Bilibili Q2 Net Profit Surges 55%, Advertising Becomes Top Revenue Source, Gross Margin Improves for 16 Consecutive Quarters
Nashnova编辑部
Bilibili posted Q2 net profit of RMB 339 million, up 55% year-on-year, as advertising became its largest revenue segment for the first time — the profit story has shifted from "losing less" to "earning more," though a 14% drop in gaming leaves a gap to watch.
Which number matters most in this report?
Net profit hit RMB 339 million, up 55% YoY; net margin rose from 3.0% to 4.3%.
Non-GAAP adjusted net profit reached RMB 704 million, up 25%, with adjusted net margin at 8.9%.
This means → profit growth is not driven by a revenue surge (revenue grew only 8%). It comes from keeping more of every yuan earned — costs stayed disciplined while high-margin ad revenue accelerated.
Why did advertising become the top revenue source?
Q2 ad revenue was RMB 3.13 billion, up 28% YoY, accounting for nearly 40% of total revenue — the first time ads overtook value-added services as the largest segment.
In plain terms = Bilibili used to rely on memberships and games for income; now advertising carries the heaviest load.
This reflects a sustained improvement in monetization efficiency — near-30% ad growth amid a pressured overall ad market shows advertisers are willing to pay for Bilibili's user attention.
How did the other three segments perform?
Value-added services (premium memberships and paid content) brought in RMB 2.97 billion, up 5% YoY — moderate but steady, still the second-largest segment.
Gaming was the only segment to decline: mobile game revenue fell 14% to RMB 1.39 billion, mainly because *Three Kingdoms: Tactics* inflated the year-ago base and has since entered its mature phase.
This means → whether gaming rebounds depends on new hit titles in H2; H1 gaming revenue of RMB 2.91 billion already trails last year's RMB 3.34 billion.
Gross margin up for 16 straight quarters — where were the savings?
Q2 gross profit was RMB 2.95 billion, up 10% YoY; gross margin rose from 36.5% to 37.2% — the 16th consecutive quarter of YoY improvement.
Total operating expenses were RMB 2.58 billion, up just 7%, below revenue growth. Selling expenses grew only 1%; G&A was essentially flat.
In plain terms = revenue grew 8% but spending grew only 7% — the gap drops straight to the bottom line. That is operating leverage at work.
Are users still growing?
Daily active users reached 116.5 million, up 7% YoY; monthly active users hit 371 million.
Average daily time spent per user was 113 minutes, driving total user time up 14% YoY.
CEO Chen Rui framed it this way: in an era of "abundant content but scarce attention," the emotional bond between quality content and users is Bilibili's competitive moat.
What comes next?
Bilibili's profit narrative has upgraded from "narrowing losses" to "profit release," powered by twin engines of high ad growth and cost discipline.
The cash position is healthy: cash, time deposits, and short-term investments totaled RMB 24.3 billion (roughly USD 3.58 billion) as of June 30; the company has repurchased about USD 118 million in stock to date.
This means → the next validation point is whether gaming can stabilize in H2 as new titles launch. If it does, profit growth has room to accelerate further; if it doesn't, pressure from relying on advertising alone will gradually surface.
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