Good day, and welcome to the Bilibili 2020 4th Quarter and Full Year Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Juliet Yang, Senior Director of Investor Relations. Please go ahead.
Thank you, operator. Please note the discussion today will contain forward looking statements relating to the company's future performance and are intended to qualify the Safe Harbor from liability as established by the U. S. Private Securities Litigation Reform Act. Such statements are not guarantees of the future performance and are subject to certain risks and uncertainties, assumptions and other factors.
Some of these risks are beyond the company's control and could cause actual results to differ materially from those mentioned in today's press release and in this Discussion. A general discussion of the risk factors that could affect Bilibili's business and financial results is included in certain filings The company does not undertake any obligation to update this forward looking information, except as required by law. During today's call, management will also discuss certain non GAAP financial measures for comparison purpose only. For a definition of non GAAP financial measures and a reconciliation of GAAP to non GAAP financial results, Please see the 2020 4th quarter and full year financial results news release issued earlier today. As a reminder, this conference is being recorded.
In addition, an investor presentation and A webcast replay of this conference call will be available on Bilibili Investor Relations website at ir. Bilibili .com. Joining us today on the call from Bilibili's senior management are Mr. Rui Chen, Chairman of the Board and Chief Executive Officer Ms. Carly Li, Vice Chairwoman of the Board and Chief Operating Officer and Mr.
Sam Fan, Chief Financial Officer. And I will now turn the call over to Mr. Fan, who will read prepared remarks on behalf of Mr. Chen.
Thank you, Juliet, and thank you, everyone, for participating in our 20 2Q4 and fiscal year end conference call. I'm pleased to deliver today's opening remarks on behalf of Mr. Chen. We had an exceptional year in 2020. Through a challenging micro environment, we remain focused on our growth strategies and achieved record results.
In the Q4, our MAUs reached 202,000,000, up 55% year over year, marking a new starting point for our growth journey. In addition, mobile MAUs were up 61% year over year to 187,000,000. On the user engagement front, we had 54,000,000 DAUs, up 42% year over year. Our users remain highly engaged and spend an average 75 minutes on our platform daily in the Q4, reflecting the strong appeal of Bilibili content offerings and the thickness of our growing community. The high quality and rapid growth of our user base laid a solid foundation for our commercialization efforts.
In the 4th quarter, Our premium content services continue to drive premium user conversion. NPUs reached RMB18 1,000,000 up 103 percent year over year. Our overall paying ratio increased to 8.9% compared with 6.8% in same period last year. At the same time, more business partners are in the Q4 year over year, marking the 7th consecutive quarter of accelerated growth on a year over year basis. On the back of this momentum, our total revenues reached another record high of RMB3.8 billion in the 4th quarter and RMB12 1,000,000,000 for the full year.
This represents impressive year over year growth of 91% and 77%, respectively. We attribute our success to our broad content library, engaging community experience and the rising brand awareness. In 2020, we made some key moves that resulted in a significant boost to our brand. We kicked off 2020 with a blockbuster New Year's Eve gala followed by our Hou La, Zhixiangfeng, Marketing Trilogy and introduced our brand proposition, all the videos you like. We carried these efforts into the 4th quarter and across the year with our 2nd New Year's Eve Gala, the most beautiful night of 2020.
During the live broadcast night, The popularity index more than tripled compared with our 2019 event, achieving 120,000,000 playbacks within 48 hours. These successful marketing initiatives have allowed us to connect and resonate with more users and reach a more diverse audience. And we believe We can continue with the strong momentum in 2021. Building on the success of our 2020 user growth, One thing is clear, our appeal is much broader and reaches beyond Gen Z. We are now widely recognized by a larger audience that now includes those born between 1985 to 2,009, Popularly referred to as the Gen Z plus demographic, this group of users Share similar attributes and we have established and parallelized my share among these diverse Gen Z plus community.
According to the iResearch latest report, over 86% of our MAUs were below the age of 35 in 2020. This group is the driving force for all kinds of consumption in China, especially the video based consumption market. In 2019, Jainz Plus contributed 65% of the video based market dollars. Video continues to be integrated with more and more It is becoming the primary meaning of communicate, entertain and exchange information. This visualization trend is creating massive market opportunities in China.
