BILIBILI(US:BILI) Goldman Sachs·2025-05-21 06:36Investment Rating - The report assigns a "Buy" rating to Bilibili Inc. (BILI) with a 12-month DCF-based target price of US$23.70 and HK$185.00, indicating an upside potential of 31.7% and 32.0% respectively [7][9]. Core Insights - Bilibili Inc. reported revenue of Rmb7.0 billion for 1Q25, reflecting a year-over-year increase of 24% and slightly beating consensus estimates [1][2]. - Non-GAAP EPADS was reported at Rmb0.85, which is a 20% increase year-over-year and a 38% beat against consensus estimates [1]. - The company experienced a 4.5% increase in Daily Active Users (DAU) and a 7.8% increase in Monthly Active Users (MAU), reaching 107 million and 368 million respectively, likely aided by the Spring Festival Gala [2]. - Mobile games revenue surged by 76% year-over-year, while advertising revenue grew by 20% year-over-year, both aligning with expectations [2]. - The adjusted operating profit was Rmb342 million, exceeding the estimate of Rmb213 million, primarily due to disciplined sales and marketing spending [2]. Summary by Sections Earnings Results - Revenue: Rmb7.0 billion (+24% YoY) [1] - Non-GAAP EPADS: Rmb0.85 (+20% YoY) [1] - DAU: 107 million (+4.5% YoY) [2] - MAU: 368 million (+7.8% YoY) [2] - Mobile Games Revenue: +76% YoY [2] - Advertising Revenue: +20% YoY [2] - Adjusted Operating Profit: Rmb342 million (+61% YoY) [2] Future Outlook - Key focus areas include advertising outlook for 2Q/FY25, game pipeline for the remainder of 2025, margin expansion potential, and shareholder return plans for 2025E [2].