Bilibili (BILI) investor relations material

Executive summary

• Achieved 8% year-over-year revenue growth to RMB 7.94 billion, with net profit surging 55% to RMB 339 million and adjusted net profit rising 25% to RMB 704 million, driven by strong advertising and value-added services performance.

• Daily active users increased 7% year-over-year to 117 million, monthly active users reached 371 million, and average daily time spent rose to 113 minutes.

• Advertising revenue grew 28% year-over-year, marking the 14th consecutive quarter of 20%+ growth, while value-added services revenue increased 5% and mobile games revenue declined 14%.

• Continued to expand and diversify revenue streams, with premium memberships reaching 25.7 million and IP derivatives contributing to total revenue.

• Management remains confident in long-term growth, emphasizing disciplined investment, AI-driven engagement, and ongoing share repurchases.

Financial highlights

• Gross profit increased 10% year-over-year to RMB 2.95 billion, with gross margin improving to 37.2%, the 16th consecutive quarter of improvement.

• Operating profit rose 48% year-over-year to RMB 373 million; adjusted operating profit reached RMB 696 million with an 8.8% margin.

• Operating expenses increased 7% year-over-year to RMB 2.58 billion; cost of revenues rose 7% to RMB 5.0 billion.

• Cash, time deposits, and short-term investments totaled RMB 24.3 billion (US$3.58 billion) as of June 30, 2026.

• Basic EPS increased to RMB 0.82; adjusted basic EPS rose to RMB 1.69 year-over-year.

Outlook and guidance

• Confident in maintaining healthy revenue growth and improving operating efficiency, targeting mid-to-long-term gross margin of 40%-45% and operating margin of 15%-20%.

• Advertising expected to remain a key growth driver, with gaming revenue projected to resume year-over-year growth in Q4 and beyond.

• AI investment to be balanced with commercial monetization for sustainable development.

• Positioned to benefit from the growing video-based industry, with projected increases in daily time spent and per capita spending among Gen Z+ users by 2030.

• Focus on leveraging AI and high-quality content to deepen user engagement and drive future growth.