Bilibili (BILI) Q3 2024 earnings summary

Executive summary

• Achieved first-ever quarterly adjusted net profit in Q3 2024, with adjusted net profit reaching RMB236 million, reversing a prior year loss of RMB863 million.

• Total revenues rose 26% year-over-year to RMB7.31 billion, driven by strong growth in mobile games, advertising, and value-added services.

• Record highs in daily active users (107.3 million), monthly active users (348 million), and average daily user time (106 minutes).

• Upgraded MSCI ESG rating to A, reflecting ongoing ESG improvements.

• Leadership among China's Gen Z+ population, with 6.5 out of every 10 in this cohort as users.

Financial highlights

• Gross profit increased 76% year-over-year to RMB2.55 billion, with gross margin rising to 34.9% from 25% a year ago.

• Adjusted operating profit reached RMB272 million, compared to a loss of RMB755 million in the prior year.

• Generated RMB2.23 billion in positive operating cash flow in Q3 and RMB4.6 billion in the first nine months.

• Cash and equivalents stood at RMB15.23 billion as of September 30, 2024.

• Basic and diluted net loss per share was RMB0.19, versus RMB3.26 last year; adjusted EPS was RMB0.57, versus an adjusted loss of RMB2.12.

Outlook and guidance

• Expects continued strong growth in gaming and advertising revenues, with further improvements in gross profit margin and non-GAAP operating income in Q4.

• Management highlights a massive long-term opportunity in video-based content and mobile games, with industry size expected to more than double by 2030.

• Focus remains on community and commercial growth, especially in high-margin core businesses.

• Aims to leverage Gen Z+ leadership and diversified content ecosystem for further growth.