Bilibili ((BILI)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Bilibili’s recent earnings call painted a picture of robust financial health, marked by significant revenue growth and improved profitability. The company reported strong performances in its advertising and game segments, successfully narrowing its GAAP net loss. However, the call also highlighted challenges posed by increased sales and marketing expenses.
Strong Revenue Growth
Bilibili’s total revenues soared by 24% year-over-year, reaching RMB7 billion. This impressive growth was primarily driven by the company’s advertising and game businesses, which have shown remarkable performance.
Significant Increase in Gross Profit
The company reported a 58% year-over-year increase in gross profit, with the gross profit margin expanding to 36.3% from 28.3% in the previous year. This indicates a strong operational efficiency and cost management strategy.
Game Revenue Surge
Game revenues experienced a substantial surge, rising 76% year-over-year to RMB1.73 billion. The SLG title San Mou was a standout performer, contributing significantly to this growth.
Positive Adjusted Net Profit
Bilibili maintained a positive adjusted net profit of RMB362 million and successfully narrowed its GAAP net loss by 99% year-over-year, showcasing its improved financial management.
Increased User Engagement
User engagement metrics were impressive, with Daily Active Users (DAUs) reaching 107 million and Monthly Active Users (MAUs) climbing to 368 million. Users spent an average of 108 minutes daily on the platform, a record high.
Advertising Revenue Growth
Advertising revenues increased by 20% year-over-year to RMB2 billion, with performance-based advertising growing by over 30%. This growth highlights the effectiveness of Bilibili’s advertising strategies.
Increased Sales and Marketing Expenses
Sales and marketing expenses rose by 26% year-over-year, primarily due to a one-off marketing expense related to the Chinese New Year Gala and higher promotion expenses for the SLG game, San Mou.
Forward-Looking Guidance
Looking ahead, Bilibili provided robust guidance, anticipating a 24% year-over-year increase in total revenues. The company expects sustained growth, leveraging its strong Gen Z+ user base, enhanced content quality, and AI-driven advertising innovations. Monthly paying users hit a record 32 million, and the fan-charging program’s revenue grew by over 200%.
In summary, Bilibili’s earnings call reflects a strong financial performance with significant revenue growth and improved profitability. The company continues to excel in its advertising and game segments while facing challenges from increased marketing expenses. Looking forward, Bilibili remains optimistic about its growth prospects, driven by its expanding user base and innovative strategies.