BILIBILI(US:BILI) Nan Fang Du Shi Bao·2025-05-21 03:12Core Viewpoint - Bilibili (B站) reported a strong financial performance for Q1 2025, with revenue reaching 7.003 billion yuan, a 24% year-on-year increase, and adjusted net profit of 362 million yuan, marking a turnaround from a loss of 456 million yuan in the same period last year [2][6]. Revenue Growth - The revenue growth in Q1 2025 is the highest for the same period in the past three years, with a total revenue of 7.734 billion yuan in Q4 2024 [4]. - Advertising revenue reached nearly 2 billion yuan, growing by 20% year-on-year, with performance ads increasing by over 30% [4][5]. - Game revenue surged by 76% year-on-year, amounting to 1.73 billion yuan, driven by stable income from long-standing games and new releases [5][6]. User Engagement - Daily active users increased by 4.2% year-on-year to 106.7 million, with average daily usage time reaching a record high of 108 minutes [2][7]. - Monthly active paid users reached a new high of 32 million, with a retention rate of 80% for users who passed the entrance exam [7]. Profitability and Margins - Gross profit increased significantly by 58% year-on-year, with a gross margin rising to 36.3%, marking the 11th consecutive quarter of improvement [6]. - The company aims to further increase gross margins to 40%-45% in the medium to long term, driven by stable fixed costs and revenue growth [6]. Advertising and Content Strategy - The growth in advertising revenue was notably influenced by content related to home appliances, which saw a nearly 40% increase in related ad revenue [4][5]. - AI-related advertising showed remarkable performance, with revenue increasing by nearly 400% [5]. Future Outlook - Management expressed confidence in the continued growth of user engagement and advertising revenue, with plans to explore new game categories and enhance content quality [5][6].