Attacked on all sides, rushing towards commercialization.
Editor’s note: This article comes from WeChat public account “Connect Insight” (ID: lxinsight) .
Text / Liu Meow Meow Editor / Water Sheng
Station B is not only the second-order station B. Last year to date, the “breaking circle” plan of station B has been going on. After one year of exploration, the status of station B is mixed.
In the morning, Station B released Q4 and full-year financial reports for 2019. The core financial report data revealed the following key messages:
Revenue increased and losses expanded year-on-year. Its total net revenue in the fourth quarter reached RMB 2.0078 billion, an increase of 74% compared to the same period last year.
Net loss reached 387.2 million yuan, a year-on-year increase of 102.9%, compared with 190.8 million yuan in the same period last year, but narrowed month-on-month to 406 million yuan last quarter.
From the data of the whole year, the total net revenue in 2019 was RMB 6,777.9 billion, an increase of 64% over the same period last year.
The net loss in 2019 was RMB1.3036 billion, compared with a net loss of RMB565 million in the same period last year.
B station financial report data
It is worth noting that the number of active users at station B has maintained rapid growth. In the fourth quarter, the growth rate of users at station B reached a new high. Monthly active users increased by 40% year-on-year to 130 million; mobile terminal monthly active users increased 46% year-on-year to 116 million. At the same time, daily active users reached 38 million, achieving a 41% year-on-year growth.
In today’s earnings conference call, Chairman Chen Rui of Station B said that he is very optimistic about the prospects of the user growth plan. It is expected that the user growth will reach 180 million in 2020 and 220 million in 2021.
Chen Rui claims that during the long vacation, Station B has become the first choice for many people’s online entertainment consumption, whether it is user traffic, user participation or time spent exceeding expectations.
In terms of revenue structure, the growth of game revenue at station B continued to slow down. The non-game business accounted for 57%. This is also the first time that station B’s non-game business accounted for more than half of the total revenue.
The current revenue of station B is mainly composed of four segments: games, live broadcast and value-added services, advertising, e-commerce and other businesses. The revenue of the four segments of Q4 are: 870 million yuan, 570 million yuan, and 290 million yuan. 280 million yuan.
Business growth graph of station B
Perhaps due to the expansion of the loss limit, after the release of the financial report, the stock price of Site B fell by more than 3%.
A major reason for the loss was due to the surge in sales and marketing expenses. Compared with the 182 million yuan in the same period of Q4 in 2018, it increased to 413 million yuan in Q4 in 2019, an increase of 127% year-on-year, and an increase of 13.8% compared to Q3 2019.
Several major movements of station B last year are still fresh in memory, including the station new year party which has won a lot of attention, signed anchor Feng Timo at a high price, and launched more than 40 animation works involved in production.
Behind these actions, a lot of costs are required. Although revenue and users continue to grow, losses are also expanding, which has led to outside discussions on “B stations spending money for scale”.
Last year, station B did take expansion as its main direction. With the continuation of the “Breaking Circle” plan, the attributes of station B have become more diverse.
There are also some new phenomena this year. More and more press conferences choose B station to publish, and Dingying Ghost Animals Video chooses to put on B station. Tencent also uses B station as an important marketing position and releases on February 27 “Tencent forced to open a business, the shareholders of Station B are looking for homepage” video, marketing “B war” has become a new trend.
At the same time, more and more people are participating in public topics on the B station at the beginning of this year, including the concern and discussion of the epidemic situation, becoming a new public opinion field following the circle of friends, Weibo, and Zhihu.
These two new phenomena will undoubtedly give station B a greater imagination. Where will the next step be at Station B?
1, Get rid of game dependencies
B stands in the “big brother” position of the two-dimensional field.
But it was also once called a gaming company. This is because early games are the most dependent source of revenue for station B, with the highest proportion.
However, Station B is getting rid of this label. In 2017, the station B game business accounted for 83% of total revenue, the game business accounted for 64% in the first quarter of 2019, and by the third quarter of 2019, the game business accounted for 50%.
The difficulty in balancing revenue lies in optimizing the income structure while maintaining the increase in various business revenues, while driving the growth of other businesses while maintaining the growth of the gaming business, rather than “changing each other’s strengths.” This requires expanding territories and seeking opportunities in more areas.
