Good day, and welcome to the Bilibili 2020 second quarter 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 for the safe harbor from liability as established by the U.S. Private Securities Litigation Reform Act. Such statements are not guarantees of 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 this discussion. A general discussion of the risk factors that could affect Bilibili's business and financial results is included in certain filings of the company with the Securities and Exchange Commission. The company does not undertake any obligation to update this forward-looking information, except as required by law. During today's call, management will also discuss certain non-GAAP financial measures for comparison purpose only.
For a definition of non-GAAP financial measures and the reconciliation of GAAP to non-GAAP financial results, please see the 2020 second quarter financial results news release 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 Investor Relations website at ir.Bilibili.com. Joining us today on the call 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. Thank you, everyone, for participating in our 2020 second quarter conference call. I'm pleased to deliver today's opening remarks on behalf of Mr. Chen. The second quarter was another strong quarter of growth for Bilibili. Owing to our increasing diverse content and wider awareness of our brand, we are reaching a much broader audience. For the second quarter, MAUs were 172 million, up 65%, and DAUs were up 52% to 51 million, both on a year-over-year basis. Mobile MAUs continue to be our fastest grower, reaching 153 million in the period, up 59% compared to the same period in 2019. Along with expanded user base, user engagement continued to be strong. In the second quarter, our users spent on average 79- minutes per day on our Bilibili app, making us one of the most popular platforms among our peers.
As we move into our peak summer season with solid execution of our initiatives, we are looking forward to further building on our user growth momentum. We continue to roll out more Premium content and services, strengthen our monetization capabilities, and we are increasingly converting traffic to paid users. Our MPUs were up 105% year-over-year, reaching 12.9 million in the second quarter. Our paying ratio improved to 7.5% compared to 5.7% from the same period last year. These increases fueled our top-line growth, and we once again reached a record high revenues of RMB 2.6 billion, beating the high end of our guidance. Our growth margin expanded to 23% from 16% in the second quarter of last year, as we continue to realize more operating leverage. We remain committed to our user growth focus strategy.
After 11 years of cultivation, we believe our content pool is deep and diverse enough to accommodate a much larger user base, and our community is friendly and robust enough to retain those newcomers. Hence, we have made more proactive user growth plans. Our primary areas of focus are creating additional brand awareness and targeted channel acquisition. In the second quarter, we launched a series of campaigns aimed at expanding the Bilibili brand name among a broader audience, in tandem with expanding our content appeal to the mass market. During our 11th years anniversary, we introduced a new slogan, "Bilibili, all the videos you like," helping to define our brand proposition and appeal to a wider base.
With this vision in mind, we launched a branding campaign series that started with our blockbuster New Year's Eve Gala in the first quarter, followed by 'Hou Lang,' 'Ru Hai,' 'Xi Xiang Feng' trilogy videos, which all have been widely successful, and we are seeing a clear uptick in brand perception and brand awareness across different demographics. This strategy is working well for us, and we are determined to carry on as we move into the summer season. Looking ahead, a number of positive industry trends are working in our favor. The adoption of faster network and smarter hardware is making content creation easier and more accessible to everyone. Particularly, the video industry is emerging as the biggest beneficiary. Video is rapidly becoming the most effective and influential method to convey information.
Building on that decade of experience and leadership in the video community, we are well-positioned to capture the growth opportunity. With that overview, I would like to walk through the latest update of our content, community, commercialization, and the strategic growth plans. First, our content. Our PUGV ecosystem remains the cornerstone of our business. For the past decade, we have carefully accumulated our PUGV community and risen as a clear industry leader. Our effective traffic distribution mechanisms and friendly community environment make Bilibili an increasingly attractive platform for content creators. In addition to easy-to-use tools that make the content creation process simpler and more accessible, we launched our new ad platform to bring more commercial opportunities to our content creators. For the second quarter, we had approximately 1.9 million content creators uploading 6 million videos per month, representing increases of 173% and 148% respectively, both year-over-year.
