Q1 2021 Bilibili Inc Earnings Call
Good day and welcome to the availability 2021 first quarter financial results and business update conference call.
Today's conference is being recorded.
It's fine and I would like to turn the conference over to Juliet Yang Senior.
Senior director of Investor Relations.
Please go ahead.
Thank you operator.
During this call we will discuss our business outlook and make forward looking statements. These comments are based on our predictions and expectations as of today and.
Actual events or results could differ materially from those mentioned in today's news release and in this discussion due to a number of risks and uncertainties, including those mentioned in our most recent filing with the S E Z and Hong Kong Docs change the non-GAAP financial measures, we provide artful for comparison purposes only.
Definitions of these measures and a reconciliation table are available in news in the news release, we issued earlier today as a reminder, this conference is being recorded in addition, and the Investor presentation and a webcast replay of this conference call will be available on the pretty liberally.
And our website at IR day availability dotcom.
Joining us today from believed at least sitting here management are a mixture of age and chairman of the board and Chief Executive Officer, Mr. Collier, Lee Vice chairwoman of the board and Chief operating Officer, and Miss Jerry Sam Fan and Chief Financial Officer.
And I'll now turn the call over to Mr Fan, who will read the prepared remarks on behalf of Mr. Chen.
Thank you Julia and.
And then thank you as it once and for participating.
For the first quarter results conference call on.
I'm pleased to deliver today's opening remarks on behalf of Mr. Chen.
So there's not any one is off to an excellent start for BD BD.
On March 29, we successfully companies outside of their lifting a Hong Kong stock exchange.
Three years after we listed on NASDAQ.
We would like to take this opportunity to sense, our supporting shareholder as well as our talented contemplate true.
And your users and then.
Dedicated colleges that's helped make this happen.
With our second the registry, we see an opportunity to broaden our investor base and not talk more high quality share holders.
We also get more stress and the capital market.
Ladies and a solid foundation to better execute our growth strategy and tap into the massive video based on market in China and to come.
Yes.
After all officially stepping to the 200 million and May Your club and tried to 20 weeks.
We continue the momentum.
For the increasing or infrared or much on the agenda, plus cohort and <unk>.
Spending on the base.
And the first quarter of 2021 hour and they use what 30% to 223 million.
And now about mobile and they use grew by 33% to 209 million.
Both on a year over year basis.
And now what do you use Richardson and building up 18%.
This is particularly impressive given last year's remarkable high base.
As a testament to our reach offering and engage and community our users spend and AB.
Reach of 82 minutes per day, all platform and the first quarter.
During his talk we drill out more premium content and the services and debt.
Dress and our commercialization capabilities, while converting more traffic to paying users.
And he youth ROE to try two 1 billion.
Increasing by 53 per cent relative to one 2020 and.
And our paying ratio.
Oh, Hi, all snot 22 per cent compared with seven eight per cent for same period last year.
Tyler and why do you look on the BD BD and the distant.
Nation to reach young generations.
As a result.
Revenue once again achieved accelerated growth increasing by 234% year over year.
On the back of this strong momentum our total revenues reached RMB three 9 billion up 68 per cent and our gross margin improved to 24 per cent for alternative Sri per se.
Both compared with the same period of last year.
Throughout the first quarter.
Continue to increase our content offerings and he has I want my share and the go to video community for Gen Z plus.
And J D S countries and cities.
And then D plus deeply influencing society and the mainstream ideals.
As well and its driving all kinds of consumption in China.
By offering diversify the content and great brands and deep.
And to further increase our market share among these co Gen Z class user base.
And while extending our appeal to all we do do this.
We are confident we are on the right track to achieve our three year.
Yes.
One of the primary drivers for our next wave of growth.
<unk> by the increasing trend in visualization.
We have video has become the pervasive across medicine and there is updated on it.
China's leading video community, we are the clear phone, Linda and distress transformative opportunity and we are only at the beginning stages of these reps are they growing trend.
According to our research and tying that video based pocket well comprised nearly one 2 billion and video users and more than RMB, one eight really and revenues by 2025.
Over the next few years, we are committed to capture and gets exciting market opportunity with visualization and just how we drive growth territory.
With that overview I would like to go through our operations for the period, you're a bit more detail.
Beginning with our content.
Our P O G B community remains at the center of how content ecosystem.
Representing 91 per cent of our total video view.
For the first quarter.
I push them into late 2.2, mid and content creators uploading and 7.7 million videos per month.
Representing increases of 22% and and 57 per cent.
The activity both year over year.
We strive to credit to ideal home for all of you do greater.
