Good day, welcome to the Bilibili 2019 first 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 performances 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 future performances and are subject to certain risks and uncertainties, assumptions, and other factors. Some of the 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 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 reconciliation of GAAP to non-GAAP financial results, please see the 2019 first quarter 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's 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. Xin Fan, Chief Financial Officer. I will now turn the call over to Mr. Fan, who will read prepared remarks on behalf of Mr. Chen.
Thank you, Juliet. Thank you everyone for participating in today's earnings call. I'm pleased to deliver today's opening remarks on behalf of Mr. Chen. We have started the year off with strong first quarter results. Our total revenues reached CNY 1.37 billion, representing growth of 58% year-over-year and beating the high end of our guidance of CNY 1.29 billion. We have also achieved two exciting milestones on the user front. Our total MAUs grew 31% year-over-year and surpassed 100 million for the first time, reaching 101.3 million. Our mobile MAUs accelerate even more, increasing by 39% year-over-year, reaching 88.6 million, including a total 3.2 million mobile MAUs from our Bilibili Comic App and the Mao Er App and Audio Drama Platform, which we acquired in December 2018.
Our DAUs also reached a milestone of 30 million in the first quarter, demonstrating the heightened stickiness of our growing community. Based on our high-quality content and unique community experience, Bilibili is becoming a must-have among our primary audience of Gen Z users. This generation readily pays for premium content, more so than any other generations. With this in mind, we are actively exploring ways to satisfy their diverse entertainment needs and expand our paying user group. Our initiatives with our high-quality PUGV and OGV content, exciting mobile game portfolio, comic app, and audio and esports lines are continuously attracting and converting our massive community of users to new paying users. In the first quarter, our average monthly paying users grew 132% year-over-year to 5.7 million, laying a solid foundation for further monetization opportunities.
I will now review our Q1 results through the lens of our three key metrics, content, community, and commercialization. Content remains the cornerstone of our business model. Our ever-growing PUGV ecosystem continue to be our leading source of content creation, accounting for 89% of our total video views. In the first quarter, we had an average of 732,000 active content creators uploading 2.1 million videos monthly, representing increase of 150% and 130% year-over-year, respectively. Engaging and incentivizing these content creators remain one of our key tasks. We continue to introduce new functions and improve our product design to make content creation more streamlined and user-friendly. For example, the mobile content submission function is playing a large role in attracting new creators by enabling easy uploads with just a few finger strokes, anytime, anywhere.
We have also launched a number of programs to reward ingenuity and inspire creative content through monetary rewards and healthy competition. In January of this year, we had Bilibili Power Up 100, an award ceremony to celebrate and give wider recognition to these important contributors in a number of categories. In tandem with PUGVs, we continue to invest in high-quality OGV content to broaden our user base and attract more premium members. We do this with two key strategic approaches. First, we license premium content from leading content producers. For example, in March this year, we have announced the partnership with Funimation, a subsidiary of Sony Pictures Television, to acquire premium Japanese anime IP for global distribution. Second, most importantly, is to jointly or self-produce original content in anime, documentaries, and variety shows where we benefit from a relatively low content cost and own the IP.
On the anime side, we continue to strengthen our leadership by producing dozens of high-quality domestic animation projects, including "Ling Long," a highly anticipated sci-fi anime series, which will be released in June. On the documentary front, beside a number of well-received documentaries in handcraft, food, and history, we are welcome season two of our self-produced hit food documentary, "The Story of Chuan'er," this summer. In addition to select TV and movies, we introduced our first self-produced pet reality show, "Animal Hospital," early this month. This new series is already resonating well with many pet lovers on Bilibili. Our partnership with market titans such as Tencent and Alibaba are also well on the way. With Tencent, we have already exchanged a number of domestic animation copyrights and are jointly working on new anime-related projects.
We have also launched a number of Tencent games on our platform and have gained considerable traction, including with our exclusive license of Unheard in collaboration with Tencent NExT Studios. This story-driven audio drama game with exciting puzzle elements is resonating well with fans, selling more than 115,000 copies in just one week. Our partnership with Taobao is also progressing. In the first quarter, the first batch of Bilibili's content creators began producing content and attracting followers on Taobao's e-commerce platforms in preparation for the next stage of the commercialization process. We believe our content creators have great commercial value, particularly in e-commerce. Our partnership with Taobao will help us and help those content creators to realize and improve their commercial value on both platforms. There remains tremendous opportunity for growth in the ACG market.
