Financial Report is out | BILIBILI-W's gross profit margin significantly increased in Q1, further narrowing losses.

On Thursday, BILIBILI-W released its first quarter financial report.

BILIBILI-W's Q1 revenue was RMB 5.1 billion, slightly lower than the market expectation of RMB 5.159 billion, but higher than the RMB 5.054 billion in the same period last year. Adjusted net loss was RMB 1 billion, a 38% reduction from the same period in 2022.

The company expects full-year revenue to reach between RMB 24 billion and RMB 26 billion, unchanged from its previous estimate.

In pre-market trading, BILIBILI-W rose more than 6% at one point and is currently up more than 3%.

Q1 Operating Data

The average daily active users in the first quarter reached 93.7 million, an 18% increase from the same period in 2022.

Monthly active users reached 315.2 million, pushing the ratio of daily active users to monthly active users to 29.7%.

User engagement remained high, with users spending an average of 96 minutes per day on BILIBILI-W in the first quarter of 2023.

Q1 Financial Data

BILIBILI-W's Q1 revenue was RMB 5.1 billion, slightly lower than the market expectation of RMB 5.159 billion, but higher than the RMB 5.054 billion in the same period last year.

Adjusted net loss for the first quarter was RMB 1 billion, a 38% reduction from the same period in 2022.

In the first quarter, the company achieved higher operating leverage, with gross profit increasing by 37% year-on-year.

In the first quarter, the gross profit margin increased from 16% in the same period last year to 22%.

Operating costs for the first quarter were RMB 4 billion, a 7% decrease from the same period in 2022.

Revenue sharing costs (an important component of operating costs) were RMB 2 billion, an 8% decrease from the same period in 2022.

Server and bandwidth costs were RMB 384.4 million, a 16% decrease from the same period in 2022.

R&D expenses for the first quarter were RMB 1 billion, a 2% increase year-on-year.

Sub-item Business Data

BILIBILI-W's Q1 advertising revenue was RMB 1.3 billion, a 22% increase from the same period in 2022, mainly due to the optimization of the company's advertising products and the improvement of advertising efficiency.

Value-added service revenue in the first quarter was RMB 2.2 billion (USD 314.0 million), a 5% increase from the same period in 2022, mainly due to the company's strengthening of commercialization capabilities and the increase in the number of paying users for live streaming services.

Mobile game revenue in the first quarter was RMB 1.1 billion, a 17% decrease from the same period in 2022, mainly due to the lack of new game releases in the first quarter of 2023.

Revenue from IP derivatives and other businesses in the first quarter was RMB 510 million, a 15% decrease from the same period in 2022, mainly due to the decrease in sales of animation, comics, and games (ACG) IP derivative products on the company's e-commerce platform.