Good day, welcome to the Bilibili 2021 second financial quarter results and business update conference call. Today's conference is being recorded. At this time, I would like to turn the conference to Juliet Yang, Executive Director of Investor Relations. Please go ahead.
Thank you, operator.
During this call, we'll discuss our business outlook and make forward-looking statements. These comments are based on our predictions and expectations as of today. 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 SEC and Hong Kong Stock Exchange. The non-GAAP financial measures we provided are for comparison purpose only. Definition of these measures and a reconciliation table are available in today's news release issued earlier today. As a reminder, this conference is being recorded. In addition, an investor presentation and webcast replay of this conference call will be available on Bilibili IR website at ir.bilibili.com.
Joining us today from Bilibili 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. I will now turn the call over to Mr. Fan, who will read the prepared remarks on behalf of Mr. Chen.
Thank you, Juliet Yang, and thank you everyone for participating in our 2021 second quarter results conference call. I'm pleased to deliver today's opening remarks on behalf of Mr. Chen. In August 2019, we announced our ambition to further grow our user base. Today, two years later, we found ourselves on the fast track to executing that strategy, achieving many great milestones along the way. In the second quarter, we added 14 million MAUs sequentially, bringing our total MAUs to 237 million, up 38% year-over-year. MOBA MAUs also rose by 44% year-over-year, reaching 220 million, and the DAUs reached 63 million, marking a 24% increase year-over-year. Importantly, our users become even more engaged, spending an average of 81 minutes per day on our platform. Marking the highest second quarter level in our operating history.
As we move into the peak summer season, we are pleased with the increasing momentum we have seen so far, which places us firmly on track to achieve our growth target. Our robust user growth also translated to strong pipeline expansion. In the second quarter, our total revenues, which are indeed RMB 4.5 billion up 72% year-on-year, once again meeting the high end of our guidance. Driven by improved products and services, MPUs was up 52% year-over-year to 21 million, and our pay-in ratio improved to 8.8% versus 7.5% in the same period last year. As the go-to destination for young Chinese, our platform has also gained wider recognition among advertisers across different industry verticals. In the second quarter, ad revenue grew by an impressive 201% year-over-year. Celebrating our 12-year anniversary on June 26th, we honor the many years we have grown with our users.
Over the past 12 years, we have remained true to our original aspirations to create an outstanding community for all of our users and content creators, and to bring Chinese original content to users worldwide. With this mission in our heart, we continue to uphold our public responsibility to our community. We insist on data authenticity, content positivity, and invest in making China original content. In July of this year, we published our first ESG report. Here we outline our ESG policies and actions, deepening our commitment to being a responsible public company with a goal of bringing positive social and cultural impact to the world. Looking ahead, the transformative effort of digitalization is creating an era of massive opportunity for us. Graphics and the text are being reinterpreted into video format to deliver information in more lively, vivid, and powerful ways.
As we see it, video format platforms will be the new gateway for people to connect to the internet and access the world. Bilibili is on track to be one of them. The momentum from video trends along with our solid strategic execution to expand our content, community, and commercialization, give us great confidence in our future sustainable growth. With that overview, I would now like to provide more granularity on our second quarter operation, beginning with content. Our PUGV ecosystem continues to strive representing 93% of our total video views in the second quarter. Over the past 12 years, we have created our platform as a destination for young people to showcase their talents and realize their career goals as professional content creators. We continue to improve our services to attract content creators, launch more tools, and modify our apps to make content creation easier.
In the second quarter, Bilibili was home to 2.4 million content creators, up 25% year-over-year, and monthly video submissions rose to 8.4 million in the second quarter, up 41% year-over-year. The increase in our metrics are no small feat given last year's high base. We continue to improve our traffic distribution mechanism to let high-quality content creators quickly match with their fans. In the second quarter, the number of content creators with more than 10,000 followers increased by 47% year-over-year. Our live broadcasting platform and the Sparkle advertising platform provide means for our content creators to unlock their commercial value while showcasing their talents. By the end of the second quarter, 409,000 content creators had also joined our ongoing cash incentive program. For the second quarter, our top five most populated verticals were the lifestyle, entertainment, game, tech and knowledge, and anime.
