BILIBILI(09626) 长江证券·2025-03-25 09:40Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Insights - The company reported a revenue of 26.83 billion yuan for the full year 2024, representing a year-on-year growth of 19%. The Non-GAAP net loss for the year was 39 million yuan, a significant narrowing of 99% compared to the previous year. In Q4 2024, the company achieved a revenue of 7.73 billion yuan, with a gross profit of 2.79 billion yuan, marking a year-on-year increase of 68%. The gross margin increased by 10.0 percentage points to 36.1%, achieving a continuous improvement for the tenth consecutive quarter. The Non-GAAP net profit for Q4 was 450 million yuan, indicating a return to profitability for the quarter [2][4]. Revenue Breakdown - In Q4 2024, the advertising business generated 2.39 billion yuan, a year-on-year increase of 24%. The average age of active users is 25 years, which enhances the platform's attractiveness to advertisers. The company is advancing its "one horizontal, N vertical" strategy to improve advertising product capabilities and expand its advertiser base across various industries. The self-developed AIGC marketing material generation tool continues to empower advertising efforts [7]. - The value-added services segment reported a revenue of 3.08 billion yuan in Q4 2024, growing by 8%. The number of official members reached 258 million, a 12% increase year-on-year, with a retention rate of approximately 80% over 12 months. The number of premium members reached 22.7 million, with over 80% being annual subscription or auto-renewal users [7]. - The mobile gaming business saw a revenue of 1.8 billion yuan in Q4 2024, a remarkable year-on-year growth of 79%. This growth is attributed to the long-term operation of the game "Three Kingdoms: Strategizing the World," which is expected to launch its sixth season on February 22. Additionally, the company has other games in the licensing application process [7]. Operational Data - The community ecosystem of the company continues to thrive, with a daily active user (DAU) count of 103 million and a monthly active user (MAU) count of 340 million in Q4 2024. The average daily usage time reached 99 minutes. The daily video playback volume increased by 14% year-on-year, reaching 4.8 billion views. Nearly 3.1 million content creators (UP owners) earned income on the platform, with a 33% increase in UP owners earning through advertising and a 68% increase in those earning through video and live streaming sales [7]. - The company became the exclusive bullet screen video platform for the Spring Festival Gala in 2025, leading to a 20% year-on-year increase in daily active users on New Year's Eve, with over 37 million viewers for the gala [7]. Profitability - The growth in high-margin businesses such as advertising and gaming, along with effective cost control, led to a gross profit increase of 68% to 2.79 billion yuan in Q4 2024. The gross margin improved by 10.0 percentage points to 36.1%, marking ten consecutive quarters of improvement. Sales expenses increased by 10% year-on-year due to increased gaming acquisition costs, while R&D expenses significantly decreased by 31% year-on-year [7]. - The Non-GAAP net profit for Q4 2024 was 450 million yuan, indicating a return to profitability for the quarter. The net operating cash flow was 1.401 billion yuan, achieving positive operating cash flow for six consecutive quarters, indicating that the business has entered a virtuous cycle [7].