Bilibili Inc.

Good day and thank you, and welcome to the Bilibili First Quarter 2025 Financial Results and Business Update Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Juliet Yang, Executive Director of Investor Relations. Please go ahead.

Thank you, Operator. During this call, we'll discuss our business outlook and make forward-looking statements. These comments are based on our predictions and expectations as of today. Actual events or results could differ materially from those mentioned in today's news release and in this discussion due to a number of risks and uncertainties, including those mentioned in our most recent filing with SEC and Hong Kong Stock Exchange. The non-GAAP financial measures we provide are for comparison purposes only. The definition of this measure and the reconciliation table are available in the news release we issued earlier today. As a reminder, this conference is being recorded. In addition, an investor presentation and a webcast replay of this conference call will be available on the Bilibili IR website at ir.bilibili.com. Joining us today from Bilibili Senior Management are Mr. Ray Chen, Chairman of the Board and Chief Executive Officer, Ms. Kali Lee, Vice Chairwoman of the Board, and Chief Operating Officer, and Mr. Sam Fan, Chief Financial Officer. I will now turn the call to Mr. Chen.

Thank you, Juliette. And thank you everyone for joining us today to discuss our 2025 first quarter results. We started 2025 on promising ground, delivering solid financial results and healthy community development in the first quarter. Our total revenues accelerated year-over-year, increasing by 24% to RMB 7 billion, driven by strong performances in our high-margin advertising and game businesses. Advertising revenues were up 20% year-over-year to RMB 2 billion, supported by our ongoing product enhancements and infrastructure upgrades, fueled by the sustained popularity of our SLG title sample. Our game's revenues also rose 76% year-over-year, to RMB 1.73 billion. The continued top-line expansion in these high-margin businesses, combined with operating efficiency, provided us with greater operating leverage. In the first quarter, our gross profit increased by 58% year-over-year, with gross profit margin expanding to 36.3%, up from 28.3% in the same period last year. As a result, we sustained positive adjusted net profit of RMB 362 million and narrowed our gap net loss by 99% year over year in the first quarter. While further strengthening our financial performance, we continue to grow our community and enhance user engagement. The successful collaboration with CCTV's Chinese New Year Gala also helps bring the Bilibili name to a broader audience. In the first quarter, DAUs reached 107 million and MAUs climbed to a new high of 368 million. Meanwhile, our compelling and diverse content drove users' average daily time spent to a record 108 minutes. Next month, Bilibili will turn 16. Looking back, it has been an incredible journey, one that is truly unique. Over the years, our community has grown tremendously. What is most remarkable is that the sense of connection between users and creators and the welcoming, inspiring vibe that defines Bilibili has stayed the same. Over this time, our users have grown with us too. Today, the average age of our active users is 26, a life stage where consumption needs and purchasing power are both on the rise. As the go-to platform for Gen Z Plus to discover high quality, creative video content in China, we are in a great position to meet their evolving needs and unlock even more monetization opportunities. With that overview, let's take a closer look at our core pillars of content, community, and commercialization. Beginning with content and community, as we look at today's video landscape, it's clear that people have more content than ever, especially with the explosion of short videos. But what really stands out is that people are craving and spending more time on high-quality content. At Bilibili, that has always been our focus. We have built a community known for the best content out there, and we will keep prioritizing and promoting quality above all else. This commitment is showing up in our numbers. In the first quarter, users spent an average of 108 minutes on our platform every day compared to 105 minutes in the same period last year, marking a new record. Our monthly paying users also reached an all-time high of 32 million, as our users discover and connect with more quality content they love. Monthly interactions were nearly 16.7 billion in the first quarter, and our official member count reached 264 million by the end of Q1. up 12% from last year. On top of that, their 12-month retention rate stayed strong at around 80%. The quality of our content is also showing up in our content categories. Our core ACG content continues to thrive, and our game content is a great example. In the first quarter, game-related watch time increased 14% year over year. drawing in both longtime fans and new gamers who come to Bilibili for reviews, walkthroughs, and game IP content. As Gen Z Plus users mature and their spending power increases, many are turning to Bilibili with real purchase intent, looking for trusted, unbiased recommendations. That's reflected in our travel and lodging and home appliance-related content, with watch time growing by over 20% year over year in Q1. Additionally, being the hub for curious minds and the best knowledge video library, we saw a big surge in our AI related content. More young people are coming to Bilibili to explore and learn about AI and AI related watch time more than doubled from Q1 last year, along with a 400% increase in advertiser demand. Behind all of this is our amazing creator community. By the end of Q1, the number of creators with over 1,000, 10,000, 100,000, and 1 million followers all grew by more than 20% year over year. About 1.5 million creators made money on Bilibili during the quarter, not just through ads or live streaming, but also by using our e-commerce tools and various fan support programs. In fact, creators' total income from our fan charging program was up over 200% in Q1, showing how users truly appreciate and are willing to pay for quality content. Lastly, our partnership with CCTV for the Chinese New Year Gala gave us a big