Good day, welcome to Bilibili's 2018 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 today's discussion will contain forward-looking statements relating to the future performance of the company 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 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 2018 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 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. Ni Li, Vice Chairwoman of the Board and Chief Operating Officer, and Mr. Xin Fan, Chief Financial Officer. Now I will turn the call over to Mr. Fan, who will read the preparing remarks on behalf of Mr. Chen.
Thank you, Juliet, thank you, everyone, for participating in our first earnings call as a public company. I'm pleased to deliver the opening remarks on Mr. Chen's behalf. Our successful IPO on March 28th was an exciting milestone for us. I would like to take this opportunity to thank our supporting shareholders, talented content creators, and loyal users and the employees that helped make this happen. We will continue to work tirelessly to fulfill our mission to enrich the everyday lives of young generations in China. I'm very pleased to report excellent operational and financial results for the first quarter 2018, with total revenues of RMB 868 million. This marks growth of 105% year-over-year, driven by all three of our core business categories: games, advertising, and live broadcasting and value-added services.
Our community continues to expand with 77 million monthly active users, representing a 35% increase year-over-year. In the first quarter, our top 5 viewed categories were lifestyle, games, entertainment, technology, and anime, taking over 70% of total video views. Over the years, we have successfully developed a robust online entertainment ecosystem comprising talented content creators and a highly engaged user base. In the first quarter, 89% of our video views were contributed by Professional User Generated Video, PUGV. To further encourage our content creators, we initiated a cash incentive program in February of this year. Any content creator with over 1,000 fans is eligible for a cash bonus for his or her original content submissions, which depend on various metrics, including popularity as well as positive feedback from users.
We believe this program will bolster our content ecosystem even further, reinforcing Bilibili as one of the largest PUGV platforms in China. The number of active content creators and their content submissions increased by 96% and 154% year-over-year respectively. In addition to PUGV, we also provide users with licensed content in a number of verticals, including anime, documentary, and variety shows. Our business model enables us not to be solely reliant on licensed content to attract users, but rather to use it as an addition to enhance our content ecosystem and monetization capabilities. During the first quarter, we selected several new anime series to promote our premium membership program. Premium membership, they are entitled to watch these series one week in advance compared to non-premium members. Our users responded with high enthusiasm. Over 2 million orders were placed for this program in Q1.
Through this initiative, we believe we can not only offer users better viewing experience, but also promote other value-added services including live broadcasting as a package in the near future, where the users are converted from non-paying users to paying users. The early success give us great confidence in our ongoing monetization efforts. Now let's take a closer look at our core business. Revenue from our mobile games grow 97% year-over-year, led primarily by continued popularity of Fate/Grand Order or FGO. FGO remains one of China's top grossing games, and it reached record high monthly grossing revenue in the first quarter. We expect this game to continue to produce stable revenue throughout the year. We are confident that we can replicate the success of FGO to further diversify our game revenue stream.
We have a strong pipeline with several soaring new games planned for launch in the second half of the year, including BanG Dream!, a music role-play game, and two romance RPGs targeted for female audience, A3!, and the [inaudible] . All of these games rose strong track records in Japan, which we believe is a good indicator for how the games will perform in China. We also have several high-quality mobile games in our exclusively operated game pipeline, which are produced by well-known domestic content developers. On the joint operated game front, we look forward to bring a number of highly anticipated ACG games, including Shining Nikki, Arknights, as well as Crossing Void to our users. Our immersive new content, user interaction, and the growing community supports our advertising revenue growth of 144% year-over-year in the first quarter.
Generation Z is a golden cohort targeted for all major brands. With Bilibili's status as the leading platform for this highly valued demographic, we are the go-to platform for advertisers targeting this group of active users. Our users spend considerable time on our platform, average 76 minutes per day, generating over 267 million daily video views in the first quarter, an increase of 137% year-over-year. This not only provide us with a building audience for advertisers, but also provides with deep insights into our user profiles, enabling us to curate the right ads. As a result, we believe we have huge room to grow across various advertising solutions. We expect continued growth in brand advertising as well as our performance-based advertising as we extended our customer base and optimize the algorithm.