We see many new verticals on the rise, such as relationship, home decoration, fitness, beauty, and cosmetics. The emerging popularity of this category reflects the evolving content needs as we expand to wider demographics. Being a hub for young minds to discover and explore various interests, we firmly believe the content we provide should have positive impact on people's lives. We actively promote content that's informative, engaging, fulfilling, and help our users to become in better shape. It could be a small pleasure such as how to bake cookies or engage users in deeper thinking through a guidance into the cosmos. In the past 12 months, over 130 million users accessed paid knowledge content across a variety of subjects on our platform such as, solidifying the market share among users of Learn on Bilibili.
Turning to our OGV content, augmenting our PUGVs and unlocking commercialization potential, our high-quality OGV content continues to attract new users and convert paying users to our platform. In addition, many of our self-produced titles have become valuable IP assets. That we can build on as we leverage our network to further our IP influence. Representing Chinese culture and a part of China's soft power, Chinese animation has become increasingly popular domestically and internationally. Our investment in this category are paying off. A prime example for our evolving IP creation and self-production capability is Link Click, produced by our own animated studio. This Bilibili original IP has become an immediate hit following its release in April, accumulating over 150 million video views. Partnering with Sony Aniplex, Link Click was released in multiple countries and regions where it continued to be highly rated.
Other popular Chinese anime titles have also helped us to attract many new young users and have been well received by overseas anime lovers. These titles further solidify our leading position in the ACG space, including the final chapter of "Ling Cage," "Yinglong," "Legend of Hei," "Godji Shangxi" season two of "Carp Reborn," "Yuan Long," and "Heaven Official's Blessing." Our self-produced matchmaking variety show, was launched last week, and the music variety show, The Next Banner, team-up will be released in August. With these new OGV offerings, we hope to attract more young minds with relevant interests and stimulate even more discussion within our community. Turning to our community, our community continues to be a vibrant one. Users are incredibly engaged and are tightly bonded both to our content and with our platform. Over time, we have become a part of many people's regular daily routines.
For the second quarter, average daily video views were up by 48% year-over-year, reaching 1.7 billion. Monthly interactions was also up by 39% year-over-year with users generating 7.3 billion bullet chats, comments, live Bilibili moment posts, and virtual gifting. The number of official members on Bilibili are also increasing with high retention rates. By the end of second quarter 2021, 121 million people were official Bilibili members, an increase of 35% from the end of the second quarter last year. Our 12-month retention rate remained around 80%. In fact, more than 50% of our registered users in 2011 still remain active to this day, 10 years later. Over the years, we continue to evolve our community management system to ensure a friendly and welcoming community environment and inspiring positive social interactions.
We strongly believe that the community is a place for people to reach consensus, not to create disputes. In addition to our official member mechanism, we continue to reinforce community member patrol and enhance our designated response team to protect the integrity of the community. With these efforts, we hope to create an enjoyable and lovely place for all users and creators to share, learn and thrive. Let's look at our commercialization program. We continue to provide more products and services. As we execute our commercialization strategy, we are further realizing the deep value of our high-quality users. Starting with our games. In the second quarter, revenue from our mobile games remained relatively flat year-over-year at RMB 1.2 billion. Going into the second half of the year, our priorities are to expand our mobile game roster domestically and internationally.
For our next stage of growth, we're committed to building on our internal development capabilities. We currently have six game studios with over 1,000 members working on 12 projects, leveraging our game operating experience, which PUGV and Live Broadcasting ecosystem strong distribution power, and our deep understanding of users' preferences, we are confident we can bring exceptional internal development games to our users. We welcome the three new titles to our roster in the second quarter as the exclusive distributor in China, employing user-centric game promotion techniques such as clever memes and the PUGV content. Players immediately embraced Guardian Tales, Kan Gong Qi Guan Jian , with the game ranking highly on China's iOS top grossing and top download charts for weeks following its release. Our exclusively licensed indie game Dead Cells, Touhou Shidai , was another primary example of Bilibili distribution power.
