On November 14, US- and Hong Kong-listed Bilibili marked a significant milestone: its first quarterly profit since going public. Revenue for the third quarter ending September 30, 2024, grew by 26% year-on-year (YoY) to RMB 7.31 billion (USD 1 billion), with growth across its value-added services, advertising, gaming, and IP licensing segments.

Bilibili’s user base continued to expand, with daily active users (DAUs) reaching 107 million and monthly active users (MAUs) rising to 348 million. Average daily usage time per user also increased to 106 minutes, compared to 100 minutes a year prior, underscoring stronger user engagement.

Advertising revenue rose by 28% YoY to RMB 2.09 billion (USD 298.5 million), led by nearly 50% growth in performance ads. Key advertising sectors included gaming, e-commerce, consumer electronics, online services, and automotive, with new categories like education, parenting, and tourism recording over 100% growth.

During the Singles’ Day shopping festival, Bilibili reported a 154% YoY increase in gross merchandise volume (GMV). The number of advertisers jumped to 6.6 times the previous year’s figure, bolstered by Bilibili’s “open loop” strategy, which has driven customer acquisition across various industries.

Gaming revenue climbed 84% YoY to RMB 1.82 billion (USD 259.7 million), powered by long-standing titles like Fate/Grand Order and Azur Lane. Three Kingdoms: Conquer the World maintained momentum, reclaiming the second spot on the iOS bestseller list following its third season update.

Value-added services, including premium memberships, contributed RMB 2.82 billion (USD 402.0 million), with the number of active premium members reaching 21.97 million. Notably, over 80% of these members held annual or auto-renewing subscriptions.

In a notable achievement, Bilibili recorded its first quarterly profit with an adjusted net income of RMB 235.9 million (USD 33.6 million). Gross profit increased 76% YoY to RMB 2.55 billion (USD 363 million), as the gross margin improved to 34.9% from 25.0% the previous year, marking nine consecutive quarters of margin gains.

Operating cash flow turned positive at RMB 2.23 billion (USD 317.1 million). As of September 30, the company reported RMB 15.23 billion (USD 2.2 billion) in cash, cash equivalents, term deposits, and short-term investments. Buoyed by its financial performance, Bilibili announced a stock repurchase program, pledging up to USD 200 million in share buybacks over the next 24 months.

Daily video views rose to 5.7 billion, a 23% YoY increase, while monthly interactions topped 19.3 billion. The community expanded as 251 million users completed Bilibili’s membership test, joining official member ranks with a high 12-month retention rate of 80%.

Viewership in gaming and tech categories saw over 20% growth, with Black Myth: Wukong gaining viral traction and accumulating millions of views. AI-generated content (AIGC) has become a major draw, racking up over 30 billion views this year and attracting prominent AI researchers like Zheng Weimin, Mu Li, Lily Wong, and Zhao Bin.

Bilibili’s maturing user base is reshaping content trends. Over 40 million people watched consumer-related videos daily in Q3, fueling a 40% increase in automotive viewership and an 80% spike in fitness-related content. Female users contributed significantly, driving up viewership in fashion by nearly 30% and parenting content by over 60%.

More than 2.7 million content creators earned revenue on Bilibili in 2024, with earnings from ads and value-added services up 24% YoY. Fan contributions surged by 400%, with top creators drawing over a million contributors.

The stated USD conversions are based on figures provided in Bilibili’s official third-quarter 2024 financial report.

KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Wang Yuchan for 36Kr.