boost in brand awareness. It both attracted new users and strengthened engagement with our existing community. What's more, viewers can now revisit all the past Chinese New Year Gallas right here on Bilibili. It's another great example of how we curate the quality content and deliver value through our unique community. Meanwhile, our self-produced Chinese anime, The Tales of Hurting Gods, Mu Shen Ji, was well-received. It's garnered over 560 million views so far and is showing strong potential to become Bilibili's next long-lasting anime IP. We also released our self-produced title, To Be Hero X, Tu Bian Ying Xiong X, Worldwide in April, it quickly gained traction, ranking number one on my anime list for best spring title 2025. Now let's talk about our commercial businesses and their progress. Our advertising business continued to deliver solid results in the first quarter with revenues growing 20% year over year to RMB 2 billion. As our users mature and have more spending power, They increasingly look to Bilibili for content that informs their lifestyle and consumption choices. This trust within our community and the influence of our quality content have become powerful drivers for advertisers. In the first quarter, the number of advertisers placing orders on our platform increased by more than 35% year over year. Meanwhile, we have been integrating a large language model to help us better understand users' interests and commercial intent, enabling more accurate ad targeting and smarter ad delivery. We also upgraded our AIGC ad content tools to help advertisers generate more tailored and effective ad titles and covers at scale, allowing them to reach users more efficiently through compelling and user-friendly storytelling. These enhancements have fueled the growth of our performance-based advertising, which grew by over 30% year over year in Q1. while brand and native ads continue to show steady momentum. Industry-wise, we strengthened our position in core verticals while attracting more advertisers from emerging sectors. In the first quarter, our top five ad verticals were games, internet services, e-commerce, digital products and home appliances, and automotive, powered by our vibrant and highly engaged gaming community. Gaming ads continue to contribute a strong share of our ad revenues with new formats like Bilibili minigames driving additional growth. Moreover, we saw a notable increase from sectors targeting younger consumers as they enter new life stages with evolving needs. In the first quarter, ad revenues from home appliances and decorations grew by nearly 40% year over year. Similarly, AI-related ad revenue surged by 400% year-over-year, reflecting Bilibili's growing appeal to emerging industries, looking to engage our young high-value user base through innovative ad formats. Turning to our game business, game revenues rose by 76% year-over-year to RMB $1.73 billion, attributed to the continued strong performance of our CLG title, 三國謀定天下三謀。 Meanwhile, our legacy ACG titles, FGO and Azure Lane, continue to deliver stable revenues and demonstrated impressive longevity in the first quarter. We are encouraged to see that Sunmo is evolving into a long cycle title with enduring appeal. With our expanded game development capabilities and upgraded gameplay, Sunmo's active users and engagement in season seven improved from previous seasons. Demonstrating the game's continued draw for core SLG players. On May 31st, we will kick off Season 8, marking the game's biggest update since its initial launch. This highly anticipated anniversary edition will include a refreshed map, new characters, and special in-game events. These updates enhance the gaming experience and are designed to attract more younger players to the SLG genre. We expect this launch to mark a meaningful milestone in SAML's continued growth and long-term success. The momentum behind SAML also highlights our gaming community's strengths and our ability to build differentiated experiences that resonate with diverse player groups. In addition to SAML's international launch later this year, we have several new games in our pipeline awaiting approval. As we expand our game portfolio, We are focused on creating titles with lasting value by leveraging our leadership in the gaming space to reimagine gameplay for the next generation of gamers. And finally, let's look at our VAS business. Revenues from our VAS business increased by 11% year over year to RMB 2.81 billion. Our live broadcasting business regained momentum during the first quarter. fueled by the supply of more quality content and more paying users. We also further refined our operations and incentive plan, which led to a meaningful improvement in the business's margin profile. We are also unlocking more value from our broader VAS portfolio. Gen Z Plus users show a strong willingness to pay for content they care about. By the end of the quarter, premium memberships exceeded $23.5 million, with over 80% on annual or auto-renew plans, a clear sign of user loyalty. In addition, revenues from our fan charging program surged by over 200% year-over-year, highlighting the potential of our direct-to-creator monetization tools. And lastly, while we are making solid progress on our commercialization efforts, we are also staying true to our role as a responsible cultural brand and corporate citizen, In April, we published our 2024 ESG report, sharing the steps we are taking to create social value and build a more sustainable business. We are proud to have received an A rating from MSCI for our ESG performance. While we keep growing our ecosystem with high quality content, we are also committed to pushing the industry forward through innovation, both in technology and storytelling. While continuing to spread positive energy and making a real difference in society. As we move through the year, we will focus on advancing our commercialization capabilities with more enhanced and efficient commercial offerings. At the same time, we will continue promoting high-quality content that defines our vibrant community. In addition, we are actively embracing GenAI to optimize user experience, monetization efficiency, and unlock new growth opportunities. With that, I will turn the call over to Sam to share more financial details. Sam, please go ahead.