2025-08-21 13:02Financial Data and Key Metrics Changes - Total net revenues for Q2 2025 grew by 20% year over year to RMB 7.3 billion, driven by strong performance in core games and advertising businesses [4][23] - Games revenues increased by 60% year over year to RMB 1.6 billion, while advertising revenues rose by 20% year over year to RMB 2.4 billion [4][14] - Gross profit increased by 46% year over year to RMB 2.7 billion, with gross margin expanding to 36.5% from 29.9% in the same period last year [4][24] - GAAP net profit was RMB 218 million and adjusted net profit was RMB 561 million, reflecting a significant turnaround from losses in the prior year [5][26] Business Line Data and Key Metrics Changes - The VAS segment contributed approximately 39% of total revenues, advertising 33%, games 22%, and IP derivatives and other businesses 6% [23] - Monthly paying users increased by 9% year over year to 31 million, with the number of official members up by 11% year over year to 270 million [10][20] - The average daily time spent on the platform rose to 105 minutes, up six minutes compared to the same period last year [6][9] Market Data and Key Metrics Changes - DAUs reached a new high of 109 million, up 7% year over year, and MAUs grew by 8% to 363 million [5][10] - Watch time for Chinese anime content increased by 34% year over year, while AI-related content saw a 61% growth in watch time [11][12] - The number of advertisers increased by over 20% year over year, reflecting growing appeal to brands [17] Company Strategy and Development Direction - The company aims to sharpen its focus on delivering the best PUGV community experience while investing in monetization initiatives for sustainable profitability [8][21] - Bilibili is committed to enhancing high-quality content and fostering a welcoming community environment to attract and retain users [33][39] - The company is actively embracing AI to enhance operational efficiency, user experience, and monetization capabilities [21][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to create long-term value for stakeholders through high-quality content and community engagement [8][21] - The company anticipates continued growth in advertising and gaming sectors, with expectations of reaching around 37% gross margin by Q4 2025 [63] - Management highlighted the importance of adapting to evolving user preferences and expanding into new content categories [36][49] Other Important Information - The company repurchased approximately 5.6 million Class Z ordinary shares for a total of HKD 783 million as part of its ongoing share repurchase program [27][28] - Bilibili World and Bilibili MacroLink events attracted over 400,000 participants, reflecting the brand's vitality and community power [6][39] Q&A Session Summary Question: What are the main drivers of user ecosystem growth and future outlook? - Management attributed DAU and MAU growth to a focus on high-quality content and a welcoming community environment, with plans to expand into new content areas [30][33] Question: What are the drivers behind the strong advertising business growth? - The advertising business grew 20% year over year, driven by enhanced ad infrastructure and improved delivery efficiency [42][44] Question: Can management share insights on the game business and upcoming titles? - Management highlighted the success of Sanmo's first anniversary and the introduction of new monetization tools, with plans for new game releases in the pipeline [54][56] Question: What are the expectations for profit margins and cost efficiency? - Management expects continued improvement in gross profit margins, targeting around 37% by Q4 2025, with a focus on operational efficiency [61][63] Question: Can you discuss the role of AI in the company's operations? - AI is being leveraged to enhance ad revenue, improve content delivery, and assist in content creation, with ongoing developments in AI tools for creators [68][70]