Where are they taking core debt ingenuity fueled our fan base and monetize debt talent.
We continue to invest in that.
Hummus and to ensure that our content creators to either relocate the audience who most appreciate their work.
And the first quarter.
The number of kind of inquiries for us with over 10000 followers increased 54% year over year.
At the same time our.
Advertising platform.
Yeah.
Continue to connect more content creators with advertisers.
Net cash incentive programs and supported over 375000 clinical interest and kill it.
We also maintain and upbeat and encourage your community at most of their debt.
Provides a supportive environment for lifelong contemplation.
As a full spectrum video community, we aim to offer a wider and deeper range of content to meet their growing demands of our users.
And the first quarter day.
Most of the build a content vertical with our platform with lifestyle Gan.
Entertainment, and then me and attack that knowledge.
And recent culture, we have seen increasing numbers.
Of both content and submission and video views about guess.
And animal related content.
Moving forward, we plan to further expand our content offerings and relationships.
Goodness and automobile.
This category reflects the interest of Gen Z plus.
While also expanding our appeal among a broader audience.
Turning to our OTV content.
Supplementing our video content ecosystem, our O G B's provide and effective gateway that reinforce our leading verticals and explore new territories.
For example, our investment and Chinese animation has become a huge bowl for ICT categories.
Successfully attracting old users and U S.
Advancing our Chinese animation production capabilities in January we have piled housing there and then Michele D play moved on.
One also try and those top anime studio.
This highly popular production.
Heaven Official's blessing, Tim Glenn for full launch in late 'twenty or 'twenty.
We continue to win over the phone or in the first quarter.
Reaching 370 million video views.
Over 6 million lives and collecting around $4 5 million per chip.
We also released multiple new original Chinese anime titles and natural.
Including the final chapter of linkage.
Don.
And then linked cliffs should go on that either.
Which was immediately hits.
And our social media for weeks.
Turning to our supplementary priority shows on TV and movie categories.
To satisfy user diverse and eat.
We launched several peak production in Q1.
Including our highly anticipated new year's Eve gala, the most beautiful nice I'll touch on 'twenty.
And the PDP, the Chinese new year Gala.
Our self produced the Tacoma interest.
For cooler foods.
Sure.
And the little jet shouts on yet.
And our self produced variety show shall we eat at our house and justify a hallmark.
Of which well welcomed by our agenda plus users.
In the second half of this year, we have plans to introduce two more self produced for music and the data and seemed the variety shows.
These shows are geared towards users with relevant interest.
And to supplement the newer music and and their relationship serious.
Our content ecosystem.
Turning to our community.
The bonds that we created with the BD PD and to come into members remain strong.
Despite the spike in the interactions and use that we saw it in 2020, making the comparable base quite hot.
Our first quarter community activities continue to be robust.
Did the video views were up 47 per cent, the one plus six billing and the months and tech shows increased by 35 per cent for $6 6 billion.
Both compared with Q1 tons and tons of <unk>.
By the end of first quarter, we had 112 million and official members up 38% year over year, and now 12 months retention rates remained around 80%.
We are very proud of these matrix as did demonstrate the strength of our model building, our users and community growth.
Now.
Let's look at our commercialization progress.
Our diversified monetization strategy is working and grow.
E shop, all commercial avenues in the first quarter.
We now have a robust a lot of revenue stream for them out of a solid for both our gas business.
Bass business.
Well as a rapidly growing our title business.
Starting with our guests.
Revenues for mobile game business was RMB, one 2 billion and the first quarter.
An increase of 2% year over year.
At the end of April we successfully launched and not the exclusive distributor of the mobile game gaudy and tails.
And C budget.
This is driving this.
ACG titles has won over millions of new for Laura.
And the iOS and download and the growth and Charles for weeks after its release.
Although existing games that we operate including frequent order do not land and.
And this has come net remain popular among their phone or doing for you.
As for jointly operated game Kingstone, Inc. Pat the Ocean.
Another solid and Glenn and the first quarter.
Derived from classic anime IP, we also added U K home.
You will see you on solid jointly operated game library in January.
With China mobile gas market.
<unk> to reach over RMB 500 billion in 2020 five.
According to our research.
We strategically and vacuum shingle and dot com and the <unk> technology group.
For the stress range.
Position and the industry.
Turning to our GAAP apply.
12 off again, we host exclusive license for <unk> approval for relief.
These include.
<unk> gear.
Uh huh.
Our Sui and ACG title and that's what's on online audio show you.
And exciting MMORPG.
Both are slated for launch in the second quarter.
