A Letter from CEO, Baoli Ma (alias, Geng Le)
“Gay”—as I typed the word on my computer around 20 years ago, hiding alone in my bedroom, my path ahead was destined to be different.
Chairman and CEO's Letter to Shareholders
Dear BlueCity Shareholders,
I am proud and humbled to address you in this annual letter, my first since BlueCity became publicly traded last July. Since founding our predecessor site Danlan over twenty years ago, we have prepared for the recognition and social acceptance of the LGBTQ community. We believe that this day is now here. As a public company, we believe BlueCity has an even greater responsibility to connect and serve specific groups within the LGBTQ community…and we believe we are better positioned than ever to achieve this mission!
Last year was a time of intense uncertainty and disruption due to the pandemic, and it continues now as humanity struggles to bring the virus under control. In this environment, supporting our community is critical. With work-from-home, lockdowns, and general social distance, the pain of loneliness can be intense. Our services help to alleviate this, as we help our members meet and form meaningful connections in a healthy, pandemic-appropriate manner.
The essence of BlueCity's culture comes from our belief that everyone is treated equally and entitled to choose high-quality, tailored, friendly and discrimination-free services. For years, we have provided our members with full-lifecycle services by utilizing our deep understanding of our community, product innovation, technology advancement and operational improvement. We are more than just a social network or a live streaming platform. Social interaction, an innate human need, is our point of entry to serve the LGBTQ population. We establish connections among people, content, and services. We offer a safe and secure oasis to holistically meet our members' needs for social networking, information sharing, entertainment, and health and wellness. These needs have not been fully addressed by any other commercial company.
Today, our Blued app reaches 58 million registered users. It has been a long, arduous, yet meaningful and memorable journey for us. The Blued app has gradually evolved from an LBS-based social application to a comprehensive platform that provides a multitude of services such as livestreaming, entertainment, health, and public welfare. In 2016, we launched the livestreaming function. In 2018, we introduced membership services, which greatly improved social efficiency by protecting user privacy. In the same year, we also launched “He Health” to provide the LGBTQ community with tailored health-related services. We provide widely recognized and welcome access to a large variety of HIV-related medication and consulting services, drugs, and nutritional supplements relations to men's health. As of September 30, 2020, the percentage of revenue we generated from membership services increased from 4.3% to 6.5% year over year. Even more exciting, “other revenues” including He Health contributed 4.3% of our total revenue from 1.6% from the same period in 2019. We expect those “other revenues” to power our next phase of growth.
Notably, as we continue to accelerate our global expansion, we are achieving remarkable results by providing more localized and diversified services in different markets in order to match the needs of the local community. According to Frost & Sullivan, Blued is the largest online LGBTQ community in India, South Korea, Thailand, and Vietnam, as measured by 2019 MAU. With this start of commercial operations worldwide, our overseas revenue reached 10.2% in the first three quarters of 2020 versus 5.2% in the same period of 2019. Adding to our organic growth this year were two acquisitions, Lesdo and Finka, which further strengthened our leadership and dominance in the LGBTQ community. More importantly, they enabled us to grow our product matrix and drive further monetization opportunities.
Looking ahead, we will continue to advance our live streaming models and upgrade membership services to promote the consumption of paid services. We will continue to invest and innovate for our members and actively explore other services. With “He Health” we aim to build a comprehensive diagnosis and treatment platform specifically for men. We are confident in our long-term growth prospects due to our leading market position, strong execution capability, and future expansion.
We stand now at an important intersection in history, and our mission has never been more important. Our goal is to create value for society, promote equality, and create a sense of belonging for our members. By incubating the future, we will enable BlueCity's innovation and services to contribute to a better tomorrow for everyone. We look forward to having you with us! Working together, an amazing future stretches out before us, like a beautiful rainbow over the sky.
Thank you for your continued support and trust in BlueCity.