Bilibili Q1 revenue increased by 24% year-on-year, game business surged by 76% year-on-year, and net profit turned from loss to profit year-on-year | Financial Report Insights

Thanks to the record highs in monthly active users, average monthly paying users, and daily usage duration, Bilibili's Q1 revenue increased by 24% year-on-year. At the same time, revenue from high-margin businesses such as advertising and gaming surged, driving Bilibili's gross margin up to 36.3%. The adjusted net profit for Q1 turned from a loss in the same period last year to a profit, and operating cash flow doubled.

On May 20, Bilibili released its unaudited Q1 2025 financial report.

Q1 revenue increased by 24% year-on-year to RMB 7.003 billion, with market estimates at RMB 6.91 billion.

Q1 adjusted earnings per share were RMB 0.86, compared to a loss of RMB 1.06 in the same period last year.

Q1 adjusted net profit was RMB 362 million, compared to a loss of RMB 456 million in the same period last year.

Q1 monthly active users reached 368 million, a year-on-year increase of 7.8%.

Bilibili's U.S. stock pre-market rose over 4% at one point, now narrowing to an increase of over 2%.

Record High Average Monthly Paying Users, Advertising and Gaming Drive Profit Growth

Bilibili's Q1 revenue increased by 24% year-on-year to RMB 7.003 billion, with an adjusted net profit of RMB 362 million, compared to a loss of RMB 456 million in the same period last year, achieving a turnaround.

Looking at the business segments, Bilibili's four major revenue sources showed different growth trends:

Value-added services: Revenue of RMB 2.807 billion, a year-on-year increase of 11%, accounting for 40% of total revenue.

Advertising business: Revenue of RMB 1.998 billion, a year-on-year increase of 20%, accounting for 28.5% of total revenue.

Mobile games: Revenue of RMB 1.731 billion, a year-on-year increase of 76%, accounting for 24.7% of total revenue.

IP derivatives and others: Revenue of RMB 467 million, a year-on-year decrease of 4%, accounting for 6.8% of total revenue.

It is worth noting that the outstanding performance of the gaming business mainly comes from the strong performance of the exclusive licensed game "Three Kingdoms: Strategizing the World." The gross margins for gaming and advertising businesses are typically higher than those for value-added services, and this structural optimization has helped improve Bilibili's overall gross margin.

As for the reasons behind the double-digit revenue growth, CEO Chen Rui pointed out:

"Bilibili's user base and engagement continue to strengthen. In the first quarter, daily active users (DAU) reached 106.7 million, a year-on-year increase of about 4.2%; monthly active users (MAU) hit a record high of 368 million. More importantly, the average monthly paying users reached 32 million, setting a new historical high, indicating an increased willingness to pay among users.

The daily usage duration reached a new high of 108 minutes, showing enhanced user engagement. At the same time, the user demographic is maturing, with the average age of users reaching 26 in 2025, a group that typically has stronger purchasing power.

With the enhancement of user value and commercialization efficiency, our total net revenue in the first quarter increased by 24% year-on-year, reaching RMB 7 billion.

In 2025, we achieved a strong start with robust financial performance and healthy community ecosystem indicators... We will continue to leverage this momentum by providing more efficient and higher-quality commercialization solutions to continuously unlock community potential Regarding the reasons for the net profit turning from loss to profit, CFO Fan Xin pointed out:

"In the first quarter, we accelerated revenue growth and improved profit margins. This is attributed to the outstanding performance of our high-margin advertising and gaming businesses, which saw revenue growth of 20% and 76% year-on-year, respectively. Gross profit increased by 58% year-on-year, and the gross profit margin rose from 28.3% in the same period last year to 36.3%.

Supported by strong revenue and profit margin growth, we achieved an adjusted net profit of 361.5 million RMB. Our healthy operating cycle continues to drive strong operating cash flow, generating 1.3 billion RMB in cash flow this quarter.

Looking ahead, we will continue to focus on profit growth, expand our business scale and community size through efficient and sustainable operations, and create long-term value for shareholders."

In terms of cost control, although total revenue grew by 24%, operating costs only increased by 10%, far below the revenue growth rate. Among them, R&D expenses decreased by 13% year-on-year, reflecting improved operational efficiency. Sales and marketing expenses increased by 26% year-on-year, mainly due to one-time marketing expenses for the exclusive bullet screen live broadcast of the Spring Festival Gala and promotional expenses for "Three Kingdoms: Strategizing the World."

The company's operating cash flow reached 1.302 billion RMB, more than doubling from 638 million RMB in the same period last year, indicating that business operations are gradually entering a virtuous cycle. As of the end of March 2025, Bilibili held a total of 17.397 billion RMB (2.397 billion USD) in cash, cash equivalents, time deposits, and short-term investments, demonstrating a solid financial position