In other words, the small break station today released the latest report card - 2021 Q4 and annual financial report. The eighth sister looked at it and had to say that although many people criticized for burning too much money, Station B still achieved a great leap forward in 2021. At the same time, it is worth noting that Station B also disclosed the profit schedule for the first time - to achieve breakeven in 2024.
For example, everyone knows that the user dividend of the Internet has basically been exhausted, even if the user growth of video sites has begun to slow down, but the fourth quarter of Station B still maintained a monthly active user growth rate of 35%, at the same time, the user payment rate and user viscosity are still improving. For example, in 2021, the advertising revenue of Station B has experienced a spurt of growth, and the annual advertising revenue has increased by 145% year-on-year. Of course, Station B is still facing the problem of increasing losses, but Station B still has 30 billion yuan on its account, exchanging investment for growth, and Station B still has confidence. More importantly, Station B also plans to achieve break-even under non-GAAP in 2024.
Well, no nonsense, let's elaborate on the financial report of Station B.
1, the revenue of Station B still maintains rapid growth.
According to the financial report, the total net revenue of Station B was 5.7808 billion yuan (about 907.1 million US dollars), an increase of 51% compared with the same period last year. Although this growth rate has slowed down slightly compared with the past, considering the poor environment and the increase in the income base, the growth of Station B can still be said to be quite good.
At the same time, compared with the previous quarter, the revenue of Station B in the fourth quarter increased by 11% month-on-month, which is also a good number.
2, the advertising revenue of Station B has grown amazingly.
According to the financial report, in the fourth quarter, station B's revenue from advertising was 1.5876 billion yuan (about $249.1 million), an increase of 120% compared with the same period last year, compared with the depression of the advertising market in the fourth quarter, this growth is simply rare in the industry.
At the same time, the advertising revenue of Station B for the whole year increased by 145% year-on-year. It is worth noting that advertising has accounted for more than mobile games in the total revenue of Station B.
3, the income of Station B is further diversified and balanced.
It is worth noting that in addition to advertising revenue, station B's value-added service revenue and e-commerce business have also grown rapidly, and station B's income is more diversified and balanced. In the fourth quarter, Station B's revenue from value-added services was 1,894.5 million yuan, an increase of 52% compared with the same period last year; revenue from e-commerce business and other businesses was 1,003.3 million yuan, an increase of 35% compared with the same period last year.
In the fourth quarter of 2021, the revenue of station B's mobile game business, value-added services, advertising, e-commerce and other businesses accounted for 22.4%, 32.78%, 27.45% and 17.35% respectively.
4, the number of B station users, payment rate and viscosity are still improving.
The user growth of Station B is still eye-catching in the Internet industry with weak growth. According to the financial report, in the fourth quarter, the average number of monthly active users (MAUs) of Station B was 271.7 million, and the number of mobile monthly active users was 252.4 million, an increase of 35% and 35% respectively compared with the same period last year. The average number of daily active users (DAU) was 72.2 million, an increase of 34% compared to the same period last year.
At the same time, the monthly paid users and payment rate of Station B are also increasing. According to the financial report, in the fourth quarter, the average number of monthly paid users (MPUs) of Station B was 24.5 million, an increase of 37% compared with the same period last year; the payment rate of Station B also increased to 9.02%.
In addition, the user viscosity of Station B is also quite eye-catching. Among them, the average daily usage time of users is as high as 82 minutes, which is the highest time in the fourth quarter in history. The average daily video playback reached 2.2 billion, an increase of 80% year-on-year, and the average number of monthly interactions reached 10.1 billion, an increase of 116% over the same period in 2020. The core user base of the community continues to grow. By the end of the fourth quarter, the number of full members who passed 100 community exam questions increased by 42% year-on-year to 145 million, and its 12th month retention rate increased to 84%.
5, although the loss of Station B has increased, the cash on the account is still quite sufficient.
According to the financial report, in the fourth quarter, in accordance with U.S. GAAP, the adjusted net loss of Station B was 1.6598 billion yuan, compared with the adjusted net loss of 691.5 million yuan in the same period last year.
However, despite the increase in losses, station B held cash and cash equivalents, time deposits and short-term investments totaled 30.2 billion yuan, compared with 12.8 billion yuan as of December 31, 2020. It has to be said that strategies such as secondary listing in Hong Kong have brought sufficient capital investment to Station B to drive growth.
6, Station B proposed the breakeven time point for the first time.
It is worth noting that in response to the question of when to achieve profitability that the outside world is concerned about, Station B gave a positive answer this time. Fan Xin, CFO of Station B, said: "In 2022, we are confident that under the premise of maintaining healthy user growth, by increasing the realization rate of a single MAU and controlling operating expenses, we will achieve a year-on-year narrowing of the non-GAAP operating loss ratio in 2022, and the medium-term goal is to achieve non GAAP breakeven in 2024." ”
At the same time, he explained in detail how to achieve breakeven. For example, under the premise of ensuring that the target of 400 million users will be achieved in 2023, the marketing expenses that will be further optimized will begin to decline in proportion to revenue in 2022; at the same time, research and development will also pay more attention to the return on investment, and from 2023 onwards, the proportion of research and development expenses will decrease year by year.
In addition, Fan Xin also expects that in the future, the single-user income of value-added services and advertising businesses will more than double the room for improvement, and the gross profit of games and advertising will also improve.
7, Station B announced the share repurchase plan.
It is worth noting that in order to boost market confidence, Station B also announced a share repurchase plan this time. According to the disclosed information, Station B will repurchase up to $500 million of American Depositary Shares (ADS) over the next 24 months.
In addition, Station B Chairman and CEO Rui Chen announced that he intends to use his personal funds to purchase American Depositary Shares (ADS) with a total amount of no more than $10 million in the open market over the next 24 months.
Well, the willingness to buy the company's stock out of its own pocket shows that the B station and the management of these actions show that the management of the B station is still quite confident in the company's development prospects.
Well, the financial report of station B is simple here.
All in all, in such a complex environment, still maintain such rapid growth, Station B's strategy of exchanging input for growth is still effective. In addition, after the growth of the Great Leap Forward, Station B announced a break-even schedule, coupled with the repurchase of shares, which is estimated to boost the market's confidence in it. Well, that's really good news.