Bilibili's Q2 2025 Earnings Call: Unraveling Contradictions in AI Integration, Margins, and Growth Strategies

AI integration in Bilibili's content and advertising, mid-term gross margin and net profit margin targets, AI integration and strategy, advertising business growth and strategy, game pipeline and strategy are the key contradictions discussed in Bilibili's latest 2025Q2 earnings call.



Revenue Growth and Strong Commercial Performance:
- Bilibili reported a record total net revenue of RMB 7.3 billion for Q2, up 20% year-over-year, with a significant contribution from the games and advertising businesses.
- Revenue growth was driven by increased engagement, strengthened monetization initiatives, and strategic investments in high-value user experiences.

Games Revenue Expansion:
- Games revenues increased by 60% year-over-year to RMB 1.6 billion, propelled by popular titles such as San Guo: Mou Ding Tian Xia and evergreen titles like FGO and Azur Lane.
- The growth can be attributed to the enduring popularity of these games, enhanced gameplay and content, and effective marketing strategies.

Advertising Revenue Surge:
- Bilibili's advertising revenues rose by 20% year-over-year to RMB 2.4 billion, driven by AI integration and improved ad efficiency.
- The increase was supported by upgrades in ad infrastructure and the integration of AI-driven recommendations and content generation tools.

User Engagement and Retention:
- DAUs reached 109 million, up 7% year-over-year, while MAUs grew by 8% to 363 million, demonstrating strong user engagement and retention.
- This growth reflects Bilibili's ability to provide high-quality content and create meaningful user experiences that foster loyalty and engagement.