Core Viewpoint - Bilibili (B站) reported a strong Q1 2025 performance with a net revenue of RMB 7 billion (USD 965.1 million), reflecting a 24% year-on-year growth, driven by increased user engagement and advertising revenue [1][8] Revenue and User Engagement - The company's Q1 user daily active usage (DAU) reached 108 minutes, a historical high, indicating users are willing to spend time and money on quality content [1][2] - Paid users reached 32 million in Q1 2025, with charging revenue increasing by 200% year-on-year, highlighting a new trend in the video sector where users pay for preferred content [1][2] Advertising Revenue - Bilibili's advertising revenue grew by 20% in Q1, outpacing the industry, primarily due to a strong increase in performance-based ads, which saw growth exceeding 30% [1][8] - The growth in ads is attributed to Bilibili's core competitive advantages, including high-quality content and user value, with a focus on 26-year-old users whose disposable income is rising [1][8] Gross Margin and Profitability - The gross margin for Q1 was 36.3%, driven by stable costs associated with gaming and advertising, which accounted for over 50% of total revenue [1][10] - The company is confident in maintaining and improving gross and net profit margins in the future, with a medium to long-term target of 40-45% gross margin [10][11] Content Strategy and AI Integration - Bilibili emphasizes the importance of high-quality content, which is seen as a long-term competitive advantage, and plans to enhance its content strategy further [2][3] - The integration of AI is expected to enhance content quality and user engagement, with Bilibili being positioned as a significant player in the AI era due to its extensive data resources [4][5] Gaming Sector - The gaming segment is focused on long-term operations, with plans for new content and user retention strategies, including the introduction of new seasons and features [6][7] - Bilibili aims to expand its gaming offerings and enhance user engagement through innovative content and community interactions [6][7]

Financial Data and Key Metrics Changes - Total revenues increased by 24% year over year to RMB 7 billion, driven by strong performances in advertising and game businesses [5][26] - Gross profit rose by 58% year over year to RMB 2.54 billion, with gross profit margin expanding to 36.3% from 28.3% in the same period last year [6][27] - Adjusted net profit was RMB 362 million, compared to a loss in the prior year, while GAAP net loss was narrowed by 99% year over year to RMB 11 million [6][28] Business Line Data and Key Metrics Changes - Advertising revenues grew by 20% year over year to RMB 2 billion, supported by product enhancements and infrastructure upgrades [5][15] - Game revenues surged by 76% year over year to RMB 1.73 billion, attributed to the strong performance of the SLG title Samo [5][18] - VAS business revenues increased by 11% year over year to RMB 2.81 billion, with live broadcasting regaining momentum [21][26] Market Data and Key Metrics Changes - Daily Active Users (DAUs) reached 107 million, while Monthly Active Users (MAUs) climbed to 368 million [7][10] - Monthly paying users hit an all-time high of 32 million, with a strong retention rate of around 80% [10][22] - AI-related content watch time more than doubled year over year, with a 400% increase in advertiser demand [12] Company Strategy and Development Direction - The company aims to prioritize high-quality content to meet the evolving needs of its user base, particularly targeting Gen Z consumers [8][36] - Continued investment in AI technology to enhance user experience and improve monetization efficiency [23][42] - Focus on sustaining long-term operations for games, particularly through seasonal updates and community engagement [19][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining revenue growth above industry averages, particularly in advertising and gaming sectors [57][65] - The company is committed to enhancing its commercialization capabilities while maintaining its cultural brand identity [22][23] - Management highlighted the importance of quality content in driving user engagement and monetization [34][39] Other Important Information - The partnership with CCTV for the Chinese New Year Gala significantly boosted brand awareness and user engagement [6][13] - The company received an A rating from MSCI for its ESG performance, reflecting its commitment to social value and sustainability [22] Q&A Session Summary Question: What are the specific plans to enhance quality content and AI applications? - Management emphasized the focus on high-quality content and the growing willingness of users to pay for it, with record engagement metrics [33][35] - AI applications are being developed to leverage Bilibili's extensive video content for better user insights and ad targeting [40][42] Question: Can management review the performance of SAML and expectations for the anniversary version? - Management highlighted the importance of user retention and the success of marketing campaigns to attract new users, with upcoming updates expected to enhance user experience [46][50] Question: What are the underlying drivers of advertising business growth? - Key drivers include the increasing disposable income of users and the effectiveness of high-quality content in fostering connections with advertisers [58][63] - The company expects to maintain growth above industry averages in the advertising sector [65] Question: What is the outlook for margins for the rest of the year? - Management indicated confidence in continued improvement of gross and net margins, with long-term targets set for 40% to 45% gross profit margins [69]

