Good day, and welcome to the Bilibili 2021 third quarter financial results and business update conference call. Today's conference is being recorded. At this time, I would like to turn the conference over 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 expectation 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 provide are for comparison purpose only. Definition of these measures and a reconciliation table are available in the news release we issued earlier today. As a reminder, this conference call is being recorded. In addition, an investor presentation and a webcast replay of this conference call will be available on the 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. Xin 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. Thank you everyone for participating in our 2021 Third Quarter Results conference call. I'm pleased to deliver today's opening remarks on behalf of Mr. Chen. Our strong third quarter's results once again demonstrate our ability to execute and deliver our growth strategy. In our peak summer season, we added over 30 million MAUs to our Bilibili community, bringing our total MAUs to 267 million, up 35% year-over-year. Mobile MAUs also rose to 250 million, and the DAUs came in at 72 million, representing growth of 36% and 35% respectively, both on year-over-year basis. This solid growth makes us more confident than ever that we can reach our MAU growth target by 2023. Importantly, our community is becoming more engaged and even stickier.
Expanded video content across formats and scenarios drove an increase in users' daily time spent on Bilibili, which reached 88 minutes in Q3, the highest we have ever seen in our operating history. It's particularly impressive and really shows the quality of our old and new users, given how fast we have grown. Other key operating metrics also grew substantially. Daily video views were up 77%- 2.3 billion. Monthly interactions were up 86%- 10 billion, and the monthly video submissions were up 80%- 10 million. Each of these metrics represents all-time highs and reflect the health of our community, as well as the strength of the engine that powers our growth. Our effort to grow our user base while maintaining a strong and tight-knit community also had a very positive impact on our commercialization progress.
Total revenues in Q3 reached RMB 5.2 billion, up 51% year-over-year, beating the high end of our previous guidance. By matching the right content to our growing number of Bilibili users, more traffic was converted to paying users. MPUs reached 24 million in the third quarter, up 59% year-over-year, and our paying ratio grew to 8.9%. Another factor driving our top line is our increasing appeal to business partners. This is particularly true for advertisers, who are eager to gain visibility with the growing number of Gen Z plus users on our platform. To reach an even broader number of users, last year, we redefined our brand proposition with the phrase, "All the videos you like." Today, more users recognize and view Bilibili as the go-to destination for high-quality video content.
In recent BrandZ report, Bilibili was ranked as the number two most valuable brand in China in terms of growth rate. With increasing recognition from advertisers across different industry verticals, our ad revenue grew by 110% year-over-year in the third quarter, even with macroeconomic challenges. Looking ahead, visualization trends continue to surge, rapidly emerging as the preferred and new norm. As a premium video platform with broad content and community appeal, we expect to see continued benefit from the increasing visualization movement. Carrying out our solid strategy to expand our content, community, and commercialization, we believe we are on the right path to becoming a valuable new gateway to the internet. We have also strengthened our commitment to social responsibility. Using our public influence, we are further developing an inclusive community, promoting positive content, and enacting better ESG practice.
With that overview, I would now like to walk you through some details of our third quarter operations. I will begin with the first part of our 3D model, our content. The key to our user growth lies with our broad unmatched PUGV's. At the center of our video ecosystem, PUGV's continue to flourish, accounting for 93% of our video views in the third quarter. We have carefully created an extensive platform for high-quality content creators to be recognized, appreciated, and valued. We continue to improve our toolkits and services to lower barriers of creation, including our evolving video editing app, Bijian, as well as various creator support programs. In the third quarter, monthly video submission hit a milestone of 10 million, up 80% year-over-year. The number of monthly active content creators also accelerated to 2.7 million, up 61% year-over-year.
With our continuous efforts to improve our traffic distribution mechanism, content creators can flourish and attract fans more easily. In the third quarter, content creators with more than 10,000 followers grew by 42% year-over-year. We continue to optimize and create new venues for them to realize their commercial value. These include our advertising matching platform, Sparkle, and the live broadcasting platform, bringing more commercialization opportunities to content creators at all levels. Our ongoing cash incentive program is also motivating an increasing number of mid-layer creators, encouraging their continuous content creation. By the end of the third quarter, 481,000 creators has benefited from this plan. Bilibili is home to thousands of interest-based content categories, and we are excited by our roadmap to keep building great new content experience for our users.