As the industry leader, we continue to invest in and develop premium content in a number of ACG areas to expand and diversify our reach. In late 2018, we acquired a majority interest in Mao Er FM, a platform that offers audio drama. We also launched our second mobile application, Bilibili Comics, to better address our core user group interest for premium comic content. Both our new comic and audio platforms are already contributing to our top line. Virtual idols and VTuber-related live broadcasting is another engaging business getting more popularity among young generations. With a number of investment and business initiatives underway, we are pioneering these relatively uncharted areas of entertainment. In February of this year, we had a concert for our virtual idol, Luo Tianyi, featuring top pianist Lang Lang in Shanghai.
This sensational event combined two distinct entertainment genres of classic music with modern virtual idols, marked the first gathering of its kind. I'd now like to look at our second pillar, community. As we welcomed more users to our platform, our community engagement levels were higher than ever, once again showing the quality of our growth. In Q1, users spent a daily average of 81 minutes on our platform, up by five minutes compared to the same period a year ago. This measure includes the time users spend our mobile games, audio, and comic products.
Our core user group, official members who have passed our community entrance exam, is also on the rise, increasing by 39% year-over-year to 49.3 million by end of Q1. These users not only tend to be the most active and engaged with our content and each other, but are also more likely to purchase premium content. Their 12-month retention rate remains at about 80%. On the engagement front, during the first quarter, our users generated 514 million daily views and 1.4 billion monthly interactions through bullet chats, comments, likes, and the Bilibili Moment posts, up 93% and over 360% year-over-year, respectively. Active interfaces among our community further engage our content creators to produce more content. Over 40% of our MAUs now visit our Bilibili Moment function, all of which promotes our growing community and help to raise Bilibili's profile among our core demographic of Gen Z users.
With that overview of our content and community, I'd now like to review the progress we have been making with our commercialization strategy. In the first quarter of 2019, revenues from mobile games grew 27% year-over-year to RMB 873 million, led primarily by Fate/Grand Order, or FGO. FGO's popularity hit new heights in the first quarter with a major content upgrade, Chapter 2.0, revealed in early February. Earlier this month, we also jointly launched two highly anticipated ACG-themed mobile games, Arknights and RWBY, both of which are gaining good traction. Our pipeline of games for the year is also strong with a number of new games in our release lineup. We currently have regulatory approval for our exclusively licensed game, BanG Dream!, a highly rated Japanese music RPG, and Final Gear, an exciting domestic RPG, which will be released in May and July, respectively.
On the jointly operated game front, we are looking forward to bringing ACG-themed mobile games, The Legend of Heroes: Trails of Stars, and mobile game The Legend of Heroes: Akatsuki no Kiseki to our users in coming quarters. As we roll out more premium game titles, we are confident that we can satisfy more users pent up and diversify demands. Our live broadcasting and the VAS revenues increased by 205% year-over-year to RMB 292 million in the first quarter of 2019, with contribution from both our live broadcasting business and premium memberships. The initiatives we began in 2018 to diversify our live broadcasting content is helping us to expand into new genres and grow our paying user base. We continue to enlarge our game-related offerings in PC, mobile, console, and e-sports content. These include top matches in League of Legends and Overwatch League championships.
Notably, our e-sports team, Hangzhou Spark, won over millions of fans globally for their brilliant performance in 2019 Overwatch Championship. So far, they have already made to top 4 position in the stage 2 playoffs, which was the best performance Chinese team have ever achieved. Meanwhile, we are also curating unique content and perfectly fit Bilibili users' entertainment preference. VTuber, audio, and ACG-related talent shows are top categories gaining traffic and converting paying users. In the first quarter, we had 11.4 million valid MAUs who visited live broadcasting zone pages for over five minutes. 1.2 million users paid for live broadcasting services at least once during this period, which is up 139% year-over-year. Our premium membership program give paying users access to advanced or exclusive content and continues to bring in new subscriptions. By the end of March, we had recorded 3.8 million valid premium members, up 95% year-over-year.