For the second quarter, our most heavily subscribed verticals are lifestyle, game, entertainment, animation, and technology. With rapid trends in video content, newcomers and key opinion leaders from other platforms are turning to Bilibili. In the first half of 2020, the number of content creators who submit their first video creation trail grew by 139% year-over-year. These creative minds open Bilibili up to extended content categories. For instance, we officially launched a knowledge sector to encourage content creators to share their insights, such as a business story, how-to skills, and professional experiences. With our effective operational campaign and welcoming community atmosphere, knowledge has quickly become the fastest-growing sector, and we have seen excellent traction. Turning to our OGV, we remain as a dominant leader in the animation field with one of the China's largest anime libraries.
Since the beginning of this year, there were three new Chinese anime joined our 100 million video views club, including White Cat Legend [Non-English content] and our self-produced The Daily Life of the Immortal King [Non-English content]. Additionally, we plan to roll out more Bilibili-produced Chinese animes, including Ling Cage, Ling Long, A Mortal's Journey [Non-English content], and The Legend of Tang [Non-English content] . We believe these new series will attract even more Chinese anime lovers to our platform this summer.
As a supplement to our vast content library, we expanded variety shows and documentaries continue to resonate with fans and provide good advertising avenues to our business partners. In August, we were excited to introduce our very first self-produced musical variety show, Rap for Youth [Non-English content], sponsored by Alibaba's Juhuasuan. We hope this rap singing talent show will help further expand our content offerings while inspiring our content creators and young generations alike.
In [the documentary] department, we are pleased to have received wide recognition, not only from our users but also professional institutions. Two of our Bilibili-produced documentaries were nominated by Magnolia Award for the Best Documentary Award, including And Yet the Books [Non-English content] and Police Story [Non-English content]. The Hidden Kingdoms of China, a documentary that we co-produced with National Geographic, was nominated as the best limited series long-form documentary by Jackson Wild Media Awards. Turning to our community, our community size and engagement have been accelerating rapidly. Our platform is more robust than ever. We have seen record high across all of our primary engagement metrics. In the second quarter, our daily video views reached 1.2 billion of 97% year-over-year. Our users generated nearly 5.2 billion monthly interactions through the bullet chat, comments, likes, and Bilibili moment posts, nearly three times the amount from the same period in 2019.
Our official membership program is on a similar growth path. By the end of the second quarter, we have 89 million official members who passed our 100 question exam, up 65% year-over-year. Retention for this group remains well above 80%, demonstrating the loyalty of our users. Turning to our commercialization progress, I will first review the status of our game business. Revenue from our mobile game business were up 36% year-over-year to RMB 1.2 billion, accounting for 48% of our total revenues. Building our message and expanding gamer community, our distribution power in the ACG sector is becoming even stronger. In the second quarter, we were excited to add the new broadcast, the title Princess Connect! [Non-English content], to our game portfolio. This exclusive licensed Japanese RPG was an instant hit after its release in April, and the top of China's iOS download and grossing chart multiple times.
Our next big title, Fate/Grand Order or FGO, continued to hold a considerable draw for its stable fan base. As of the end of June, we were excited to celebrate Azur Lane's three-year anniversary with a major content update and accompanying offline activity. The long life cycle of these games continues to be a strong testimony to our ability to operate and sustain high quality games. Looking at our game pipeline. Currently, we have 11 games that have acquired approvals and are scheduled to be released in the coming months. These include "Magia Record [Non-English content], " a highly anticipated ACG title adapted by our popular Japanese anime, and "Sword Art Online [Non-English content] ," an exciting MMORPG. Additionally, while strengthening our ACG game operation, we continue to expand offerings in high-quality games.
As of the end of July, we host our first-ever game release event, Enter Fantasy World, where we introduced 11 exciting titles across different genres. This included simulation game "Dark Boom [Non-English content]. ," a self-development ACG game, [Non-English content] ," a highly anticipated title adapted from our self-owned Chinese anime IP, and several high-quality ACG titles, "[Non-English content], " and "[Non-English content], " In August, we are delighted to announce we are going to bring Chinese audience the mobile version of "Fall Guys [Non-English content] ," an exciting casual battle royale game. As we solidify our game release content offerings and welcome more game lovers to our platform, Bilibili has become the go-to place for joint operation partners.