In the third quarter, the top five popular PUGV categories of lifestyle, game, entertainment, ACG, and knowledge continue to flourish, and we welcomed more users across various demographics. Other emerging verticals such as fitness, food, and travel are also gaining increasing interest. In addition to expanding content categories, we are also expanding our content formats to meet users' different needs. For example, Story Mode, our short-form video content in our mobile app, offers quick on-the-go entertainment, which is designed to suit users fragmented time. Conversely, our Bilibili app on Smart TV is the perfect solution for users seeking a high quality, high resolution, immersive video experience on a larger screen. We are encouraged by the strong momentum in user growth and engagement, and believe there is still a lot of room to grow ahead.
For our OGV department, our OGV content reinforces our leading PUGV verticals and introduces new ones to broaden our reach and our community's horizon. Leveraging both our platform and production capabilities, our OGV content is helping drive created in China content. For example, Chinese anime can breathe new life into classic tales, helping Chinese culture resonate with young generations. In the second half of this year, we released multiple Bilibili-produced anime titles, including the second seasons of Mega Hit, Carp Reborn, Yuan Long, and 100 Monster Bai Yao Pu, as well as The Daily Life of the Immortal King, Xian Wang de Richang Shenghuo, all of which were immediately reviewed by anime lovers. Similarly, our documentaries and variety shows are echoing within areas of young Chinese interest. These have achieved great success in promoting the Bilibili brand and building influence within these content verticals.
Our self-produced matchmaking hit, 90 Hun Jie Suo is a good example that deeply resonated with our Gen Z plus users and has given legs to discussions beyond the Bilibili community, trending on social media platforms for weeks. We also released a music variety show, The Next Banger, Wo De Yin Yue Ni Ting Ma, in Q3. This show supplements our newer music content creations and appeals to music lovers in our community. In addition, we launched a series of self-produced, widely welcomed food scene documentaries with Mo Tu Tao, including the upcoming third season of The Story of Chuaner, which reflects the growing interest in Chinese cuisine, as well as the lifestyle categories. Turning to our community. Our solid community shows the quality of our user growth. In the third quarter, daily video views increased by 77% year-over-year to 2.3 billion.
The monthly interactions were up 86%, reaching over 10 billion. Both metrics grow much faster than expected, and our users showed increasing engagement across our community. These interactions are the essential elements that make Bilibili experience so unique. At the same time, we are excited to see more casual users converting to official members by taking our unique community entrance exam. By the end of the third quarter, we grew the number of official members by 38% year-on-year to 133.6 million. For this co-user cohort, the 12-month retention rate remained above 80% in the third quarter. Once again, showing the strength of our community. Now, let's look at our commercialization progress. Our diverse revenue streams have become more and more balanced.
While revenue from each of our segments grow in the third quarter, our advertising revenues have become our largest growth engine, followed by our VAS and the e-commerce offering. Let's look at this in more detail. Within our commercialization segments, starting with our game. We see game as an advanced format of entertainment and a representation of culture soft power. Believing in the positive power of good games, our goal is to bring users more high quality game growth domestically and internationally with a heightened focus on internal development. Leveraging our deep understanding of user preference and our rich game operating experience, we are devoted to building our development capabilities for the new generation of players. At the same time, we are adamant about promoting exciting Chinese culture to large gaming world.
Looking specifically at our third quarter game performance, revenue from our mobile games increased by 9% year-over-year to RMB 1.4 billion. We added three new titles domestically to a roster of exclusive licensed games, all have been well-received by their followers. We also celebrated the fifth year anniversary of our legacy title, FGO, in September. Additionally, we successfully jointly publish more premium games, including Tencent's League of Legends and the NetEase Harry Potter, continuing to expand game offerings in diverse genres. As for our domestic game pipeline, nine games have acquired approval and are ready for domestic release in the coming quarters. In the meantime, we are rolling out more Chinese game masterpieces to global game market. Following our success of Final Gear called {inaudible}, we continue to build our distribution capabilities with the successful launch of Figure Story {inaudible} in South Korea in September.