Therefore, “Break the Circle” became the key word of station B last year, and it began to jump out of the two-dimensional world and march into a wider field.
The most representative event is the “Last Night” New Year’s Eve Party at Station B at the end of 2019. At the party, veterans collaborated on “Plant of Flowers”, Richard Clayderman’s “Hedwig Variations” of “Harry Potter”, folk music master Fang Jinlong and virtual idol Luo Tianyi “fit” … Various painting styles were merged to break the dimension wall, with over 90 million views and a large number of media exposures, completing a successful “breaking circle”.
The live broadcast of the New Year’s Eve party at Station B, the source website of Station B
After the party, station B received rave reviews and the stock price soared. At that time, the highest price of station B’s stock price was close to $ 30, and the market value was close to $ 10 billion.
In this morning’s earnings call, Li Bing, vice chairman and COO of Station B, mentioned that the party was part of the user growth plan for Station B and laid a solid foundation for the overall user growth of Station B in 2020. “This is a landmark event as we enter the attractive area of the mass market. The success of the New Year’s Eve party has actually attracted many users from different backgrounds and generations, letting them understand the B site from the perspective of their group . “
Besides this representative event, the content ecology of station B is also continuously expanding, and the content is further diversified, focusing on entertainment, music, learning, fashion, and technology.
The homepage section of station B is constantly enriching
In order to attract different groups to become creators, last year, Station B launched various plans to encourage UP’s main parties, including the “Vlog Star Project” and “Music Star Project”. Data show that in the fourth quarter of last year, the number of monthly active UP main stations in station B exceeded 1 million, an increase of 80% year-on-year.
The results of the “Break the Circle” action appeared, and the fourth quarter of 2019 financial report showed that the overall revenue ratio of the game business decreased to 43.4%.
While the proportion of games has further decreased, game revenue has not decreased and continues to grow. The financial report shows that its revenue was 871.4 million yuan, an increase of 22% compared with the same period last year. The B station has over 30 unique generation game reserves and years of accumulation have formed a moat.
2, Force Live
While getting rid of game dependencies, another business has become important: live streaming.
In the fourth quarter of last year, the financial report showed that the revenue of station B from live broadcast and value-added services was RMB 570.9 million, an increase of 183% compared with the same period last year.
The data is enough to see that B stands strong in the live broadcast business. This is not surprising. After the first year of live broadcast, the 1000 broadcast war, and the market reshuffle, the live broadcast field has ushered in another climax in 2019. The live broadcast has shifted from entertainment to “carrying goods”. In addition to Taobao live broadcast, Qiaoshou and Douyin are also working in the field of live broadcast, and the commercial value of live broadcast is amplified.
In the category column of station B, live broadcast plays an important role
For station B, on the one hand, the live broadcast service can help “break the circle” action. On the other hand, this is also an important commercialization path. The increase of paying users will contribute to the solution of the loss of station B. power.
Therefore, B stands at the expense of heavy money in the live broadcast field.
In mid-December last year, Station B won the exclusive live broadcast rights of the League of Legends Global Finals in China from 2020 to 2022 at a price of 800 million yuan. With B station also participating in the auction are fast hands, fighting fish, tiger teeth Live platform.
League of Legends became the most watched game on station B
On the evening of December 19th, the famous anchor Feng Timo announced that he had signed an exclusive contract with Bilibili after the live broadcast of his birthday party. It is reported that Station B paid an annual price of 50 million yuan.
On December 23rd, Feng Timo started the first live broadcast. The peak of the live broadcast room reached 10.237 million. The number of fans rose by more than 400,000 within four hours of the live broadcast. After 75 days of stationing in station B, it already had 2.01 million fans.
However, station B, as a post-entry player, has to face a live broadcast market that is fiercely contested by the giants of various parties. YY, Huya, Douyu and other top platforms are competing for live broadcast users. Can station B’s heavy capital be quickly obtained? The returns are still unknown.
There is a lot of room for live broadcast demand from users. Chairman Chen Rui of Station B said, “China’s live broadcast market is close to the Red Sea. How can we compete with several leading platforms now. My answer has always been, in fact, we Is not an externally competitive business, it is a natural extension of the content ecology of our B site. It is an endogenous business. “
Whether the live broadcast business of station B will form its own unique ecology, which will be different from other live broadcast platforms, remains to be seen, but it is certain that this company will become an important competition on the live broadcast battlefield in 2020. By.
