Bilibili Inc. Q4 FY2025 earnings call

2025 was a marquee year for Bilibili with standout community growth and financial performance. User growth regained momentum with DAU growth accelerating each quarter year over year, hitting 113 million users in Q4 and Q4M AUs growing 8% year-over-year to 366 million. Average daily time spent rose 8% to 107 minutes in Q4. Advertising revenue grew 27% in Q4. 2025 marked first full year of gap profitability with total revenues at RMB 30.3 billion, up 13% year-over-year, and gap net profit of RMB 1.2 billion. AI integrated across Bilibili, driving content discovery, ad targeting, and creator/advertiser tools. Content side saw high-quality PUGV content and authentic community interactions driving user engagement, with watch time for certain content categories growing significantly. Community metrics: Q4 each active user followed over 90 creators on average, over 284 million official members, 12-month retention rate around 80%. Commercial businesses: Advertising business had strong growth with top ad verticals including games, digital products, etc., and AI advertisers ramping up. Game business had both steady titles and successful self-developed games like Escape from Duck Off. VAS business saw growth in premium memberships and fan charging program.

In Q4, total revenues were RMB 8.3 billion. Revenue breakdown: approximately 39% VAS, 37% advertising, 18% mobile games, and 6% from IP derivatives and other businesses. Advertising revenues in Q4 were RMB 3.0 billion, up 27% year-over-year, full-year advertising revenues increased by 23% to RMB 10.1 billion. Game revenues in Q4 were down 14% year-over-year to RMB 1.5 billion, full-year game revenues grew 14% to RMB 6.4 billion. VAS business revenues in 4Q were up 6% year-over-year to RMB 3.3 billion, full-year VAS revenues up 8% to RMB 11.9 billion.

Confident in advertising business outlook for 2026 due to rising user value and AI application to strengthen monetization. Expect community growth to continue and monetization efficiency to improve. Modestly increase investment in AI and reinvest partial incremental profits into AI applications aligned with core business. Expect growth to improve slightly quarter over quarter in Q1 2026 and adjusted operating margin to continue improving year over year in Q1.

Q: About community growth and user and time span growth potential, strategies to maintain creators and users.

A: Core reason for user growth is high-quality content supply. Community is fertile soil for high-quality content with users appreciating and spreading great content. Creators rely on community feedback. Will stay focused on high-quality content and creators' long-term creation and monetization.

Q: About advertising business, which industries/products drove Q4 performance, view on AI trend and growth outlook.

A: Q4 advertising growth due to on tap ad inventory release in areas like search, PC, OTT, improved ad efficiency via AIGC and AI systems, and growth in industries like AI applications, education, automotive, home furnishing. AI brings incremental ad budgets but long-term has budget reshuffle opportunities. Confident in continuous growth and market share expansion in 2026.

Q: About game business, outlook for 2026, operation focus for Sunmo and new games.

A: For Sunmo, focus on long-term operation and maintaining leading product position in SCLG industry, expand globally. New games like Three Kingdoms Cardboard and LumiMaster have specific development plans.

Q: About AI, challenges and 2026 investment priorities.

A: AI helps improve productivity and creativity for Bilibili's high-quality content. Focus on enhanced content understanding via large language models to match user intent, and AI support for creation to improve content supply and recommendation efficiency.