We believe we are still in early stage of monetization with our advertising business. It has great potential to grow. Notably, we experienced exceptional growth on the number of paying users in the first quarter, demonstrating our heightened monetization potential. Our average monthly paying users reached 2.5 million, a 190% increase year-over-year. The majority of this growth was supported by our monetization progress with live broadcasting and value-added services, particularly with our newly introduced hosts that fit Bilibili's user preference and the primary membership program as mentioned earlier. We are encouraged to learn that our users respond well with our monetization initiative. They have high willingness to pay for quality content and services. As a result, revenue from live broadcasting and VAS business increased by 151% year-over-year.
As we move through 2018, we plan to continue to enrich our content offering, improve the user experience, and enhance our technology and infrastructure that fuel our growing community of young minds. In April, we introduced a brand new Bilibili application for OTT platform, aiming to further expand our user reach. At the same time, we plan to strengthen our monetization capabilities by growing our user base and the number of paying users. In this way that we can best support expansion of our business while continuing to build value to content creators, our users, our community, and all of our stakeholders. This concludes Mr. Chen's comments. I will now provide a brief overview of our first quarter 2018 financial results. As Mr. Chen stated, our total net revenue increased by 105% to RMB 868 million, or US$138 million year-over-year.
With robust growth from all three primary business streams, our revenue further diversified. Our mobile games revenue increased by 97% to RMB 688 million, or US$110 million year-over-year, representing 79% of total revenue. The increase was primarily due to the increasing popularity of mobile games such as FGO and Azur Lane. Our live broadcasting and VAS revenue increased by 151% to RMB 96 million, or US$15 million year-over-year, representing 11% of the total revenue. Mainly attributable to our enhanced monetization effort and the promotion of our live broadcasting and the introduction of our premium membership program. The advertising revenue increased by 154% to RMB 70 million or US$11 million year-over-year, representing 8% of the total revenue. The increase was driven by the robust growth of our advertising revenue from brand advertising and the launch of performance-based advertising business in December 2017.
Our other revenue increased by 65% to RMB 13 million or US$2 million year-over-year, representing 2% of the total revenue, primarily attributable to an increase in the sales of products through our e-commerce platform. Cost of revenue increased by 80% to RMB 655 million or US$104 million from the same period of 2017. Revenue sharing cost, a primary driver of cost of revenue, was RMB 335 million or US$53 million, representing a 120% increase year-over-year. Gross profit increased by 249 million Sorry, a percentage to RMB 213 million or US$34 million from the same period of 2017. Total operating expenses increased by 107% to RMB 287 million or US$46 million from the same period of 2017. Sales and marketing expense were RMB 79 million or US$13 million, representing a 93% increase year-over-year.
The increase was primarily attributable to the increased channel and marketing expense associated with our app, as well as promotional expense for our online games. General and administrative expense was RMB 103 million or US$16 million, representing a 140% increase year-over-year. The increase was primarily due to share-based compensation expenses with an IPO condition and an increase in professional service fees. Research and development expense were RMB 106 million or US$17 million, representing a 92% increase year-over-year. The increase was primarily due to increased headcount in research and development. Loss from operations was RMB 74 million or US$12 million, compared with RMB 78 million in the same period of 2017. Income tax expense was RMB 3 million or US$0.5 million, compared with RMB 2 million in the same period of 2017.
Net loss totaled RMB 58 million or US$9 million for the first quarter of this year, compared with RMB 67 million in the same period of last year. Adjusted net loss, which mainly excludes share-based compensation expenses and amortization expense related to intangible assets acquired through business acquisition, improved by 95% to RMB 3 million or US$0.5 million from RMB 60 million in the prior period. Basic and diluted loss per share was RMB 1.73. Non-GAAP basic and diluted loss per share were RMB 0.09. As of March 31st, 2018, we had cash and cash equivalents, as well as time deposits of RMB 1 billion or US$168 million, compared with RMB 765 million as of December 31st, 2017. Net cash provided by operating activities was RMB 471 million or US$75 million, compared with RMB 206 million in the same period of 2017.
