Bilibili Inc (BILI), the popular Chinese video-sharing platform, reported strong second-quarter earnings, exceeding analyst expectations. Revenue for the quarter reached $843.1 million, representing a 16% year-on-year increase. This outpaced the analyst consensus estimate of $837.2 million.
The company’s adjusted earnings per share (EPADS) loss of $0.09 also beat the analyst consensus loss estimate of $0.11.
Bilibili’s strong performance was fueled by several key factors. Average daily active users (DAUs) climbed by 6% year-over-year to reach 102.3 million. This growth in active users is a testament to Bilibili’s ability to attract and retain its audience.
Revenues from mobile games saw a significant increase of 13% year-over-year to $138.6 million. This growth was primarily driven by the launch of new exclusively licensed games, including “San Guo: Mou Ding Tian Xia.” The successful launch of this game demonstrates Bilibili’s expanding capabilities beyond its traditional anime, comics, and gaming (ACG) focus.
Value-added services (VAS) revenues also saw a notable increase, growing 11% year-over-year to $353.1 million. This growth was attributed to an increase in the number of paying users for premium membership, live broadcasting, and other value-added services.
Advertising revenues continued to show strong momentum, increasing by 30% year-over-year to $280.4 million. This growth highlights Bilibili’s ability to effectively monetize its large user base.
While revenue from IP derivatives and others decreased 4% year-over-year to $71.1 million, this segment remains a smaller portion of Bilibili’s overall revenue.
Bilibili’s financial position remains strong. As of June-end, the company held $1.91 billion in cash and equivalents. It generated $240.9 million in operating cash flow for the quarter.
Rui Chen, Bilibili’s Chair and CEO, expressed his satisfaction with the quarter’s results, highlighting the significant growth in both DAUs and MAUs (monthly active users). He emphasized the company’s focus on developing its community and integrating commercial offerings to enhance monetization efficiency.
Bilibili’s strong second-quarter earnings demonstrate the company’s continued growth and its ability to navigate the evolving digital media landscape. The company’s focus on expanding its user base, diversifying its revenue streams, and enhancing monetization capabilities positions it for further success in the future.
