Bilibili BILI reported second-quarter 2025 non-GAAP earnings of 18 cents per share, surpassing the Zacks Consensus Estimate by 5.88%. In the year-ago quarter, the company had incurred a loss of 9 cents per share.
Revenues increased to $1.02 billion, beating the Zacks Consensus Estimate by 0.28%.
In terms of RMB, revenues increased 20% year over year to RMB 7.34 billion.
BILI shares have appreciated 31.3% year to date, outperforming the Zacks Consumer Discretionary sector’s return of 9.3%.
BILI’s Q2 Top-Line Details
Revenues from mobile games (22% of total revenues) increased 60.1% year over year to RMB 1.61 billion.
Bilibili Inc. Sponsored ADR Price, Consensus and EPS Surprise
Bilibili Inc. Sponsored ADR price-consensus-eps-surprise-chart | Bilibili Inc. Sponsored ADR Quote
Value Added Services (VAS) revenues (38.7% of total revenues) increased 10.6% year over year to RMB 2.84 billion.
Advertising revenues (33.4% of total revenues) increased 20.2% year over year to RMB 2.45 billion.
Revenues from IP Derivatives and others (6% of total revenues) were RMB 439.9 million, down 14.8% year over year.
BILI’s Q2 Operating Details
In the second quarter of 2025, the gross profit margin was 36.5%, indicating an improvement from the 29.9% reported in the year-ago quarter.
Research and development (R&D) expenses decreased 3.2% year over year to RMB 866.4 million. As a percentage of sales, R&D expenses decreased 280 basis points (bps) year over year to 11.8%.
Sales & Marketing (S&M) expenses increased 1.2% year over year to RMB 1.05 billion. As a percentage of sales, S&M expenses decreased 260 bps year over year to 14.3%.
General & Administrative (G&A) expenses increased 4.4% year over year to RMB 509.6 million. As a percentage of sales, G&A expenses decreased 100 bps year over year to 6.9%.
Consequently, total operating expenses were RMB 2.42 billion, which remained stable from the year-ago quarter.
Non-GAAP loss from operations was RMB 573.2 million, compared with a loss from operations of RMB 283.9 million from the prior-year quarter.
BILI’s Balance Sheet Remains Strong
As of June 30, 2025, cash and cash equivalents (including short-term investments) totaled RMB 22.29 billion compared with RMB 17.40 billion as of March 31, 2025.
Total debt as of June 30, 2025, was RMB 9.82 million, up from RMB 5.08 million as of March 31, 2025.
Cash flow from operating activities was RMB 1.99 billion for the reported quarter, up from RMB 1.30 billion in the prior quarter.
BILI’s Zacks Rank & Stocks to Consider
Currently, BILI carries a Zacks Rank #3 (Hold).
Some top-ranked stocks in the broader Computer and Technology sector are nCino NCNO, Dell Technologies DELL and Hewlett Packard HPE. While nCino sports a Zacks Rank #1 (Strong Buy) at present, Dell Technologies and Hewlett Packard carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
NCNO shares have declined 17.2% in the year-to-date (YTD) period. It is slated to report second-quarter fiscal 2026 results on Aug. 26.
DELL shares have gained 11.1% YTD. It is set to report second-quarter fiscal 2026 results on Aug. 28.
HPE shares have returned 2.3% YTD. It is scheduled to report third-quarter fiscal 2025 results on Sept. 03.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
