2025-08-26 13:23Summary of Bilibili Inc (BILI US) Conference Call Company Overview - Company: Bilibili Inc (BILI US) - Industry: Internet Software & Services - Market Cap: USD 10.553 billion - Target Price: USD 27.00 (previously USD 25.50) [5][10] Key Financial Highlights - 2Q25 Revenue: RMB 7.338 billion, up 20% year-over-year (y-o-y) [38][39] - Mobile Game Revenue: RMB 1.612 billion, up 60% y-o-y [39] - Non-Game Revenue: RMB 5.725 billion, up 12% y-o-y [39] - Advertising Revenue: RMB 2.449 billion, up 20% y-o-y, beating estimates [39] - Gross Margin: 36.5%, up 6.5 percentage points y-o-y [39] - Non-GAAP Operating Profit: RMB 573 million, with a margin of 7.8% [39] - Operating Cash Flow: Positive at RMB 2.0 billion, up 14% y-o-y [38] User Engagement Metrics - Monthly Active Users (MAU): 363 million, up 8% y-o-y [39] - Daily Active Users (DAU): 109 million, up 7% y-o-y [39] - Average Daily Time Spent per User: 105 minutes, up 6% y-o-y [39] Advertising Outlook - Ad Growth Drivers: - Increased traffic due to user engagement and time spent [2] - Improved ad infrastructure through AI adoption [2] - eCPM increased by 10% y-o-y, driven by a 20% y-o-y growth in the number of advertisers [2] - Ad Inventory: Expected to increase, supporting strong ad growth into 2H25 [2] Game Segment Insights - Game Growth Outlook: Slower growth anticipated in 2H25 due to delays in the overseas launch of "Sanmou" [1][2] - Sanmou Performance: Season 9 performance tracked in line with expectations, not exceeding them [1] Shareholder Value Initiatives - Share Repurchase Program: Bilibili has repurchased USD 116 million worth of shares out of a USD 200 million program by the end of 2Q25 [1] - Convertible Senior Notes: Completed offering of USD 690 million due in 2030 with a 0.625% interest rate [38] Valuation and Risks - Valuation Methodology: Discounted cash flow with a target price increase to USD 27.00 [43] - Risks: - Weaker gross billing for key games like Sanmou [43] - Slower-than-expected ad growth [43] - Rising competition and regulatory challenges [43] Conclusion - Investment Rating: Maintain Buy rating based on improved ad outlook despite potential near-term challenges in game launches [1][10]