Ge Long Hui·2026-02-11 06:51Core Viewpoint - Bilibili (B站) has successfully transformed from a niche community platform to the largest PUGC video platform in China, with strong user engagement and a diversified revenue structure driving growth [1][2]. Group 1: User Engagement and Community - Bilibili has built a high-barrier, highly engaging video interest community, resulting in a strong emotional bond and trust between users and content creators (UP主) [1]. - As of Q3 2025, the platform's Monthly Active Users (MAU) and Daily Active Users (DAU) reached 376 million and 117 million, respectively, both hitting historical highs [1]. - The average user age has increased from 21 in 2018 to 26, indicating successful cross-generational expansion and a growing consumer base [1]. Group 2: Business Structure and Revenue Growth - Bilibili's revenue is driven by four main segments: value-added services, advertising, gaming, and IP derivatives, with value-added services being the largest revenue source [1]. - Advertising revenue grew by 21% year-on-year in the first three quarters of 2025, significantly outperforming the industry average due to algorithm improvements and community maturity [1]. - The gaming segment is expected to see substantial growth with the launch of the popular SLG mobile game "Three Kingdoms: Strategize the World" in 2024, breaking the platform's reliance on niche content [1]. Group 3: Financial Performance and Profitability - Bilibili achieved a significant financial turning point, with gross and net profit margins improving since 2023, and the company turning a profit in Q3 2024 [2]. - Content costs are only 10% of revenue, much lower than traditional long-video platforms, and marketing expenses have decreased to 16%, indicating a shift away from a "burning cash for growth" model [2]. - Operating cash flow turned positive in 2023, with further growth to 5.308 billion yuan in the first three quarters of 2025, reflecting a healthy self-sustaining capability [2]. Group 4: Investment Logic and Future Growth - The company maintains a positive profit forecast, with adjusted net profits expected to be 2.548 billion, 3.366 billion, and 4.576 billion yuan for 2025, 2026, and 2027, respectively [3]. - Bilibili's gaming and advertising sectors are poised for growth, with potential market expansion as the company transitions from niche to mainstream IP categories [3]. - The advertising monetization efficiency has significant room for improvement, with potential for substantial revenue increases if it aligns with industry averages [3].