Turning to our advertising business. Revenues for advertising increased 60% year-over-year to RMB 112.5 million in the first quarter of 2019. Our unique platforms offers considerable traffic advantages, and our performance-based advertising continues to grow. The top 3 industrial verticals for brand advertising in the first quarter were digital products, games, and skincare and cosmetics. The top 3 verticals for performance-based advertising were games, education, and internet services. Finally, our e-commerce and other revenue streams also continued to grow, reaching RMB 96 million in the first quarter, an increase of 621% from the same period in 2018, largely due to our expanding e-commerce platform product sales.
We are highly focused on strategic growth through leading content creation that brings our community together, as well as continued monetization with a solid game pipeline, strong user growth, and excellent traction with our live broadcasting and VAS business, as well as positive momentum with our newer comic and audio offerings. We are confident in our ability to attract even more users to our robust online entertainment ecosystem and further grow our business in 2019. This concludes Mr. Chen's remarks. I will now provide a brief overview of our financial results for the first quarter of 2019. Our total net revenues increased by 58% year-over-year to CNY 1.4 billion. Our non-GAAP revenues accounted for 36% of total revenues in the first quarter, up from 21% in the first quarter of 2018.
We are pleased with the progress of our commercialization strategy, the average number of monthly paying users more than doubled year-over-year in the first quarter of 2019, reaching 5.7 million. Cost of revenues increased by 81% to CNY 1.2 billion, compared to CNY 655 million in the same period of 2018. Revenue sharing cost, a key component of cost of revenues, was CNY 552 million, representing an increase of 65% from the same period in 2018. Gross profit was CNY 189 million, compared to CNY 230 million in the same period of 2018. Our gross profit margin was 13.8%, primarily due to increases in content cost, staff cost, and the brand wise cost, which were primarily reflecting continued user expansion, as well as lower revenue contribution mix from our higher margin game business. Total operating expenses increased to CNY 496 million, representing an increase of 73% from the same period of 2018.
S&M expenses were CNY 182 million, representing 130% increase year-over-year. The increase was primarily attributed to the increased channel and marketing expenses associated with Bilibili's app and the brand, as well as promotional expenses for the company's mobile games and an increase in headcount in selling and marketing personnel. R&D expenses were CNY 186 million, representing a 76% increase year-over-year. The increase was primarily due to increased headcount in R&D personnel and other increased R&D expenses for online games, apps development, and the virtual idol business. G&A expenses were CNY 129 million, representing 25% increase year-over-year. The increase was primarily due to increased G&A personnel-related expenses and increased amortization expense related to intangible assets acquired through business acquisition, partially offset by the decreased IPO-related one-time share-based compensation costs. Loss from operations was CNY 307 million, compared to CNY 74 million in the same period of 2018.
Investment income was CNY 82 million, representing an increase of 222% from the same period of 2018. The increase was primarily due to the gain arising from the disposal of an equity investment during the first quarter of 2019. Net loss was CNY 196 million for the first quarter of 2019, compared to CNY 58 million in the same period of 2018. Adjusted net loss, which is a non-GAAP measure that excludes share-based compensation cost and amortization expenses related to intangible assets acquired, was CNY 145 million, compared to CNY 3 million in the same period of 2018. Basic and diluted net loss per share were CNY 0.06. Adjusted basic and diluted net loss per share was CNY 0.44. As of March 31, 2019, we had cash and cash equivalents, as well as time deposits of CNY 3.5 billion, compared to CNY 4.3 billion as of December 2018.
In April, the company completed offering of $500 million in aggregated principal amount of convertible senior notes and the concurrent offering of 14 million ADS at $18 per ADS.
The company received a total of approximately $734 million of net proceeds from the offering. After deducting the underwriting discounts and the commissions and its estimate offering expenses payable by the company. The company planned to use the new proceeds for enriching content offering, investing in research and development, and other general corporate purposes. As we look ahead, our financial goals are to further grow our business and improve our operation efficiency. With that in mind, we are currently projecting net revenues for the second quarter of 2019 to be between CNY 1.45 billion and CNY 1.49 billion. Thank you for your attention. We would like now to open the call to your questions. Operator, please go ahead.
Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. If you wish to ask a question, please press star one on telephone and wait for your name to be announced. If you wish to cancel a request, please press the pound or hash key. Please note if you are asking your questions in Mandarin, please translate and repeat it in English. Once again, it's star one for question. Our first question comes line of Hillman Chen from Citigroup. Please ask your question.
[Non-English content] Thank you very much for taking my questions and congrats on the solid quarter of results.
My first question is regarding the content strategy. Could you provide more color on the content cost for licensed and self-produced video content for anime as well as for the comic content, and how should we think about the gross margin in 2019 and 2020, please? My second question is regarding the e-commerce and Taobao cooperation. Could you share more with us the operating metrics, some of the financial contribution right now, and how should we think about the growth strategy in coming few quarters on operations and monetization, please? Thank you very much.
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OK.
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Okay. Carly will take the first question on the content expenditure. First of all, we'll continue to execute our strategy in continually spending on the high-quality OGV content. All of the strategy is built on our ever-growing PUGV ecosystem while investing certain verticals that we are specialized in and echo with our user group.
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As for the OGV expenditure, we'll be mainly focused on the self-produced content categories. The reason why we choose that path is, first of all, that will help us to increase our premium membership sales. More importantly, we'll gain more of a big value of the long-tail IP value that bring it to us, and all of our strategy will be focused on that.
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On the premium membership front, we notice the annual package ratio or monthly automatic renewal ratio are extremely high. We'll also be focusing on trying out different initiatives to unlock the value of those IPs.
Okay. From the financial side, we already guided that the content cost will be around 50% of total revenues, and we still maintain those kind of outlook. If you compare with the revenue from membership and the percentage for the amortized content cost, it's around 60%, so it's pretty much healthy for the company. We'll keep this kind of investment. [Foreign language]
As regard for your second question, the collaboration with Taobao, because the first batch of our content creator only have entered the Taobao ecosystem for just a little over a month, we currently don't have many detailed operation data to share.
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As for the commercial, like helping our content creator to unlock their commercial value and the partnership with Taobao, we will definitely have some number to share by end of this year.
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On the top line contribution front, we don't see any significant contribution with the Taobao partnership this year. We value the partnership because it's creating a healthy circulation of merchant, merchandise, and content creators on both platforms. That's very positive for both of our ecosystem.
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Thank you. Our next question comes from Natalie Wu from CICC. Please ask your question.
Hi, thanks for taking my question and congratulations on very solid quarter. My question is related with the live broadcasting. Just wondering if management can give us some more color on the strategy of your live broadcasting initiatives determined this year. More specifically, it would be great if you can give us some update on your VTuber initiatives, including revenue contribution, margin profile, as well as the difference between this model and traditional live broadcasting model you have observed in your past operation. I will translate myself briefly. [Foreign language]
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We think for our company, live broadcasting was never just a business line that's contributing revenue, but it's more of ability. Live broadcasting as a content format plays an important role in our overall content ecosystem.
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There are three key characteristics with our live broadcasting business. First of all, our users that are watching all this recorded video are the same set of audiences that potentially could be our live broadcasting users. The categories also narrow down to two formats of content.
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We have also released the number of valid MAU for our live broadcasting this quarter, which is over 10 million.
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We also think this number will continue to increase.
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Second of all, as majority of our live broadcasting hosts are also content creators on Bilibili's platform. In the first quarter, actually over 50% of the valid hosts have also been our content creators. That gives us a deep pool of access to very fine and high quality potential live broadcasting hosts. That is the most important thing for live broadcasting business to ensure that you have a big resource for high quality content hosts.
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Thirdly is our content creators have already formed a deep connection with their fans on Bilibili platforms. For their followers, they have more stickiness and they have more willingness to pay. They also have a stronger sense of belonging and ownership of the community.
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We believe Bilibili's platform will become the most influential content platform for Gen Z. Bilibili live broadcasting will also be the most popular, most influential live broadcasting platform for this generation.
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As for certain content categories that we believe we have a strong edge into, for example, games related, esports related, VTubers, we should be able to achieve absolute leadership in those content categories.
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As for the VTuber subcategory, we have seen very good traction in the first quarter. We have over 6,000 VTubers coming from all across the globe who have set up live broadcasting in the first quarter on Bilibili's platform, and their viewership was over 6 million.
