Q2 2026 Bilibili Inc Earnings Call Transcript
Key Points
- Bilibili Inc (BILI) delivered another quarter of strong financial performance with total revenues up 8% year-over-year to RMB7.9 billion and gross margin expanding to 37.2%, marking the 16th consecutive quarter of margin improvement.
- Advertising revenue grew 28% year-over-year to RMB3.1 billion, marking the 14th straight quarter of 20%+ growth, driven by broad-based vertical growth and AI-enhanced ad efficiency.
- Community engagement remains robust with DAUs up 7% to 117 million, average daily time spent up to 113 minutes, and total time spent up 14% year-over-year, reflecting strong user loyalty.
- AI investments are yielding tangible results, including a 28% year-over-year increase in daily video submissions and a 30% growth in creators with over 1,000 followers, showcasing enhanced creator productivity.
- The company maintains a strong balance sheet with RMB24.3 billion in cash and short-term investments, and has initiated a new USD300 million share repurchase program, demonstrating commitment to shareholder returns.
- Game revenues declined 14% year-over-year to RMB1.4 billion, primarily due to a high comparison base from the previous year's successful title launch.
- The macroeconomic environment in China remains challenging, with weakening consumer spending pressuring advertising budgets and potentially impacting future growth.
- R&D expenses increased 16% year-over-year due to continued investment in AI capabilities, which could pressure near-term profitability if not offset by revenue growth.
- The company faces uncertainty in the success of its upcoming game pipeline, including Lumi Master and Sanwang, with no guarantee of replicating past hits like San Guo.
- Despite overall growth, the VAS business grew only 5% year-over-year, indicating slower momentum in live broadcasting and other value-added services compared to advertising.
Good day, and welcome to the Bilibili's second-quarter 2026 financial results and business update conference call. Today's conference is being recorded.
At this time, I would like to turn the call over to Juliet Yang, Executive Director of Investor Relations. Please go ahead.
Thank you, operator. During this call, we'll discuss our business outlook and make forward-looking statements. These comments are based on our predictions and expectations as of today. Actual events or results could differ materially from those mentioned in today's news release and in this discussion due to a number of risks and uncertainties, including those mentioned in our most recent filings with the SEC and Hong Kong Stock Exchange.
The non-GAAP financial measure will provide are for comparison purpose only. The definition of this measure and the reconciliation table are available in the news release we issued earlier today. As a reminder, this conference is being recorded. In addition, an investor
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