As we look ahead, our financial goals are to continue improving our operational efficiency while further growing our business. With that in mind, we are currently projecting net revenue for the second quarter to between RMB 970 million and RMB 1 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, if you wish to ask a question today, 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 to management in Chinese, please immediately repeat your question in English. Once again, it is star one if you wish to ask a question today. Your first question comes from the line of Daniel Chen from JPMorgan. Please ask your question.
早上好，管理层。很高兴见到我的问题。首先恭喜这个非常强劲的业绩和guidance。我这边有三个问题，第一个问题是关于我们的用户增长策略这块，咱们这个季度的MAU其实非常地好。就想问一下，其实接下来无论是在内容端还是在渠道端，我们怎么样继续在这个Generation Z里面去扩展我们的用户量？这是第一个问题。第二个问题就是关于我们的除了游戏以外的收入，包括直播、会员还有广告，这个季度增长也非常强劲。就想问一下管理层，比如说三到五年内，咱们是怎么看我们收入的组成的？第三个问题想问一下我们内容组的Up主支持的问题，因为我们最近也有跟Up主的收入分成计划，想看一下有什么样的update，然后我们今年对Up主内容的支持这块是怎么样一个战略？谢谢。Hi, I will translate myself.
First question is regarding our user acquisition strategy. Our MAU actually grow very decently sequentially and on a year-over-year basis this quarter. Could management provide some color on your strategy to further grow your user base in the Generation Z? Second question is regarding our gaming revenue, including live broadcasting, advertisement and also membership. This part actually grow very strong and sequential on year-over-year basis. What's management view on our revenue breakdown in the three to five years? Are we expecting that this part to account for a much bigger portion? The third question is related to our support to the content provider. We have a scheme to do the revenue sharing with all the content provider. Could we have some update on this front? What's our strategy to motivate all the content creators to create the valuable user-generated content on our platform? Thank you.
Thank you, Daniel.
我陈锐。我这儿回答第一个和第三个问题，然后再让你回答第二个问题吧。首先关于用户增长。因为我们可以发现哔哩哔哩的用户增长一直是非常地持续，而且一直保持一个很不错的速度。我这也可以说一下我们用户增长的三个主要原因。第一个原因还是我们PUGV的内容生态。我们整个的内容生态非常地健康，而且它本身是一个正循环自增长的一个模型。我们在现有的优势的一些品类不断地做生的同时，其实我们新品类扩展的速度一直也非常的快。比如说我们在过去的一个季度，对于像娱乐等新品类的扩展的速度，它是超过我们原有的优势项目，像ACG的内容的。所以随着我们的品类不断地扩展，我们的content creator的数量其实是在持续地增加。然后我们的content creator创作的视频的数量也在持续地增加，而内容就变成了不断吸引用户来的一个动力，它是我们流量增长的第一个发动机。而且这个发动机我们并不需要比如说拿很多金钱去刺激，或者说是我们用一些这种短期的手段去刺激，它是不断地积累，而且它积累得越厚，我们增长的势能也就越大。这个是第一点，关于我们自增长的内容生态。第二个是我们一直非常重视年轻人关注的一些新的内容、一些热点内容的一个运营。比如说我们在过去一个季度，在新的手机游戏和电竞上面，我们就会重点地去发力。然后我们组建了自己的一个电竞的俱乐部，就是BLG。包括我们对于新的手机游戏的一些热点，我们也针对性地去挖掘。这些新的热点内容其实是年轻人非常喜欢的，这也是我们带动用户增长的第二个原因。第三个是我们积极地去拓展安装的渠道。应该说我们的整体无论是长期的用户留存还是短期的留存，都是领先于行业的。所以我们在做稳自己的用户留存的一个基础上，我们会尽量地多去开源，积极地去拓展安装渠道。在这个方面，我们应该非常重视我们的成本的投入产出比，我们整体在渠道安装拓展方面的一个投入是非常可控的。我们整体公司的营销费用仍然控制在收入的10%左右。
Okay. I'll translate for Mr. Chen for the first question. As you can see, our user growth is very healthy and on a stable rate.
