BILIBILI(US:BILI) Zhong Guo Jing Ying Bao·2025-05-21 08:10Core Viewpoint - Bilibili (NASDAQ: BILI, HKEX: 9626) reported a strong financial performance for Q1 2025, with revenue reaching 7 billion RMB, a 24% year-over-year increase, and a significant reduction in net loss, indicating a continued trend towards profitability after achieving full profitability in Q4 2024 [2][3]. Revenue Breakdown - Total revenue for Q1 2025 was 70.0 billion RMB, with contributions from various segments: value-added services (40%), advertising (29%), gaming (25%), and IP derivatives and other businesses (6%) [3]. - Value-added services revenue was 28.1 billion RMB, up 11% year-over-year, driven by increased income from live streaming and other services [3]. - Advertising revenue reached 20.0 billion RMB, a 20% increase year-over-year, primarily due to strong growth in performance-based advertising [4]. - Gaming revenue surged to 17.3 billion RMB, a 76% increase year-over-year, largely attributed to the success of the exclusive game "Three Kingdoms: Strategize" [3][4]. Advertising Performance - Advertising revenue for Q1 was 20.0 billion RMB, with performance-based advertising growing over 30% year-over-year [4]. - The number of advertisers on the platform increased by over 35% year-over-year, indicating a growing interest in Bilibili as an advertising platform [4]. Gaming Business Insights - The gaming segment remains a critical driver of revenue, with a focus on long-term user engagement and retention strategies for "Three Kingdoms: Strategize" [4][5]. - The company is preparing to launch four to five new games pending approval, aiming to explore new opportunities similar to "Three Kingdoms" [4]. Profitability Strategy - Bilibili's ongoing profitability is heavily reliant on the sustained growth of its advertising and gaming businesses, with a shift in focus towards fewer, high-potential gaming products [5]. - The management emphasizes the importance of high-quality content as a long-term strategy for user retention and engagement [6]. User Engagement Metrics - Bilibili achieved record user engagement in Q1 2025, with daily active users (DAU) reaching 107 million and monthly active users (MAU) hitting 368 million [6]. - The average daily usage time increased to 108 minutes, attributed in part to the successful collaboration with CCTV for the Spring Festival Gala [6].