The video based market expected to reach RMB1.8 According to iResearch, as a full spectrum video community platform and a go to platform for the J and D demographic, We are at the forefront of this exciting visualization opportunity. With that, I will walk you through some of our activities during the Q4, Beginning with our content. Our content creators are extremely important to us. Their creation represents their vision of the world around them, which reflects an influence in Gen Z Plus preferences. For the Q4, we had approximately 1,900,000 content creators Uploading 5,900,000 videos per month, representing increases of 88% and 109%, respectively, both year over year.
We continue to provide our content creators with support on multiple levels. These include video editing tools and the tutoring that help facilitate new creations, as well as monitor rewards in our advertising platform. Most importantly, we continue to improve our algorithm to make sure the right content is distributed to the right audiences, While promoting high quality original content, these attributes will make Bilibili the most sought after platform for We continue to enhance our content offerings both in deep and in breadth. In the Q4, our most popular content verticals In terms of video views were lifestyle, game, entertainment, anime and the technology. Among those leading verticals, knowledge was one of the fastest growing verticals attracting numerous intellects to our platform In the Q4, our tech and knowledge verticals attract a wider audience and has contributed For 2021, as we grow with our existing users and attract new ones, We have identified several areas with large and growing demand such as automotive, home furnishing, Relationships and Parenting.
In the January 2021, we launched the story mod, Our new PUGV content format that allows users to enjoy short videos in vertical formats. With Story Mode, we hope to satisfy user diverse needs by providing them with their seamless access to our high quality content, Ranging from seconds for the measurement time to minutes and hours for more immersive experiences. We are encouraged by the initial results brought by the new model. Turning to our OGV content. Our years of investment in Chinese anime Going forward in 2020, Chinese anime MAUs has surpassed Japanese anime MAUs and have become our number one category Within OGB, over 160,000,000 users watch Chinese anime on our platform in 2020.
During the year, we released a number of popular Chinese anime titles and hit new records for attracting new users and converting them to paying members. These include Cap Rebound, Yuanlong, and the more Recently launched Heaven Official's pleasing, Tian Guan Ci Fu, forming valuable API sets. In November, we heard our 3rd annual Chinese anime press conference made by Bilibili. Here, we introduced 33 new titles that we plan to release over the next 2 years. In addition to market developments in China, we are excited to be a pioneer in promoting Chinese anime worldwide.
Some of our international inventors include our cooperation with Sony Funimation and Netflix to stream Bilibili Our documentary variety shows And TV series continue to enrich our content library as well. In particular, we have been very successful with our recent Endeavors in self produced TV drama, Rain For Young, and the music reality show, Ra for Youth, Not only have we attracted new users, generated sizable memberships and advertising revenue With these additions, we have also opened the gateway to new content verticals and formats. Turning to our community, As our user base continues to grow, particularly among the Gen Z plus audience, we are further nurturing bonds and sponsoring our Committed time, in the 4th quarter, our daily video views reached 1,200,000,000, up 70% year over year. Monthly interactions were also up by 94% year over year with users generating 4,700,000,000 bullet charts, Our member Numbers reached new heights as well. At the end of Q4, we surpassed the milestone of our first 100,000,000 official members, With 103,000,000 official members, up 51% year over year, our 12 month retention also remains strong, Well above 80%.
This consistent metrics are strong testimony to the success of our platform and growth strategies. Turning to our commercialization progress. We diversified our game offering even further in 2020, Led by existing popular games such as Princess Connect, FGO and Nazuna Line, mobile game revenue Grew to RMB1.1 billion in the 4th quarter, up 30% year over year. Old and new fans I'd like to continue to fight great draw in these games, driving their steady performances. Gingshen Impact, Yuan Shen continued to win fans with massive success and Bilibili is a game primarily Android partner in China.
As for Gamepad Lite, we have 14 titles that have obtained approvals and are scheduled for launch. We are very excited about our new exclusive licensed games. In the upcoming quarters, We plan to bring players Sword Art Online, And the Guardian Tales, as for our jointly operated games, we continue to be a partner of choice For leading game developers, in 2021, we will continue to work with top developers to bring more premium games to Chinese users, such as NetEase Harry Potter and the Dibro, as well as Tencent's League of Legends mobile games. Turning to our VAS business. Driven by our premium memberships and live broadcasting business, revenue from VAS increased by 118% year over year, reaching RMB1.2 billion in the 4th quarter.