Daniel Chen concluded three reasons. One is our very healthy PUGV ecosystem, that we have a very positive virtual cycle, that we have more PUGV content creator creating more content, attracting more users. As we are focused on the depth of the category, we are also expanding the content category. For example, in this quarter, the entertainment verticals are expanding not much faster than our traditional ACG category. As we expand it to more content vertical, that will attract more content creator to create more high-quality content. In that way, we don't actually have to spend a lot of money to stimulate the growth of users, but rather to rely on our healthy ecosystem. That's the first point. The second point is, we also focus on a lot of the new content that attracts young minds' attention. For example, in the live streaming category, we are actively searching for new mobile games that attract a lot of users' attention. We also invested in our own esports team, which is called BLG. All of this content are also driving the growth of our MAUs. Third point is, as you can see, we have an excellent long-term and short-term user retention number. At the same time, we are also actively expanding our channel acquisitions, for example, for pre-download, pre-installment or downloads on app stores. Through these three areas, that's how we achieved the sustainable user growth. Yes.
那我就先回答第三个问题，然后等一会儿再回答第二个问题。关于我们对于创作者的支持，我们一直把对创作者的支持作为我们最重要的工作之一。因为众所周知，基于创作者的PUGV的视频占我们绝大多数的视频播放量。我们主要是会通过三种方式来支持创作者。第一种方式的话，我们对于创作者是有着非常健全的一套服务，这套服务是我们会把我们的后台的大数据源源不断地给我们的创作者，让他们去分析他们自己的作品是不是受欢迎，包括新的用户喜欢什么样的作品，以及他们的作品，比如说用户的一个组成部分，这个是能够帮助他们不断地优化和改进他们的作品。而且我们是有体系化地对于Up主的这种培训，我们也有跟他们的创作的一个沟通，这个能够让很多的我们的content creator能够加速成长。我们在这方面的整体的重视程度和我们的体系性应该是国内的平台里面做得非常好的。第二点，我们今年2月份发布了创作者激励的一个计划，这个激励的计划对于我们的创作者的成长也是非常的友好的。因为大家应该知道，我们头部的内容创作者，他们其实已经可以从我们的社区获得一个很好的收入。但是我们更关注有多少新的创作者能够成长起来，我们能不能让他们更快地成长为头部的明星，这样的话，他们能够给我们创作越来越优秀的作品。创作者激励计划就是根据我们的用户对于作品的正反馈，我们就会给一些优秀的作品的作者一个激励。而且这个激励并不是所谓的先帮我们赚到钱，我们才给他激励，而是我们真正的是只要是用户认为是足够优秀的作品，我们就会给他一个激励。这样的话，虽然现在看起来还不太出名，或者是看起来粉丝量不多的创作者，他能够正向地被我们所激励，他能够很快地成长起来。创作者激励计划的效果应该是非常明显的。我们会看到，我们今年的第一季度，我们的创作者的活跃度以及他们的投稿的数量，其实都得到了非常好的增长，而且我们应该会持续下去，因为我觉得创作者是我们整个PUGV生态的一个源头。第三个就是我们后续一定会去和我们的创作者去分享商业收益。因为我觉得这个也是非常重要的一点。只有创作者在我们这里有着更多的方式能够赚到钱，并且能够赚到更多的钱，他们才会更专注于他们自己的创作，他们才能够把我们的平台当成他们的像家园一样的一个地方。这一点其实我们现在已经在做各种各样的计划了，我们会有非常丰富的这个商业收益的一个分成方式，决不仅仅像其他的平台，是一个简单的流量收益。其实无论对于创作者的一些营销创意，包括它跟我们现有的收入业务的联动，包括它在一些粉丝经济属性上的一种活跃，我们都会有相应的商业收益分享的机制。这个我认为会对后来的Up主的一个创作，以及我们内容生态的一个竞争力，都会有一个很好的促进。
Okay. I'll translate for Mr. Chen.
