Juliet Yang: So actually, on the other side, the video and live e-commerce product also introduced new monetization and commercialization avenues for our content creators. In the fourth quarter, over 60,000 content creators has participated in video and live e-commerce-related activities on a daily basis. During 11/11, our home decorate — home and decoration content creator, Mr. Medan, has generated over RMB 1.6 billion GMV through Bilibili. This demonstrates Bilibili’s unique advantage in that — in comprehensive and in-depth long-form content, especially in durable consumer and retail sectors such as home and decoration and technologies and digital products.
Carly Lee: [Foreign Language]
Juliet Yang: And another example would be our — one of our female content creator [indiscernible]. In December, the total GMV of her single live e-commerce session has by her were over RMB 50 million. And this also represents the significant consumption potential of Bilibili’s female user base. And with [indiscernible] and [indiscernible], these two cases, we believe this is considered to be the leading showcase across our industry peers and also showed the great potential, commercialization potential of Bilibili’s community.
Carly Lee: [Foreign Language]
Juliet Yang: In 2023, the total GMV on Bilibili’s video and live e-commerce were over RMB 10 billion. We believe that the commercial value of Bilibili’s user base has just started to be realized, and there are enormous rooms for our future growth.
Carly Lee: [Foreign Language]
Juliet Yang: We maintain a very positive outlook for our advertising business in 2024, and we are quite confident to achieve a high growth rate in terms of advertising revenue. So first of all, I’ll let review Bilibili’s core advantage in advertising, which will be our user base. Bilibili has the highest density of young populations in China, and the value of our advertising platform lies within its own user base. With the average age of our user being 24 years old, we believe our users consuming power, buying power has just gradually — is gradually. And Bilibili has now become the go-to platform for advertisers to whether it’s improve their brand equity in the longer term or influence users purchase decision and converses in the short term, Bilibili has become the most invest advertising platform.
Carly Lee: [Foreign Language]
Juliet Yang: Additionally, for 2024, we plan to further upgrade our Ehang strategy. First of all, we will enhance our ad placement capabilities and improve its efficiency. This includes integrating our ad placement system, achieving intelligent and multiterminal app placement experience. And we plan to achieve automatic placement for our advertisers at some point this year, and we’ll further develop our data visualization tools, allowing clients to validate the results of their ad placement through multidimensional data placement. And we’ll also be very paying close attention and looking to what AIGC can bring to help us to improve ad efficiency. Secondly is that we will penetrate more community scenarios and upgrading our traffic strategies to improve our ad load effectively.
For example, building on our last year’s expansion into multi scenarios like story mode, PC and OTT, we will focus on integrating those scenarios as well as the moment page research function and other community scenarios. Meanwhile, we will also looking to enhance our monetization efficiency by arranging ad videos in a hybrid mode in the recommendation page and further promote native ads. To summarize, we’ll be effectively leveraging and increase our ad inventory and outlook in 2024.
Carly Lee: [Foreign Language]
Juliet Yang: Lastly, we’ll actively explore the client ad content creator model to encourage our advertising clients to create native content and open their own brand accounts on Bilibili. On the other hand, we will also be releasing the private domains for those advertisers and launch more interactive functions for them to interact with our users. Through these efforts, we aim to convert a single ad placement into a long-term operation and increase our clients’ brand equity.
Carly Lee: [Foreign Language]
Juliet Yang: Thirdly is on our [indiscernible] strategy. We believe we can replicate the successful experience we had in e-commerce and games last year and replicate that model into other fast-growing sectors such as automotive, tech, home and decoration, online services, finance and education, et cetera. And we do believe we can achieve high speed growth rate in those verticals as well. But lastly, to summarize, we believe the further foraging of our e-commerce ecosystem will bring us more pleasant surprises in advertising revenue in 2024.
Operator: Our next question comes from Lei Zhang from Bank of America Securities.
Lei Zhang: [Foreign Language] Can you give us more color on your financial outlook for 2024, including revenue breakeven path and our cash flow trend?
Xin Fan: I will take this question. As Mr. Chen mentioned earlier, one of our most important tasks for 2024 is to improve our financials and achieve profitability. The way we plan to achieve the target will be similar to what we have done in 2023, largely through the growth of the gross profit as well as expense management. Let me go through this in more detail. In 2023, our top line grew by 3% year-over-year. Our gross profit increased by over 40% year-over-year. In 2024, we expect our top line growth will accelerate and achieve double-digit growth rate with ad revenue grow at even faster rates. We expect our gross profit will also maintain high growth in 2024 as we further improve our gross profit margin, attributed by higher contribution from high-margin ad business.
