Recently, station B submitted an application for listing to the securities and Exchange Commission (SEC), which is not the first video website to IPO in the United States at the beginning of the Chinese New Year. In 2018, China's video websites are going to be listed in the United States.
How about the IPO unveiling the bottom card of B station
On March 2, the SEC's website showed that BiliBili bullet screen (commonly known as station B) had submitted a prospectus document (F1) and planned to raise 400 million US dollars to be listed on the New York Stock Exchange under the stock code of Bili. The lead underwriters are Morgan Stanley, Bank of America Merrill Lynch and JPMorgan Chase.
In 2017, the operating revenue of station B reached 2.468 billion yuan, with a net loss of 180 million yuan.
According to the prospectus, the monthly active user data of station B in 2017 reached nearly 71.8 million. In 2017, the average daily use time of each active user on the mobile terminal of station B was 76.3 minutes.
By the end of 2017, 81.7% of the user group belonged to generation 'Z', that is, people born in China from 1990 to 2009, and the age of these users was between 9 and 28 years old.
However, unlike the stories of iqiyi, Youku and Tencent, station B is not only a video website, but also a game company, or a community of young people.
In 2017, the number of active users reached 71.758 million
The 2017 China network audio visual research report released by China network audio visual program service association in 2017 shows that Tencent video, iqiyi and Youku Tudou are in the first tier, and the overall user scale of video websites such as bilibilibili, mango TV, leeco video and Sohu Video is in the second tier.
In the past three years, the development of station B, which started from the second-order culture, has been 'rising', and the number of monthly active users (MAU) has doubled in two years.
Number of users in station B.
At the end of March 2016, the Mau of station B was 28.056 million, reaching 49.377 million by the end of 2016, climbing to 71.758 million by the end of 2017, and the increase of user base also brought the expansion of paid user group.
At the end of 2016, the average monthly number of paid users of station B reached 667100, and by the end of 2017, the monthly number of paid users reached 1066000.
In 2017, the revenue reached 2.468 billion yuan, and the net loss narrowed
The operating revenue of station B has also increased exponentially in recent years. From 130 million yuan in 2015 to 523 million yuan in 2016 and to 2468 million yuan in 2017.
The net loss in these three years was 370 million yuan, 910 million yuan and 180 million yuan respectively, which was significantly narrowed in 2017.
Operating income and net loss of station B.
The cost of station B mainly includes the cost of server and bandwidth, as well as the revenue sharing, content cost and staff cost with game developers, anchors and content creators. Revenue cost increased by 148% from 772.8 million yuan in 2016 to 1.919 billion yuan in 2017.
Game business becomes cash cow of station B
It should be noted that most of the revenue of station B comes from the game business. Because the user group of station B is quite characteristic, some quadratic or games for young people, the target users are highly consistent with the users of station B, so station B began to test the water game distribution business and carry out game intermodal transportation from 2015. In the prospectus, station B said that it launched the game "fate / grand order" exclusively in China in September 2016 and achieved success, which led to a significant increase in operating revenue from the fourth quarter of 2016.
According to the prospectus, game revenue in 2015, 2016 and 2017 was 86.1 million yuan, 340 million yuan and 2.058 billion yuan respectively, accounting for 65.7%, 65.4% and 83.4% of total revenue respectively,
Revenue classification of station B in 2015 and 2017.
In the risk tip, station B also pointed out: 'we get most of the revenue from mobile games. If we fail to launch new games or maintain the upgrade of existing games to develop and consolidate the player base, the company's business and business performance awards will be greatly affected. '
In addition to the game business, the revenue composition of station B also includes live broadcast, advertising and other services (selling peripheral products on the e-commerce platform, etc.). In iqiyi's prospectus, the revenue brought by advertising is the largest part of the total revenue, while the second-order website like station B is just starting to commercialize advertising, which brought 18.926 million yuan, 60.727 million yuan and 159 million yuan in 2015, 2016 and 2017, respectively.
The story of 'generation Z'
In the prospectus, station B tries to tell a story of "Youth". Chen Rui, chairman of station B, often mentions this feature of station B in public. By the end of 2017, 81.7% of station B users were born between 1990 and 2009, and the age of these users was between 9 and 28 years old.
Station B calls these users' generation Z '. They usually receive high-quality education and are the' indigenous people 'of the Internet. They are proficient in new technologies and have a strong demand for cultural products, self-expression and social interaction.
Station B believes that a large number of generation Z people will actively participate in the production and promotion of content, rather than just passively as viewers and consumers, because they usually like to express and display their talents through the creation of content, and become a new creative group. At the same time, they are also forming their own cultural circle, influenced by the 'circle' in the choice of entertainment consumption The "fans effect" is stronger in this group.
B said in the prospectus: 'our users will become the driving force and guide of China's entertainment consumption, and they will grow with us. '
End the power generation with love and double the number of active up owners in two years
Unlike iqiyi, Youku, Tencent video and other mainstream video websites, the video content of station B, in addition to part of the copyright purchase, is more from the user's own production (pugc). This group of users who upload video on station B is called up master.
According to station B, the number of active content creators per month reached 204100 in 2017, an increase of 104% over 100200 in 2016, through fostering encouraging respect and rewarding content creators.
It is worth mentioning that station B has also launched the up main reward plan since 2018. When the content uploaded by the up main gets a certain heat, the up main can enjoy the subsidy from station B. from then on, the history of "generating electricity with love" in station B has ended, which can stimulate the creative participation of the up main to a certain extent.
Chairman Chen Rui holds 21.5%
In the prospectus, station B introduces that the company was founded in June 2009 and officially named BiliBili in 2010.
The start of rapid development of station B is that Chen Rui has been the chairman and CEO of station B since November 2014.
Chen Rui, 40, is a serial entrepreneur. He used to be the founder of cheetah mobile. In 2011, he became the angel investor of station B, and became the chairman and CEO of station B in 2014.
Xu Yi, the founder of station B, is the director and President of the company. Coo Li Ni is also vice chairman of the company.
Li Ruigang, chairman of Chinese culture, Lin Lijun, founder of zhengxingu innovation capital, Tong Chen of IDG capital, Jin Wenji of Junlian capital, Gan Jianping of Qiming venture capital, and he Zhenyu, former CFO of huanju times, are directors of station B.
The stability of the management is regarded as one of the keys to the success of station B, and station a (Acfun) which once belonged to the earliest barrage video website in China together with station B is far away from station B due to the frequent changes of the management and the "strangling" of shareholders.
According to the prospectus, Chen Rui is the largest shareholder of station B, holding 21.5%, Xu Yi 13.1%, Li Ni 3.7%, CMC bullet Holdings Limited and CMC beacon Holdings Limited under the leadership of Li Ruigang 12.8%, zhengxingu 9%, IDC 7.6%, Junlian 5.9% and Tencent 5.2%.
Fund-raising purposes
With a $400 million fundraising, station B said it would be used for R & D, sales and marketing, as well as for content procurement, copyright licensing and strategic investment as working capital.