Mr. Chen gives three reasons that how we're going to help our content creator and better incentivize them. As all of you may know that 89% of our daily video views are contributed by our PUGV. The way that how we incentivize our content creators remains our top priority. The first point is we have a very comprehensive service system to support the content creation of our content creators. We supply them with full access of our backstage data, supply them with tools to analyze how their work has been viewed by different users, and what's their feedback, and how many of them were from which area. By number of matrix to help them to better analyze and help them to create better content. We also have a systematic training program to help to train newcomers, to lead them on the way of becoming top content creator. Second is that the content creator incentivized program that we launched in February this year. As you may know, the top content creator can make decent income on our platform. What we focus more is how do we bring the content creators that just started or in the middle area, to bring them to the top. As we mentioned during the conference call, that will provide a cash incentivized program for content creator that would send out 1,000 RMB, and the cash bonuses is based on the popularity as well as the positive user feedback from this video, not just directly linked with what kind of income that we can receive from this video. The effect of this incentivized program is very clear. In the Q1, the number of active content creator and their content submission number increased significantly year-over-year. Going forward, we'll also supply them with a much more comprehensive incentivized program that will support them from not just on the cash basis, we'll also provide them with marketing tools and help them to achieve better economic benefit based on various matrix, not simply rely on the traffic income. Yeah.
Okay. I will take your second question. If you take a look at revenue mix in 2017, there were 83% of revenue from the online game, 7% from live broadcasting, and 7% from advertising revenue. We are happy to see that when we achieved the record high mobile game revenue in the first quarter this year, our revenue further diversified, because we have our user, they have high willingness to pay for quality content and services, and we have great potential for advertising business, as we mentioned in our press release. Now, the revenue mix, the contribution from live broadcasting, 11% and 8% on the advertising revenues. We foresee that after three to five years, about 50% of the total revenue will go on the online game, and 30% from the advertising, and then 20% from live broadcasting and value-added services. That answer your question?
Thank you. That's very helpful.
Your next question today comes on the line of Alex Poon from Morgan Stanley. Please ask your question.
管理层早上好，Ray总，Sam，Juliet你好，谢谢。接我的问题。第一个问题想问一下，一季度的MAU增长，如果把这个数拆开，六百万增长，大概这个年龄层次怎么分布，然后这个geographical region大概是怎么分布？然后content creator的增长的幅度都可以comment一下吗这方面？第二个问题是关于在整个竞争的环境，对于这个user time spent，最近PUBG吃鸡游戏都占了很多user time spent，DAU都是非常高的。你对于这个游戏对你们游戏的会有什么影响？会怎么想呢？第二是短视频平台，他们也是通过PUBG这个方式去吸引用户，他们的MAU增速都是非常快。你觉得这些竞争对于你们的user time spent、MAU以后的增长会有什么影响呢？谢谢。I will translate my questions.
First question is regarding MAU and content creator growth. I would like to understand the split of this MAU and content creator growth by age and also by geographical region. My second question is regarding the competitive landscapes on both the game side and the short video side. PUBG ramp up very strongly in terms of DAU, have you seen any impact from PUBG affecting your game user? Second is for short video, the time span and DAU growth is very strong for these platforms. Do you see any challenge from them taking your user time span or will create pressure for your MAU growth in future? Thank you very much.