Primary memberships are on the rise, gaining viewers exclusive or advanced access to our OGB content. At the end of the Q4, we had engaged 14,500,000 premium members, up 91% The majority of our members pay for annual memberships or our automated renew programs As a natural extension of our media platform, we continue to build our live broadcasting content ecosystem. While more hosts are attracted to Bilibili, more content creators are leveraging our live broadcasting platform to connect with fans and showcase their talent. Having secured 3 years of exclusive live broadcasting rights to the League of Legends World Championship in China, We further enhanced our e sports content offering with the recent S10 event hitting record high viewership. Last but not least, let's review our advertising business.
Thanks to our strong user growth and enhanced Advertisers are even more aware of our users' value and coming to Bilibili for increased visibility. At the same time, Our ad efficiency and effectiveness further improves as our algorithm improves. Revenue from advertising segment reached RMB722 million, up 149% year over year In the Q4, games, food and beverage, e commerce, skincare and cosmetics and 3C products were the leading verticals in the 4th quarter. Our New Year Eve Gala proved to be a great job for advertisers This year, we welcome the new customer friend, Yuanqi Sunning and the traditional Our results speak for themselves, And our business continue to gain momentum. Bilibili is decidedly the go to platform capturing the hearts where video is becoming the dominant vertical for people to get connect, inform and entertain.
The trend of visualization is only getting started. At the same time, China's overall economic is on the rise and is expected to continue with vigorous growth. We are not only helping In 2021, we will continue to invest in our content and our brand to expand our reach and further capitalize on this This concludes Mr. Chen's remarks. I will now provide a brief overview of our financial results for the Q4 and full year of 2020.
Total net revenues for the Q4 were RMB3.8 billion, Up 91% from the same period of 2019, in the Q4, we continue to see a more balanced and diversified revenue mix. Our total net revenues breakdown by streams was approximately 29% games, 33% BaaS, 19% advertising and 19% e commerce and other business. Cost of revenues was RMB1.3 billion, also an 80% increase from the same period in 2019. Gross profit increased by 137% year over year to RMB944.1 million. Our gross margin improved to 20.6% in the 4th quarter compared with 19.8% from the same period last year.
Total operating expenses were RMB1.8 billion, up 126% from the same period In 2019, selling and marketing expenses were RMB1 1,000,000,000, representing a 147% increase year over year. The increase was primarily attributed to the increased channel and marketing expenses associated with our app and brand, such as our 2020 branding campaigns as well as expenses for our mobile games and the salary marketing personnel. By allocating resources to build our brand and appeal among a broader audience, we achieved a substantial growth in 2020. We believe that efforts will be further reaching with Positive impact to the market over the long run. We can already see the benefit of this strategy through our broadened user base, Demographics content and overall industry leadership, we plan to continue building on this momentum in 2021 further strengthen and expand our virtuous growth cycle.
G and A expenses were RMB343 1,000,000, representing 115% increase year over year. The increase was primarily due to increased headcount in general administrative personnel, Increased share based compensation expenses, increased allowance for doubtful accounts and higher rental expenses. R and D expenses were RMB484 1,000,000, representing a 97% 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 RMB844 1,000,000 for the Q4 of 2020 compared to RMB387 1,000,000 in the same period of 2019.
Adjusted net loss, which is a non GAAP measure that excludes share based compensation expenses and amortization expenses related to the intangible assets acquired through Business acquisitions and income tax related to the intangible assets acquired through business acquisition was RMB682 1,000,000 compared to RMB337 1,000,000 in the same period of 2019. Basic and diluted net loss per share was RMB2.34. Adjusted basic and diluted net loss per share For the full year of 2020, our total net revenues increased by 77% to RMB12 1,000,000,000. Notably, we saw a shift in our revenue streams with 60% of our total revenues in 2020 coming from our non game business And the gain accounted for 40%. Gross profit for the 2020 full year increased 139% to RMB2.8 billion.