In the second half of the year, we will continue to work with leading game developers to bring our user Premium games such as miHoYo's [Non-English content] and NetEase's Harry Potter. Turning to our VAS business. Revenue from VAS increased by 153% year-over-year, reaching RMB 825 million in the second quarter. Our growth was mainly driven by increased contribution from Premium memberships, live broadcasting, and other value-added services. We continue to enrich our live broadcasting content and increase the penetration among our growing traffic. As our platform become more influential in China's online entertainment industry, we have seen more hosts and talent agencies turn to Bilibili to grow their fan base and maximize their commercial potential. On the esports front, our three-year strategic partnership with Riot Games will significantly enhance our position in this area.
We will join forces with Riot Games and the local government to host diversified online and offline activities to promote world-renowned League of Legends World Championship events, while bringing more esports lovers to Bilibili. Our Premium members, which offer additional exclusive or advanced content to pay users, continued to flourish in the second quarter. By the end of June, we had 10.5 million Premium members, up 100% year-over-year. These members represent the golden cohort of our most loyal users, who are also the most prime for future cross-selling opportunities. Notably, our comic business is also on the rise. Within two years, Bilibili Comics has grown from scratch to top three comics platforms in China, with over 1 million paid subscribers. As a natural extension for our core ACG content offering, we see great synergy between our main app and Bilibili Comics app, with significant room to grow.
As for our advertising business, our growing user base and increased brand awareness makes Bilibili a must go-to platform for advertisers. Despite the tough macroeconomic environment, we grow our advertising business to RMB 349 million, up 108% year-over-year, and continue to broaden our customer base. The leading industry verticals in the period were games, e-commerce, CPG products, food and beverage, and education. In summary, we had another strong quarter of growth, and we are well-poised to continue on this trajectory. Building on the positive momentum in the first half of this year, we plan to make additional investment in branding and channels in the coming quarters to further drive user growth and raise brand awareness. We believe this investment will boost our self-fulfilling growth cycle and yield considerable return in the long run.
As we reach new heights, our focus will remain on the quality of the growth, and we will continue to closely monitor the ROI of our marketing expenses. We are confident that our effective strategic initiatives will further fuel our user growth and support our top-line expansion as we continue to build values of our company, investors, and growing community of our users. This concludes Chen's remarks.
I will now provide a brief overview of our financial results for the second quarter of 2020. Our total net revenues increased by 70% year-over-year to RMB 2.6 billion, exceeding the high end of our guidance. With our games accounting for just under half our total revenues, we are pleased with the commercialization progress of our non-game offerings and our ability to convert our online traffic into paying users.
The average number of monthly paying users increased by 105% year-over-year, reaching 12.9 million in the second quarter. Cost of revenues increased by 57% year-over-year to RMB 2 billion. Revenue sharing cost, a key component of cost of revenues, was RMB 1 billion, a 79% increase from the same period in 2019. Gross profit increased by 130% year-over-year to RMB 604 million. We are also starting to see operating leverage from our diversified revenue streams. With more revenue contribution from our higher margin business. As well as additional income from paying users. Our gross profit margin continued to improve, reaching 23% in the second quarter. Total operating expenses increased to RMB 1.2 billion, up 103% from the same period in 2019. Selling marketing expenses was RMB 675 million, representing 181% increase year-over-year.
The increase was primarily attributable to the increased channel and marketing expenses associated with Bilibili's ads and brands, as well as expenses for company's mobile games and selling marketing personnel. G&A expenses were RMB 208 million, representing a 48% increase year-over-year. The increase was primarily due to increased headcount in G&A personnel and increased share-based compensation expenses. R&D expenses were RMB 331 million, representing a 53% increase year-over-year. The increase was primarily to increase headcount in research and development personnel and increase share-based compensation expenses. Net loss was RMB 571 million for the second quarter of 2020, compared to RMB 350 million 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 intangible assets acquired through business acquisitions, was RMB 476 million compared to RMB 256 million in the same period of 2019. Basic diluted net loss per share were RMB 1.63. Adjusted basic diluted net loss per share were RMB 1.35. As of June 30, 2020, we had a cash or cash equivalent, term deposits, as well as short-term investments of RMB 15.6 billion, or $2.2 billion, compared to RMB 8.1 billion as of December 31, 2019. For the third quarter of 2020, we are currently projecting net revenues to be between RMB 3.05 billion and RMB 3.10 billion. Thank you for your attention. We would like now to open the call to your questions. Operator, please go ahead.