The game became an instant hit, and we plan to replicate this success with more games overseas by leveraging our deep understanding of ACG lovers' tastes. Our game selection know-how, and our strong distribution power. We are committed to operating responsibly to promote healthy game behaviors and protect teenagers from gaming addiction. As early as 2019, we launched anti-addiction measures for teen players and have continued to strengthen control mechanisms. By the end of August, all Bilibili operating games fully complied with the latest regulations on restricting minor game play time in China. We would also like to note that revenues from players under 18 accounted for less than 1% of game revenues in September of 2021. Turning to our VAS business. Our VAS business is the perfect illustration of our business-to-consumer B2C model.
It represents our users' trust in our brand and willingness to pay for Bilibili content and services. In the third quarter, our VAS business continued to be our largest earner, reaching RMB 1.9 billion, up 95% year-over-year. Unlike any other live broadcasting platform, Bilibili live broadcasting have been uniquely integrated with our content ecosystem from day one. As a natural extension of video content, it amplifies our leading content verticals as well as the influence of our content creators. We continue to enrich our live broadcasting content during the period, providing more tools to facilitate our virtual host growth. We are excited to see the increasing influence of various game live content from our community, including League of Legends, Honor of Kings, and Genshin Impact. For example, we saw a record-breaking level of popularity for this year's League of Legends World Championship, S11, on Bilibili.
On the final game night, the peak concurrent viewers increased by over 160% compared with S10, and we achieved the highest DAU ever in our operating history. We are also diversifying within more entertainment-related offerings, especially for Virtual Uploader or VU related content. In Q3, we had triple-digit year-over-year growth in both number of active VUs and number of viewers in this category. We will continue to add and expand and strengthen our position as the world's leading virtual live broadcasting community. Thanks to our growing roster of high-quality OGV and the user tendency to pay for content, our premium member grew to 18.2 million by the end of third quarter, an increase of 42% year-over-year. For ACG lovers, our comic and audio drama content continued to attract more paying users.
Again, showing the high willingness of our users to pay for content they want, and the vast potential that offers as we add exciting new content. As for our advertising services, advertising represents our business-to-business B2B model and is also thriving. Despite macroeconomic sides, our advertising revenue continued to be robust in the third quarter, reaching total advertising revenues of RMB 1.2 billion, an increase of 110% year-over-year. Our enhanced brand influence and our growing number of quality user functions has as the building blocks of sustainable growth. As our integrated marketing campaign covers more industry customers, the creativity and the commercial value of our content creators is gaining wider recognition. More native ad videos went well in Q3, making Bilibili the most sought-after platform in China for advertisers.
We continue to promote our integrated marketing campaign and introduce more ad products to our inventory, helping our content creators monetize their talent. During the third quarter, our top five advertising verticals were mobile games, skincare and cosmetics, e-commerce, digital products, and food and beverage. As we move forward, we will continue to advance our growth strategy and create value for our stakeholders. At the same time, we are committed to shouldering our social responsibility to make the world a better place, including supporting rural education, disaster relief, reducing our carbon footprint, and furthering green initiatives. Moreover, as a proud Chinese corporate citizen with increasing reach, we dream that one day, using art forms such as games, anime, and PUGVs, we will be able to spread Chinese culture across the world. This concludes Mr. Chen's remarks.
I will now provide a brief overview of our financial results for third quarter of 2021 and outlook for the fourth quarter. Total net revenues for third quarter were RMB 5.2 billion, up 61% from the same period of 2020. We continue to see a more balanced revenue mix driven by our diversified commercialization channels. Our total net revenues breakdown by revenue stream was approximately 27% mobile games, 37% VAS, 33% advertising, and 13% e-commerce and other business. Cost of revenues increased by 70% year-over-year to RMB 4.2 billion. Revenue sharing costs, a key component of cost of revenues, were RMB 2.2 billion, representing 83% increase from the same period in 2020. Gross profit increased by 34% year-over-year to RMB 1 billion. Our gross margin was 19.6% in the third quarter.
