Bilibili (BILI) investor relations material

Executive summary

• Achieved 7% year-over-year revenue growth in Q1 2026, reaching RMB 7.47 billion, with net profit of RMB 202 million, reversing a net loss from the prior year.

• Adjusted net profit surged 62% year-over-year to RMB 585 million, with adjusted net profit margin at 7.8%.

• Daily active users (DAUs) reached 115 million, up 8% year-over-year, and average daily user time hit a record 119 minutes, up 11 minutes year-over-year.

• AI investments are enhancing content creation, recommendation, and operational efficiency, reinforcing the platform's unique community and content ecosystem.

• Achieved 15 consecutive quarters of gross margin expansion.

Financial highlights

• Gross profit rose 9% year-over-year to RMB 2.8 billion, with gross margin improving to 37.1%.

• Advertising revenue surged 30% year-over-year to RMB 2.6 billion, with value-added services revenue up 4% to RMB 2.9 billion.

• Mobile games revenue declined 12% year-over-year to RMB 1.52 billion.

• Adjusted operating profit rose 53% year-over-year to RMB 524 million.

• Cash and equivalents stood at RMB 24.2 billion (US$3.5 billion) as of March 31, 2026.

Outlook and guidance

• Expect continued rapid advertising revenue growth in Q2, supported by AI-driven improvements and rising video consumption among Gen Z+ users.

• Maintain mid- to long-term gross margin target of 40%-45% and operating profit ratio target of 15%-20%.

• AI-related CapEx projected to increase by RMB 1 billion for the year, with P&L impact of around RMB 500 million, partially offset by OPEX reductions.

• Management remains focused on sustained profitability and disciplined investment in technology.