Bilibili's Q4 2024: Navigating Contradictions in Advertising, Margins, and AI Integration

These are the key contradictions discussed in Bilibili's latest 2024Q4 earnings call, specifically including: Advertising Performance and Strategy, Gross Margin Expectations, Content Strategy Evolution, and AI Integration:



Revenue Growth and Profitability:
- Bilibili's total revenues for the fourth quarter were RMB 7.7 billion, up 22% year-over-year.
- The company achieved its first full quarter of GAAP profitability with a net profit of RMB 89 million.
- The growth was driven by improvements in advertising products and infrastructure, as well as expanded mobile game revenues.

Advertising Performance:
- Advertising revenues increased by 24% year-over-year in the fourth quarter and 28% for the year.
- The strong performance was attributed to the growing value of the user base and enhanced advertising efficiency.

Mobile Games Revenue Expansion:
- Mobile games revenues surged by 79% year-over-year in the fourth quarter and 40% for the year.
- This growth was driven by the success of the strategy game San Guo: Mou Ding Tian Xia and contributions from overseas market launches.

Community Engagement and User Base:
- Daily active users (DAUs) and monthly active users (MAUs) reached 103 million and 340 million, respectively, in the fourth quarter.
- High user engagement indicated by increased time spent on the platform, reflecting the growing value and appeal of Bilibili's content offerings.