Bilibili reports Q2 adjusted EPS (32c), consensus (35c)

Reports Q2 revenue $731.5M, consensus $726.38M. Average daily active users were 96.5M, representing an increase of 15% from the same period of 2022. “We accomplished substantial gross profit improvement and notable losses reduction in the second quarter,” said Rui Chen, chairman and CEO of Bilibili. “We continued enhancing our commercialization efficiency while cultivating a vibrant community. Through the dedicated execution of our strategies, our advertising revenues increased by 36% year-over-year in the second quarter of 2023. Concurrently, our DAUs grew by 15% year-over-year to 96.5 million. Our users remain deeply engaged, with an average daily time spent of 94 minutes on Bilibili in the second quarter, increasing our users’ total time spent2 by 22% year-over-year. Looking towards the second half of 2023 and beyond, our priority remains achieving quality growth in our topline and user community. We are committed to reaching our break-even target while continuing to host the welcoming and inspiring video community for young generations in China.” Sam Fan, CFO of Bilibili, said, “In the second quarter, we achieved greater leverage through our operational efficiency enhancement. Our gross profit increased significantly by 66% year-over-year, driving our gross profit margin improved to 23% in the second quarter. Meanwhile, our total operating expenses and sales and marketing expenses declined by 14% and 22% respectively, both year-over-year. These approaches effectively led to a 51% year-over-year reduction in our adjusted net loss. Going forward, we will continue to concentrate on these approaches to grow our gross profit and advance towards profitability.”