Core Viewpoint - Bilibili has stabilized its profitability expectations and returned to an expansion cycle, with significant growth in revenue and net profit in Q3 2025, indicating strong operational efficiency and user engagement [5][9]. Financial Performance - In Q3 2025, Bilibili's revenue increased by 5% year-on-year to 7.69 billion yuan, achieving profitability for five consecutive quarters, with a net profit of 470 million yuan compared to a net loss of 79.8 million yuan in the same period last year [5][7]. - Adjusted net profit surged by 233% year-on-year to 786 million yuan, marking a historical high, with an adjusted net profit margin of 10.2%, up from 3.2% in Q3 2024 [7][11]. - Gross profit rose by 11% to 2.82 billion yuan, with a gross margin of 36.7%, continuing a trend of growth for 13 consecutive quarters [7][11]. User Engagement and Community Growth - Bilibili's monthly active users (MAU) increased by 8% year-on-year to 376 million, while daily active users (DAU) grew by 9% to 117 million, indicating a high level of community engagement [14][16]. - The average daily usage time per user reached 112 minutes, an increase of 6 minutes year-on-year, reflecting the platform's content attractiveness [16][19]. - The number of paying users increased by 17% year-on-year to 35 million, with significant growth in live streaming and premium membership subscriptions [13][14]. Revenue Breakdown - Revenue from value-added services, advertising, gaming, and IP derivatives accounted for 39%, 33%, 20%, and 8% of total revenue, respectively [11][23]. - Value-added services revenue grew by 7% year-on-year to 3.02 billion yuan, driven by the younger generation's willingness to pay for content [13][19]. - Advertising revenue increased by 23% year-on-year to 2.57 billion yuan, benefiting from optimized ad products and improved ad effectiveness [17][19]. Gaming Business Insights - Bilibili's gaming revenue decreased by 17% year-on-year to 1.51 billion yuan, primarily due to a high base from the previous year [23][25]. - The company is focusing on long-term game operations, with successful titles like "Fate/Grand Order" and "Blue Archive" contributing stable income [25][29]. - New game launches, such as "Three Kingdoms: Hundred Generals Card," are expected to enhance Bilibili's gaming portfolio and user engagement [25][28]. Advertising Strategy and Market Position - Bilibili is enhancing its advertising strategy by focusing on vertical industry budgets, with significant growth in sectors like digital home appliances and education [19][20]. - The company is leveraging AI technology to improve ad targeting and efficiency, with AI-related ad revenue growing by nearly 90% [19][20]. - Bilibili's market share in advertising is steadily increasing, with a 30% growth in ad revenue during the Double Eleven shopping festival [19][21].

Core Viewpoint - Bilibili (Nasdaq: BILI, 09626.HK) continues to show strong performance across multiple business segments, achieving profitability and significant user growth in Q3 2025 [1][2][5] Financial Performance - In Q3 2025, Bilibili reported total net revenue of 7.69 billion yuan, a year-on-year increase of 5% [2] - The company achieved a net profit of 469 million yuan, compared to a net loss of 79.8 million yuan in the same period last year, marking a successful turnaround [2][3] - Adjusted net profit reached 786 million yuan, reflecting a substantial year-on-year growth of 233% [2] - Cash and cash equivalents stood at 12.101 billion yuan, up 18.07% year-on-year, indicating strong financial health [2] Business Segments - Revenue from value-added services reached 3.02 billion yuan, a 7% increase, driven by growth in paid memberships and other services [2] - Advertising revenue surged to 2.57 billion yuan, a significant year-on-year increase of 23%, attributed to improved advertising infrastructure and product offerings [2][3] - Mobile gaming revenue declined by 17% to 1.51 billion yuan, primarily due to high performance in the previous year from a successful game launch [3] - Revenue from IP derivatives and other businesses grew by 3% to 582 million yuan, maintaining stable growth [3] User Engagement and Community Growth - Bilibili's daily active users reached 117 million, and monthly active users hit 376 million, both setting new historical highs [1][5] - The average daily usage time increased to 112 minutes, reflecting enhanced user engagement [1][5] - The number of monthly paying users grew by 17% year-on-year to 35 million, indicating rising consumer willingness to spend [1] Content Ecosystem - The platform's content ecosystem is thriving, with video playback time for content over five minutes increasing by nearly 20% [5][6] - Game content playback time rose by 22%, solidifying Bilibili's position as a key platform for game publishers [5] - AI-related content saw a nearly 50% increase in playback time, with active AI-related creators reaching nearly 100,000 [6] - New content categories, such as automotive and parenting education, also experienced significant growth in playback time [6] Shareholder Returns - Bilibili has issued over 100 million USD in stock in 2025 and has a board-approved stock buyback plan with approximately 83 million USD remaining [4]

