.
It is becoming the primary of me of communicate and the 10 and the exchange of information.
The visualization trend is creating massive market opportunities in China. The video based the market expected to reach RMB, one one easily in the revenue.
[noise] generated by nearly 1.2 billing video users by 2025.
According to our research.
How does the full spectrum of video community platform and the total class off on the JV demographic. We are at the full fond of this exciting visualization of opportunity.
With that I will walk you through some of our activities during the fourth quarter, beginning with our content.
Our content creators are extremely important to us the accretion representing the addition of the word of around debt, which reflected in current engender the plus purposes.
For the fourth quarter, we had a push them into late one 9 billion content creators uploading $5 9 million videos per month, representing increases of 88% in the country of 9% respectively.
Both year over year.
We continue to provide our content creators with the port on multiple levels.
These include the video editing tooth and the tutoring that help facilitate the equations.
As well as monitor rewards and our advertising platform.
Most importantly, we continue to improve our algorithm the mixture of the rights content gets distributed to the right the audiences, while promoting high quality of original content.
These attributes of wasn't the PPD the most of the sell off the platform for content creators to showcase their talent share their passion and the make a living doing what they love.
We continue to enhance our content offerings boating deep and the breadth in the fourth quarter, our most popular content.
Of course in terms of video views when lifestyle game Entertainment, and then me and the tech knowledge of.
Among those leading vertical knowledge with one of the fastest growing verticals, attracting new logos into that 12 of platform to share their knowledge and insights.
In the fourth quarter.
Our task of knowledge of verticals of attract a wider audience and highest contribute significantly on 10% of the total video views.
Meanwhile, we continue to invest in areas, where with the high potential to build out new stronghold.
For 'twenty and 'twenty, one as we grow with our existing user of the attract new ones. We have identified several areas with large and growing demand such as the automotive.
Whole punditry relationships in the parenting.
In the generate plenty of 'twenty, one we launched the story mode.
Our new Puget V content format that allows users to enjoy short videos in vertical format with the remote we hope to satisfy user of diverse needs by providing them with the assumed is access to all of our high quality content.
Benjamin from seconds for the effect of meant on the minutes and hours for more immersive experiences.
I encourage of by the initial result, or the buy the new model.
Turning to our OTV content, our years of investment in China, the enemy Gulfport in 2020.
Chinese the enemy of May use of so positive and at the end of May and the youth and had become our number one category within all of the GB.
Over 160 million users, what the Chinese anybody of our platform in 2020.
During the year, we released a number of popular Chinese anime titles at the hit new record for attracting new users and the converting them to paying member of.
These include tap rebound the alone daily lives of Immortal King show on that rich onshore oil linked.
Linkage living alone and the more recently launched has the officials pleasing thing once the pool.
For me valuable at the ISS.
In November we heard our third annual Chinese anime Press conference made by Bill the BD.
Here, we introduced 33, new titles that we plan to release over the next two years.
In addition to market development in China, we are excited to be a pioneer in promoting Chinese the enemy of worldwide.
Some of our International Inc.
This includes our cooperation with solely upon the mission and the netback to the bdd produce Chinese anime series around the world.
Our book documentary and variety shows and TV share of risks continue to enrich our content library as well.
In particular.
We have been very successful with our recent.
Endeavour, Inc. Self produced TV drama room for young Kwon song of the Genco and the music reality show rough on youth shorthand to ensure that.
Not only have we attract new users gender ratio sizable membership and the advertising revenue with this ambitious but we have also open the gateway to new content vertical and the format.
Turning to our community and our user base continued to grow, particularly among the agenda plus audience. We are further new treasury bonds and the sponsoring our commodity type.
In the fourth quarter, our daily video views reached one 2 billion of 70% year over year.
Monthly interactions were also up on 94% year over year.
With the user generating for the 7 billion bullet chats comments likes and the BBB the momentum.
I'll walk the member number reached new heights, as well, but at the end of fourth quarter.
We surpassed the milestone of our first the 100 million of efficient member of.
With the hundreds of 3 million official members of 51% year over year.
Our 12 months of attention also remains strong.
The above 80% the.
This consists of matrix.
Strong testimony to the success of our platform and growth strategies.
Turning to our commercialization progress.
We diversified our game offering even further in 2020.
Led by existing popular games, such as the Princess connect.