By the end of July, over 2 million copies had been sold. Overseas market represents another growth opportunity. In May, we successfully launched Final Gear to Bilibili in South Korea. Praise for its dedicated art design and innovative gameplay, Final Gear quickly won the hearts of like-minded RPG lovers. For three weeks after its release, Final Gear continued to hover on Google Play's top 10 grossing chart in South Korea. This success story demonstrates our established capabilities in game selection and execution overseas markets. We believe we can build on this success with other titles in other regions. For our game pipeline, we currently have 11 titles approved for domestic release and a number of ACG titles slated for the international release in the coming quarter.
During our recent Bilibili Games press conference, the Fantasy World, we introduced 16 brand new titles including 10 exclusive licensed games and six self-developed projects. Catching to a new generation of gamers, these titles covered a wide area of genre including sandbox, multiplayer puzzle solving, real-person interactive RPG, simulation, and mobile. Each title features unique graphic design and a story setting reflecting Bilibili's understanding of Gen Z+ gamers' tastes and preferences. Looking at our VAS business, our VAS business remains strong with revenue reach RMB 1.6 billion in the second quarter, of 98% year-over-year. Being a natural extension to our video ecosystem, live broadcasting is a Bilibili way to bring high-quality video content to our users. For our content creators, it is also an important channel to engage with their followers and realize commercial value for their creation.
For game lovers, we are a one-stop platform for game-related videos esports tournament, and a place to engage with game KOLs. For ACG and entertainment enthusiasts, our content continues to expand with our huge anime library and unique live broadcasting entertainment, particularly virtual streamer or V-UP content. Over 60% of top global V-UP have now joined our Bilibili live broadcasting network. Making us the largest V-UP community in China. Turning to our premium member business, our dominant Gen Z+ users continue to show growing propensity to pay for premium content. By the end of the second quarter, the number of premium memberships reached another record high of 17.4 million, an increase of 56% year-over-year. For our advertising business, we are pleased with another quarter of explosive growth for our ad business. Revenues grow by 201% year-over-year to RMB 1.05 billion.
More and more advertisers have recognized us as a must-invest platform to gain visibility from Gen Z+ demographics. For the second quarter, the top five of targeting verticals were mobile games, digital and 3C products, skincare and cosmetics, e-commerce, and food and beverage. Along with increasing our brand awareness, we continue to improve the efficiency of our ad matching algorithm. Strengthen our ad products, giving us confidence in our ability to secure continuous ad revenue growth. In summary, we are pleased with our business progress so far. We have set the bar high and aim to reach higher. Building our content ecosystem driving model, we will continue to grow our vibrant community and enhance our commercialization capabilities. At the same time, we place great importance on our social responsibility with a goal of spreading positivity to the world around us.
Whether it's been through our Bilibili, sports, schools, disaster relief efforts, or pandemic support, it is essential for us to always lead with integrity and give back to society. This concludes Rui Chen's remarks. I will now provide a brief overview for our financial results for the second quarter of 2021 and outlook for the third quarter. Total net revenue for the second quarter was RMB 4.5 billion, up 72% from the same period of 2020. We continue to see a more balanced revenue mix driven by our diversified commercialization channels. Our revenue streams were approximately 27% mobile games, 36% VAS, 23% advertising, and 40% e-commerce and other business. Cost of revenue increased by 74% year-over-year to RMB 3.5 billion.