好，我就回答这边提到的三个问题。第一个就是关于我们2018年新增用户的一些特征。首先我想说的就是，因为随着哔哩哔哩平台的增长，我们新增的用户也在逐年增长。我们今年的日均新增用户量是明显超过去年的。然后从我们今年新增用户的情况来看，有几个特点。第一个特点就是19岁以上的用户的占比相比起之前来说是有提升的。这是第一个。第二个就是我们新注册的用户明显是向中国的三四线城市在下沉，也就是说我们新的用户更多的是来自于三四线城市。我认为这个是一个合理的演化的结果。因为随着我们用户的拓展，随着新的流行文化从发达的地区向不发达的地区扩展，我们的新增用户的来源也是三四线城市的用户的比例也越来越多，这个也是证明我们在未来有着更大的增长潜力。然后从他们的兴趣属性来看，我们2018年新增的用户，他们比之前的用户的兴趣属性是有拓宽的。也就是说，我们之前的优势的一些内容领域，像ACG的这个领域仍然非常吸引用户。但是像娱乐、像纪录片之类的这种新的分类，新用户对他们的兴趣比起过去来说是有明显的提升。我觉得这个也是一个好的信号，就证明我们的系统用户从过去核心的一些内容品类为主，变成了越来越泛化，新的兴趣占新的用户的比例在升高。然后最后还有一个特点就是，相比起之前，我们新增的用户当中，Android平台的用户的比例是有提升的，这个也是和现在中国的手机平台分布的发展的规律是正相关的。这个是关于新增用户的特点。
Okay, I will translate the first question. As our business grow, we see in 2018, our daily average new user increase is actually accelerated compared to last year. If we analyze the data, in Q1 the new users we see the portion that comes from above age 19 is increasing. We also see a clear penetration from lower tier city, a lot more user from tier 3 and tier 4 city are coming in. This is also in line with how the pop culture are penetrating from more developed area to less developed area. Based on their interest scope, we noticed that a lot of our new user has more extended interest and habits compared to our old users. We can see they have much wider habits and interest. For example, in entertainment and documentary, those verticals are growing very nicely, thanks to our new users that with extended interest scope. That is also a good sign, which means we're extending our content offering as well as our target audience. Lastly is From the platforms, we also see the Android users are increasing more than iOS users.
This is also in line with how this device is divided in China. There's clearly more Android users in the market.
好，接下来是关于游戏的经营环境的问题。这个对我们完全没影响，因为在吃鸡之前还流行王者荣耀，在王者荣耀流行之前还流行英雄联盟。因为我们的引入和经营的游戏，其实是根据我们自己社区用户的特点，去引入以及优化运营。所以其实我们更多的是基于自己的user base的运营方式。外界的比如说一些流行，其实不会对我们自身的用户的体验和游戏的活跃度造成什么影响。然后我们肯定也是不断地根据我们的用户的喜好和需求，我们follow他们的需求，去做下一阶段游戏的一个布局。所以我们在这一块，我们自己完全是有计划的，我们也把握着用户的一个喜好，所以没有影响。从数据上来看，无论是我们游戏用户的一个活跃度，无论我们游戏用户的使用时长，还是我们游戏的一个收入，其实都没有受外界的这些所谓流行趋势的影响，我们一直在非常健康地增长。
Okay. On the competition landscape, on the game wise, clearly, there's no impact from the PUBG games with our games. It's obvious that even before PUBG, there's Honor of Kings and League of Legends, our game has been performed steadily with a very stable growth rate. The logic behind our game business is different from other regular game company. That is, our business model is to find our existing massive user base interests and habits, and find the right content, the right game that fits their interests and recommend it to them. We will obviously continue to bring new games and offer the games to our users' benefit. There's very little impact from how the game evolves outside of our ecosystem. On the data point, you can see our users are active game users, and their income and their time spent are actually growing.
This also supports our theory.
对，我这还可以补充一下，其实外界的这种现象级的流行游戏，其实对于我们的视频和直播是一个很大的增益。因为我们知道，就是在我们PUGV的内容分类里面，游戏是我们的第二大的一个分类，然后在我们的直播的类型分类里面，游戏直播是我们第一大的一个品类。所以一般外界一旦产生这种现象级的这种流行游戏，就会刺激我们的游戏直播和游戏视频的一个增长。所以我们还挺希望这种现象级的游戏在外界能够经常发生，这个对我们整个的内容生态是一个挺好的事。
Okay. On the contrary, actually, the emerging of new pop games actually has a positive impact on our PUGV system as well as our live broadcasting. As you may know, games is our number 2 top viewed content category on our video platform. Game live broadcasting is actually number 1 in terms of content category on our broadcasting vertical. Once there's a new emerging pop game, that naturally will lead more content submission and more viewers viewing the live broadcasting, it actually has a much more positive impact on our business. We'll welcome more popular games in the market.
