China’s UGC audio community Lizhi officially landed on the NASDAQ, opening at $11.03, up more than 30 percent from its opening price of $11, and by the close, Lizhi had closed at $11.63, up 5.73 percent from its offering price and a market capitalization of $532 million. In the online audio industry, which has competitors such as Ximalaya and Dragonfly FM, Lizhi has chosen to bet on audio livestreaming and the UGC community during the knowledge-paying period, forming a variety of business models such as live social, paid content, fan membership, and game intermodal.
In terms of revenue, Lizhi’s revenue in the third quarter of 2019 was RMB330 million, up 72% YoY, according to the prospectus.
In addition, in 2018, Lizhi’s operating income was RMB799 million, up 76.1% YoY, with a gross profit of RMB230 million and a net loss of RMB934.2 million, while in the first half of 2019, revenue was RMB486 million, up 32.4% YoY, with a gross profit of RMB141 million and a net loss of RMB55.522 million.
The average number of paid audio entertainment subscribers increased by 55.1% to approximately 382,000 in the third quarter of 2019 from 246,000 in the third quarter of 2018. At the same time, the total pay-per-view ratio was unchanged, rising from 0.7% in the third quarter of 2018 to 0.8% in the third quarter of 2019, and the audio entertainment payment ratio increased from 5.9% to 6.4%.
On the operational side, as of the third quarter of 2019, Lizhi generated 160 million original audio content and had more than 46.6 million monthly active users, including more than 5.7 million monthly active content creators, with mobile users using approximately 53 minutes per day.