Revenue sharing cost, a key component of cost of revenues, were RMB 1.7 billion, representing a 70% increase on the same period in 2020. Gross profit increased by 64% year-over-year to RMB 989 million, and our gross margin was 22% in second quarter. Total operating expenses were RMB 2.5 billion, up 170% from the same period in 2020. Selling and marketing expenses were RMB 1.4 billion, representing a 107% increase year-over-year. The increase was primarily attributed to increased channel and marketing expenses to promote our app and brand, as well as promotional expenses for mobile games and an increase in headcount in sales and marketing personnel. G&A expenses was RMB 436 million, representing a 109% increase year-over-year. The increase was primarily due to increased headcount in general and administration, administrative personnel, increased share-based compensation expenses, and higher rental expenses.
R&D expenses were RMB 674 million, representing a 104% increase year-over-year. The increase was primarily due to increased headcount in research and development personnel and increased share-based compensation expenses. Net loss was RMB 1.1 billion for the second quarter of 2021. Compared with RMB 571 million in the same period of 2020. Adjusted net loss, which is a non-GAAP measure that excludes share-based compensation expenses, amortization expenses, income tax related to intangible assets acquired through business acquisitions, was RMB 858 million compared with RMB 476 million in the same period of 2020. Basic and diluted net loss per share was RMB 2.91. Adjusted basic and diluted net loss per share was RMB 2.23. As of June 30, 2021, we had cash and cash equivalents, time deposits, as well as short-term investments of RMB 27.6 billion compared with RMB 12.8 billion as of December 31, 2020.
Our sufficient cash reserve gives us more confidence in our ability to execute our growth strategy, which we believe will yield considerable returns in the long run. With that in mind, we are currently projecting net revenue for second quarter 2021 to be between RMB 5.1 billion and RMB 5.2 billion. Thank you for your attention. We would like now to open the call to your questions. Operator, please go ahead.
As a reminder, ladies and gentlemen, it is star followed by the number one on your telephone keypad if you wish to ask a question. If you wish to cancel your request, please press the pound or hash key. Please note there might be a slight pause as we collate the Q&A roster. Once again, it is star followed by the number one to ask a question. For the benefit of all participants on today's call, if you wish to ask a question to management in Chinese, please immediately repeat your question in English. Please limit your questions to one at a time. If you wish to have follow-up questions, please rejoin the queue. Once again, it is star one to ask a question. We have the first question. This is coming from the line of Lei Zhang from Bank of America. Please go ahead.
Thanks, management, for taking my question and congrats on strong set of results. My question is mainly on the user growth. Can you give us more color on the second quarter's user growth, which is typically a low season, but our growth number was pretty good. Secondly, how should we look at the second half user trend and our long-term user target? Thank you.
The first half performance, we did a pretty good job. I think that's all thanks to our content ecosystem-driven business model. This model's character is that the longer term it develops, we think the more competitive it is because this is a truly healthy business model that's self-driven and sustainable. I believe many of the participants for today's call is Bilibili user itself. I believe you might have the same feeling as I do while using Bilibili, that the content on Bilibili is more and more diversified and more high quality. Sometimes for my personal use on Bilibili, I will be surprised to find out the diversity, the vastity, and depth of our content offerings. We believe the business model that we're running is very, very healthy, and we believe this model can bring our long-term sustainable growth.
As for our long-term user guidance, currently we have already experienced half of Q3. Far what we have observed in Q3 that we see very good progress in terms of user growth for both quality and quantity. Early this year, we have given out a user forecast for this year that our MAU will reach 260 million. Far, we think we should be quite on track to deliver, achieve that goal, or even surpass it. As for our long-term goal of 400 million MAU by end of 2023, we so far feel very confident to achieve that goal. Well on track. One thing I want to emphasize that Bilibili's user growth, the best of it is its quality that we have maintained very high quality of user growth.
From our perspective, we're not only just attracting users to join Bilibili, but they actually really recognize the value of the platform and they're willing to stay with us for long term even though that we have Bilibili, there's a very fast, healthy user growth in the past. We've noticed that engagement level and the activeness of our user is still growing. That in the second quarter, our daily user time spent reached 81 minutes. That is the best result we've seen compared with our previous second quarter time spent. Additionally, we see the long-term engagement level for our user is also improving. Actually, we've seen that the registered user in 2018, 2019, and 2020, their DAU to MAU engagement level in 2021 is actually improving on a year-on-year basis.