Net loss for 2020 was RMB3.1 billion compared to RMB1.3 billion in 2019. Adjusted net loss for 2020 was RMB2.6 billion compared with RMB1.1 billion in 2019. Basic and diluted net loss per share for 2020 was RMB8.71. This compared with RMB3.99 in 2019. Adjusted basic and diluted net loss per share was RMB7.46 compared with RMB3.3 in 2019.
As of December 31, 2020, we had cash and cash equivalents, time deposits as well as short term investments of RMB12.8 billion compared to RMB8.1 billion as of December 31, 2019. With that in mind, we are currently projecting net revenues for the Q1 of 2021 to be between RMB3.7 billion and RMB3.8 billion. Thank you for your attention. We would like now to open the call to your questions. Operator, please go ahead.
Thank you so much. Ladies and gentlemen, we will now begin the question and answer Thank you. And our first question comes from the line of Alex Poon from Morgan Stanley. Alex, your line is now open.
My first question is related to the user growth in coming years and the strategy and in terms of The product strategy, etcetera, at the same time, how can we maintain the user quality? For example, in Q4, we noticed there is a small decline in terms of DAU and MAU ratio And also the user time spent on a year over year basis. Thank you very much.
So user growth has always Our priority in looking after the user growth strategy. So under the rapid trend of visualization, We believe every Internet user could potentially become a video user, and this is creating So I believe the user growth for all the platform really depends on the quality of the content. Whichever platform has the highest quality content, the user will tend to That will turn to that platform. And for Bilibili, we have always practiced the philosophy So the reason why that Bilibili can continuously produce high quality content is because we So as we attract our users And our commercial efforts is also organically combined and merged with our content As well as our community. So in many ways, it does not affect our user experience.
On the Contrary, we think it's a part it's becoming part of our content offerings and community experience. So looking at the past 2 years, we have experienced a very high quality and Rapid user growth. And you can you may even notice that our reach for broader audience On top of our user number is expanding. We think that we are expanding our influential power of multiple content verticals. In the past, People might have the perception that Bilibili has all the content beyond generations like such as anime, games, music and entertainment.
And in 2020, you will notice that there are many verticals that are emerging that have the mass market appeal And knowledge of itself is the high quality content for So on top of our further ever growing PUGV content ecosystem, we've noticed our in our OGV department, There has been a great synergy. For example, our traditional strong verticals, anime and documentary, Tenureously to thrive. And on the other hand, we have seen new emerging content categories such as our New Year's Gala, Our films and TV productions is also welcoming more and more audiences. So all the above, we can summarize our user growth can at least meet 3 1, as we will continue to penetrate the young generations. In the past, It might be the Gen Z demographic, people born in between 1990 to 2,009.
We believe we can further enrich Expand to the age group that's born after 1985 or even 1980. So on the second point is On the quality of the content, we believe we can become a leading player in more and more So for example, in the past, people may have the perception the best anime And the best game content is on Bilibili. Going forward, we hope to establish more mind share And higher ground on more and more verticals, for example, in knowledge and in many more. And we believe there will be more high quality content in various content verticals will So by achieving the first Two points. We are confident we can continue to take a leading role in terms of the taste of the Content and leading the young generation's preferences over content and over our Our artistic preferences, we will continue to maintain a highly engaged and friendly Community environment, at the same time, increased our commercialization capability.
So in the past, we have done a lot of work setting up Our user growth and we have done a lot of Guan work and we are very prudent when it comes to setting Plans and strategies. And in the past, we have set 2 user growth. One is back in 2018. Back then, we set a user target of 150 to achieve 150 in 2020. Then we update that user Go back in 2019, which is to refresh the user target to So in the past, the goal that we announced, we believe We have very good track record in delivering those goals.
As for the 220,000,000 by 2021, we are We are setting up a new 3 year user target, which we believe we can achieve 400,000,000 MAUs by end of
2023.
