Bilibili (BILI) Q2 2024 earnings summary

Executive summary

• Achieved 16% year-over-year revenue growth in Q2 2024 to RMB 6.13 billion, led by advertising (+30%), games (+13%), and value-added services (+11%).

• Gross profit rose 49% year-over-year to RMB 1.83 billion, with margin improving to 29.9% from 23.1%, marking the eighth consecutive quarter of margin expansion.

• Adjusted net loss narrowed by 72% year-over-year to RMB 271 million, reflecting improved cost structure and operational efficiency.

• Daily active users reached 102 million (+6% YoY), with monthly active users at 336 million and high engagement (99 minutes/day).

• Platform solidified leadership among China's Gen Z+ demographic, with 6.5 out of 10 in this cohort using the platform.

Financial highlights

• Total revenue: RMB 6.13 billion (+16% YoY).

• Gross profit: RMB 1.83 billion (+49% YoY); gross margin: 29.9% (up from 23.1%).

• Cost of revenues: RMB 4.3 billion (+5% YoY).

• Operating expenses: RMB 2.4 billion (-3% YoY); sales & marketing: RMB 1 billion (+13% YoY); G&A: RMB 488 million (-10% YoY); R&D: RMB 895 million (-15% YoY).

• Adjusted operating loss: RMB 284 million (-69% YoY); adjusted net loss: RMB 271 million (-72% YoY); adjusted net loss ratio: 4% (down from 18%).

• Record operating cash flow: RMB 1.75 billion in Q2; RMB 2.4 billion in H1.

• Cash and equivalents: RMB 13.9 billion as of June 30, 2024.

Outlook and guidance

• Confident in achieving non-GAAP break-even in Q3 2024 and sustainable profitability thereafter.

• Expects continued strong growth in games and advertising, with further gross margin expansion in Q3.

• Aims for ongoing improvement in operating margins and profitability into 2025.

• Management highlights long-term opportunity in video-based content and mobile gaming, targeting Gen Z+ users.

• Plans to leverage AI, 5G, and diversified content to capture rising demand and spending power in the video industry.