Joe and there's been a lot of mobile game revenue grow to on the one 1 billion in the fourth quarter of 30% year over year.
Old and new fans alike, the continuing to find great Joel in these games.
Driving the steady performance of games.
Kingston impact you mentioned.
Continue to win fans with massive success on the BD BD is a game primarily the Android partner in China.
As part of getting applied we have 14 titles that have all the 10 approval and the scheduled for launch we.
We are very excited about our new exclusive of licensing games.
In the upcoming quarters, we plan to bring players what odds on lie.
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Otter tail of gear junkie.
On the guide you on tail kind of talk about isn't true.
As for our jointly operated games, we continue to be of partner of choice for leading game developers in 'twenty or 'twenty. One we will continue to work we've talked to of our Perth to bring more Caribbean games to Chinese users such as the narrative, Harry Potter and the type of ROE as well as 10.
Since the league of legends mobile games.
Turning to all of the vast goodness.
Driven by our premium membership of LIBOR cost can be on this.
Revenue from Vas increased by 100, and the 18% year over year.
On the $1 two billing in the fourth quarter.
Pardon me of memberships on the dry gas.
Kenny viewers of exclusive or advanced access to our OTT content.
At the end of the fourth quarter, we had engaged 14 5 million pardon me of members.
91% year over year.
The majority of our members pay for annual membership.
All of our automated the new programs.
As a natural extension of our media platform with continued to build our LIBOR cutting content ecosystem.
While more horse tractor to be the BD more content creators of leveraging our LIFO accounting platform to connect with FES and showcase the Italian.
Having secured of three years of exclusive LIBOR cutting right to the league of Legends World Championship in China with further enhance our esports content offering with the recent S 10 event hitting record high viewership.
Last but not the least lets review our advertising business.
Thanks to our strong user growth and he has spread net of of tied the us even more aware of are you the value in the coming two BTB the four increased the visibility.
At the same type of our AD efficiency and effectiveness for the improved.
Our algorithm to improve.
Revenue from other title and settlement reached RMB 722 million of 100 of hand.
Three of 49%.
Year over year in the first quarter in the fourth quarter.
Yeah.
Food and beverage ecommerce skincare, and cosmetics and <unk> products were the leading verticals in the fourth quarter.
Our new year Eve gala proved to be a quick draw for advertisers as well on this.
This year, we will come the new customer brand.
Then he Sony and the traditional appears Jen maybe at our key sponsors of Carlo.
Our results speak for themselves.
And our business continuing to gain momentum.
B the BD you decided the late the go to platform, capturing the hearts and the minds of generation Z plus and our audience of young users keep going we have entered a new era, where video is becoming the dominant the quality of coal for people to get connect inform and entertain.
Yes.
The trend of visualization, the OLED getting started.
At the same time China's overall.
Economics is on the rise.
And is expected to continue with vigorous growth.
We are not only helping to shape the new visualization paradigm, but also gaining market share in this huge and the growing video market in 'twenty or 'twenty. One we will continue to invest the other content and our breadth to.
To expand our reach and the further capitalize on this tremendous opportunity.
This concludes Mr. Chen's remarks of wet.
I'll provide a brief overview of our financial results for the fourth quarter at the full year of 2020.
Total net revenue for the fourth quarter, while on the throughput a billing of 91% from the same period of 2019 in the fourth quarter. We continued to see a more balanced and diversified revenue mix. Our total net revenue breakdown by streams was approximately 29% gain.
The 33% that 19% of tightening in the 19% e-commerce and the other business.
Cost of revenue increases by 80% year over year to RMB, two 9 billion.
The revenue sharing cost a key component of cost of revenue was RMB. One 3 billion also an 80% increase from the same period in 2019.
Gross profit increased by 137 per cent year over year to RMB $944. One many of our gross margin improved to 26 in the first quarter compared with 19, 8% from the same period last year.
Total operating expenses were RMB one <unk>.
<unk> per billing of 126% from the same period in 2019, selling and marketing expenses were RMB 1 billion, representing a 147% increase year over year. The increase of a permanent attribute to the increased channel where the marketing expenses associated with our App and breath such of our true.
The 20th branding campaigns as.
As well as expenses for our mobile games and the salary of marketing personnel.
By allocating the resources to build our brand and the pure Marlboro the audience, we achieved the substantial growth in 2020.