We continue to work with top developers to bring more jointly operated games to BD beta users. These.
These highly anticipated titles include Tencent League of legends and it's only on my mobile game.
As well as and that he has had reported polywater.
Turning to our vast and at our vast services side and the first quarter.
With our premium members, reaching a record high and the robust growth and the lifeboat car T.
Revenues for all bad growth of RMB, one 5 billion.
And increase of 18, 9% year over year.
And at the end of the first quarter, we had 16 coin and 1 million put me and members representing a year over year growth of 48 per se.
This is particularly impressive again.
And given the high base in 2020 for comparison.
It also shows that our co Gen Z plus demographic has spending power and a high willingness to pay for high quality and premium content.
As part of our video content ecosystem, we continue to build our game and entertainment content and addressing our users' diverse needs.
We have won a number of high quality esports content contract Inc.
<unk> and LIFO cutting rise of the gallbladder and what championship and most recently on cloud.
And for the entire.
And then.
Additionally.
And well be tuber and other entertainment LIBOR cutting continue to draw young users' attention.
As we explore more ways to integrate live broadcasting content with our video platform.
And we see great potential to expand this business even further.
Last but not least let's review our advertising business.
Beginning with the success of our tightly tied to new year's Eve Gala.
A wider variety of.
<unk> come to be DBT reached their design and the audience of young generation.
Revenue for all advertising services was RMB $750 million.
Up 234% year over year.
Presenting on our Ace culture of accelerated growth.
For the first quarter.
The top five leading advertising verticals, what GAAP did.
And you just hold SBC products.
Food and privilege.
E Commerce.
And skincare and cosmetics.
Including improvements to add distribution and I agree with them also supported our advertising business growth.
As we continue to enhance our brand awareness.
Greece, our interest among the Gen Z plus demographic and improve our AD process we.
We are confident that advertising dollars are sure to follow.
Building on the momentum of last year, we are off to a great starting 'twenty you touch on what.
Our financial and operational accomplishments across our content community and commercialization and secure was placed us on for 14 of achieve our next phase of growth.
We have entered a new era when the trust motivation to visualization is taking shape as we speak.
As a full spectrum video community and the go to class along for the agenda plus demographics, we have reached a new starting point from which to growth.
Writing the visualization wave and well continue to invest in our content ecosystem and he has a brand among the driving and message video market.
Well, we are established Adidas and they continue to get market share.
This concludes Mr. Chen's remarks.
And I'll provide a brief overview of our financial results for the first quarter of 2021 and all losses for Q2.
Total net revenues for the first quarter, while on be three plus diabetes up 68 per sense on the same period of 2020.
We continue to see a more balanced and diversified our revenue mix.
Our total net revenues breakdown by revenue stream.
<unk> 30 per cent and mobile games.
And 8% of that.
18% advertising and a 14% and e-commerce and other business.
Cost of revenues increased by 66% year over year, two and 3 billion rub.
Revenue sharing cost a key component of cost of revenues well on B one for bidding.
Also at 58% increase on the same periods and Kentucky tiny.
Gross profit increased by 17, 7% year over year to RMB 937 9 million.
Our gross margin improved to 24% and the first quarter compared with 23 per cent for on the same period last year.
Total operating expenses were RMB, one one nice have a bidding.
Up 83% for on the same period in 2020.
Selling and marketing expenses was RMB 1 billion.
Representing a 65% increase year over year.
The increase was primarily attributable to the increased channel and marketing expenses associated with our App and brand as well as and increasing sales and marketing personnel.
By allocating resources to build our brand and a few of them on a broader audience.
We have achieved substantially growth in 2020.
We believe that the effects that well be even further reaching.
With positive impact for the market over the long run.
And this is a continuation of the momentum we achieved in 2020 and then we can already see the benefits of our strategy through our broader user base demographics.
Content and overall, he's a true leadership.
We plan to continue building on these trucks in 2020, one to further strengthen and expand our virtuous growth cycle.
G&A expenses was RMB 389 million.
Representing 127% increase year over year.
The increase was primarily due to increased head count.
In General and then and the mystery to your personnel increase of share based compensation expenses higher rental expenses and other G&A expenses.
R&D expenses were RMB $518 million.
Presenting on 19, 5% increase year over year.
This increase was primarily due to increased headcount and research I told on personnel and increased share based compensation expenses.
Net loss was RMB $905 million was supposed to close our 'twenty to 'twenty, one compared with RMB $539 million and the same period of 2020.
