Core Viewpoint - Bilibili's Q3 revenue grew by 5% year-on-year, meeting expectations, while non-GAAP operating profit and net profit exceeded expectations by 6% and 22% respectively, driven by better-than-expected cost control and efficiency improvements from AI [1] Group 1: Financial Performance - Bilibili's Q3 revenue growth of 5% aligns with market expectations [1] - Non-GAAP operating profit and net profit surpassed expectations by 6% and 22%, respectively [1] - The company is expected to see a 22% and 19% year-on-year increase in advertising revenue for Q4 this year and next year [1] Group 2: Business Segments - The gaming segment is anticipated to recover quarter-on-quarter due to new popular products [1] - Strong performance in advertising is supported by Bilibili's rich content, traffic, and share of young users [1] Group 3: Future Outlook - The company maintains a positive outlook on its ability to adapt to the preferences of young users and sustain classic product operations [1] - Non-GAAP net profit forecasts have been raised by 4% to 7%, with expected revenues increasing by 13% and 9% year-on-year over the next two years [1] - The target price for Bilibili's US stock is set at $30, with a target price of HKD 234 for its H-shares [1]

Core Viewpoint - Goldman Sachs has raised the target price for Bilibili-W (09626, BILI.US) by 2.6% to HKD 240 and by 2.7% to USD 30.8, maintaining a "Buy" investment rating [1] Group 1: Financial Performance - Bilibili's Q3 performance and management comments during the non-deal roadshow (NDR) reaffirm Goldman Sachs' investment thesis [1] - Revenue forecasts for Bilibili from 2025 to 2027 have been increased by 0%-1%, reflecting better-than-expected advertising and other income [1] - The non-GAAP net profit forecast for 2025 has been raised by 5% [1] Group 2: Business Strategy and Growth Potential - Bilibili is maintaining a high-quality content community with strong user engagement [1] - The company is leveraging higher advertising conversion rates and artificial intelligence (AI) technology for traffic monetization [1] - New gaming projects are expected to offer significant growth potential until 2026 [1]

Core Viewpoint - Bilibili's Q3 total revenue increased by 5% year-on-year, reaching 7.69 billion yuan, aligning with market consensus expectations [1] Revenue Performance - Adjusted operating income for Bilibili was 688 million yuan, surpassing the 272 million yuan from the same period in 2024 and exceeding market expectations by 6% due to effective control of sales and marketing expenses [1] Future Outlook - For Q4, the forecast indicates a continued 5% year-on-year revenue growth, primarily driven by strong advertising business [1] - The company is expected to see a 1 percentage point increase in gross margin quarter-on-quarter due to operational leverage and cost control [1] Revenue Forecast Adjustment - The revenue forecast for Bilibili for the fiscal years 2025 to 2027 has been raised by 0% to 3%, reflecting solid advertising performance and better-than-expected results from games like "Escape from Duckkov" [1] Valuation Update - The valuation window has been extended to the fiscal year 2026, with the target price based on the sum-of-the-parts valuation method slightly increased from $30 to $31, maintaining a "Buy" rating [1]

Core Insights - Bilibili (referred to as "B站") held an online event on November 15, 2023, to announce the release of 40 domestic animation works for 2025-2026 [1] - The company will collaborate with Shenman Culture for the first time to adapt the popular web novel "I Clean Up Garbage in the Wasteland" into an animated series, marking the first "romantic wasteland" genre in China [1] - The animation will feature imaginative visual art, showcasing strange creatures and the integration of plants with urban architecture [1] New Releases - The new season of the annual series "A Mortal's Journey to Immortality" is set to air in the first half of 2026, alongside a feature film "The Mystery of the Vast Sea" and a spin-off "The Bone of the Immortal" [3] - The ongoing series "The Shepherd" will introduce new characters, while the third season of "Time Agent" is scheduled for release in October 2026 [3] - The highly popular animation "Chinese Folktales 2" is confirmed to premiere on January 1, 2026, featuring nine distinct short stories [3] Performance Metrics - Since 2018, Bilibili has launched over 3,000 domestic animation works, with nearly 970 million hours of viewing time for domestic content in the past year [6] - In Q3, the viewing time for domestic content on the platform increased by 104% year-on-year, with the overall user base reaching 330 million [6] - Bilibili's "Seeking Light Program" has supported 316 university projects with resources and funding, and as of August this year, the company has produced a total of 84 original animations [6]