Financial Data and Key Metrics Changes - Total revenues increased by 24% year over year to RMB 7 billion, driven by strong performances in advertising and game businesses [5][26] - Gross profit rose by 58% year over year, with gross profit margin expanding to 36.3%, up from 28.3% in the same period last year [6][27] - Adjusted net profit was RMB 362 million, compared to a loss in the prior year, while GAAP net loss narrowed by 99% year over year to RMB 11 million [6][28] Business Line Data and Key Metrics Changes - Advertising revenues grew by 20% year over year to RMB 2 billion, supported by product enhancements and infrastructure upgrades [5][15] - Game revenues surged by 76% year over year to RMB 1.73 billion, attributed to the strong performance of the SLG title Samo [5][17] - VAS business revenues increased by 11% year over year to RMB 2.81 billion, with live broadcasting regaining momentum [21][26] Market Data and Key Metrics Changes - Daily Active Users (DAUs) reached 107 million, while Monthly Active Users (MAUs) climbed to 368 million [7][10] - Monthly paying users hit an all-time high of 32 million, with a strong retention rate of around 80% [10][22] - AI-related content watch time more than doubled year over year, with a 400% increase in advertiser demand [12] Company Strategy and Development Direction - The company aims to prioritize high-quality content to meet the evolving needs of its user base, particularly targeting Gen Z [8][36] - Plans to enhance commercialization capabilities through AI and improved ad targeting [23][40] - Focus on sustaining long-term operations for games, particularly through seasonal updates and community engagement [19][48] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in continued revenue growth, particularly in advertising, driven by high-value users and strong brand association [56][62] - The company is committed to maintaining its role as a responsible cultural brand while advancing its commercialization efforts [22][23] - Expectations for gross profit margins to reach 40% to 45% in the mid to long term [66] Other Important Information - The partnership with CCTV for the Chinese New Year Gala significantly boosted brand awareness and user engagement [6][13] - The company received an A rating from MSCI for its ESG performance, highlighting its commitment to social value and sustainability [22] Q&A Session Summary Question: What are the specific plans to enhance quality content and AI applications? - Management emphasized the focus on high-quality content, noting that users are willing to pay for fulfilling content, with average daily time spent reaching 108 minutes [33][35] - AI applications are being developed to leverage Bilibili's extensive video content for better user engagement and ad targeting [40][42] Question: Can management review the performance of Samo and expectations for the anniversary version? - Management highlighted the importance of user retention and the success of seasonal updates, with the upcoming anniversary edition expected to enhance user engagement [45][48] - Plans to launch an international version and expand to multiple devices were also discussed [50] Question: What are the underlying drivers of advertising business growth? - The advertising business grew by 20% year over year, driven by high-value users and improved ad targeting capabilities [54][56] - The company expects to continue growing above industry averages, supported by strong brand association and user engagement [62] Question: What is the outlook for margins for the rest of the year? - Management indicated confidence in continued improvement of gross and net margins, with a target of 40% to 45% gross profit margins in the mid to long term [66]

Core Insights - Bilibili reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, and showing improvement from a loss of $0.15 per share a year ago, resulting in a 100% earnings surprise [1] - The company achieved revenues of $963 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.61% and increasing from $791.16 million year-over-year [2] - Bilibili has surpassed consensus EPS estimates three times over the last four quarters and has topped revenue estimates four times in the same period [2] Earnings Outlook - The sustainability of Bilibili's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - Current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $1.02 billion, and for the current fiscal year, it is $0.12 on revenues of $4.14 billion [7] Industry Context - Bilibili belongs to the Zacks Broadcast Radio and Television industry, which is currently ranked in the bottom 45% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Bilibili's stock performance [5]

Investor Presentation May 2025 Safe Harbor Statement MPUs (1) (3) : This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "confident," "potential," "continue," or other similar expressions. Among other things, quotati ...