Adjusted net loss, which is a non-GAAP measure that excludes share based compensation expenses and amortization expenses and income tax expense is related to the intangible assets acquired through business acquisitions.
Well RMB 666 knitting.
Compared with RMB $475 million and the same period of 2020.
Basic and diluted net loss per share while on the two five for.
Adjusted basic and diluted net loss per share while on the $1 87.
As of March 31, 2020, what we had cash and cash equivalents.
On deposits.
Well as shutting investments off on B, 27, and bidding compared to RMB 12, 8 billion as of December 31, but Hitachi.
With that and mine. We are currently projecting net revenues for the second quarter of 2020 one to get routine on beef for two 5 billion and RMB for three 5 billion.
Thank you for your attention and we will.
I'd like now to open the call to your questions opera.
Peter Please go ahead.
Yeah.
As a reminder to ask a question you will need to press star one on your telephone.
We draw on your question press, the pound or Hashed E.
For the benefit of all participants on today's call. If you wish to ask your questions for management in Chinese.
Immediately repeat your question in English.
And then your question to one question at a time and you May Press Star One again, if you have a follow up question.
Thank you.
Yeah.
Your first question comes from the line of Alex Poon of Morgan Stanley. Please ask your question.
So she had plenty of time and fish on the tier one can see on counting that gets you a war for once you should call on your call and call you would.
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Pick a pay for that you don't really fit here and.
The question and I have is regarding advertising business.
We have seen a continuous acceleration and year over year growth for eight consecutive quarters.
Could management share with us the drivers behind this growth and how should we think about the growth and the next one to three years. Thank you for pretty much.
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Okay, I'll briefly translate for calling me.
So we think the volume.
Platforms advertising business actually equal the value of the user is tough and that's still accurate metaphor be.
Many other class warm out there they are running a rental or a curious smile you never know winger user and will come when they woke up and so the easiest way to leverage advertising to quickly achieve monetization and use the money that they make.
Do you find more content.
As for traditional internet mile for Billy.
Billy Billy well, we are trying to do is to build a city, we are trying to gather and beyond users with similar interest.
<unk> asked them to become a residence.
And he will provide different type of consumption scenarios to ban to cater to their needs, including such as game live broadcasting a movie and content and derivative DRAM for key products and even offline activity and they will grow and find out the city and even falling in love with debt.
And then we're inviting more friends to join that neighborhood and for this process and my start at least probably start really slow, but once and momentum.
It will accelerate and.
And has great potential.
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Lee on for Lasalle, Soothing and Hong Kong.
Oh, Yeah, Oh, yeah.
And that's okay.
So what does that.
And we believe to advertise advertisement and.
Potential and.
The work and the roster and we have captured near half of China non generation on our platform. The average age of our users and about 22.8 yourself and 86% of art and user its age 35, and and now and our user and about 50% of them.
Art and live in the first and second tier city. They are deeply influenced mainstream ideals and they are the key driving force for all kinds of consumption and the RMB most wanted and co.
Cohort that tastes by all advertisers. So we believe in the next few years and scalability continued to grow its brand awareness and expand the boundary of our content offerings.
Well be welcoming more diverse and more dynamic.
And more dynamic type of user to join our our our city and continue a very healthy and fast growth.
Well I'm not sure how they are seeing seeing play out and soil that peak title required for visa people tell me that I'll share the heat and.
The idea and know how and that he said.
The Guangdong and then well.
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For themselves.
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Yes.
And we are quite confident and pretty much all of the brand.
We'll be working and turning turning to Bill at Delhi and become part of our community and secondly, we think are good advertisement could also be a good content and for our user and maybe never repel good content so on that on that.
Customer side will continue to work with.
Hi, I'm on high quality brand and potential branches steep collaboration and to build a very success cases for all of the key accounts and we will also continue to improve our product.
The reason the efficiencies and launch more creative and interesting integrated marketing solutions across multi scenario and multi devices.
The shelf and totally yes.
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Can you say what me and they have to comment on product. She is they get up and I thought he got up on golf Galaxy sites for me.
Absolutely.
Neither one day.
Our agenda for <unk>.
Oh, Wow and tell the absolute casual on I guess interest.
HEICO for C&I I kind of shovel has and household.
And Additionally, we think there are some very.
Big portion of creative activity now, we hedge our library, our climate and creators. We are we are working with content creators to pick their brand and <unk>.
And to pick their mind to ask them to work with our brand advertisers together and on the Sparkle advertising platform. Currently we are a half.
10000 content creators joint join this platform and the overall performance is exceeding our expectations.
Okay.