我回答第三个问题，就是关于过去半年兴起的那种小视频的平台，是否对哔哩哔哩有影响。也是没有任何的影响。我们会发现，比如说过去一个季度的一个数据来看，我们活跃用户数，还是我们的视频观看以及社区互动量，还是我们的使用时长，都在非常稳健地增长。原因很简单，就是因为我们的这个模式不是由我们的团队去follow一些内容，或者是follow一些内容的表现形式，它是由我们的content creator他们自己去创作。没有人比content creator更了解用户的一个喜好。而且我们这种社区粉丝关系能够更紧密地去把我们的content creator和我们的用户结合在一起。这就是一个自生长的一个模型，就是他们知道这些用户喜欢什么内容，他们也知道这些用户喜欢什么样的一个题材。所以的话，哔哩哔哩一直是跟着最流行的一个内容趋势在走，这不是靠我们团队所谓某一个精英的判断，而是这个模式，它就特别地去贴近用户的一个喜好，它能够不断地让我们的平台与时俱进地去跟得上所有流行的一个趋势。哔哩哔哩已经成立9年了，我们整个的9年的发展过程中，这种所谓小浪潮，那还不来个十几次？我们整个9年的过程中，我们一直保持非常稳健的一个增长，所以我们对这个没什么担心，从数据上也没有任何的影响，而且从我们的这个模型上，它更不会对我们造成影响。
Okay. On your third question on the impact of a short video application, whether that has impact on our business, the answer clearly is no. From the data wise, you can see that no matter if the monthly active user, their time spent, our community retention rate or the engagement level on our community, all of this data are growing very healthy. The reason we are able to do that is we are self-sustaining ecosystem. All this content is not produced by several editors, it's actually produced by our content creators. We believe there's no one understands better than our users need than the content creator themselves. They follow what's most trendy and what's most interesting in the market and produce that content to attract our users. That's why we're always upkeep the most interesting and popular content on our platform. Bilibili has nine years operation history. This type of new trendy application or new format of media, we've seen a dozen times. None of those has affected our business progress. Hope that answers your question.
谢 谢 Ray， 谢 谢 Juliet。
Once again, ladies and gentlemen, if you wish to ask a question today, it's star 1 on your telephone. Your next question today comes to the line of Abby Lu from Merrill Lynch. Please ask your question.
Hey, good morning. Thank you for taking my questions. 早上好。两个小问题。第一个是关于所谓一些动漫的内容。我们最近感觉听说很多互联网公司，不管是长视频、短视频或是一些很大的互联网公司，他们都在外面讲要加大动漫内容的一些投入，想看你们怎么应对这件事。这个是第一个问题。第二个问题是关于游戏，也是一个小问题，我们知道你们自营的游戏做得很好，可是想问一问最近我们共同运营的那些游戏，我们主要是 book 一个所谓 net 的一个净收入的那一块，最近趋势怎么样？So I have two questions. The first one is a little bit about content. It seems like a lot of internet companies, whether they are short form or long form video companies or some of the large internet platforms, recently talking about investment in animations and comic content. So just wondering what's your thought in it?
Secondly, just a small question about your game revenues. We know that the growth has been driven by self-operated games. Just wondering what's the trend of the jointly distributed games recently. Thank you.
好，谢谢。我回答这两个问题。我觉得行业里面内容的平台对动漫一直特别重视，而且我觉得中国最有钱的几家公司，跟中国最大的几个长视频的平台，像腾讯视频、爱奇艺、优酷，他们其实一直都挺重视动漫的。所以我不认为有一些这种新的一些选手加进来，或者一些新的所谓的大公司，大公司也不可能比他们自己大多少，来做动漫这个领域，就会对这个行业的一个格局，或者对哔哩哔哩的领先优势造成什么影响，我觉得这个不会。我觉得这只能证明这个行业越来越被看好，这个行业的前景越来越好，我觉得是个好事。
Okay. I'll translate for the first question. Mr. Chen thinks the competition has always been there, especially from all the major video platforms, including Tencent, iQIYI and Youku. They have been and will be investing in the anime or ACG area. We don't think that will change the competition landscape. It's more of a validation of how this industry has great growth potential and as it's likely to continue to grow.