Every quarter we release our daily Bilibili and our monthly user engagement number, and that year-on-year growth rate is actually faster than our MAU growth rate. All of those metrics shows that we are not only being able to attract users to join our platform, they actually stay with us and become more engaged.
Okay.
Thank you.
We have the next question. This is coming from Alex Poon from Morgan Stanley. Please go ahead.
I'll translate my question. My question is regarding the advertising business, congrats on very strong growth of over 200% for two quarters. Given that there are recently regulations around data privacy, flash screen ads, education, et cetera. How should we forecast and look at the second half growth? Where will the growth drivers come from? Thank you very much.
For second quarter, our quarter ad revenue has surpassed CNY 1 billion for the first time and achieving over 200% year-on-year growth. This is the 9th consecutive quarter that we deliver beat advertisement return. As we look into the second half and for the next few years, we've done several things to continue to improve our ad efficiencies and lay solid foundation for our future ad growth. First of all, we have continued to explore multiple scenarios for our ad products based on our clients' needs. We hope to help our clients to precisely reach their target audiences multiple times across various environments. Scenarios across Bilibili's product ecosystem and quickly build their brand image through just one campaign investment. We have already achieved that within this quarter.
Secondly, we are also actively exploring new ad formats including ad in a video format as well as connect advertising with content creators' creativity. The regulatory environment you mentioned, we believe that the foundation or the logic behind it is that the regulatory hope our consumer will be notified it is advertisement. What Bilibili has been practicing is, first of all of our advertisements will not be a blockage type of advertisement. We hope really to embed and connect and combine content with advertisement, make it more interchangeable. Good content could be a good commercial, and good commercial could be a good content. From that perspective, our integrated marketing solution as well as our content creators' own creation, their own production towards native ads is a perfect solution towards that problem.
Secondly, our ad efficiency was also greatly improving this quarter thanks to our ad tech and Auto team. We're also investing in frontier ad tech-related R&D. Thirdly is that we will be focusing on our leading verticals and provide industry-based ad solutions such as game, technology, education, e-commerce, and food and beverage, and etc . As we expand our user base, we hope to further expand our new industry verticals and verticals with sufficient ad budget, for example, such as automotive and new domestic consumer goods. All of that has reflected in our second quarter's performances. Most importantly, we have upgraded our organizational structure of our commercialization team. In the second quarter, we have integrated Bilibili commercialization network platform consists of commercial traffic management system, ad system, and our Sparkle advertisement system.
The purpose of doing so is to further optimize and allocate Bilibili's commercial resources and improve our commercialization efficiency. Additionally, we have also regrouped ourselves from integrated marketing team and our content creator-related sales team, forming one centralized sales center. The goal is to provide Bilibili features integrated marketing solutions and help our clients to improve their brand equity and achieve self-reinforcing marketing circulation on Bilibili. There's a saying that the platform's value equals the user's value on this platform, and Mr. Chen has repeatedly mentioned the value of the Bilibili user. Our current average age of our user is around 22.8 years old, and 86% of our users are under 35, and majority of them are in first and second-tier cities. For this group of cohort, they are the main consumption groups in China, and they represent the highest value of demographics.
Building on that advantage, we'll continue to reinforce our infrastructure and continue to improve our app product. For the second half of this year and one to three years ahead, we're still quite confident to maintain a healthy and fast growth for our app business. Thank you.
The next question comes from the line of Alex Yao from JPMorgan. Please go ahead.
Hello, Bilibili. My question is about the regulatory impact on gaming and the live streaming operation. Given the changing regulatory environment in this space and potentially more policy coming out in the next couple of quarters, how should we think about the impact on our gaming and the live streaming operation. Thank you.