Yes, sure xylem and kind of likely to reorder well moving tissue, that's how you're going to tell him about the pizza and Sarnia toric ICL tissue and she's all kind of Ibs and salary.
So that's why I'm going on not only.
With that she has like on soldiers on probably a cautiously fool you piece on that.
And thank you.
You always see me and you somehow and yoshikawa garlic salaries, that's going to be and selling as a call either.
The last thing and I'll leave it also very very important and and staff will continue to enhance our platform capabilities and continue to improve our AD product, including the integrated marketing solution that combines both brand and performance AD and our advertising powered or not.
Only been reflecting on the increase for our advertising revenue, but also on many of our two customer business such as that.
<unk> of our jointly operated games and <unk>.
<unk>, Inc.
Oh, very lifesaver visa and Shanghai, Yes, yes, I know.
Thank you all for telecom and can later on the call.
Yes.
Sandy and your name on the hydrocodone <unk> seen off balance sheet.
Fee income, Tokyo, and gaucho lunch on the top.
So for the next one to three years as we continue to grow our content ecosystem and extend the boundary of our content offering we're quite confident to maintain a healthy and fast advertising advertising dollar growth.
Yeah.
Your next question comes from the line of Lee Chang.
Securities. Please ask your question.
Oh, Hi, Glen and Paul Weiss on hard alcohol on a course of time.
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Plans to further improve user engagement and thank you.
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The growth suite.
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And as I say D. C was so high for this against Holland.
So we think.
And that temporary job is absolutely normal given that.
<unk> share we have raised our MAA and target and we're really focusing on growing and our overall users and during that process and think there's just a temporary a temporary effect given that.
When the user joined the community and really takes time for them to become part and then a part of debt community, we need time to cultivate user habit and establishing community behavior, such as Ah following different content creators and they have to getting touch with the content creators.
And other users and the community and if they come to availability and for all for one and specific interest point, they often and trying to establish and expand their interest point.
So all of that takes time and there will be some black doing the process.
Herpes and non quota.
And.
Ladies and gentlemen, and Zambia.
Hi for before.
The union and eager to through a woman does any good so it's either margin bogo on that and you'll see her phone for ultra and they don't leave the country.
What's your thoughts are for 'twenty, you like in the lung cancer and Mayo.
Question for you some of those are all true.
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Sat down and realize it somehow.
They are you will you.
Go for it and when he was Houston actually I don't think we don't force interactions both of those and what will that mean.
And we think for product like they were definitely we actually stand a pretty good day Youtube and the ratio in terms of net community product and because we also have very fast content offering we think gearing up fast and user growth per.
For a temporary job on the engagement ratio and absent.
Absolutely normal and as long as we see that the ratio starting to bounce back and we continue to maintain our very fast.
User growth pace and he should be fine dining room, and you wait for shooter Chute zone.
Good day.
And the Eagle Ford and all.
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Number one and we're going on who can quieter.
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Clinical and laboratory Groundhog day.
Obviously, you can count on.
On the who don't don't have and Chicago equivalents Statistics, you don't you did.
And we will definitely continue to be very focused on elevating our engagement level and there are several ways one as to whether we can help our users to become a part of the community a little bit quicker and a day.
And would be and help them to connect with more content creators, followed and allow them to fall and more content creator and that fits their interest and allow them to establish more engagement between content creators and other users.
And there are a little hard to say.
Women and those are the preacher and school, there and I'm Gonna go watch it who put on.
Daughters, Inc.
Google and and they'll go watch it.
And she and.
And hope to keep pace.
We have seen true.
Simple they didn't narrow number of critical.
Now, let's see if it doesn't go on.
And then, particularly ice cream and somebody that you're going to use them.
And secondly is on our AI powered recommendation system, we will continue to improve the recommendation and efficiency to allow our algorithm and cover more interest.
For serving our users and to.
Price more relevant content that fits two different and users' needs and for that we'll continue to invest and R&D and our RFS and to improve our AI powered recommendation system for so long.
And Theyre presume, it's usually the phone call.
And there's a bump.
Mention point won't be our constant.
Areas for improvement.
Okay.
Your next question comes from the line of of UBS. Please ask your question.
And she accordion and since you saw the Q1 loss, so she and Gucci face on challenging year for you.
No. Once we also on the LTE charge on switching and go see how Chico, usually you'd say quite a cold too.
And I'll say hold up because she took a year and he sits and Ali a boiler colleague and do it up and go nowhere for Asia. Thank you management for taking my question and I have one question recently, we see Billy has quite a few investment deals on us.
Game related companies, what's the reason behind or are we going to consider more acquisitions or investments in this space for coming quarters. Thank you.