As we move forward, we believe that The Internet company's competition over user is only getting more and more Despite challenging environment, we remain confident about our goals. We will further To enhance our advantage in our content ecosystem as well as Our engaging community, we are quite confident to achieve that user guidance. So as for the DAU to MAU ratio, I would like to emphasize that in the 4th And we have made the judgment back in the 3rd quarter that as our user has experienced fast growth, the DAU Per DAU was 75 minutes and compared to the same period last year, only a slight decrease, which we believe is a normal case. So when we look at the time spent per DAU in January this year, Actually improved to above 18 minutes. So this is also in check with our overall judgment on the time So Carly would like to supplement one point.
One is that, as Mr. Chen mentioned, our growth model All the right moves in expanding Bilibili brand name in 2020. As we look forward to 2021 will continue to build on our further expand our branding perception and branding awareness through multiple marketing events. So we've done user perception study on our brand awareness back in 2019, 2020, and the number was Over 60% in 2020, we hope with number of our branding initiatives and marketing event, We hope to increase that perception rate above 90% in 2021. Okay.
And one more thing is that on the branding initiatives, We are going to launch several campaigns in cooperation with company events and a big content launch to increase our brand perception and brand awareness. At the same time, we'll Also work with other leading part leading Internet players To increase our perceptions, along with Active user acquisition and channel acquisitions. Okay.
And your next question comes from the line of Alex Yao of JPMorgan. Alex, your line is now open.
So my first question is about the advertising business, Which has been accelerating almost 4 quarters in a row in the past several quarters. Can you guys elaborate a A bit more on the growth driver behind this rapid growing advertising business. Also, can you talk about the advertising revenue growth outlook A follow-up question on this advertising monetization is that we noticed You guys have recently launched a number of KOL economy monetization models such Can you talk through your latest thinking on the KOL economy monetization on Bilibili? And also can you talk about the feedback from both advertisers as well as content creators on The introduction of Huahua. Thank you.
So first of all, we have And Bilibili is the platform that has the most concentrated Young generation users, as we believe as the Gen Z become the mainstream of the society, They have more saying and more spending power across various industry verticals. And the next decade will be the new consumer upgrade, new consumer Branding upgrade for China's overall consumption industry as Bilibili's user has the most influence and more most spending power within this vertical, Bilibili is becoming the must invest So in 2020, as we experience fast and high quality user growth, our influence over Branding brand advertising is also increasing. Over the years, we have continuously improved our Commercial middle platform capabilities and our advertising revenue has experienced So for 2021, We do not intend to increase our outload, and we're going to maintain the outload around 5%. From our perspective, We are still at the phase 2 building our infrastructure, and our advertising business So first of all, we will continue to enhance our middle platform capability And our algorithm improved. Our overall advertising efficiency will also improve.
And the efficiency is not only reflect on the increase of our advertising revenue, it also reflects On other business, for example, our game jointly jointly operated games improvement also depends So on top of our news feeds, we tend to enhance our Business line includes live broadcasting, comic and our audio drama platform. And as For the multi screen, that goes to our mobile device, on iPad, on PC and on our smart televisions to help So the 3rd Point would be to increase our integrated marketing efficiency and standardize more of the procedures among This overall integrated marketing campaign. In 2020, we have significantly improved the add efficiencies on single users. In 2021, we are going to Elevate that to a single industry on a single industry basis And last but not least, I'll add some point on our Sparkle advertising platforms. This platform was launched in Q3 last year.
It is a matchmaking platform Content creator and various advertising platform advertisers. So this the born of the platform is a natural development of our Advertisers' needs and our content creators' needs as more content creator need commercialization, Empowerment and our content, our advertisers also need efficient ways to C. Wei:] Influence users' decision making. So the bond of the platform is to connect both And in 2021, we'll spend more efforts in improving this So in summary, we are quite confident Of our advertising revenue growth, we believe we can still maintain a high growth rate that's above the overall growth rate of the company.
Thank you so much. And that concludes the question and answer session. I would like to turn the conference back over to the management for any additional or closing comments.
Well, thank you once again for joining us today. If you have further questions, Please contact myself, Julie Yang, Bilibili's Senior IR Director or TPG, Investor Relations. Our contact information for IR in both China and the U. S. Can be found in today's press release.
Have a great day. Thank you.
And that does conclude our conference for today. Thank you for participating. You may all now disconnect.