Actually for 2021, what we have observed, there's no significant change of the regulatory environment towards games or towards live broadcasting. The speculation and discussion that's all over the Internet is just based on the media. It came from the media level. As a company ourselves, we have kept a regular dialogue with different government authorities. From the company's perspective, we actually haven't heard anything new. The discussion is generally from the media or the Internet users, it's just based on their own speculations or imaginations, there's no ground to those discussions. From our perspective, we think that from a global perspective, the regulation towards Internet content, game or live broadcasting, it will be more and more standardized and rule-based, that hasn't changed.
From our perspective, in the past, Bilibili has always responded very actively towards all kinds of regulations from the government. We believe our industry that's experiencing fast growth, certain regulation is actually beneficiary for this industry's long-term and healthy growth. We think as the industry's development, as it has more influence and impact towards the society, it's a very natural process for the regulation to become more rule-based and standardized. I believe the video industry, it will be a multi-year Bilibili, trillion RMB worth of industry. Games probably they're very likely to become the mainstream format of entertainment. In the past, it probably is emerging new verticals, and the details of those regulations were not mature. As you grow bigger, it's just very natural for the regulatory to form up a more standardized and rule-based regulatory environment.
We think that the government's regulation towards video content and game content has been very clear. In general, they do hope this industry will develop, and they encourage the development of this industry. They have been very specific on the things that they hope to regulate. One is on the minor protection. Two is the compliance of the content itself. In the past and up to now, Bilibili has been very clear on those requirements and has followed and implemented all the regulatory requirements. Generally, I think that the game industry will definitely move forward and experience better development. As an internet company, we'll be fully compliant with the key areas that the government has specifically required. One is on the minor protection, two is on the compliance of the content itself. My personal view is still very optimistic.
I believe that this industry will only become better and better under the supervision of the government. Generally, I think that this industry is quite different from 10 years ago, probably in 10 years ago, is still an early stage. There's not a very precisely regulated. 10 years later, this industry has become much more matured. The participants in this industry also gain more experience. Over 10 years of experience, I think we have already reached a consensus the industry players and the regulators is that the industry needs to be regulated toward a healthy development path. From Bilibili's perspective, we have strictly followed that rules. For example, on the minor protections, that's the revenue generated from user that's below 18 years old, The game revenue only takes around 1% of our total game revenue.
We have been implementing restrictions and rules to better protect our minors and follow the regulatory requirements. I think overall, the industry is growing towards a more healthy and positive track. I personally feel quite comfortable with the existing environment. To summarize, in the past few months, I personally don't believe there's a vast change of regulatory environment towards games or video. We believe the existing practice and requirement from the government is very appropriate and scientific. We believe our peers in this industry also agree with that and already reached a consensus that this industry needs to be moved towards a more healthy and regulated paths.
Okay.
The next question comes from the line of Felix Liu from UBS. Please go ahead. Bilibili.
Let me translate myself. First, congratulations on the strong set of results. My question is on the GP margin. I noticed the GP margin of this quarter showed some weakness Q-on-Q and year-on-year. May I know the reason or any color behind that? What is the management's thoughts on GP margin trend for the rest of this year and for the longer-term potential? Thank you.
Okay. This is Sam Fan. Let me take your question. You're right, a slight decrease of the GP margin Q2, actually it's mainly due to the change of the sales mix. In Q2, we saw the contribution of our game revenue actually was decreased as a percent of the whole revenue. There were also lower contributions from our cooperation games. Also for our live broadcasting revenue, the GP margin also declined a little bit because we launched a campaign in Q2 to offer higher revenue sharing ratio, it's a lighter performance-based incentive and it's for those new hosts only. Actually, if you look at the short-term GP margin trend, we are still in the early stage on the monetization side, so it will be factored over the quarters.