Thank you, sir. Ladies and gentlemen, we will now begin the question-and-answer session. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press the pound or hash key. For the benefit of all participants on today's call, if you wish to ask your question in management in Chinese, please immediately repeat your question in English. We only allow one question per participant. If you wish to ask a question again, please press star one. Your first question in queue comes from the line of Alex Poon from Morgan Stanley. Alex, please ask your question. Your line is open.
[Non-English content].
Okay. My first question is regarding the user growth. First half, the user growth is very strong. Can you share with us the quality and retention and the user profile of the new user growth in first half? About the second half growth and also next year, what is the key focuses of your strategy of user growth? How are you going to balance the user retention and maintain the fast user growth in second half and next year? Thank you very much.
[Non-English content].
I'll translate for Mr. Chen. Last year, we have reinforced and reaffirmed user growth will be our key strategic focus, and we have been carrying out the strategy efficiently going through the first half of this year, and have made very positive progress. As for the new user profile you asked, there's no significant change of the new user profile. We still see a lot of young generations are coming in. The average age of our new user is about 20 years old. We would like to emphasize during the user growth process, we are more focused on the quality over quantity, and the quality of our users can be supported by the daily time spent, 79- minutes per day, and our user engagement were up to 5.2 billion on a monthly basis, and our daily video views reached 1.2 billion.
All of these numbers supported our users are not only growing very fast, and that their quality are very, very high.
[Non-English content].
Notably, we've noticed that the new user who come in during the first half of 2020 and also paid for our services within the same period, the ratio has significantly increased compared to the same period last year. Also, the new users who came on our platform during 2017, 2018 and 2019, who also stayed and paid for the next few years, their paying ratio is also increasing. Once again, this set of numbers is a strong testimony of the quality of our new user growth.
[Non-English content].
Here we also wanted to emphasize the methodology of our user growth. The reason why we are very confident in the user growth trajectory is based on the concept that we have been emphasizing, that we use our content to attract user and use our community to retain users. As you may notice, in the first half of this year, we've made some significant progress to allow our content to reach a much broader audiences. This type of user growth cannot be achieved by purely channel acquisition or user acquisition. If a user comes to our platform simply through the channel acquisition, we cannot retain them if there's no good content. The key strategy is to allow our content to grow to a much broader category. This opens up for us to new demographics.
[Non-English content].
Bilibili is a community with high engagement level and high retention level. Although our users increased significantly, our overall community [maintains ] the same intensity and continues to be very sticky and with high retention rate.
[Non-English content].
I'll update you the schedule of our user growth plan. Everybody knows during Q1, the pandemic period, people have more time in their hands. That gives us a very good window to invest in user growth. The second quarter, as people are going back to work and return to school, it came to a more stabilized period that we'll be focusing on raising our retention and converting those users to paying users. Notably, we've also made very good progress to raise our brand awareness in the second quarter and achieve pretty good results. In the Q3, it's a traditionally strong peak season for us, so that we plan to make additional investment in both brand as well as channel acquisition.
[Non-English content].
I would also update you with our branding campaigns. In the second quarter, starting from May, we have made a very successful marketing campaign trilogy composed with Hou Lang, Ru Hai, and Xi Xiang Feng. We believe this series of campaign is a complete marketing event, which we consider to be the most successful branding campaign among Chinese internet companies during the second quarter.
[Non-English content].
This proves our ability not only to do amazing events among young generation, but we also have the ability to touch much wider audiences.
[Non-English content].
The reason why we wanted to emphasize on branding campaign is based on our business model. We use content to attract user and community to retain user. As our content continues to evolve to reach wider audiences, one important step is to allow more people to know that Bilibili have so much content to offer, which are in line with our new brand slogan: Bilibili, all the videos you like.
[Non-English content].
Okay. As for our Q3 user outlook, we believe will reach historical highs during this quarter. This summer is a little bit special because in July, a majority of the students are still in school. August is a full month of summer vacation, and September will be the period where students are returning to school. In August, we believe we are able to achieve a pretty high MAU target. On a quarterly monthly average basis, we believe we can reach a historical high.