Financial Performance - Bilibili reported total revenue of 7.69 billion RMB for Q3, representing a year-on-year growth of 5% [1] - Adjusted net profit reached 790 million RMB, showing a significant year-on-year increase of 233% [1] - As of September 30, the company held cash and cash equivalents, term deposits, and short-term investments totaling 23.49 billion RMB, indicating strong financial reserves [1] Revenue Structure - The revenue composition is diverse, with value-added services, advertising, gaming, and IP derivatives contributing 39%, 33%, 20%, and 8% respectively [3] - Revenue from value-added services reached 3.02 billion RMB, growing by 7% year-on-year [3] - Advertising revenue for Q3 was 2.57 billion RMB, accelerating with a year-on-year growth of 23%, with the top five contributing industries being gaming, internet services, digital appliances, e-commerce, and automotive [3] - Gaming revenue amounted to 1.51 billion RMB [3] User Metrics - Bilibili achieved record user engagement, with daily active users reaching 117 million and monthly active users at 376 million [5] - Average daily usage time increased to 112 minutes [5] - The number of official members grew by 10% year-on-year, reaching 278 million, with a stable 12-month retention rate of 80% [5] - The viewing time for videos longer than 5 minutes increased by nearly 20%, indicating a strong demand for in-depth content [5]

Core Viewpoint - Bilibili (NASDAQ: BILI, HKEX: 9626) reported Q3 2025 earnings with revenue of 7.69 billion yuan, a 5% year-on-year increase, driven by strong advertising revenue growth of 23% [2][3] Revenue Structure - Q3 2025 revenue breakdown: Value-added services contributed 30.2 billion yuan (up 7% YoY), advertising contributed 25.7 billion yuan (up 23% YoY), mobile gaming revenue was 15.1 billion yuan (down 17% YoY), and other businesses contributed 5.82 billion yuan (up 3% YoY) [3][6] - The increase in value-added services revenue was primarily due to growth in paid memberships and other services [3] User Engagement - Daily active users reached 117 million, up 9% YoY, while monthly active users reached 376 million, up 8% YoY [4] - The average daily usage time increased to 112 minutes, a rise of 6 minutes YoY [4] - The number of paying users hit a record high of 35 million, representing a 17% increase YoY, with "big members" being the main driver of this growth [4][5] Advertising Performance - Advertising revenue for Q3 was 25.7 billion yuan, with the top five contributing industries being gaming, internet services, digital appliances, e-commerce, and automotive [6] - During the "Double Eleven" shopping festival, Bilibili's advertising revenue grew approximately 30% YoY, with customer numbers increasing over 100% [7] AI Integration - Bilibili emphasized its strong AI presence, claiming to have the highest concentration of AI-related content creators and users in China [7] - In Q3, AI-related content viewing time increased by nearly 50%, with around 100,000 active AI-related content creators each month [7] - The company plans to focus on video AI solutions to assist creators in producing more and better content [7]

Investment Rating - The investment rating for the company is "Buy" [7] Core Insights - The company reported Q3 2025 revenue of 7.685 billion RMB, a year-on-year increase of 5.2%, which is in line with market expectations. Adjusted operating profit reached 688 million RMB, exceeding expectations due to improved traffic and advertising infrastructure [1][4] - The company's active user engagement continues to rise, with daily active users (DAU) reaching 117 million, a 9% year-on-year increase, and average daily usage time increasing by 6 minutes to 112 minutes [2] - The launch of the self-developed game "Escape from Duckkov" has shown promising sales, with over 3 million copies sold, indicating a successful strategy of diversifying and modernizing the game portfolio [3] Summary by Sections Revenue and Profitability - Q3 2025 advertising revenue was 2.57 billion RMB, up 23% year-on-year, surpassing the expected 20% growth. The number of advertisers increased by 16% [2] - The gross margin for Q3 2025 was 36.7%, an increase of 1.8 percentage points year-on-year, driven by high growth in gaming and advertising sectors [4] Game Performance - The company achieved game revenue of 1.51 billion RMB in Q3 2025, a decrease of 17% year-on-year, primarily due to a high base from the previous year. However, the new game "Escape from Duckkov" is expected to positively impact Q4 revenue [3] Cost Management - The company effectively controlled operating expenses, with a sales expense ratio of 13.7%, down 2.8 percentage points year-on-year, which contributed to the better-than-expected operating profit [4] Earnings Forecast and Valuation - Revenue forecasts for 2025-2027 have been slightly adjusted upwards to 30.14 billion RMB, 32.81 billion RMB, and 35.17 billion RMB respectively. Adjusted net profit forecasts have also been increased to 2.45 billion RMB, 3.46 billion RMB, and 4.45 billion RMB for the same period [5][12] - The target market capitalization is set at 119.9 billion RMB, with a target price of 40.1 USD / 312.1 HKD, reflecting a price-to-sales ratio of 4.0x for 2025 [5][13]

