Core Viewpoint - Bilibili (NASDAQ:BILI; HKEX:9626) continues its growth momentum from Q1 into Q2 2025, achieving a revenue of 7.34 billion yuan, a year-on-year increase of 20% driven by its four main business segments: value-added services, advertising, gaming, and IP derivatives [1] Group 1: Financial Performance - The most notable highlight of this quarter is the breakthrough in profitability, with gross profit increasing by 46% year-on-year, reaching a gross margin of 36.5%, marking the twelfth consecutive quarter of growth [2] - Net profit and adjusted net profit both reached historical highs of 220 million yuan and 560 million yuan, respectively [2] Group 2: User Engagement - Daily active users reached a record high of 109 million, while monthly active users increased to 363 million, demonstrating the platform's strong content ecosystem [3] - Monthly paying users reached 31 million, with average daily usage time increasing by 6 minutes to 105 minutes, and the retention rate for members after 12 months remained stable at 80% [3][4] Group 3: Gaming Business - The gaming segment saw a significant revenue increase of 60%, reaching 1.61 billion yuan, driven by the success of flagship products [5] - The mobile game "Three Kingdoms: Strategize" achieved record user engagement during its anniversary, indicating the sustainability of its monetization models [6] - Bilibili's long-standing games also performed well, with "Fate/Grand Order" returning to the top five bestsellers during its ninth anniversary [7] Group 4: Advertising Business - The advertising segment maintained strong growth, with revenue increasing by 20% to 2.45 billion yuan [9] - Key drivers for advertising growth include a balanced advertising structure, an expanding client base, and enhanced conversion rates, with brand advertising revenue growing significantly [10] - AI technology is expected to further enhance advertising operations, improving targeting accuracy and operational efficiency [10] Group 5: Overall Strategy - Bilibili is on a path of "dual growth in scale and profit," leveraging its community ecosystem and quality content to solidify current advantages and lay the groundwork for future growth [11]