We believe the efforts will be further further retreat with positive impact to the market over the long run.
We can already see the benefit of the strategy through our board of user base demographics contest and the overall industry leadership with.
We plan to continue building on this momentum in 2021 to further strengthen and expand our virtuous growth cycle.
G&A expenses were RMB $343 million, representing a 115% increase year over year.
The increase was primarily due to increased head count in general administrative and personnel increased share based compensation expenses increased allowance for doubtful accounts and higher rail rental expenses.
R&D expenses of RMB 484 million, representing a 19, 7% increase year over year. The increase was primarily due to increased headcount in research of develop personnel and increased share based compensation expenses.
Net loss was RMB 844 million for the fourth quarter of 2020 compared to RMB 387 million in the same period of 2019.
Adjusted net loss, which are the non-GAAP measure that excludes share based compensation expenses and amortization of especially related to the intangible assets acquired through business acquisition and the income tax related to the.
Intangible assets, a class of business acquisition, while the RMB of 682 million.
Compared to RMB 337 million in the same period of.
Plenty of 19.
Basic and diluted net loss per share of the RMB 234 of adjusted basic and diluted net loss per share what on the one important a.
For the full year of 2020, our total net revenues increased by 77 per cent to RMB 12 billion, notably we saw of shifting out of revenue streams with 50% of our total revenues in 2020 coming from our non-GAAP business and again.
For the 440 per se.
Gross profit for the plenty of time, the full year increased Ah Hendry of 13, 9% to RMB two 8 billion.
Net loss per 2021 of the RMB three per 1 billion compared to RMB. One 3 billion in 2019 adjusted net loss for 2020, while the RMB two 6 billion compared with RMB, One 1 billion in 2019.
Basic and diluted net loss per share for the new 20 with RMB 871, this compared with RMB 349 out of in 2019, adjusted the basic and diluted net loss per share was RMB 746, compared with RMB three plus three Inc. 2019.
As of December 31, 2020, we had a cash on cash equivalent time deposit as well as short term investments of RMB 12 8 billion.
Compared to RMB eight 1 billion as of December 31, 2019.
With that the mine we are currently projecting that revenues for the first quarter. After the entirety of one to be between all of these $3 7 billion and obviously the EBT.
Thank you for your attention we will like now to open the call to of questions. Operator. Please go ahead.
Thank you so much the ladies and gentlemen, we will now begin the question and answer session.
If you wish to ask the question you will need to press the star in the one on your telephone and wait for your name to be announced if you wish to cancel your request. Please press the ashkey.
Again, it's the Star N. One if you wish to ask the question and forgive benefit of.
All participants on today's call. If you wish to ask a question to management in Chinese produced.
The image to the repeat.
Your question in English. Thank you so much.
And our first question comes from the line of Alex <unk> from <unk>.
Morgan Stanley Alex Your line is now open.
Okay.
Cash on senior housing.
Rachel colleague, Sam Juliet can see how the.
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What do you on dish on one you got your true junk food from China, Taiwan, a hooky feature attached on the low teen.
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So I'm wondering about particularly you know who the true human.
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The ratio, so which of the shoe Changzhou shall we go you stretch out Fisher.
On my first question is related to the use of growth in coming years.
On the strategy and in terms of the product strategy et cetera at the same time, how can we maintain the use of quality of for example in fourth quarter. We noticed there is a small decline in terms of the AUR <unk> ratio and also the use of time.
On a year over year basis.
Thank you very much.
Yeah.
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So user growth has always remain our top priority.
And I personally takes upgrade our priority in looking after the user growth strategy so under the rapid.
Trend of video Ization, we believe every internet user could potentially become a video user and this is Craig.
The market opportunity for us.
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So I believe the debt.
The use of your gross for all of the content platform really depends on the quality of the content whichever platform has the highest quality content. The user will tend to Ah well turn to the popcorn and for Billy Billy we have always practice the philosophy.
Is that true love rich high quality content to attract our users and we're really focused on expanding our content offerings and content categories.
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So the reason why that the liberty they can continuously produce high quality content is because we have butte ever growing sustainable content ecosystem, which naturally get burst too many high quality content.
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Moving on to would further searches on the way you're young woman on cocoa holiday shift the OTT printed she got the hitting a point of what you do on yellow.