Total operating expenses was RMB 2.9 b illion, up 57% from the same period in 2020. Selling marketing expenses was RMB 1.6 billion, representing a 37% increase year-over-year. The increase were primarily attributable to increased channel and marketing expenses to promote our app and brand, as well as promotional expenses for mobile game, and increase in our headcount in sales and marketing personnel. Q3 is our peak season in brand marketing and user acquisition efforts. We strategically are allocating more resources and are pleased with the strong momentum, showing both user growth-based growth as well as the quality of our users in terms of engagement levels. G&A expenses was RMB 474.9 million, representing an 87% increase year-over-year.
The increase were primarily due to increased headcount in general and administrative personnel, increased share-based compensation expenses, and higher rental expenses. R&D expenses were RMB 788.3 million, representing a 97% increase year-over-year. The increase were primarily due to increased headcount in research and development personnel and increased share-based compensation expenses. Net loss was RMB billion for the third quarter of 2021, compared with RMB 1.1 billion in the same period of 2020. Adjusted net loss, which a non-GAAP measure that excludes share-based compensation expenses, amortization expenses related to intangible assets acquired through business acquisitions, income tax related to intangible assets acquired through business acquisition, and the loss of fair value change in public trade companies was RMB 1.62 billion compared with RMB 0.97 billion in the same period of 2020. Basic and diluted net loss per share were each RMB 6.90.
Adjusted basic and diluted net loss per share were each RMB 4.16. As of September 13, 2021, we had a cash or cash equivalent time deposit as well as short-term investment of RMB 24.4 billion, compared with RMB 12.8 billion as of December 31, 2020. Our sufficient cash reserves gives us great confidence in our ability to execute our growth strategy, which we believe will yield considerable return in the long run. With that in mind, we are currently projecting net revenues for the fourth quarter of 2021 to be between RMB 5.7 billion and RMB 5.8 billion. Thank you for your attention. We would like now to open the call to your questions. Operator, please go ahead.
To ask a question you will need to press start one on your telephone. To withdraw the question you will need to press star one and the pound key. 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 question to one at a time.
Our first question comes from the line of Alex Poon from Morgan Stanley. Please go ahead.
{Foreign Language}
My first question is regarding user growth. The user growth in Q3 has exceeded previous guidance of RMB 260 million, and also the record of the time spent has reached a record high of 88 minutes per user per day. I wonder, management can explain what have we done in Q3 to achieve these results? A nd in Q4 and next year, what are our expectations? Thank you very much.
{Foreign Language}
For all this years, principles for Bilibili to grow, our users have remained the same, which is driven by very healthy content ecosystem, and the content ecosystem will continuously produce high-quality content to attract users.
{Foreign Language}
Every year we'll have evolved emphasized areas. For example, last year it was all about expansion in content categories. And for this year, besides expansion of content categories, we also hope to achieve expansion of consumption scenarios. Building a multi-scenario, multi-content category video community is our goal.
{Foreign Language}
I have always thought that video's main battlefield is beyond just mobile phones, although nowadays mobile phone is the main consumption scenario. However, I think as the technology evolves and such as, the 5G adoption and the overall hardware's involvement, in the future, more and more screens will carry the purpose of running a video, for example, on a larger screen.
{Foreign Language}
So right now, our OTT Smart TV's MAU has surpassed our MAUs on the PC side, becoming our number two user component. And I still think there's plenty of room for it to further expand in those areas.
{Foreign Language}
So not only that we have more users on the Smart TV side. Actually the time spent on the Smart TV is also much longer than the rest of the terminals.
{Foreign Language}
Bilibili probably has the most number of video that is in 4K, and that is also the reason why Bilibili's content is most suitable for those larger screens.
{Foreign Language}
Another example would be our Story Mode. Within the Story Mode, our content creator can upload videos that's in the horizontal mode, which was also well-loved by our users. And within t hat scenario, our user can enjoy those quick on-the-go entertainment content.