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Okay. Because we are in absolute monopoly in terms of ACG content, and we also have absolute leadership in this industry. From the success of VTuber business, we can see that our users have resonated extremely well with this format of content, and their engagement, their paying ratio, all of the metrics are very high.
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We are confident to keep our leadership in the VTuber content categories, and we believe this very creative format of entertainment has great potential to grow.
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Actually you know the live broadcasting via all the revenues are streaming growth very strongly. For Q1, the live broadcasting contribute about 40% of the total live broadcasting via revenue stream. That's for your reference.
Thanks Rui and Xin for the detail answer. Just very quick follow up. For the VTuber related live broadcasting, what's the revenue contribution in the first quarter?
We don't disclose that number yet. We just started this kind of business. Just as Rui mentioned that we thought that has a great potential to grow in this year. We actually control the first time, the MAU and the quarterly pay user. Just for your reference.
Yes, that's good. Thanks Xin.
Thank you. Our next question comes the line of Kenneth Fong from Credit Suisse. Please ask your question.
[Non-English content] Let me translate in English. Congrats on the very strong quarterly results. I have two question. The first question is related to the games market outlook, especially in the ACG market, given the very strong first quarter results. The second question is the advertising revenue was a bit weaker in the first quarter. We understand that there is some seasonality as well as China macro elements in it. I just want to see what is the management monetization strategy going forward, especially in the video platform. Thank you.
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We stay very positive towards ACG game market. There have been a research report forecasting that the overall ACG game market will reach CNY 30 billion in three years. From our perspective, this is quite a realistic forecast that we think we can achieve.
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There are two key areas we want to focus. One is definitely on the ACG related games, that is very in line with our user profile and our strength in the operation field. Second of all, to better address our existing user who have high demand, better understanding of specific games, and for those games that requires or in a better, more creative ways, we will introduce those games to our users.
对，所以我们今年其实在这两个类型的储备方面，我们也应该做得比较好吧。接下来的话，比如说我们即将发布的《BanG Dream!》和《重装战姬》属于是我觉得质量很好的二次元游戏。同时我们在今年已经发布的探案游戏，就是跟腾讯合作的《未定事件簿》，它在我看来就是为新一代玩家准备的高质量的创新性的游戏，这个也是获得了很好的反响，它在上线之后升至中国区热销榜的第二位，而且好评率高达94%。
Looking at our pipeline, we have two sets of pipeline that's satisfying these two categories. First of all, the high-quality ACG games. We have two exclusively licensed games that will be released in coming months, which is 'BanG Dream!' and 'Final Gear.' We believe those two titles are very high quality and should resonate well with our users. Second, to satisfy user with higher demands in creative content format, we also partner with Tencent NExT Studios, launch a audio drama puzzle element game called 'Unheard.' This game has received very high review from our users, and once achieved top 2 in China Steam chart. The best review is over 94%, people give a good review. In terms of game publishing, we think we are at a very advantageous position because we have acquired the core user group for both ACG and for games.
For those categories are the top 5 most popular content categories on our video platform. As those users are using Bilibili, we are in a very precise environment to collect their data, their behavior on what types of content they're watching, what type of community behavior they have exhibiting, so we can more precisely recommend the right games to the right user. Also our team has very deep understanding of our users' preferences and how the market is shaping out. We're quite confident to stand a very leading position in terms of ACG games as well as those new creative format of games. In our pipeline, we currently have over 30 exclusively licensed game and hundreds of jointly operated games that pretty much covered all the best quality games that's coming in the next one or two years.
We remain quite confident towards our game business.
Okay. I just want to add one point on Ms. Chen's remarks, that our game revenues in Q2 will be a little bit fattish compared with Q1, mainly because of two reasons. One is that we deferred FGO's cash revenue over seven months. The FGO cash grossing revenue in Q4 last year quite strong, so they will help to blow up the FGO GAAP revenue in Q1. That's mainly the one reason. The second reason is about contribution from the new games. We may release our two new games, 'BanG Dream!' in end of May and 'Final Gear,' a very exciting domestic RPG, in July. That mainly will contribute that the game revenue will be bump up in the second half of this year, not in Q2.