对，我这想再说一下，你这边听说这个信息是有一些平台参与了动画版权的一个购买。我这么来看吧，我觉得其实哔哩哔哩之所以在动画这个领域有这么强的一个优势，我并不认为是我们在版权方面投入是最大的，我觉得这个其实只是其中一个原因。我觉得更重要的一个原因就是中国一大半的动画的爱好者，爱着我们这个平台，长期地聚集在我们的平台上。因为动画相关的创作者、动画相关的意见领袖以及中国最热爱动画的粉丝，他们都在哔哩哔哩的平台上活跃。这整个的爱好者群体和社区都是based在哔哩哔哩上面。然后我们是先有了这样的社区的生态，我们才进行版权的投入，再进行动画自制的这样的一个投入。所以我觉得我们的本质是一个爱好者的社区，我们有着非常强的社区竞争优势。我觉得这个是我们跟其他平台相比，我们最不可被替代的。如果我们看一下动画爱好者对于B站的这种热爱和感情，我们就知道这不是所谓的进来花点钱就可以改变我们的这种竞争优势的。
Okay. The reason you ask this question is probably because you've heard some of the players are extending their purchase into some of the animation licensed content. Well, Mr. Chen wanted to emphasize, the reason we are so strong in the ACG area is not because we spend a lot, the most, the majority, the number one amount of money in terms of acquiring licensed content. The reason is because we are this ACG lover community. We have this community first, then we decided to expand to acquiring more licensed content. We believe the majority of ACG lovers and ACG content creators are all based on Bilibili. They have interest community on our platform. This market position is not something that somebody can spend a little bit money on the licensed content, can change it.
Added to answer the second question, currently we have about 127 jointly operated games, and they contribute about 11% of the total game revenue. The growth trend for the joint operating game is also very well in the first quarter.
Got it. Thank you.
Your next question today comes on the line of Thomas Chong from Credit Suisse. Please ask your question.
[Foreign language] Good morning, management. I have two questions. The first question is about our overseas strategies over the next couple of years, and my second question is about the number of advertisers in Q1 and what are the advertising categories. Thank you.
从长期来看，我们会非常重视我们的海外的拓展。因为众所周知，哔哩哔哩它做的其实是一个和泛娱乐相关的、泛娱乐跟所有的年轻人的兴趣相关的一个社区。所以我们认为我们未来能够非常方便地去拓展到全世界的各个地方，尤其是新兴的国家。但是在短期内，比如说在未来一年内，我们的专注力肯定还是会集中在中国大陆。因为中国大陆它是全球最大的单一的内容市场，而且它的增长速度也肯定在最近的一两年一定是全球最快的。然后我们本身在这个领域耕耘了这么多年，已经取得了这么强的一个优势，我们一定肯定是要专注在这个领域的投入，让我们在中国大陆的本土市场能够持续现在的一个竞争力。这个是从短期的一年来看，从长期来看，我们肯定会非常重视海外的拓展。
Thanks Thomas for your question. Let me translate. On the overseas expansion strategy from a long-term perspective, of course, we will definitely focus on the international market as what Bilibili is doing is focused on the pan-entertainment industry that attracts young minds from all over the world as long as they have their specific interests or habits. In the short term, our main focus will definitely remain in mainland China as China being one of the largest single economy in the world and enjoys the highest economic growth rate. We have been developing in mainland for nine years, and we have already established our leading position. In the short term, we'll definitely focus on the domestic market. The second question will be answered by
Yeah, to answer the second question, currently we don't have much advertising customers as we just start to monetize our feed ads. The top two of other customers for the brands advertising, they are food and beverage, internet services, and comics. For the feed ads, they are education, e-commerce, internet services.
Thank you.
Ladies and gentlemen, that concludes the question and answer session. I would now like to turn the conference back to management for any additional or closing remarks.
Thank you once again for joining us today. If you have further questions, please contact Juliet Yang, Bilibili's senior IR director, or TPG investor relations. Our contact information in both China and the U.S. can be found on today's press release. Have a great day