2025-08-22 02:33Summary of Bilibili Inc. (BILI) 2Q25 Earnings Call Company Overview - Company: Bilibili Inc. (BILI) - Quarter: 2Q25 - Revenue: Rmb7.3 billion, representing a 20% year-over-year increase and inline with expectations [1][2] Key Financial Metrics - Non-GAAP EPADS: Rmb1.29, which is +1%/+4% compared to Goldman Sachs estimates and Visible Alpha Consensus Data [1][2] - Deferred Revenue: Increased by Rmb391 million quarter-over-quarter, significantly improved from Rmb46 million in the previous quarter [2] - Daily Active Users (DAU): 109 million, up 7.3% year-over-year [2] - Monthly Active Users (MAU): 363 million, up 8% year-over-year [2] - Mobile Games Revenue: Increased by 60% year-over-year [2] - Advertising Revenue: Increased by 20% year-over-year [2] - Adjusted Operating Profit: Rmb573 million, beating Goldman Sachs estimate of Rmb502 million [2] Strategic Insights - Advertising Outlook: Focus on the advertising outlook for the second half of 2025 and trends by vertical [3] - Game Pipeline Updates: Updates on the game pipeline for 2H25 and 2026, particularly regarding Sanguo: NSLG [3] - Margin Expansion Potential: Discussion on potential margin expansion and mid-to-long term targets [3] - Shareholder Return Plan: Plans for shareholder returns in 2025 [3] Risks and Challenges - Valuation Risks: Concerns regarding relatively rich valuation and potential de-rating risks [8] - User Growth: Possible slowdown in user growth and increased competition from short-form video companies [8] - Game Longevity: Risks associated with weaker-than-expected game longevity and pipeline [8] Price Target and Valuation - 12-Month Price Target: $23.60 for BILI, with a current price of $25.31 indicating a downside of 6.7% [9] - Market Capitalization: $10.6 billion [9] - Revenue Forecasts: Projected revenues for 2025E at Rmb30.38 billion [9] Conclusion - Investment Rating: Goldman Sachs maintains a "Buy" rating on Bilibili Inc. with a focus on growth potential and strategic initiatives in advertising and gaming [9]