Core Insights - Bilibili reported a strong financial performance for Q1 2025, with total net revenue reaching RMB 7.003 billion (USD 965 million), a year-on-year increase of 24% [1][2] - The company achieved a gross profit of RMB 2.539 billion (USD 350 million), reflecting a 58% year-on-year growth, and a gross margin of 36.3%, up from 28.3% in the same period last year [1][2] - Adjusted net profit turned positive at RMB 362 million (USD 49.8 million), compared to a loss in the previous year, while net loss narrowed to RMB 10.7 million (USD 1.5 million) [1][2] Revenue Breakdown - Value-added services revenue amounted to RMB 2.807 billion (USD 387 million), an 11% increase year-on-year, driven by growth in live streaming and other value-added services [1] - Advertising revenue reached RMB 1.998 billion (USD 275 million), a 20% increase year-on-year, primarily due to strong growth in performance-based advertising [1] - Mobile gaming revenue surged to RMB 1.731 billion (USD 239 million), a 76% increase year-on-year, largely attributed to the strong performance of the exclusive licensed game "Three Kingdoms: Strategy of the World" [1] User Engagement Metrics - Daily active users (DAUs) reached 106.7 million, up from 102.4 million in the same period last year [1] - Monthly active users (MAUs) hit a record of 368 million, indicating a growing and increasingly engaged user base [2] - The average age of users increased to 26 years, with daily usage time reaching a new high of 108 minutes, and the number of monthly paying users reached a historical peak of 32 million [2]

Financial Performance - Total net revenue for Q1 2025 reached RMB 7.003 billion (USD 965 million), a year-on-year increase of 24%[11] - Gross profit amounted to RMB 2.539 billion (USD 350 million), representing a 58% year-on-year increase, with a gross margin of 36.3% compared to 28.3% in the same period of 2024[11] - Adjusted net profit for Q1 2025 was RMB 362 million (USD 49.8 million), compared to an adjusted net loss of RMB 456 million in the same period of 2024[11] - Operating profit was RMB 15 million (USD 2.1 million), a significant recovery from an operating loss of RMB 819 million in the same period last year[15] - Adjusted operating profit was RMB 342 million (USD 47.2 million), compared to an adjusted operating loss of RMB 512 million in 2024[15] - Net loss narrowed by 99% to RMB 107 million (USD 15 million) year-over-year[16] - The company reported a net loss of RMB 764.63 million for the three months ended March 31, 2024, compared to a net profit of RMB 88.93 million in the same period of the previous year[28] - The adjusted net loss attributable to Bilibili Inc. shareholders for the three months ended March 31, 2024, was RMB 439,796, with an expected improvement to a profit of RMB 363,088 by March 31, 2025[37] User Engagement - Daily active users (DAUs) reached 106.7 million, while monthly active users (MAUs) hit a record high of 368 million[11] - The average age of users reached 26 years, indicating a maturing user base with increasing purchasing power[11] - The company plans to continue expanding its product and service offerings to enhance user engagement and retention[27] Revenue Breakdown - Advertising revenue was RMB 1.998 billion (USD 275 million), up 20% year-on-year, driven by strong growth in performance-based advertising[12] - Mobile gaming revenue surged to RMB 1.731 billion (USD 239 million), a 76% increase year-on-year, primarily due to the strong performance of the exclusive licensed game "Three Kingdoms: Strategize the World"[13] - Revenue from value-added services was RMB 2.807 billion (USD 387 million), an 11% increase year-on-year, mainly due to growth in live streaming and other value-added services[12] Operating Expenses - Total operating expenses amounted to RMB 2.524 billion (USD 348 million), an increase of 4% compared to the same period in 2024[14] - Sales and marketing expenses were RMB 1.167 billion (USD 161 million), up 26% year-over-year, primarily due to a partnership with CCTV for exclusive live streaming during the 2025 Spring Festival Gala[14] - Research and development expenses decreased by 13% to RMB 841 million (USD 116 million) due to improved R&D efficiency[14] Cash Flow and Assets - Operating cash flow for the quarter was RMB 1.302 billion (USD 179 million), significantly up from RMB 638 million in Q1 2024[11] - Cash generated from operating activities was RMB 1.302 billion (USD 179 million), up from RMB 638 million in the same period last year[16] - As of March 31, 2025, cash and cash equivalents, along with short-term investments, totaled RMB 17.397 billion (USD 2.397 billion)[16] - The company's cash and cash equivalents decreased from RMB 10,249,382 on December 31, 2024, to RMB 9,601,900 by March 31, 2025, a decline of 6.34%[32] Future Outlook - The company aims to continue expanding its business and community through efficient and sustainable operations, focusing on profit growth and long-term shareholder value[12] - Future guidance indicates expected total net revenue of RMB 7,734.16 million for the year ending December 31, 2024[28] - The company is focusing on improving its operational efficiency and managing costs effectively to mitigate losses[27] Shareholder Information - The weighted average number of ordinary shares outstanding was 415,274,340 for the three months ended March 31, 2024[28] - The weighted average number of ordinary shares outstanding (basic) increased from 415,274,340 for the three months ended March 31, 2024, to 420,086,397 by March 31, 2025[37]

SHANGHAI, May 20, 2025 (GLOBE NEWSWIRE) -- Bilibili Inc. ("Bilibili" or the "Company") (NASDAQ: BILI and HKEX: 9626), an iconic brand and a leading video community for young generations in China, today announced its unaudited financial results for the first quarter ended March 31, 2025. Total net revenues. Total net revenues were RMB7.00 billion (US$965.1 million), representing an increase of 24% from the same period of 2024. Value-added services (VAS). Revenues from VAS were RMB2.81 billion (US$386.9 milli ...

