On August 22, Bilibili-W (09626.HK) announced that in the second quarter of 2024, the total net revenue reached RMB 6.127 billion ($0.843 billion), an increase of 16% year-on-year. Among them, the advertising revenue was RMB 2.037 billion ($0.28 billion), an increase of 30% year-on-year; the revenue from mobile games was RMB 1.007 billion ($0.139 billion), an increase of 13% year-on-year. The gross profit for the period was RMB 1.833 billion ($0.252 billion), an increase of 49% year-on-year. The gross margin reached 29.9%, an increase from 23.1% in the same period last year. The operating cash flow in the second quarter of 2024 was RMB 1.751 billion ($0.241 billion), compared to the operating cash outflow of RMB 21.2 million in the same period last year. In addition, the average daily active users (DAU) reached 0.1023 billion, an increase of 6% year-on-year.

"Our performance in the second quarter highlights our accelerated optimization of financial performance while building a vibrant community," said Mr. Chen Rui, Chairman and CEO of Bilibili. "This quarter, our DAU increased by 6% year-on-year, surpassing 0.102 billion, and MAU increased to 0.336 billion. In the second quarter, the average daily usage time per user also increased from 94 minutes in the same period last year to 99 minutes. As our community continues to develop and we continue to integrate commercial products, our monetization efficiency continues to improve. In the second quarter, our advertising revenue remained strong, with a year-on-year growth of 30%. In June, we successfully launched the strategy game "Three Kingdoms: Strategy for Victory", attracting millions of players and fully demonstrating our operational capabilities beyond ACG games. We believe that the improvement of our commercialization capabilities will further unlock the value of our community, which will lead us to profitability and lay a solid foundation for future growth. In this ongoing process, we will always stay true to our original intention: to create a platform that allows creators to fully unleash their talents and bring content that users love."

Mr. Fan Xin, CFO of Bilibili, said, "In the second quarter, we further strengthened our commercialization capabilities, achieving accelerated growth in revenue, continuous improvement in profit margin, and significant narrowing of losses. The total net revenue in the second quarter increased by 16% year-on-year to RMB 6.127 billion. Our gross profit increased by 49% year-on-year, achieving continuous gross margin improvement for the eighth consecutive quarter, from 23.1% in the same period last year to 29.9%. As a result, our adjusted operating loss and adjusted net loss narrowed by 69% and 72% year-on-year, respectively. In addition, we achieved positive operating cash flow of RMB 1.751 billion in the second quarter, and the deferred revenue balance as of the end of June 2024 increased by RMB 0.738 billion compared to the end of March 2024, driven by strong performance in mobile games and advertising. These financial advancements are helping us steadily move towards our profitability goals and laying a solid foundation for future sustainable growth."