Core Insights - Bilibili's Q3 2025 financial report shows a revenue of 7.69 billion yuan, a 5% year-on-year increase, and a significant net profit of 470 million yuan, with a net profit margin of 6.1% [1] - The report indicates that Bilibili has established a mature positive cycle from quality content to high user engagement and commercial monetization [1] User Growth and Engagement - Daily active users reached 117 million and monthly active users hit 376 million, both setting historical highs, with an average daily usage time of 112 minutes [1] - Monthly paying users (MPU) surpassed 35 million, a 17% increase year-on-year, indicating a shift from content consumers to value payers [3] Revenue Structure and Advertising Performance - Advertising revenue reached 2.57 billion yuan, a 23% year-on-year increase, driven by improved advertising infrastructure and brand recognition [4] - The number of advertisers grew by 16% year-on-year, with significant revenue increases in the automotive and AI sectors, achieving 35% and 90% growth respectively [4] Operational Efficiency - Gross margin improved for thirteen consecutive quarters, reaching 36.7%, while sales and marketing expenses decreased by 13% year-on-year [4] - Bilibili's profitability breakthrough is attributed to its long-term commitment to quality content, with gaming and AI content viewing times increasing by 22% and nearly 50% respectively [4] Brand Marketing and Consumer Engagement - Bilibili has become a key platform for brands targeting young consumers, as demonstrated by successful marketing campaigns during the Double 11 shopping festival [6] - Brands like Kiehl's achieved a 60% new customer rate through targeted marketing strategies on Bilibili [6][8] Future Growth Potential - Bilibili's unique content ecosystem and the launch of the "Flower Fire" and "Take Off" commercial products indicate ongoing expansion of its commercial boundaries [10] - The platform is increasingly viewed as an essential marketing channel for brands aiming to reach young audiences and build long-term brand recognition [10]

Core Insights - Bilibili reported a total net revenue of 7.69 billion yuan for Q3 2025, a year-on-year increase of 5%, and a net profit of 469.4 million yuan, compared to a net loss of 79.8 million yuan in the same period last year [2] - Adjusted net profit reached 786.3 million yuan, representing a 233% year-on-year increase [2] Group 1: Mobile Game Revenue - The growth of mobile game revenue has slowed down after nearly five quarters of rapid growth, with Q3 revenue showing a decline of 17% year-on-year [3] - The management attributed this slowdown to a high performance base from the previous year following the successful launch of the exclusive game "Three Kingdoms: Strategize the World" [3] - The management expressed confidence in the long-term operation of "Three Kingdoms: Strategize the World," aiming for over five years of sustained performance [3] Group 2: Advertising Revenue - Advertising revenue reached 2.57 billion yuan in Q3, a year-on-year increase of 23% [5] - The top five advertising clients were from the gaming, internet services, digital appliances, e-commerce, and automotive sectors [5] - The management plans to adapt successful advertising models to vertical industries such as food, beverages, pets, and beauty, which have larger budget allocations [5] Group 3: IP Derivative Products and Other Revenue - Revenue from IP derivative products and other businesses returned to positive growth after ten consecutive quarters of decline, reaching 582.3 million yuan, a year-on-year increase of 3% [6] - The company reported a 7% year-on-year increase in value-added service revenue, totaling 3.02 billion yuan [6] - The average monthly paying users exceeded 35 million, reflecting a 17% year-on-year growth, while daily active users reached 117.3 million, up 9% year-on-year [6]

Group 1 - The core viewpoint of the report is that Bilibili-W (09626) has shown strong advertising performance and operational leverage, supporting margin expansion, and maintains a "Buy" rating [1] - For Q4, the company is expected to achieve a 5% year-on-year revenue growth, primarily driven by robust advertising performance [1] - The report anticipates continued margin expansion in Q4 due to operational leverage release and cost control measures [1] Group 2 - The revenue forecasts for Bilibili for 2025-2027 have been slightly adjusted upward by 0-3% due to the strong performance of the advertising business and the unexpected success of games like "Escape from Duckville" [1]