2025-08-21 11:08Bilibili Inc. Second Quarter 2025 Financial Results Management Commentary Management highlighted a quarter of healthy momentum, characterized by solid user growth, increased engagement, and strong financial performance, with revenue growth driven by advertising and mobile games, leading to significant improvements in gross margin and a return to net profitability, as the company remains focused on delivering premium content, deepening user engagement, and maintaining efficient, sustainable operations - CEO Rui Chen emphasized strong community engagement, with DAUs, MAUs, and monthly paying users growing by 7%, 8%, and 9% YoY, respectively. Average daily time spent increased by 6 minutes to 105 minutes3 - CFO Sam Fan highlighted 20% YoY revenue growth, fueled by a 20% increase in advertising and a 60% increase in games revenue3 - Profitability improved significantly, with gross profit up 46% YoY, gross margin reaching 36.5%, and the company achieving a net profit of RMB 218.3 million. Net operating cash flow was a robust RMB 1.99 billion3 Key Financial and Operational Highlights In Q2 2025, Bilibili demonstrated significant year-over-year growth across key metrics, with total net revenues increasing by 20%, driven by a remarkable 60% surge in mobile games revenue, and the company achieved a major profitability turnaround, reporting a net profit of RMB 218.3 million compared to a substantial loss in the prior year, while user engagement also strengthened, with Daily Active Users (DAUs) growing by 7% Q2 2025 Key Metrics vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Net Revenues | RMB 7.34 billion | RMB 6.13 billion | +20% | | Mobile Games Revenues | RMB 1.61 billion | RMB 1.01 billion | +60% | | Gross Profit | RMB 2.68 billion | RMB 1.83 billion | +46% | | Gross Profit Margin | 36.5% | 29.9% | +6.6pp | | Net Profit/(Loss) | RMB 218.3 million | (RMB 608.1 million) | Turnaround | | Adjusted Net Profit/(Loss) | RMB 561.3 million | (RMB 271.0 million) | Turnaround | | Net Cash from Operations | RMB 1.99 billion | RMB 1.75 billion | +13.7% | | Average DAUs | 109.4 million | ~102.2 million | +7% | Detailed Financial Performance Total net revenues for Q2 2025 reached RMB 7.34 billion, a 20% increase year-over-year, primarily propelled by strong growth in mobile games and advertising, while cost of revenues grew at a slower pace of 9%, resulting in a 46% increase in gross profit and an expanded gross margin of 36.5%, and with operating expenses held stable, the company successfully turned an operating loss of RMB 585.1 million last year into an operating profit of RMB 251.6 million Revenues Revenue by Segment (Q2 2025) | Revenue Segment | Amount (RMB billion) | YoY Change | | :--- | :--- | :--- | | Total Net Revenues | 7.34 | +20% | | Value-added services (VAS) | 2.84 | +11% | | Advertising | 2.45 | +20% | | Mobile games | 1.61 | +60% | | IP derivatives and others | 0.44 | -15% | - The 60% growth in mobile games revenue was mainly attributable to the strong performance of the exclusively licensed game, San Guo: Mou Ding Tian Xia5 - The 20% growth in advertising revenue was primarily driven by strong performance-based advertising5 Costs and Expenses - Cost of revenues increased by 9% YoY to RMB 4.66 billion, mainly due to higher revenue sharing costs which grew in line with revenue7 - Total operating expenses remained stable year-over-year at RMB 2.42 billion8 Operating Expenses Breakdown (Q2 2025) | Expense Category | Amount (RMB billion) | YoY Change | | :--- | :--- | :--- | | Sales and marketing | 1.05 | +1% | | Research and development | 0.87 | -3% | Profitability Profitability Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | | :--- | :--- | :--- | | Gross Profit | 2,675.8 | 1,833.2 | | Profit/(Loss) from Operations | 251.6 | (585.1) | | Net Profit/(Loss) | 218.3 | (608.1) | | Adjusted Net Profit/(Loss) | 561.3 | (271.0) | - Gross profit margin improved to 36.5% from 29.9% in the same period of 2024, driven by revenue growth and enhanced monetization efficiency810 Earnings Per Share (EPS) EPS Comparison (Q2 2025 vs Q2 2024) | EPS Type | Q2 2025 (RMB) | Q2 2024 (RMB) | | :--- | :--- | :--- | | Basic EPS | 0.52 | (1.46) | | Diluted EPS | 0.51 | (1.46) | | Adjusted Basic EPS | 1.34 | (0.65) | | Adjusted Diluted EPS | 1.29 | (0.65) | Financial Position and Cash Flow The company maintained a strong financial position with RMB 22.29 billion in cash, cash equivalents, time deposits, and short-term investments as of June 30, 2025, and net cash provided by operating activities was robust at RMB 1.99 billion for the quarter, showing a healthy increase from the previous year - As of June 30, 2025, the Company had cash and cash equivalents, time deposits and short-term investments of RMB 22.29 billion (US$3.11 billion)15 - Net cash provided by operating activities was RMB 1.99 billion (US$277.7 million), compared with RMB 1.75 billion in the same period of 202415 Recent Developments During the second quarter, Bilibili strengthened its capital structure by completing a US$690.0 million convertible senior notes offering, and in conjunction with this, the company executed a concurrent repurchase of its shares and continued its existing share buyback program, signaling confidence in its long-term value - In May 2025, the Company completed an offering of US$690.0 million in convertible senior notes due 203016 - Concurrently, the company repurchased 5,588,140 Class Z ordinary shares for approximately US$100.0 million17 - Under its US$200 million share repurchase program from November 2024, the company has repurchased a total of US$116.4 million in securities, with US$83.6 million remaining as of June 30, 202518 Unaudited Condensed Consolidated Financial Statements Consolidated Statements of Operations The unaudited consolidated statements of operations detail the company's financial performance for the three and six months ended June 30, 2025, showing a significant turnaround from a net loss of RMB 608.1 million in Q2 2024 to a net profit of RMB 218.3 million in Q2 2025, driven by revenue growth and improved operational efficiency Condensed Statement of Operations (For the Three Months Ended June 30) | Line Item (RMB thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Total net revenues | 7,337,690 | 6,127,144 | | Cost of revenues | (4,661,844) | (4,293,943) | | Gross profit | 2,675,846 | 1,833,201 | | Total operating expenses | (2,424,234) | (2,418,336) | | Profit/(loss) from operations | 251,612 | (585,135) | | Net profit/(loss) | 218,283 | (608,149) | Consolidated Balance Sheets The balance sheet as of June 30, 2025, reflects a strengthened financial position compared to December 31, 2024, with total assets growing to RMB 38.8 billion from RMB 32.7 billion, largely due to an increase in cash, time deposits, and long-term debt from the recent notes offering, while total liabilities also increased, primarily from the new long-term debt Condensed Balance Sheet Data | Line Item (RMB thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current assets | 25,570,818 | 19,756,055 | | Cash and cash equivalents | 10,675,615 | 10,249,382 | | Total assets | 38,793,783 | 32,698,500 | | Total current liabilities | 16,014,318 | 14,762,803 | | Long-term debt | 8,088,858 | 3,264,153 | | Total liabilities | 24,638,025 | 18,594,587 | | Total shareholders' equity | 14,155,758 | 14,103,913 | Reconciliations of GAAP and Non-GAAP Results This section reconciles GAAP financial figures to non-GAAP counterparts by excluding non-cash or non-recurring items such as share-based compensation and amortization of intangible assets, showing that for Q2 2025, the adjusted net profit was RMB 561.3 million, a significant improvement from an adjusted net loss of RMB 271.0 million in Q2 2024, providing an alternative view of the company's core operational profitability GAAP to Non-GAAP Net Profit Reconciliation (Q2 2025 vs Q2 2024) | Line Item (RMB thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net (loss)/profit (GAAP) | 218,283 | (608,149) | | Add: Share-based compensation | 284,847 | 259,479 | | Add: Amortization of intangibles | 36,692 | 41,776 | | Add: Other adjustments | 21,507 | 35,904 | | Adjusted net (loss)/profit (Non-GAAP) | 561,329 | (270,990) |