Core Insights - Bilibili reported Q3 2025 revenue of 7.685 billion yuan, a year-on-year increase of 5.20%, with a gross margin of 36.67%, up 1.80 percentage points year-on-year and 0.20 percentage points quarter-on-quarter [1] - Adjusted net profit attributable to shareholders reached 786 million yuan, a significant year-on-year increase of 233%, with an adjusted net profit margin of 10.2%, up 7.0 percentage points year-on-year [1] User Engagement - Bilibili's core user metrics reached historical highs, with daily active users (DAU) growing 9% year-on-year to 117 million, and monthly active users (MAU) increasing 8% to 376 million [1] - The number of monthly paying users rose 17% year-on-year to 35 million, driven primarily by an increase in premium membership subscriptions [1] - Users' average daily usage time increased by 6 minutes year-on-year to 112 minutes, also a historical high [1] Advertising Business - Bilibili's advertising revenue for Q3 2025 was 2.57 billion yuan, a year-on-year increase of 23%, outpacing the online advertising industry [2] - The growth was attributed to improved marketing material production efficiency and advertising effectiveness due to AI technology, with over 60% of AI video material consumption and more than 45% of smart advertising consumption [2] - During the Double Eleven shopping festival, advertising revenue grew over 30% year-on-year, with a customer count increase of over 100% [2] - The company expects advertising business growth to maintain over 20% in Q4 2025 and into 2026 [2] Gaming Business - Bilibili's gaming revenue for Q3 2025 was 1.51 billion yuan, a year-on-year decline of 17%, primarily due to a high base effect from the previous year [3] - The game "Three Kingdoms: Strategy of the World" is expected to launch in traditional Chinese for Hong Kong and Taiwan in Q1 2026, with additional international versions planned for H2 2026 [3] - The new game "Escape from Duckkov" has sold over 3 million copies globally, with online users reaching 300,000, indicating strong potential for future sales [3] - Another game, "Three Kingdoms: Hundred Generals Card," is in testing and is expected to launch in Q1 2026 [3] Financial Projections - The company anticipates revenue of 30.2 billion yuan, 33.1 billion yuan, and 36.3 billion yuan for 2025, 2026, and 2027 respectively [3] - Adjusted net profit is projected to be 2.51 billion yuan, 3.09 billion yuan, and 3.99 billion yuan for the same years [3] - Corresponding price-to-earnings ratios are expected to be 32.6, 26.5, and 20.5 times [3]