Before we get into the details of our long-term margin trend, I would like to emphasize on the strategic thinking of us for Bilibili. While we have the opportunities to quickly expand our user base, our priorities are always focused on the user growth and top line expansion rather than to limit our growth potential for the sake of the breakeven. When we are thinking about the path to the profitability, actually we are thinking what's the sensible, you know, revenue level to achieve a healthy breakeven status and whether it's sustainable to keep improving the profitability after the breakeven. For example, a company with like RMB 20 billion revenue and the same company with RMB 15 billion revenue, the bigger revenue size is surely, you know, more sustainable for long-term development.
Over the past 12 months, actually, we successfully achieved quality revenue growth with the expansion of our user base. Our MAUs was up 38% year-over-year, and monetization efficiency per MAU was also increasing. Specifically, the net games revenue per MAU actually increased by 72% year-on-year to around RMB 13.8 per quarter in Q2 2021. We believe there are plenty of upside because we grow our user base and improve our monetization efficiency. On the cost side, our key relatively fixed operating costs including the content, server, and the staff cost decreased from like 34% of the total revenue in 2019 to 28% in Q2 2021. As we grow our top line and improve the efficiency, our revenue mix will also be more diversified and our segment margin, such as live broadcasting and the online games as I mentioned, still have room to improve.
That's what we want to look at for the long-term gross profit margin trend.
Thank you. That makes sense. Very clear.
Thank you. We have the next question from Yiwen Zhang from China Renaissance. Please go ahead.
Hello, Bilibili. My name is Yiwen Zhang. Thanks for taking my question. My question is regarding gaming. In the first half, our gaming revenue is pretty stable. How should we look at the second half and also the longer-term gaming revenue growth? Additionally, when we do self-developed games, what key factors we to have in mind. Thank you.
When we look at our game revenue, it has experienced some of the slowdown in the first half of this year. The main reason that we see is because lack of supply for both of our exclusively licensed games and jointly operated games, for the revenue to grow, we need to get more new games. Because of the overall China issue process in the past six months, that there has been some of the delay and the supply has been slower than expected. For the same reason, some of our project has been delayed, and that was the main reason for the slowdown for our game revenue. We also see some positive signs as we operate our business. Besides the supply issue, we've seen on the demand side there's many positive signs.
On the user, the game-related user who watch game-related live broadcasting and video actually kept growing with our overall MAUs even with the undersupply for game titles for many new titles that we released in the first half of this year, including Guardian Tales and Sword Art Online, its new addition, new downloads, and new users has constantly break a single game record. On the other hand, for the old games, we are seeing its long operation cycle. Many of our games continue to grow in terms of revenue and users. For example, our Azur Lane, our exclusively licensed game Azur Lane, our jointly operated game Genshin Impact, we're seeing more users joining and it's closing up continuously to grow year-over-year.
Generally we think on Bilibili, the gamers are growing and their desire and need for high-quality game is also growing. As we see it, we think as long as we solve the supply problem, we should be able to solve the bottleneck that we've been seeing in the past quarters. The solution towards the supply problem is while we continue to enhance our licensing business, we will start to invest in our self-developed games. Actually in last year, we have already seen the trend of lack of supply in the market, and we started to invest in the self-developing business. Currently, we have over 1,000 team members in our self-development team, and there are multiple titles and projects under development. We'll be expecting to launch our own self-developed games in next year and the year after next year.
Based on our existing business scale, we think our self-developed game will be our number one priority. I believe in few years later, our self-developed game should be contributing over half of our game revenue. To summarize, we believe as our users continue to Bilibili expands, we should have more gamers and more demand for games. To solve the supply problem, we'll continue to reinforce our licensing game business while investing in self-developed games. In the past, we might have one engine for game revenue growth, which is the licensing, and in the next few years will be dual engine self-development, licensing, and jointly operation. We think that should power our game revenue growth.
Thank you. That concludes our question and answer session for today. I would like to turn the conference back to the management for any additional or closing comments.
Well, thank you again for joining us today. If you have any further questions, please contact me, Juliet Yang, Bilibili's IR Director, or TPG Investor Relations. Our contact information for IR in both China and the U.S. can be found on today's press release. Have a great day. Bye-bye.