Bilibili Inc. (NASDAQ:BILI) Q3 2019 Earnings Conference Call - Final Transcript

Nov 18, 2019 • 08:00 pm ET

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Bilibili Inc. (NASDAQ:BILI) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to the Bilibili 2019 Third Quarter Earnings Conference Call. [Operator Instructions]

At this time, I'd like to turn the conference over to Juliet Yang, Senior Director of Investor Relations. Please go ahead.

Executive
Juliet Yang

Thank you, operator. Please note the discussion today will contain certain forward-looking statements relating to the Company's future performances and are intended to qualify the safe harbor from liability as established by the US Private Security Litigation Reform Act. Such statements are not guarantees of future performances and are subject to certain risks and uncertainties, 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 release and this discussion. A general discussion of the risk factors that could affect Bilibili's business and financial results is included in certain filings of the Company with Exchange -- Securities and Exchange Commission. The Company does not undertake any obligation to update this forward-looking information except as required by law.

During today's call, management will discuss certain non-GAAP financial measures for comparison purpose only. For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the 2019 third quarter financial results news release issued earlier today. As a reminder, this conference is being recorded. In addition, an investor presentation and a webcast replay of this conference call will be available on the Bilibili Investor Relations website at ir.bilibili.com.

Joining us today on the call from Bilibili's senior management are Mr. Rui Chen, Chairman of the Board and Chief Executive Officer; Ms. Carly Li, Vice Chairwoman of the Board and Chief Operating Officer; and Mr. Sam Fan, Chief Financial Officer.

And I will now turn the call over to Mr. Fan, who will read the prepared remarks on behalf of Mr. Chen.

Executive
Xin Fan

Thank you, Juliet and thank you everyone for participating in today's earnings call. I'm pleased to deliver today's opening remarks on behalf of Mr. Chen. Our third quarter was another strong quarter of growth. Our active user acquisition strategy and an increased commercialization efforts are paying off. We secured another quarter to record high MAUs and paying users, while meaningfully improving our top line and gross margin. In the third quarter, we added 17.5 million MAUs to our platform sequentially. This is our highest quarterly net add ever, bringing our total MAUs to 127.9 million, up 38% from the same period last year. The growth rate for our mobile MAU even more accelerated reaching 114.2 million in the third quarter, up 43% year-on-year.

While growing our user base, we are also keeping our community engagement at a high level. Total DAUs were up 40% in the third quarter, reaching 70 -- 37.6 million and on average they spend 83 minutes per day on our platform. Our user stickiness and longevity and the willingness to pay for premium content and the services. In the third quarter, our average monthly paying users once again more than