So as we attract our users to our ever growing high quality content at the same time, our highly engaged the key community help us to be 10 of those users and providing them unique community experience or a woman the.
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Real quick you mentioned the challenging onboard here in terms of kind of that.
And then the orders on time.
And our commercial efforts as also organically combined and merged it with our content ecosystem as well as our community. So in many ways. It does not affect our user experience on the contrary with he hits the apart, it's becoming part of our content on.
Offerings and community experience. So it wasn't on and go to the on the international on a go candle to herpes on important on the Yugo that idea of Hollywood Fisher beautiful to her Thunder.
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So I'm looking at the past two years, we have experienced a very high quality and rapid rapid user growth.
And you can you you may even notice that our reach four before water audiences is behind the generation Z and I. According to the latest third Party report.
About 86 per cent of our users in 2020 are H bit low 35, so really really is becoming the primary choice.
We're not only the Gen Z, but also become a lot of.
Users' choice the H below <unk> 35.
Much of what are the the new Cushing cannot have it either.
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First of all of the open the door.
The culture down the Navy.
On top of our use of your number is expanding we think the inc. We are expanding our influential power.
Notable content verticals.
In the past people might have the perception of Napoli Billy has all the content and young generations like such as anime games music and entertainment and in 2020, you wouldn't notice that there are many vertical the emerging that's half of the mass mass market appeal to.
To all of the age groups for example on knowledge sector. It was one of the fast growing sector in March last year.
And knowledge as itself is the high quality content for each all age groups that's out there.
Or just the room of Pugilism Tither somebody growth core downloads on the job to the woman the.
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On top of our further ever growing Puget V content ecosystem with notice R. O G. In our O G V Department Theres has been a great synergy.
For example, our traditional strong protocols anime documentary continuously to survive and on the other hand, we have seen new emerging content categories, such as our new year Scala our films and television productions is also won't come in more of them.
More audiences.
So the one or two for some sort of showed the hardwood or whether it.
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So all of the above we can summarize our user growth Ken can at least meet three criteria. One as we will continue to penetrate the young generations in the past it might be the Gen Z demographic of people born in between 1990 to do.
Without them at nine we believe we can further enriched our expand to the age group that are born Oscar.
1985, or even 1980 the.
They are the amount of sort of woman the numerous of the downtown.
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So on the second point is on the quality of the content. We believe we can become a leading player in more and more content verticals and gain more mind share.
Those verticals in the market the reported other cannot really be the answer you on those.
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For example in the past people may have a perception of the best MMA and the best game content is on billet Billy goat.
On forward, we hope to establish more mind share and a higher ground on more and more verticals for example, and our knowledge and the many more and we believe there won't be more high quality content in various content vertical as well.
The b emerging on Billy Billy gaining more market share wherever it is end of others a woman the toward our 10 out of the other attendees all of them, but really on the gold box.
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<unk>. The first two points. We are we are confident we can continue to take a leading role in terms of the pace of the content and beating on you.
Is the leading the young generation's preferences over all of our content and over our artistic preferences and we'll continue to maintain a highly engaged and friendly community and environment at the same time increase our commercial.
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So in in the past we have done a lot of work on setting up on.
Our user growth and we have done a lot of of one one work and we are very prudent prudent when it comes when they constitute setting our plans and strategies and in the past we have set to use your gross want us back in 2018 back then we said.
Our target of 158 to achieve of Hunter 50 in 'twenty. 'twenty, then we update that use your goal back in 2019, which is to refresh the use of your target.
On a two achieving 220 million by 2021.
The total Hello woman index shown on the go.
But in terms of all the tons for Ts for the Z.
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So in the past.
The the go that way that we announced we believe we have very good track record in delivering those skull as far the two 220 million by 'twenty 'twenty. One we are quite confident to achieve that goal in advance.
And our standing where we are today at early 2021, we are setting up of new three year user of target, which we believe we can achieve $400 million and they use by end of 'twenty 'twenty three.
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As we move forward, we believe that the internet.
The Internet companies competition over the user is only getting more and more inc.
Fears.
Despite a challenging environment, we remain confident about our growth.
We will further.
To enhance our advantage in our content ecosystem as well as of our are engaging community we.
We are quite.
Confident to achieve that user guidance.