{Foreign Language}
Here I wanted to point out that in the third quarter, we not only have a fast-growing number of user base, the quality of those users are also very, very good. For example, the time spent, 88 minutes, is the highest we've seen in our operation history. And also the user engagement number also experienced a very fast growth. All of those indicate that we have grow with quality. That's very important.
{Foreign Language}
Our monthly user interactions, our average monthly user interaction in Q3 has reached a 10 billion milestone.
{Foreign Language}
And also, on the paying conversion in Q3, our paying user reached 24 million, and our paying ratio continues to rise, reaching 8.9% in the third quarter.
{Foreign Language}
Back in 2017, I predicted that Bilibili's paying ratio could reach double- digit, and I still believe that. Even though our users growing extremely fast, the quality of the user is also extremely high. Those user love our content and are very willing to pay for those content. We believe in the end of the day, the revenue generated from our users will be faster than the increase of our users' number.
{Foreign Language}
As for Q4's outlook, similar with our traditional seasonality, we expect Q4's user base to be stable or a slight increase. As for our user target for 2022, we have raised our three-year MAU target of 400 million users by 2023. And for next year, we will continue to execute on that strategy and to step by step achieve that target. And we are still very confident to be able to achieve that user goal by 2023.
{Foreign Language}
One thing I would like to add is about our Smart TV users. And originally, we thought this TV user versus our app user would have relatively higher overlap. As a matter of fact, the overlap is only about 20% and a lot of the Smart TV users are users coming from third, fourth and fifth tier city. These differences give us great confidence in terms of further penetrating our target cohort. We believe with Bilibili's fast content library and evolving scenario, we should be able to achieve our user target.
Thank you. Our next question comes from Daniel Chen from J.P. Morgan. Please go ahead.
{Foreign Language}
I was translating myself. My question is related to advertising. So w e have seen such a strong growth in the third quarter, a triple-digit year-over-year growth. What's our expectation into the fourth quarter of this year and also 2020? And also, are we seeing the impact from like a weak macro environment and also like a data security policies? Are we seeing those implications to our advertising revenue? Thank you.
{Foreign Language}
In Q3, our ad revenue reached RMB 1.17 billion, up over 110% year-on-year. This is the 10th consecutive quarter of beating expectation level of growth.
{Foreign Language}
So we have repeatedly discussed the theory of Bilibili's ad business logic and our efforts in building our infrastructures as well as strategies in the past few quarters, which I would not go into further details this time. However, I will share some of the data and new changes we've seen so far in the fourth quarter and also in the third quarter.
{Foreign Language}
First of all, we see continuous improvement in our ad efficiency thanks to our deep learning models' involvement as well as the further adoption of more innovative ad scenarios. The click-through rate of our feed ads improved by 30%, and we expect this will further drive our fourth quarter and next year ad revenue growth.
{Foreign Language}
Second, we further integrated multiple ad scenarios, as Razor mentioned, from our mobile app on our mobile phones to iPad, Smart TV, and PC. We continue to add new ad inventory, including ad products like inline, stories, and moments. As our user continues to expand, our ad can follow.
{Foreign Language}
The third point is on the Sparkle ad platform. We have over 150,000 content creators joined. This is up 25% year-over-year. We also have repetitive ad customers over 75%. Bilibili's content creators produced more and more highly creative native ad content, and is becoming the new beacon in China Ad Market. We'll continue to build on that success and further to integrate our one-stop solution of native ads, brand ads, feed ads, including our project take-off, which all have been widely acknowledged in the ad industry.
{Foreign Language}
The fourth point is during this year's Singles' Day, our daily ad GMV was over RMB 25 million, ranking number five in terms of ad budget market share. The overall conversion ROI ranked number one in the space. This further proves the high quality of our user and their potential consumption power. We expect next year in the overall consumer advertising industry will continue to raise our performances and achieve greater success.
{Foreign Language}
And the fifth and the sixth point is, first of all, on our ad clients, besides our traditional strong vertical like game, food and beverage, 3C, skincare and cosmetics, we see emerging verticals such as automotive, handbag and apparel are also growing rapidly. Last but not least is on our, we see new format of video-based ad as also driving the improvement of our ad efficiency and forming one-stop ad solution on Bilibili. Our Q3 number shows that video-based ad is two times more efficient than the traditional picture and text-based ads, and we expect the ECPS will have the potential to further grow by 100%.