[Non-English content].
On a single-month basis, we believe we can achieve over 200 million MAU target during Q3, on a single-month basis.
[Non-English content].
Carly would like to supplement a few points. During our brand upgrade campaign this year, our overall brand exposure has achieved over 5 billion times.
And the brand recognition level among the age bracket in between 17 to 35 has raised to 80%, I'm sorry, 60%. and in the second half, our main focus will be on to convert people from recognizing Bilibili brand to turning to Bilibili users. during the second half, the marketing campaign were surrounded our key activity around the key time slots, such as the summer vacation and returning to school, as well as the League of Legends World Championship and our New Year's Eve Gala and many work-like scenario among young generation and to create new content, new brand campaigns and further drive our user growth.
Our next question comes from the line of Lei Zhang from Bank of America Merrill Lynch. Lei, your line is now open.
[Non-English content].
Thanks management and congrats on strong results. My question is actually regarding your game business, which is quite solid in second quarter. Wonder could you share more color on the performance of Princess Connect! specifically what's your expectation on the longevity for this game? Secondly, can you give us some updates on your game pipeline? Any game launch we can expect? Specifically your expectation about the mobile version of Fall Guys. Thank you.
[Non-English content].
Regarding Princess Connect! Re:Dive, we expect this game will be having a very long life cycle, and we expect this game to last quite a long period. For this game, in many aspects broke the historical record. In terms of pre-registered number, we have over 6.5 million people pre-registered, and the newly added user for this game also achieved a record high number. The success of this game proves two points. One is that the ACG game has become the mainstream of young generation's preference over game genres. Second is, over the years, our ability to operate and sustain ACG titles have improved significantly, and we're quite confident to continue this success.
[Non-English content].
For games like Princess Connect! with such large user base and within the four-month period of our operating history, it has been very smooth in terms of operations and technical operations. This once again supports our testimony that Bilibili is able to operate this genre of game quite well. As for the life cycle of this game, we expect it could be something like FGO, and to last a couple of years.
[Non-English content].
As for our overall game business, currently we have over 30 games in our pipeline, and those games are not only ACG titles. We have been actively expanding our content offerings across different genres since last year, and we've made quite big progress on some of the console games, indie games, and have received good results.
[Non-English content].
The Fall Guys game that you mentioned is another example of our successful attempt in expanding into new genres. Looking ahead, we'll continue to explore the new genres that most fits to our user demographic.
[Non-English content].
In terms of revenue contribution, we believe ACG titles still have advantage in this area. In our pipeline, we believe the Sword Art Online Integral Factor will be a title that could make a decent contribution in the revenue department.
Our next question comes from the line of Daniel Chen from JPMorgan. Daniel, please ask your question.
[Non-English content].
Thanks management. I have a question on advertising. Our ads revenue growth actually accelerate on a year-over-year basis from in the second quarter. Should we expect the ads revenue to sustain such strong momentum in the second half? What are the key drivers behind? Is it brand advertising, or is it because of performance advertising, including feeds? What is our expectation for the new ad system we launch in the third quarter for the content providers? Thank you.
[Non-English content].
Overall, 2020 is still full of uncertainties and macro volatility. However, under this challenging macro environment, we still delivered a pretty good advertising growth rate at 108% year-over-year.
[Non-English content].
Bilibili as a video platform, we are one of the biggest beneficiary in the overall visualization industry trend. We have observed that the advertisers budget has shifted from the traditional portal to the video platforms.
[Non-English content].
As we mentioned earlier, we have invested significantly in expanding our brand awareness and raise our brand influence in the first half. We have become the must go-to platform for advertisers who wanted to reach the younger generation demographic. At the same time, we also become the media center to create viral marketing events. Bilibili's brand upgrade, brand awareness increases, has direct relationship with advertisers' perception towards Bilibili's brand proposition.
[Non-English content].
As our user continue to grow and our PUGV ecosystem continue to thrive, we've seen that we've made decent progress in expanding our content verticals such as fashion, lifestyle, technology, fitness as well as autos. We are also hoping to expand our advertisers' customers into those industry verticals.
[Non-English content].