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I would like to emphasize that in the fourth quarter, our main mobile app the day or two miu ratio actually slightly improved.
Quarter over quarter, and we have made the judgment on our back in the third quarter and of that as our user as experienced fast growth the D E U.
Ratio of my fluctuate over the long term and it shouldn't have a large step of protests.
As for the time spent on this for this quarter our D. A U time span.
Our time spent per day eight U was 75 minutes and compare it to the same peer of lost share of only a slight decrease which we believe is that it's a normal case.
So that's the end of the U S on women of colors over the knee.
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Yes, the debt.
On the phone so when we look at the time spent on part D of you in January this year actually improved to about 18 minutes. So this is also a inc. Tack with our overall of judgment on the time spent and two of them at you.
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Are you on your end of our mobile age the issue that you are counting of ideas. So other than she dollar total.
So I'll call me would like to supplement our 1.1 is that as Mr. Chen mentioned, our gross margin is driven by our content ecosystem as well as our community and you would also say that we made all of the right moves in it.
Expanding Billy Billy brand name in 2020, as we look forward to 2021, we'll continue to build on our on further expand our branding perception and branding awareness through multiple marketing events.
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So we've done a user of perception study on our brand awareness back in 2019 on 2020 and.
The the number was the over 30% in <unk>.
2019, and the person brand awareness perception right with the improved to over 60% in 2020, we hope with number of our branding initiatives and marketing event, we hope to increase that perception right above 90 per.
Were sent in 2021.
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Yeah, well I would say it's true the session. So a few thoughts on compassionate yeah. Yeah of course, so true ultra the Mayo, Joe Chang Jung hoon vs. On trade show the new younger than true. So you aren't going to vote on the teeth all of the and you guys seem to the shifting of those are these on so the slogan who's going to do in the field.
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So I would be the same day dosing, how youll should she forgot Neil salvage hunting of the ocean.
Sounds of should Aesop, moving a bunch of them okay.
Okay and on one more thing is that on the on the branding initiatives. We are going to launch several campaigns Ah income cooperation with the company events and a big content launch to increase our our brand perception and brand awareness at the same time.
We'll also work with.
Other leading part beating leading them.
Leading internet players to increase our our perceptions.
Along with our active.
Active user acquisition and channel acquisitions.
Okay.
Yeah.
Thank you so much.
And your next question comes from the line of Alex Yao of JP Morgan Your line is open.
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So as you know once you finally the shop.
So my first question is about the advertising business of which has been sort of routine almost a full quarter of seeking a row on the past several quarters.
Can you guys the elaborate a bit of more on the gross driver behind the rapid growing advertising business also can you talk about the advertising revenue growth outlook for 2021.
A follow up question on this advertising monetization is that we noticed you guys have recently launched a number of our K, although the economy of monetization models of such as the off of or can.
Can you talk.
Talk through your latest thinking on the.
The economy monetization on the Liberty.
And also can you talk about the feedback.
From both out of it holds true as well as the.
Our content creators on the introduction of the 10-Q.
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We have over the near half of the active users.
User stats are not that as China's young generation and Billy Billy is the problem as the pop on that has the most concentrated at younger generation users as we believe as the Gen Z become the mainstream of the society they have.
Morris Moore, saying and more spending power.
The various industry verticals and the next decade will be the new consumer upgrade of new consumer branding upgrade for.
The China's overall consumption industry as the beliefs user has the most influence and more on those.
Spending power within this vertical Billy Billy is becoming the must invest.
Advertising platform.
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Won't be jonestown.
The pass on the E bikes as the show kitchen, Yeah, that's won't be tons out of it that all of you.
But I think the Eva also live.
So in 2020 as our as we experienced facet of high quality user growth our influence over.
Branding and brand advertising is also increasing.
Over the years, we have continuously improve our commercial made on platform capabilities and our advertising revenue has experienced accelerated.
Accelerated growth for seven consecutive quarters in the fourth quarter on our App.
Advertising revenue reached $120 million.
And up 149% year over year and for the full year. Our advertising revenue also grew by 126% year over year.
It's not all of the all young yet they'll class you sue them on censorship of weights on jazz of at low the Guangzhou The Abelow house of about should I buy from Xu you may well on kind of like a piece on the clock all of the yeah, well the teeth on garden, the only high share you'll have by the channel.