Core Viewpoint - Bilibili's Q3 2025 financial results show a revenue increase of 5% year-on-year, with significant growth in adjusted net profit and user engagement metrics [1] Revenue Summary - Total revenue for Q3 2025 reached 7.69 billion yuan, marking a 5% increase compared to the previous year [1] - Advertising revenue amounted to 2.57 billion yuan, reflecting a 23% year-on-year growth [1] - Revenue from value-added services was 3.02 billion yuan, with a notable increase in the number of premium members [1] - IP derivatives and other business revenue totaled 580 million yuan [1] User Engagement Metrics - Daily active users averaged 117 million, up 9% year-on-year [1] - Monthly active users reached 376 million, representing an 8% increase [1] - Daily usage time increased to 112 minutes, a rise of 6 minutes compared to the previous year [1] - Monthly paying users exceeded 35 million, showing a 17% growth [1] Content and Creator Performance - The number of creators with over 10,000 followers grew by over 20% year-on-year [1] - Nearly 2.5 million creators earned income through various channels, with an average income increase of 22% year-on-year [1] - The gaming segment generated 1.51 billion yuan in revenue, bolstered by the successful launch of the self-developed game "Escape from Duckkov," which sold over 3 million copies globally [1]

Investment Rating - The report maintains a "Buy" rating for Bilibili-W (09626) [8] Core Insights - Bilibili achieved a revenue of 7.34 billion yuan in Q2 2025, representing a year-on-year growth of 20%, slightly exceeding Bloomberg consensus expectations [2] - The adjusted net profit attributable to shareholders was 560 million yuan, with a profit margin of 7.7%, marking a turnaround from losses in the previous year and surpassing Bloomberg consensus by 8% [2] - User growth remains strong, with a monthly active user (MAU) count of 363 million, up 8% year-on-year, and daily active users (DAU) at 109 million, up 7% [8] - Advertising revenue in Q2 2025 reached 2.45 billion yuan, also up 20% year-on-year, with expectations for continued strong growth in the second half of the year [8] - The gaming segment reported revenue of 1.61 billion yuan, a significant increase of 60% year-on-year, driven by new game releases [8] - The value-added services segment generated 2.84 billion yuan in revenue, an 11% increase year-on-year, with a notable rise in membership subscriptions [8] - The gross margin for Q2 2025 was 36.5%, with a continuous improvement trend over the past 12 quarters [8] - The report projects adjusted net profits for 2025, 2026, and 2027 to be 2.45 billion, 3.28 billion, and 4.19 billion yuan respectively, reflecting an upward revision from previous forecasts [8] Financial Data and Profit Forecast - Revenue projections for Bilibili are as follows: - 2023: 22.53 billion yuan - 2024: 26.83 billion yuan - 2025E: 29.97 billion yuan - 2026E: 32.90 billion yuan - 2027E: 35.46 billion yuan [4] - The adjusted net profit forecast is as follows: - 2023: -3.43 billion yuan - 2024: -0.02 billion yuan - 2025E: 2.45 billion yuan - 2026E: 3.28 billion yuan - 2027E: 4.19 billion yuan [4] - Earnings per share (EPS) projections are: - 2023: -8.29 yuan - 2024: -0.05 yuan - 2025E: 5.83 yuan - 2026E: 7.80 yuan - 2027E: 9.96 yuan [4]

Core Viewpoint - Bilibili has stabilized its operational rhythm after a challenging first quarter, achieving significant revenue growth and profitability in Q2 2025, marking a turnaround from previous losses [5][7]. Financial Performance - In Q2 2025, Bilibili's revenue reached 7.34 billion yuan, a year-on-year increase of 20%, with net profit and adjusted net profit hitting historical highs of 220 million yuan and 560 million yuan respectively [5][9]. - The revenue breakdown for Q2 2025 shows that value-added services, advertising, gaming, and IP derivatives accounted for 39%, 33%, 22%, and 6% of total revenue, respectively [9][11]. User Engagement and Community Dynamics - Monthly Active Users (MAU) increased by 8% year-on-year to 363 million, with a slight decline of 5 million from the previous quarter, indicating improved operational efficiency and user retention [7][23]. - The average age of Bilibili users has risen to 26, with new users averaging 22 years old, reflecting a shift in consumer behavior towards subscription-based services among younger generations [11][20]. Advertising and Revenue Streams - Advertising revenue grew by 20% year-on-year to 2.45 billion yuan, with performance ads seeing nearly 30% growth [11][13]. - The top five advertising sectors in Q2 2025 were gaming, digital appliances, e-commerce, online services, and automotive, with gaming remaining a core component of Bilibili's content ecosystem [13][16]. Gaming Business Performance - Bilibili's gaming revenue surged by 60% year-on-year to 1.61 billion yuan, continuing a trend of high double-digit growth over four consecutive quarters [16][18]. - The success of long-standing games and new updates for titles like "Three Kingdoms: Strategy" contributed significantly to this growth, with expectations for continued performance in upcoming quarters [18][20]. Content Consumption and Community Growth - Daily Active Users (DAU) reached a record high of 109 million, with a year-on-year increase of 7%, while MAU growth indicates a healthy community engagement [23][25]. - Bilibili's content consumption remains strong, particularly in the anime sector, with a 25% increase in viewing time for related content [25][26]. Future Outlook and Strategic Initiatives - Bilibili is focusing on enhancing its advertising infrastructure and leveraging AI technologies to improve content quality and user engagement [14][30]. - The company is also expanding its gaming portfolio, with several new titles awaiting approval, indicating a robust pipeline for future growth [20][22].