Bilibili (BILI) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose 24% year-over-year to RMB 7.00 billion, driven by strong growth in advertising, mobile games, and value-added services.

• Gross profit increased 58% year-over-year to RMB 2.54 billion, with gross margin expanding to 36.3% from 28.3% a year ago.

• Adjusted net profit reached RMB 362 million, reversing an adjusted net loss in the prior year; GAAP net loss narrowed by 99% year-over-year to RMB 10.7 million.

• User engagement hit record highs: DAUs at 107 million, MAUs at 368 million, average daily time spent at 108 minutes, and monthly paying users at 32 million.

• Operating cash flow exceeded RMB 1.3 billion, up from RMB 637.7 million a year ago.

Financial highlights

• Advertising revenue grew 20% year-over-year to RMB 2 billion, mainly from performance-based ads.

• Mobile games revenue surged 76% year-over-year to RMB 1.73 billion, led by exclusive titles.

• Value-added services revenue increased 11% year-over-year to RMB 2.81 billion, driven by live broadcasting and premium memberships.

• IP derivatives and others revenue declined 4% year-over-year to RMB 467 million.

• Operating expenses as a percentage of revenue declined from 43% to 36% year-over-year, supporting improved profitability.

Outlook and guidance

• Confident in maintaining above-industry-average advertising growth in the second half of 2025.

• Gross and net margins expected to improve gradually throughout the year; mid- to long-term gross margin target is 40%-45%, and operating margin target is 15%-20%.

• Management expects to continue scaling the business and community through efficient, sustainable operations, aiming for long-term value creation.

• R&D and G&A expenses to remain stable, with marketing expenses fluctuating with game promotions.

• Anticipates further expansion in video and live commerce, leveraging AI and diversified content.