Because the software has he bought the usual agent.
So far of 'twenty 'twenty, one we do not to we do not intend to increase our AD load and we're going to maintain the AD load around 5% from our perspective, we are still at the phase two beauty, our infrastructure and our advertising or advertising.
Half of huge potential to growth.
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All of the salaries on a bunch of New York shot on goal she Italy on even the non eat you seemed to sound on new you'll keep on all of them. The salary don't pull the bulk of the ball for you on yeah. So yeah. The way in the all the way you can wait so the xiaomi of John kind of the only the T cell total shall do the T cell.
So first of all we will continue to enhance our middle platform capability, serving the commercialization progress as our products are as Ark advertising product improved and our our rhythm improve or overall advertising efficiency. We'll also.
Improve and the efficiency is not only rep debt reflect on the increase of our advertising revenue. It also reflects on other business for example, our gain jointly jointly operated games.
The improvement also depends on the improved improvement of our advertising efficiency.
So that goes with our live broadcasting membership and E Commerce.
The other and therefore, it should be done that's on the Xiaomi, it's hunting Ching Tai Hydro Xiaomi is the bode well go the other high should that virtually all of them and the true Yeah go on Kimberly's shop, the light off all of them are going towards you towards the salvage hunting the Youtube.
The ball mill Wow, if at all the people of Buffalo showed Z P. C. Yes, just on the Wei Ping Tiger and yes, you can see on the go for food on the engine.
So on top of our news feeds we tend to enhance our commercialization capability across multiple business lines and across multiple platforms. For example, the business line includes a lie brockhaus, saying comic and audio drama platform and on.
As for the multi screen that goes to our mobile device are on ipads on PC and our smart televisions to help our <unk>.
On the brands to connect even further in multiple ways with the young generations.
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Please go Guangzhou T cells on the ha yeah of the salaries of some kind of food trade shows in the new cohorts of the total share all the other young on that you'll be on huh.
On the third point would be to increase our integrated marketing efficiency and standardize more of the procedures of mom. This overall integrated marketing campaign in 2020, we have significantly improved.
The average ad.
And efficiencies on single users and in 2021, we are we're going to elevate that to a single industry.
On a single industry basis to better serve our industry verticals.
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But she the home she is on all of the Holly Yeah, and kill sense of decides the door shall shanda touches of I'll share four years up to kind of keep pace show. The you go talk to other hurdle of King type of well my high share the wawa can tie the low odds issue, especially in the way up to two sets of shell's going the other quant golf gun later on.
The other three showed that these on the penthouse I'll touch on a lot of thought early on.
Machine that's out on the shying away. So you of Massawa she's on the Pago, though of hi, Shirley in Seattle the autonomy. The pilot official talk on the other two loans, what our policy of late.
The company paid the shoe show T go on thoughts on Oh, My God of lie how the block all your class on all of the.
Neil how then they only of cliche hung of all of the phone call trade zone.
Yeah no potash.
Now of what she'd thrown out because of the Templeton.
And last but not least I'll add some point on our sparkle advertising pop of arms. This platform was launched in Q3 of last year and as matchmaking platform between content creator and various advertising platform advertise appetite.
Users. So this this the the born of the platform as a natural on.
The natural development of our advertisers' needs and our content creators needs as more content creator of the commercialization.
Empowerment, and our content, our advertisers also need efficient ways to influence users.
Decision, making so the the born of the platform is to connect both parties needs at the same time to ensure a smooth.
A smooth efficient transaction between two parties and in 2021.
Well spend more effort in improving this platform, bringing more opportunity for both parties show you on the high she told me he or she machines Oh, yeah on there and that's Oh gosh. All you should think about so you got so true the Gulf of Jones Act.
So you'd be the issue about how big of Jones on fishing.
Tissue.
So in.
In summary, we're quite confident of our advertising revenue growth. We believe we can still maintain a high growth rate that's above the overall growth rate of the company.
Thank you so much.
And that the concludes the question and answer session I would like to turn the conference back over to the management for any additional or closing comments.
Well. Thank you once again for joining US today. If you have further questions. Please contact myself Julia availability of senior IR director or TPG Investor Relations, our contact information for IR in both China and the U S can be found todays press release have a great day. Thank you.
And that does conclude your conference for today. Thank you for participating you may all now disconnect.
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