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Research Alert: Bilibili: Mixed Q1 Results Amid Advertising Momentum And Profitability Gains

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Bilibili posted mixed Q1 results with sales/net profit of CNY7.47B/CNY210M missing consensus estimates of CNY7.49B/CNY227M, though core net profit of CNY593M beat Street expectations of CNY550M. Revenue grew 7% Y/Y, stemming from advertising revenues accelerating +30% Y/Y to CNY2.59B, while mobile games declined -12% Y/Y to CNY1.52B due to tough prior-year comparisons. We are neutral on the earnings due to mixed results, with headline profit missing but core earnings beating, and strong advertising growth offsetting gaming weakness. Adjusted net profit margin expanded significantly to 7.8% from 5.2% in the prior year, reflecting successful operating leverage. User engagement remained robust with daily active users (DAUs) reaching 115.2M (+8% Y/Y) and average daily time spent increasing to 119 minutes. We believe the company's strong balance sheet with CNY24.19B in cash provides significant financial flexibility for future AI-driven innovation initiatives and growth investments.

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