Bilibili's Q3 Surge: Mobile Gaming and Advertising Drive Revenue Growth

Bilibili, the Chinese video and gaming platform, has reported a significant increase in revenue for the third quarter of 2024, with a 26% year-on-year (YoY) growth. This impressive performance was driven by surging mobile gaming and advertising revenues, marking a turning point for the company as it posted its first-ever adjusted net income. This article delves into the factors contributing to Bilibili's Q3 success and explores the broader trends in mobile gaming and advertising that have fueled its growth.

Bilibili's user base expansion and increased engagement have been key drivers of its revenue growth. The platform's daily active users (DAUs) reached 107 million, a 15% increase YoY, while monthly active users (MAUs) rose to 348 million, up 12% YoY. The average daily usage time per user also increased to 106 minutes, indicating stronger user engagement. This growth in user base and engagement has translated into a 26% YoY increase in revenue, with advertising and value-added services leading the way.



Bilibili's "open loop" strategy has played a significant role in driving customer acquisition and advertising revenue growth. This strategy involves driving customer acquisition across various industries, leading to a 154% YoY increase in gross merchandise volume (GMV) during the Singles' Day shopping festival and a 6.6x increase in the number of advertisers. By expanding its customer base and attracting new advertisers, Bilibili's "open loop" strategy contributed to the 28% YoY growth in advertising revenue, reaching RMB 2.09 billion (USD 298.5 million).



The performance of Bilibili's long-standing and new gaming titles has also contributed to its gaming revenue growth in Q3. Long-standing titles like Fate/Grand Order and Azur Lane have maintained their popularity, while Three Kingdoms: Conquer the World has seen renewed momentum following its third season update. However, Bilibili has struggled to find significant traction from new game titles, indicating that the growth was primarily supported by its legacy games.



The rise in average daily usage time per user has significantly contributed to Bilibili's advertising and value-added services revenue. In Q3 2024, average daily usage time per user increased to 106 minutes, up from 100 minutes a year prior. This 6-minute increase represents a 6% growth in user engagement, which has translated into a 28% YoY increase in advertising revenue and a 22% YoY increase in value-added services revenue.

Bilibili's integration of social media and mobile eSports has also boosted user engagement and community bonding, contributing to its financial success. By incorporating social media features, Bilibili has fostered a sense of community among its users, with over 251 million users completing its membership test and joining official member ranks, boasting a high 12-month retention rate of 80%. This social dimension has enriched the gaming experience, spurring user engagement and driving market expansion. Additionally, the rise of mobile eSports on Bilibili has amplified engagement and community bonding, with key advertising sectors like gaming, e-commerce, consumer electronics, and online services recording substantial growth.



In conclusion, Bilibili's Q3 revenue growth is a testament to the surging mobile gaming and advertising markets. The company's user base expansion, increased engagement, and strategic initiatives, such as the "open loop" strategy, have driven its financial success. As the mobile gaming and advertising sectors continue to grow, investors should keep a close eye on Bilibili and other companies operating in these dynamic markets.