{Foreign Language}
Lastly, on whether there's gonna be impact of the recent data security regulations, we don't think there will be any visible impact to our ad business. And we still have confidence to deliver healthy and fast growth in our ad segment in Q4 and in next year.
Thank you. The next question comes from the line of Brian Gong from Citi. Please go ahead.
{Foreign Language}
I will translate myself. Our ecosystem covers gaming, video, live streaming. And actually we already have a virtual community. Bilibili seems to be among those key platforms in China that could explore Metaverse opportunity. So, m y question is how does management see Bilibili's position in this theme, and how will Bilibili seize this opportunity? Thank you.
{Foreign Language}
As I mentioned in our investor conference earlier this year, Metaverse is a concept. It's not a product. Before this concept emerged, actually many of the elements associated with Metaverse already existed, whether it's virtual reality, a tight social community or a system, social system, or self-reinforcing ecosystem, it's already existed, and there are a lot of companies already developing product on those concepts. For example, Facebook and Tencent. An d actually Bilibili is one of them.
{Foreign Language}
So, that's why I think that if someone hears the concept of Metaverse and decided to get into this business probably would be a little bit too late. That is because those elements such as social system, self-reinforcing ecosystem, all of which cannot be done in a couple of months or even years.
{Foreign Language}
And I believe, there's a very, very important element within the Metaverse concept, which is the self-reinforcing content ecosystem. When we talk about Metaverse, we think, this is not something can be done by a singular company. You need to have massive content production capability to produce another world. So that's why we believe it requires someone deeply connected into this system, and through creating content, they will achieve benefit, hence bonding tighter, even tighter within the system itself.
{Foreign Language}
And Bilibili has a very large base of content creators are creating content in Bilibili system, and they are benefiting from this creation process. That makes Bilibili the ideal platform to further explore in this Metaverse concept. Actually, this is something Bilibili has always been practicing and believed in. And we have many examples linked to this concept. For example, Virtual Uploader. Our content creators can leverage technology like motion capture, virtual reality, augmented reality, turning themselves into another character in another world, and creating content such as singing, dancing, telling jokes, all of that, attracting users and making users fall in love with them. Itself, it is a perfect example of implementing the creation system into this Metaverse concept.
{Foreign Language}
When we're talking about Metaverse, independent, separate universe that attracting hundreds of millions of users who are getting attached to this, it requires way more than what we have now those content creators to continuously create content and keep them attracted. And that's the exact reason why we believe that Metaverse requires a self-reinforcing, deep content- creation ecosystem.
{Foreign Language}
And Bilibili has a very outstanding and healthy content creation ecosystem. And surrounding that ecosystem, we have already attracted a tight community of over 267 million MAUs. And within that 267 million MAUs, a vast majority are the most creative, most energetic young Chinese. So that's why I do think Bilibili is probably one of the best companies to practice or to get into the Metaverse business.
{Foreign Language}
However, I do think Metaverse is the concept in a long- time horizon, and it's also a future objective. We must have heard a lot of discussion about Metaverse, but I think it's mostly on a capital level or on a media level. I rarely heard anything on a product level, because it does require breakthrough in product and technologies. So that's why I do think this is still far ahead, but it's the future.
{Foreign Language}
I do believe this is a very, very beautiful vision in the future. It brings elevated user experience. The scenes that we've seen in the movie Ready Player One or in the anime Sword Art Online , this Metaverse concept does bring a very beautiful experience to users.
{Foreign Language}
I re-read a recent report, media report, criticizing Metaverse using examples like movie Ready Player One. However, I disagree. I believe technology is tool. It's the person that matters to make this tool to be beneficial to the society or make bad influence on the society. And Metaverse represents a new choice, not a replacement of the existing reality. It's always good to have additional choice, such as the invention of television and the invention of mobile phones. It provides alternative for you to choose not to replace the old thing. And I recently visit the Shanghai Auditorium that has the Space Museum. Actually a lot of the things that in the museum can be achieved in a much greater effect in virtual reality or in the Metaverse.