Hum.
And we're either charges and youll see some fees and a true yes.
Woman Toyota C.
Well sure absolutely Ito pantheon, lasorda and actually a woman.
And so you'll see the narrow.
And when they're going on wages on Baidu, she's in Iran for holiday.
And I don't have Ferrara to redeem them growth.
For her.
And I think that's on your part.
Punctual Doha women are sitting on some cooling season that you'll see.
And on board and go.
For the diesel to assist the hugoton and Golden Colorado, She's going to project moving.
So I've always say that scheme as well.
One of the most important business for our availability because for us and not only just on monetization and it's also very important component and our content and Theres just great synergies between our.
Game offerings as well as our video game.
And really that video content and for pivotal Lee <unk>.
Again, that's net.
And just very natural for us as long as we are starting to offer and our content and monetization just happened very nationally.
And we're really cause for Youll see Chico Hum you realize the five efforts on value quickly.
And there you go.
Sure.
True what you did you realize willadsen, yet, but and it took them on yeah.
Physical Columbia and El commercial pay.
And I'll tell you, though to the assortment could be two months of the study.
And second of all we think for game industry and they are still <unk>.
<unk> per room for growth.
I believe that and the next few years and they could be multiple times.
Multiple times and growth for for that segment. So I personally take out take great care and put on a lot of efforts and looking for that.
Margin for the 100 and have been bullish on the Gulf for Eagle moment for some goodness touch on them.
How do you go boom and so therefore, you'd feel when assessing Patrick went home and.
You can't go into a Peugeot Nagel youll see that shipping digitally.
For each assortment planning and center pivot now and Youll see that supposedly.
And simple timing for either you go.
So you go.
And I hope.
People sort of hydro for walnuts cool yeah.
And they have Av and Youll see a NAREIT on the pop.
Papa Toyota hurdle once you kind of developments her home and for you and you know going all digital courseware and toys. This is tough for them on the bulk of them and do that for you with the holidays and weather.
And that's it.
And for our Biller, Billy it's not just skiing department and.
Dealing with or facing the game industry, it's across all business Department and it's true our whole company for example game related video content has always.
We have seen our top three content verticals and for our library passing game related live broadcasting and it's our number one cause.
Content on our platform and.
And they and we are also working with majority of the game content development in this industry, establishing house partnerships dialogues and that can also.
The only other home and you'll see if I can do that through the year within that she's had on download growth for your car.
So I assume on that for those who don't understand sort of the autonomy for the U K U.
And for the game distribution business currently is playing a very important umbrella and our business and its also contributing.
And decent portion of our revenue.
For you, though hydro for women with somebody else that juggling for coastal and she says and we'll let Sandra for a sore throat cancer with Philadelphia for women console toggle Puma tools on your total you'll see how you feel good okay on the Hooker Toledo.
So a little harder for a woman for coats torches and Youll see how needle coke for tusa whaler, Chaco and woman to him.
So why we why and to invest in this area because we wanted to establish strategic cooperations and like I mentioned there are multiple department.
Currently working and and the game space. So the reason why we invest in this area is hoping to.
And further enhance our partnership across different legs of our business.
So on and certainly the converse and don't see and with Tivo, one months come and say you will see the Zika and father's day.
And we'll see the trigger for you'll see a consistent pattern.
This is hundreds and hundreds of them.
And when the series and hobbies and see at home zone.
Absolutely that's harder for a woman said youre sitting at sort of pseudo code. Bruce you said those are but it's only a cool commodity.
And neither towards growth.
And those are at Wheeler, who woman that'd be a good year, one and then go attach on these issues.
So for example debt.
The investment, we made and Qingdao and it's because we see a lot of synergy and cooperation in terms of gain getting distribution. So all of the investment that we make has a prior prior.
Prior purpose of establishing strategic collaborations.
Cheers for women to each accounting for those who don't.
Korea, certainly see the place to leave it seems as though for where you would've doses and some of them would either do true Whaler Inc.
For the Italian quarter for you with Fortinet and Seattle.
And that goes.
And that goes with the same with our investment in other area.
The purpose is hoping to achieve business collaboration and achieve business synergies across different part department.
Your next question comes from the line of Daniel Chen of Jpmorgan. Please ask your question.
Oh go ahead Todd.
And with you.
It's that way and so.
Oh yeah.
Okay.
She myself to chew on warm and you want.
<unk>.
Yes, and Uruguay.
For mobile.
And I will translate myself.
My question.
On the.
And I will take more on the product side and all the content for us.