3, Run towards commercialization
In 2020, Station B will move towards the 11th year of its founding and three years on the market. From being cautious about commercialization to the fast track to commercialization, from a second-dimensional community called “Little Break Station”, To a wider field.
Chen Rui said in the earnings call: “In the new year, we will continue to strengthen the construction of content ecology and commercialization systems, and focus on proven user growth strategies to unlock the greater potential of the community.” p>
In 2018, B will be listed on NASDAQ
Attract moreWith a wide number of users, enhancing the commercialization ability has become the focus of further “growth” of station B.
B stands for open effect advertising in 2018. Brands started to place ads on B stands. After two years of development, the advertising business began to occupy an important part of revenue. The fourth quarter financial report showed that the revenue from the advertising business of Station B reached 289.6 million yuan, an increase of 81% year-on-year.
With regard to the impact of advertising on the user experience, Chen Rui mentioned that in the past year, the amount of advertising on station B has not changed, and it is predicted that it will not change in a period of time in the future. The current main goal.
In contrast, e-commerce business is a younger business line, which was officially launched in the fourth quarter of 2018, and has now become a new revenue growth point for station B.
In the fourth quarter of 2018, the financial report data showed that e-commerce and other revenues at station B were 81 million yuan, an increase of 254% year-on-year; in the first quarter of 2019 financial reports, e-commerce and other revenue at station B reached 96 million, an increase of 621% . By the latest financial report for the fourth quarter of 2019, the revenue of e-commerce business and other businesses had reached RMB 275.9 million, a year-on-year increase of 241%.
However, with the process of “breaking the circle” and commercialization, the key indicators that reflect the community atmosphere of station B have been slightly affected. The fourth quarter financial report showed that the number of monthly active UP masters and their contributions were 1 million and 2.8 million, with an average daily video playback of 710 million times and monthly average interactions of 2.4 billion times, showing a sequential decline. The data of Q3 are 1.1 million, 3.1 million, 725 million times and 2.5 billion times.
At present, investors are still optimistic about the development of Station B. Before the Q4 earnings report, Tencent had held 43.495 million Class Z ordinary shares through its subsidiaries, with a shareholding ratio of 18%.
Alibaba, another shareholder of Station B, has tilted more projects to Station B. In this morning’s earnings call, Li Min mentioned that in 2019, Station B and Alibaba will be on Double Eleven, A lot of new projects and cooperation were established during the Double Twelve. Alibaba also exclusively sponsored the New Year’s Eve Party at Station B. In the future, Station B will continue to deepen its relationship with Alibaba’s overall e-commerce ecosystem.
Affected by the epidemic, this year’s station B has become the choice of many people for online entertainment consumption. Will this make the data at station B even higher? After the financial report was announced today, Station B also made an outlook on the first quarter of this year’s revenue: the company’s net revenue in the first quarter of 2020The income will be between RMB 2.15 billion and RMB 2.20 billion.
At the same time that revenue and users continue to grow, Site B also faces an old question: when will it be profitable? This is also the pressure that Station B must face.
While getting rid of game dependencies, another business has become important: live streaming.
In the fourth quarter of last year, the financial report showed that the revenue of station B from live broadcast and value-added services was RMB 570.9 million, an increase of 183% compared with the same period last year.
The data is enough to see that B stands strong in the live broadcast business. This is not surprising. After the first year of live broadcast, the 1000 broadcast war, and the market reshuffle, the live broadcast field has ushered in another climax in 2019. The live broadcast has shifted from entertainment to “carrying goods”. In addition to Taobao live broadcast, Qiaoshou and Douyin are also working in the field of live broadcast, and the commercial value of live broadcast is amplified.
In the category column of station B, live broadcast plays an important role
For station B, on the one hand, the live broadcast service can help “break the circle” action. On the other hand, this is also an important commercialization path. The increase of paying users will contribute to the solution of the loss of station B. power.
Therefore, B stands at the expense of heavy money in the live broadcast field.
In mid-December last year, Station B won the exclusive live broadcast rights of the League of Legends Global Finals in China from 2020 to 2022 at a price of 800 million yuan. With B station also participating in the auction are fast hands, fighting fish, tiger teeth Live platform.