Financial Performance - Total net revenues for Q1 2025 were RMB7.00 billion (US$965.1 million), representing a 24% year-over-year increase[5] - Total net revenues for the three months ended March 31, 2025, were RMB 7,003,248, a decrease of 9.4% compared to RMB 7,734,161 in the previous quarter[31] - Gross profit rose by 58% year-over-year to RMB2.54 billion (US$349.9 million), with a gross profit margin of 36.3%[5] - Gross profit for the three months ended March 31, 2025, was RMB 2,539,098, compared to RMB 2,788,216 in the previous quarter, reflecting a gross margin of 36.3%[31] - Adjusted net profit for Q1 2025 was RMB361.5 million (US$49.8 million), compared to an adjusted net loss of RMB455.9 million in Q1 2024[16] - The net loss attributable to Bilibili Inc.'s shareholders for the three months ended March 31, 2025, was RMB 9,102, compared to a profit of RMB 89,960 in the previous quarter[31] User Engagement - Daily Active Users (DAUs) reached 107 million, while Monthly Active Users (MAUs) hit 368 million, with an average user age of 26[4] - Average daily time spent per user was 108 minutes, and monthly paying users reached an all-time high of 32 million[4] Revenue Breakdown - Advertising revenues increased by 20% year-over-year to RMB2.00 billion (US$275.3 million)[5] - Advertising revenue decreased by 16.3% to RMB 1,997,635 from RMB 2,388,673 in the previous quarter[31] - Mobile games revenues surged by 76% year-over-year to RMB1.73 billion (US$238.6 million)[5] - Value-added services (VAS) revenue was RMB 2,807,340, down 8.9% from RMB 3,083,071 in the previous quarter[31] Operating Expenses and Cash Flow - Total operating expenses increased by 4% year-over-year to RMB2.52 billion (US$347.8 million)[10] - Operating expenses totaled RMB 2,524,090, a decrease of 5.2% from RMB 2,661,775 in the previous quarter[31] - Operating cash flow was RMB1.30 billion (US$179.4 million), up from RMB637.7 million in the same period of 2024[18] - Net cash provided by operating activities was RMB 1,302,095 for the three months ended March 31, 2025, compared to RMB 1,400,988 in the previous quarter[37] Assets and Liabilities - Cash and cash equivalents, time deposits, and short-term investments totaled RMB17.40 billion (US$2.40 billion) as of March 31, 2025[18] - Total current assets increased to RMB 20,579,392 as of March 31, 2025, from RMB 19,756,055 as of December 31, 2024[35] - Total liabilities rose to RMB 18,900,142 as of March 31, 2025, compared to RMB 18,594,587 as of December 31, 2024[35] Share Information - The weighted average number of ordinary shares, basic, was 420,086,397 for the three months ended March 31, 2025, an increase from 417,829,038 in the previous quarter[39]

Core Viewpoint - Bilibili's chairman Chen Rui's annual salary of 254 million yuan has sparked significant public outrage, especially given the company's history of losses and the stark contrast with other industry leaders like Tencent's Ma Huateng, whose salary is only 45.07 million yuan [1][3]. Group 1: Salary Breakdown - Chen Rui's reported salary is primarily composed of stock incentives, with 99.1% of the total being stock options rather than cash [3][5]. - The basic salary is 2.115 million yuan, accounting for approximately 0.83% of the total compensation [5]. Group 2: Company Performance - Bilibili is projected to turn a profit in 2024 after nine consecutive years of losses, marking a significant milestone for the company [7][9]. - The turnaround is attributed to two main factors: a 40% increase in game revenue, reaching 5.61 billion yuan, and a 40% growth in advertising revenue as brands increasingly target young users on the platform [9][12]. Group 3: Public Sentiment and Industry Context - The public reaction is fueled by the perception of disparity between high executive compensation and the struggles of regular employees, especially in light of recent industry layoffs [9][12]. - Concerns are raised about whether the high-level incentives are shared with lower-level employees and if the performance metrics for these incentives are genuinely tied to company success rather than superficial achievements [16][17].