And we target to reach 400 and beat it by 2020 treats with lender and what's our plan and second.
And do you want in terms of products, featuring innovation and content expansion and thank you.
Hum.
Fees on the yogurt and zone has a coordinator on some pilots on the two for <unk>.
And we'll then.
On the two share opportunity was the hold times and realize it or you got a real hard on.
And what I've seen and Yahoo and light.
So either hydrogen on that.
And of course on what May have had to deal with her to show and there you go.
And I guess on for women and their charger.
For the for me before.
And then deliberately growth model as content ecosystem, Triffin and essentially is through our content creator producing.
More and more high quality content across different content verticals and attract more users and what we are what we have been constantly doing is to build such pop one to keep attracting more content creators.
On a woman so for Disney and she says they realize their daughter and yeah, and tuner and passing through the channel.
And those are women and for the true.
And please all those who can go on.
And Youll see Humana.
Some of all day.
Literally truthfully.
Both of whom are laid out two zone.
And Oh.
Patchy searches are you pleased with it.
It's really a phone for at home and therapy and they don't go on and.
Zero.
We take on.
Net apart places Jamba, Inc.
Core dumps and Lithophone for do he's on the needle and that's it out and go home caught up on growth.
Okay.
Okay.
So.
And while we have been doing is to focus on the categories that can attract young user can resonate with young generations and over the year, we have established unparalleled leadership and categories like games lifestyle Entertainment knowledge and digital.
<unk>.
And step by step, we continue to be more and more diversity of content and more and more high quality content as we move forward and we'll be focusing on improving the diversity of that content and continue to odd for a last out more high quality.
The content and.
And to attract more wider range of content creators.
And our unions.
For the tissue that sits on channel mix.
No sugar Lay's zone Chesapeake.
Ladies and become essentially for the hips and knees on dry warmer highway team for the hit for that Qingdao.
And for <unk>.
And people resources toward hitting the bulk ore zone Tianjin.
Changes to income to hitting that.
And to hit those or your own way tusa, neither and 200 and change enrollment for the trigger.
And Joe <unk>, plus particular, and she come on cutting for the neighborhood and so it took assortment and yet.
And so I'm sure that Utah.
And move forward.
For this year, while we continue to enhance our leaders and.
Meter categories such as non.
And knowledge and pan lifestyle related content, we aim to further expand our content offering and categories like relationship automotive and animal related fitness and health those categories that fit the Gen Z plus interest point.
And also open up us to more wider and demographics.
Okay.
Your next question comes from the line of Challenge C. F. Nomura. Please ask your question.
Ah. Thanks go even imagine and thanks for taking my question on some of my question and its a biopsy and LIBOR on coffee and service can you give us some colors on that growth translate on my part kind of thing.
And as we saw and industry wide slowdown in this my broadcasting revenues since last year and I just wonder what is going on.
On top of things.
And this year and alright, and next few years.
Well one thing I'd mention here on what kind of what are you charging for in English ammonia and warm handoffs, so and so on.
Junior and heightened and some good so I'm going to go to Mohan you going on.
I think on each and then you've got like a follow on.
And so she values.
So on and then pick up you need that for that simple you know, whether you're going to be seen attrition and some one time for the triple and you know.
And they go junior and so when I came in and disciplined balance sheet yet.
Hum.
And with that or do you know what their.
And so with all of them and it doesn't go to the board.
And what are you weighted so we like T and Michigan, which is true yugo Gulf with them is on the eco pasture.
Just like it was almost for the banks for presented for your book season, and so on that.
<unk> also and how they eat.
Touch on maturity of any answer on how they can play on your answer.
He didn't controller for work to be done that's for sure.
And unfortunately for shipping.
And <unk>.
So two years ago.
Forecasted RLI broadcasting business.
Keep a very high growth rates and the reason why I said that S. Because I believe.
But on the fly broadcasting has always be a part of the <unk> television content ecosystem and it's a natural extension of video content and that's a matter of fact, my blockhouse thing should be part of BDO potash.
And the suite of hydro for the needs a.
To support our Pizza and you go sometimes how should you go on for Andy.
Our political and core.
Either true two taller.
Yeah for sure and that could either share, but where I'm at all times for Baldacci, who is here and they go on pulpwood or to work harder for you on the lease on the Puget either somebody Hugo absolutely for some kind of touch on that.
So once again that live broadcasting is a natural extension of debt. We believe overall content ecosystem, we don't need to deliberately expand the content categories, we don't necessarily have to pay extra high price.
To attract my broadcasting host on.