2018 actually was groundbreaking for our advertising business. We have built our performance base from zero to one, and also achieved great growth for our brand advertising.
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For the first quarter, we still achieved 60% year-on-year growth, while we saw a slight decrease in quarter-over-quarter.
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In the first quarter, it's a seasonality reason. The brand advertising for the traditional advertising format will be a relatively low quarter. Plus the macro economy headwind, the brand advertising was a little below our expectation. However, our performance-based advertising has been performing relatively in line with our expectation. The fill rate, we are continuing to see the increase in fill rate.
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On the performance-based advertising, we are executing a strategy that's focusing on building a better ecosystem. First of all, on the advertising agency system, we are more focused on the retention, the engagement of our advertising agencies.
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Second of all, we will continue to improve our algorithm to improve the efficiency of our performance-based advertising while lowering the conversion cost.
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Okay. Third is to improve the formatting of how we review our performance-based advertising advertisement to our users.
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As for the brand performance ads, we'll continue to increase our influence in the overall brand advertisement industry and to attract more premium brand advertisers.
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We'll also provide new and creative integrated marketing solutions that better fit our brand advertisers' needs to address Gen Z demographics.
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We'll also continue to penetrate the customer base in brand advertisement and also improve our ability to do better integrated marketing.
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We remain confident that given our group of users that's highly engaged and highly active, that will continue to convert more and more advertisers on Bilibili platform.
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In addition, we'll also try out new initiatives that better fit our community and content to provide value-added solutions to our advertisers.
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For example, in e-commerce industry, we'll also try out new ways to better connect the merchandise merchants and content.
That's all.
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Thank you. Our next question come from the line of Lei Zhang from Bank of America Merrill Lynch. This will be the last question. Please ask the question.
[Non-English content] My first question about regulation.
Do you see a more touch in the regulation on content and social community and impacts to our community? When do we expect to launch the addiction prevention system to the teenagers? Second question is about Bilibili Comics and the Mao Er, do you have any details can share with us in terms of user overlap with Bilibili's community user time spent and the paying user and the revenue contribution for this year? Thank you.
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First of all, not only just the China government, but all over the globe, the regulatory authorities are becoming more standard control towards Internet content.
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We think this is an inevitable trend that all the internet companies should adapt and face it right on. Right now, as internet penetrated to almost everybody, the regulation of content that we are facing, no matter it's privacy control or teen anti-addiction control, this is a problem that all the country should be facing. This should be a new norm for the overall industry.
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As for Bilibili, we have always kept a positive, proactive attitude towards the content control and have strengthened our overall content auditing and also improved on the safety of the content as well as guidance towards more positive content on our platforms.
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As for the teens anti-addiction control, many of you probably heard the news around end of March. As for Bilibili, we have been actively, spontaneously trying to improve more safety content environment for teens in China. We are developing new versions of our products that better fit the teens usage, no matter it's on the quality of content and the functionality. We are doing number of measurements to make it a safer environment for them.
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As our MAU surpassed 100 million, we've analyzed the profile. Our overall average age of Bilibili users are over 21 years old. A number of users that we are reporting is less than 10%, even lesser for paying user proportion. All the measurements that we're protecting and providing a safer environment for teen users will not have a material impact on our time spent as well as our revenue. At Bilibili, we are a true advocate for the teen addiction control, and we think this is our social responsibility to provide a healthy, positive internet environment for our youngsters. Mao Er and Comics are two new businesses in our group, and both of them are in a relatively early stage. For those two products, they have the same character, which is they're more paying user oriented.
They are both very professional platforms that provide high quality content that requires pay to view or pay to hear. You won't see a massive ramp on the overall MAU, but should have a positive impact, influence on our overall paying user. As for the overall Bilibili ecosystem, these two platforms provide a very high quality, professionally produced content, which will be the source of our IP. We really value the high-quality content on both of the platforms. We encourage you to focus more on the quality of the content, the revenue contribution of those two products, and influential IP that's been generated on both platforms, including Comics and the high-quality audio drama.
Okay, thank you. Very clear.
Thank you. That concludes the question and answer session. I would now like to turn the conference back to management for any additional or closing comments.
Thank you once again for joining us today. If you have any further questions, please contact myself, Juliet Yang, Bilibili 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.