Let's imagine all those things that you're seeing in a auditorium and in the museum can be spread in the internet, allowing all the children, all the kids in China to physically see, get a touch of how the sun is looking like, how Saturn is looking like. So I believe it will bring great benefit to the society. It really depends on the people itself.
Thank you. The next question comes from the line of Lei Zhang from Bank of America Merrill Lynch. Please go ahead.
{Foreign Language}
Thanks management for taking my question. My question is mainly regarding live streaming business. Notice that we have a good performance in S11 recently. Looking forward, how should we look at your live streaming business, especially in content and monetization strategy? Thank you.
{Foreign Language}
Indeed, for this year's S11, on the final game night, we have record high peak concurrent user, and our platform's DAU also reached record high in our operating history. I discussed this with our internal team, and we're predicting that Bilibili's S11 final game night probably has had the highest peak concurrent user in China's live broadcasting history, internet live broadcasting history.
{Foreign Language}
At the same time, I want to emphasize that the S11 is not a one-way content output. Actually, during the S11, we have massive live broadcasting hosts is doing S game related live broadcasting. We also have tons of content creator creating derivative content associated with S11. For those videos alone, we have total video play over 2.8 billion times. And all these data points support the argument that Bilibili's live broadcasting is a natural extension of our video community, and it is forming a self-reinforcing ecosystem or a positive feedback loop within our community.
{Foreign Language}
And [8 years ago, investors would ask me why Bilibili would do live broadcasting. My answer was live broadcasting is not a content vertical, rather a capability. For Bilibili, it is an important component of our content ecosystem. With or without S11, our live broadcasting has already deeply embedded into our video community. For example, we see tons of knowledge, lifestyle, and entertainment related live broadcasting provided by our content creators, and we believe this has really integrated in our community. Live broadcasting on Bilibili is spreading its wings and making multiple times of influence and impact to our content community.
{Foreign Language}
Again, that I think Bilibili's live broadcasting is actually breaking a lot of people's stereotypes about live broadcasting.
While in the past, when people start thinking about live broadcasting, it is showroom or eSports. However, for Bilibili's live broadcasting, our content category covers a wide array of verticals. Basically what content verticals we have on the video platform, we have it on live broadcasting. And most importantly, we are forcing layers of positive feedback loop in terms of content verticals and as well as our content creators. For example, our content creator in games, they can also do games related live broadcasting. And we're also helping our content creator to expand their content creations, category. For example, there's a food content creator, who's also very good at playing games. He's actually ranking the top live broadcasting host in the Genshin Impact content creator. And most importantly, I do believe that live broadcasting is a very healthy mechanism to help our content creator to make money. For example, to charge people from watching videos, it's kind of not a positive feedback, it's probably not the best monetization method, but if you love a content creator so much, you would be very willing to watching his live broadcasting, buying his recommended product, or just simply tip him to showcase your appreciation.
And that's also the exact reason that we believe that live broadcasting is a very important component within Bilibili's community. And this chemistry that is playing in the community is creating a very benefit, it's a very large benefit to all the participants.
{Foreign Language}
As we look ahead, we'll continue to implement our content ecosystem-driven business model. We'll continue to integrate live broadcasting with our video business. We'll continue to penetrate the two user groups, content creator and live broadcasting host. We also do believe that all the video user could potentially become live broadcasting users. Second, we're ready to discover and develop Bilibili's unique live broadcasting categories.
I think one of the reason that our video platform is so successful is that we have our own unique content category, such as o2remix and Knowledge Sector. Those content verticals has Bilibili's unique taste to it. And so it is what we plan for our live broadcasting business. We want to develop our own unique content categories that has Bilibili flavor to it.
That concludes the question and answer session. I would like to turn the conference back over to management for any additional or closing comments.
Thank you once again for joining us today. If you have any further questions, please contact me, Juliet Yang, Bilibili's IR Director, or The Piacente Group 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.