All of the content offering and grow growing out of our content ecosystem and its based on our content creators is based on the popular content on our topline.
And two beautiful woman the gasoline you're going on there's a woman Josephine sure Vega.
Sure he and the chance and lapping the price.
The assortments and what are the adoption rate.
Neither woman.
And later to walk on me I was just flipping the average which can be and he was hold on.
So like I mentioned earlier that our video on our video platform game and our top III content for he calls and it's our number one content berardi costs on our on Libra casting business.
And for the games category.
The live broadcasting host and the video content creator has 40% overlap to build for US on women don't you go and find some cool thanks, Laura later to growth.
Shifting the <expletive> fell on the visa master if he can pull together closer to hot.
Excellent leader for the broad high Assortments and what does the adoption rate.
And lifestyle and <unk>.
Entertainment related content and that's also very popular and entertainment live broadcasting and also on the second most popular live broadcasting content.
The hydro for Nicole.
So you'd be done and I saw the harder for a woman the optical tool for Orlando for.
For the whole minutes.
And as usual and the opposite.
Oh My God she is simple.
Non-GAAP it somehow on the shipping opportunities.
Hold on for Chris.
And I'm sure they'll have a.
Shipping you and non go to Teng and <unk>.
Yep.
So simple Youll Creed geez, yeah. This year shipping average rule.
Total legal and team sweetheart of opportunity for change on the English it and legal question, especially with some humor to just that one and I answered on pugilistic and doesn't know sometimes on me two.
What are you guys coming up sooner for our industry.
Yes.
And in many cases for availability, our content creators and satellite broadcasting house and the video content and.
It's a mutual beneficial relationship.
We think the light broadcasting can help our content creators to it.
Starfish better interaction with their followers and their video submission Ken.
Back to their live broadcasting traffic and on the other hand, we think by broadcasting and that good revenue and Avenue for content creators to mine.
Mined highest per topic to on deliberately lie broadcasting and video they are born to get going to be together and they have great synergies to the Ocala and as a percentage of book.
Yeah, Hi day the thoughts.
She's gone on cashless EBITDA per wheel.
Tayo Trophy comdata and virtually all machines I feel for the arbitral sure and you'll go down by one cell English and true.
So it's all about Colorado Hudson here via for the arbitrage opportunity and graduate from force suite.
Okay.
And so what kind of attach rate you could realize if they come out and even though you go out and go project.
So from my perspective, I think Billy Billy five broadcasting and still at the early stages and has great potential to grow and currently we have over 2 million monthly active content creator and my view pretty much everybody could potentially become on live broadcasting price.
So.
Great.
Great growth ahead of us to throw a collective important on the scene Cup receiver footwear, the Europeans and the U touches a seat on the leap for TCP and Harley's on Monday.
And that's the article that you don't have any cash.
Absolutely and also but to what happened and what sort of world class.
And she vertical fences for true.
Yeah.
So I think.
The nature of Blackrock has Inc was never just about.
Monetization, it's more of a ability and ability of our platform and it's also our ability of a content creator for the content creator and they can leverage life on passing to connect with their followers to improve there.
Relationship and also on the Kim game monetary reward considered on non lethal what kind of weighed on English or put on pause.
And the Tucson women and maybe the optimal toxicity, but shifting this year. So we're going to make the absolute totally true believer shifting and the for me to relax their book, which will make up and talk to you bid on them.
I believe for this type of <unk>.
Keep it though when you should be widely adopted and the in the future. It's like how our content creator Ken right on introduction of the video can create a I'll cover page for video and and probably in the next few years every content creator wed have the ability to do why broadcasting for you, though whatever words you the piece on it.
We are here with us and is amazing.
And they also.
And it has on the either you put yourself why because it seems on the Osama class It took a worldwide channel.
And what does either.
Neither for her and her symptom so consider a heightened and somewhat because of some of the patent that you can pump, which I'll talk to you. This award.
Five element of simple, how well Mitchell pool water treatment and they also.
And so on two levels on that you guys just for some of that for us.
And our live broadcasting business.
And really internally grown and.
Growing from our content ecosystem so the.
External environment, we're not really have any impact on our libra casting business, because we don't need to acquire Lifelock housing host from all their platform everything as organic growth within our ecosystem.
Okay.
Yeah.
And that concludes the question and answer session I would like to turn the conference back over to management for additional or closing comments.
Thank you once again for joining US today. If you have further questions. Please contact me to lay out deliberately senior IR director or TPG Investor Relations, our contact information for IR in both China and the U S can be found out on today's press release have a great day Bye bye.
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