During the second quarter, we didn't make any singular marketing campaign towards certain verticals, but rather emphasizing our overall marketing solutions as well as Bilibili's brand propositions and influence. It's working well for us, and we aim to continue this strategy going forward.
[Non-English content].
The supporting system behind our Q2's strong growth is on our improvement in terms of our advertising products and our advertisers verticals, as well as our AI-powered algorithms to improve our ad efficiencies. We're confident to carry on this good trajectory into the third quarter.
[Non-English content].
Looking ahead in Q3 and Q4, we are quite confident we can deliver a continued growth rate on our advertisement business and to develop a Bilibili specialty advertisement solution campaign.
[Non-English content].
The area of focus could be on the e-commerce area. Bilibili's vibrant and engaged community has become many e-commerce platforms' ideal platform to promote shopping festivals and shopping events. In the second half of this year, this could be a rising sector for us.
[Non-English content].
So as our content verticals expansion, we are quite confident to also expand our advertisers in those verticals
[Non-English content].
The third point will be on the continuous improvement on our algorithm. We will continue to invest in improving our advertising efficiency to increase our advertisers' ROI. The fourth point is on the big events in the second half. There could be new variety shows as well as new events and gala. And this type of Bilibili specialty event has become advertisers' favorite advertising avenues to reach young audiences.
[Non-English content].
The Sparkle platform is a new platform we launched to help our content creators to connect with brand advertisers. This platform provides our content creators a pricing system, order management, as well as settlement services. We are hoping this platform will better serve our content creators to increase and expand their commercial potential, and increase their incomes.
[Non-English content].
Since its launch in July, we have over 8,000 content creators have already participated and signed up for this platform. As for the GMV, we will disclose when we reach a certain milestone.
[Non-English content].
Lastly, we'll continue to focus on improving our data power and to provide better decision-making assistance pre-sale or post-sale, and to increase our content creators' earning power.
Your next question comes from the line of Alex Liu from China Renaissance. Alex, please ask your question.
[Non-English content].
I'll translate myself very quickly. Just wondering what are the major differences in terms of operating know-how and the growth roadmap between the live streaming business and our core business? Should we consider live streaming as a business that requires some time of incubation and will reach an inflection point on user adoption? If that's the case, how far are we standing from that inflection point? Thank you.
[Non-English content].
Live broadcasting business, as we mentioned earlier, has always been a part of our content ecosystem. This is not a singular commercialization avenue. Also an important part of our content. Live broadcasting also provides a very good avenue for our content creators to activate and retain their followers, as well as for them to increase their commercialization potential.
[Non-English content].
In the past few years, you may notice there's heavy competition among other live broadcasting platforms. However, Bilibili has remained within our own self-sustaining ecosystem that we continuously have talented content creators rising above, and they become our live broadcasting hosts and are providing very good content. This is different. Bilibili live broadcasting business is quite different from other singular live broadcasting platforms.
[Non-English content].
Our content offering on the live broadcasting business is actually mirroring what we have to offer on the video platform. For example, our popular game-related video would also be our popular live broadcasting content. Hence, that Bilibili live broadcasting verticals, games, talent shows, and lifestyle-related content are the top verticals.
[Non-English content].
You may see on our platform a lot of the popular live broadcasting hosts are also our popular top content creators. There are two key factors among the live broadcasting industry. One is a good base of live broadcasting hosts, and second is a good base of users. We believe we have these two secret audiences for the two factors. We have both the high-quality content creator, AKA our live broadcasting host, and we also have a very high-quality set of users who love to watch live broadcasting content.
[Non-English content].
Compared to other live broadcasting platforms, you are right about the revenue trajectory. We tend to have more stable growth instead of a sharply increased circle, because other platforms might pursue signing top content hosts, which will drive the revenue in a short term. The merits of our business model is we tend to have a more stable and sustaining life cycle, and our content creator, the live broadcasting host life cycle, will also tend to be longer period.
[Non-English content].
We are quite confident to become the best platform for video content creators. Given that the video equals live broadcasting content on our platform, we are also quite confident that we'll become one of the most popular live broadcasting platforms in the future.
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 further questions, please contact myself, 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!
Ladies and gentlemen, this concludes our conference for today. Thank you all for participating. Stay safe, everyone. You may now disconnect.