Analysts Q&A Summary:
1) Analyst: Lincoln Kong, Goldman Sachs
– The question: Lincoln asked about the specific plans to enrich quality content and the progress in AI applications at Bilibili.
– The response: Bilibili’s management emphasized their focus on high-quality content amid rising low-quality short videos, citing increased user engagement time and higher average monthly paying users. Future plans include leveraging AI to enhance content discovery and monetization.
2) Analyst: Shui Qing Zhang, CICC
– The question: Shui inquired about the performance of the game SAML during seasons six and seven, expectations for the game’s anniversary, and overall growth predictions for Bilibili’s game business.
– The response: Management highlighted SAML’s record user metrics and discussed its upcoming anniversary edition. They plan to maintain a long-term engagement strategy and diversify game formats to sustain growth.
3) Analyst: Yuwen Zhang, China Renaissance
– The question: Yuwen asked about the drivers behind the advertising business’s above-average growth and future ad revenue outlook.
– The response: Bilibili cited their user demographic, trust in content, and tailored ad solutions, including AIGC tools, as key growth contributors. They remain confident in outpacing industry growth through continuous improvements and high-value user engagement.
4) Analyst: Felix Liu, UBS
– The question: Felix asked about margin trends for the rest of the year and Bilibili’s mid-term gross profit and operating margin targets.
– The response: CFO Sam Fan underscored improvements in gross and operating margins, attributing them to high-margin revenue streams and stable cost structures. Looking ahead, Bilibili targets a gross margin of 40%-45% and a long-term operating margin of 15%-20%.
Sentiment Score Distribution Table:
| Analyst Name | Firm Name | Sentiment Score (1-10) |
|——————|—————–|————————|
| Lincoln Kong | Goldman Sachs | 8 |
| Shui Qing Zhang | CICC | 8 |
| Yuwen Zhang | China Renaissance | 9 |
| Felix Liu | UBS | 8 |
This analysis shows that the sentiment from analysts was largely positive, with an average rating around 8.5 across the board, indicative of confidence in Bilibili’s strategic focus and financial performance.