Bilibili Inc. (NASDAQ: BILI) Q2 2025 Earnings call | 08/21/2025
AI Summary
Bilibili reported strong financial and user growth for the second quarter of 2025, attributing its success to a thriving community of young, loyal users and improved monetization. The company achieved profitability with both GAAP and adjusted net profits.
Financial Highlights
Revenue: Total net revenues grew 20% year-over-year (YoY) to RMB 7.3 billion.
Profitability: The company achieved a GAAP net profit of RMB 218 million and an adjusted net profit of RMB 561 million, a significant improvement from losses in the prior year period. Gross profit surged 46% YoY, with the gross margin expanding to 36.5% from 29.9%.
Business Line Performance:
Games: Revenue rose 60% YoY to RMB 1.6 billion, driven by the enduring strength of "San Guo Mou Ding Tian Xia" (Sanmo) and evergreen titles.
Advertising: Revenue increased 20% YoY to RMB 2.4 billion, outpacing the industry average, aided by AI integration improving ad efficiency.
Value-Added Services (VAS): Revenue grew 11% YoY to RMB 2.8 billion, supported by live broadcasting, premium memberships, and a fan charging program that more than doubled in H1.
User & Community Metrics
User Growth: Daily Active Users (DAUs) reached a new high of 109 million (up 7% YoY), and Monthly Active Users (MAUs) grew to 363 million (up 8% YoY).
Engagement: The average daily time spent per user increased to 105 minutes. Watch time for videos longer than five minutes grew nearly 20% YoY.
Monetization: Monthly Paying Users (MPUs) grew 9% YoY to 31 million.
Offline Event: The Bilibili World (BW) event attracted a record 400,000 attendees, underscoring the brand's strong offline influence.
Strategic Focus & Outlook
Content & Community: Management emphasized that high-quality content and a supportive community are Bilibili's core competitive advantages, which they believe are scarce in the current internet landscape. This focus is intended to drive organic user growth.
AI Integration: AI is a key growth driver, used to enhance ad targeting and creative generation (30% of ad covers were AI-generated), improve content recommendation, and develop new tools for creators (e.g., mid-to-long-form video creation).
Games: The success of "Sanmo" is expected to continue with new seasons and an planned international rollout. The company has 4-5 games awaiting licensing approval.
Profitability Target: CFO Sam Phan expressed confidence in achieving a 10% adjusted operating margin by Q4 2025 and reaffirmed mid-term targets of 15-20%.
Share Buybacks: The company repurchased $100 million worth of shares in Q2 and has $84 million remaining under its current $200 million buyback program.
About this video
Bilibili Inc. delivered strong second quarter 2025 financial results, with total net revenues increasing 20% year over year to RMB 7.34 billion (approximately US$1.02 billion). Mobile gaming revenue rose 60% to RMB 1.61 billion (US$225.1 million), driven by popular new seasons of flagship games. Advertising revenue also increased 20% to RMB 2.45 billion (US$341.9 million), thanks to enhanced AI-powered ad efficiency and expanded advertiser base. Gross profit jumped 46% to RMB 2.68 billion (US$373.5 million), with gross margin expanding to 36.5% from 29.9% a year ago, reflecting revenue growth and stable operating costs. Net profit was RMB 218.3 million (US$30.5 million), a significant turnaround from a net loss in Q2 2024. Adjusted net profit reached RMB 561.3 million (US$78.4 million). User engagement metrics were robust, with daily active users (DAUs) rising 7% year over year to 109.4 million, and average daily time spent on the platform reaching 105 minutes. Monthly paying users increased 10% to 31.8 million. Operating cash flow was strong at RMB 1.99 billion (US$277.7 million), and cash and cash equivalents stood at US$3.11 billion. Management emphasized continued momentum driven by gaming, advertising, and AI integration, while highlighting risks including rising marketing costs and regulatory environment. #Bilibili #BILI #Q22025 #EarningsCall #MobileGaming #AdvertisingRevenue #GrossMargin #NetProfit #UserEngagement #DAUs #AIIntegration #AdEfficiency #OperatingCashFlow #CashPosition #AdjustedNetProfit #EarningsCallHighlights #Streaming #GamingIndustry #DigitalEntertainment #StockMarket #investing
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