League of Legends became the most watched game on station B
On the evening of December 19th, the famous anchor Feng Timo announced that he had signed an exclusive contract with Bilibili after the live broadcast of his birthday party. It is reported that Station B paid an annual price of 50 million yuan.
On December 23rd, Feng Timo started the first live broadcast. The peak of the live broadcast room reached 10.237 million. The number of fans rose by more than 400,000 within four hours of the live broadcast. After 75 days of stationing in station B, it already had 2.01 million fans.
However, station B, as a post-entry player, has to face a live broadcast market that is fiercely contested by the giants of various parties. YY, Huya, Douyu and other top platforms are competing for live broadcast users. Can station B’s heavy capital be quickly obtained? The returns are still unknown.
There is a lot of room for live broadcast demand from users. Chairman Chen Rui of Station B said, “China’s live broadcast market is close to the Red Sea. How can we compete with several leading platforms now. My answer has always been, in fact, we Is not an externally competitive business, it is a natural extension of the content ecology of our B site. It is an endogenous business. “
Whether the live broadcast business of station B will form its own unique ecology, which will be different from other live broadcast platforms, remains to be seen, but it is certain that this company will become an important competition on the live broadcast battlefield in 2020. By.
3, Run towards commercialization
In 2020, Station B will move towards the 11th year of its founding and three years on the market. From being cautious about commercialization to the fast track to commercialization, from a second-dimensional community called “Little Break Station”, To a wider field.
Chen Rui said in the earnings call: “In the new year, we will continue to strengthen the construction of content ecology and commercialization systems, and focus on proven user growth strategies to unlock the greater potential of the community.” p>
In 2018, B will be listed on NASDAQ
Attract moreWith a wide number of users, enhancing the commercialization ability has become the focus of further “growth” of station B.
B stands for open effect advertising in 2018. Brands started to place ads on B stands. After two years of development, the advertising business began to occupy an important part of revenue. The fourth quarter financial report showed that the revenue from the advertising business of Station B reached 289.6 million yuan, an increase of 81% year-on-year.
With regard to the impact of advertising on the user experience, Chen Rui mentioned that in the past year, the amount of advertising on station B has not changed, and it is predicted that it will not change in a period of time in the future. The current main goal.
In contrast, e-commerce business is a younger business line, which was officially launched in the fourth quarter of 2018, and has now become a new revenue growth point for station B.
In the fourth quarter of 2018, the financial report data showed that e-commerce and other revenues at station B were 81 million yuan, an increase of 254% year-on-year; in the first quarter of 2019 financial reports, e-commerce and other revenue at station B reached 96 million, an increase of 621% . By the latest financial report for the fourth quarter of 2019, the revenue of e-commerce business and other businesses had reached RMB 275.9 million, a year-on-year increase of 241%.
However, with the process of “breaking the circle” and commercialization, the key indicators that reflect the community atmosphere of station B have been slightly affected. The fourth quarter financial report showed that the number of monthly active UP masters and their contributions were 1 million and 2.8 million, with an average daily video playback of 710 million times and monthly average interactions of 2.4 billion times, showing a sequential decline. The data of Q3 are 1.1 million, 3.1 million, 725 million times and 2.5 billion times.
At present, investors are still optimistic about the development of Station B. Before the Q4 earnings report, Tencent had held 43.495 million Class Z ordinary shares through its subsidiaries, with a shareholding ratio of 18%.
Alibaba, another shareholder of Station B, has tilted more projects to Station B. In this morning’s earnings call, Li Min mentioned that in 2019, Station B and Alibaba will be on Double Eleven, A lot of new projects and cooperation were established during the Double Twelve. Alibaba also exclusively sponsored the New Year’s Eve Party at Station B. In the future, Station B will continue to deepen its relationship with Alibaba’s overall e-commerce ecosystem.
Affected by the epidemic, this year’s station B has become the choice of many people for online entertainment consumption. Will this make the data at station B even higher? After the financial report was announced today, Station B also made an outlook on the first quarter of this year’s revenue: the company’s net revenue in the first quarter of 2020The income will be between RMB 2.15 billion and RMB 2.20 billion.
At the same time that revenue and users continue to grow, Site B also faces an old question: when will it be profitable? This is also the pressure that Station B must face.