Bilibili Inc.

Good day and welcome to Bilibili's first quarter 2026 financial results and business updates conference call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Juliette 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, Julia, and thank you to everyone joining us today. 2026 is off to a great start for Bilibili. In the first quarter, we kept up the momentum from last year, delivering solid growth across our community, commercialization, and profitability. Let's start with the community. High-quality content and authentic experience continue to drive organic growth and deepen user engagement. In Q1, CAUs grew 8% year-over-year to 115 million, and MAUs increased to 376 million. Average daily time spent reached a new high of 119 minutes, up 11 minutes year-over-year, which led to a 19% surge in total user time spent. We see this level of engagement as a powerful engine for our commercial business. In the first quarter, we delivered robust advertising revenue growth of 30% year-over-year, further accelerating from 2025. Meanwhile, MPUs increased by 7% year-over-year to 34.4 million, as more users directly pay for content and services they truly care about on our platform. This commercial momentum led to a strong financial performance. Total revenues grew 7% year-over-year to RMB 7.5 billion. Gross profit was up 9% year over year and gross margin reached 37.1%, marking our 15th consecutive quarter of margin expansion. Thanks to our top line growth and increased operating leverage, our operating profit was over 10 times what it was a year ago. On a non-GAAP basis, net profit grew by 62% year over year with our adjusted net profit margin expanding to 7.8%. To us, this set of results confirms a fundamental shift in user behavior. In a world full of quick hits, more users are choosing to spend more time on quality content. That is exactly what Bilibili stands for, and it will continue to drive our growth. With our average user now around 26.5 years old, our cohort is starting to spend more and spend better. As their needs evolve, we are staying close to them, offering the products and experiences they care about most. The content ecosystem we have built remains our most durable asset. Today, we are using AI to make this ecosystem even more powerful. We are focusing our investments on three key areas. How we understand videos, how we recommend them, and how we help creators build them. Ultimately, we are not just evolving with AI, we are using it to reinforce the very thing that makes Bilibili unique. Having said that, we remain very disciplined with our capital. Although AI requires an upfront investment, the returns in engagement and monetization are already tangible. At the same time, AI is driving meaningful efficiencies across our operations, which is directly supporting our margin expansion. By combining the heart of our community with the power of our technology, we are creating lasting value for our users and shareholders. With that, let me walk you through our core pillars of content, community, and commercialization. starting with content and community. As content options multiply, users are becoming even more selective. They are coming to Bilibili for high-quality PUGB content and a unique community experience that they cannot find anywhere else. Across our content categories, ACG remains our cultural anchor. In the first quarter, watch time for games and Chinese anime grew 27% and 20% year over year, respectively. improving our enduring appeal to the younger generation. Beyond our ACG legacy, knowledge-based content, including AI-related information, grew 20% year-over-year as users turned to us for deeper insights. Music categories also saw robust growth with a 25% year-over-year increase in time spent, largely driven by AIGC music. Consumption-related categories kept rising. with watch time for parenting and early education and outdoor related categories surging by more than 50% year over year. The breadth of our content library is only one part of the story. Our deeper competitive moat lies in the humanity of the community. Every month, our users generate over 17 billion real human interactions. In an AI driven world, there are the most authentic human signals available. While high quality data is becoming a global scarcity, Our hundreds of billions of organic interactions provide us with the gold standard for understanding true human preferences. This profound insight is what fuels our engagement and loyalty. In the first quarter, total user time spent rose 19% year over year, and 291 million official members maintained an 80% 12-month retention rate. Meanwhile, we continue to see AI as an amplifier for our ecosystem's flywheel. On the supply side, the unique creative spirit of our community has found new momentum through the AI-powered tools that scale creativity across the platform. By lowering the barriers to entry and boosting productivity, we have seen a significant influx of creators and content. In Q1, the number of daily active creators and daily submissions grew by 6% and 19% year-over-year, respectively. But this isn't just a game of volume. With AI assisting the creative process, more talent is producing high quality breakout content right out of the gate. Our recent AI creation contest is a perfect example. We attracted the most talented creators to join our platform, creating nearly 150 breakout work with over a million views each. By deepening our comprehension of both content and user behavior, we've made content discovery more efficient, directly accelerating growth for our creators. In the first quarter, the number of creators with over 1,000 followers grew by more than 30% year over year, and those with 10,000, 100,000, and 1 million or more followers each grew over 20%. Naturally, as their audiences grow, earnings follow. Average income per creator rose 24% this quarter, creating a powerful virtuous cycle. Now let us take a closer look at our commercial businesses and their progress. First, our advertising business once again delivered standout results in Q1. Revenues grew 30% year over year, reaching RMB 2.6 billion. This ongoing acceleration reflects the value of our community that we continue to unlock and how we are turning user engagement into real results for advertisers. In Q1, our top five adverticals were games, internet services, digital products and home appliances, e-commerce, and automotive. Game ads delivered strong incremental revenue growth this quarter. In the internet services sector, AI advertisers kept scaling with ad budgets surging over 170% year over year. At the same time, our maturing user base is also capturing more advertisers' budgets. Ad revenues from digital products and home appliances and automotive both grew over 30% year over year in Q1. Home decoration was a particular standout, with ad spending jumping more than 130% year over year. Using AI to improve efficiency and drive ad business is a core priority this year. By integrating AI more deeply into our algorithm, we've gained much sharper insights into user interests and long-term patterns. This clarity has meaningfully optimized how we match users with ads. resulting in a 25% year-over-year increase in CTCVR of performance-based ads this quarter. Furthermore, our AIGC tools are streamlining creative production and crafting ads that resonate with users, helping advertisers connect with our community more effectively and drive higher click-through rates. We are also unlocking growth across diverse platforms and touchpoints. In the first quarter, ad revenues from PC and OTT platforms grew by over 50% year over year, while new scenarios like search and mini programs more than doubled. We're exploring new integrated formats within video player, finding new ways to turn user time into commercial value. With expanding traffic, diverse new scenarios, and continuous efficiency gains, we remain confident in the sustained momentum of our ad business. Now turning to our games business, Game revenues were RMB 1.5 billion, down 12% year-over-year, and flat quarter-over-quarter. The year-over-year decline was mainly due to the high base set by Samou, Shanguo, Moding, Tianxia in the same period last year, while the latest seasons of Samou performed steadily quarter-over-quarter. We're focused on the game's long-term life cycle, keeping the experience balanced and the IP strong. Meanwhile, our evergreen titles, FGO and Azure LAN, remain stable and continue to provide a solid revenue base. In 2026, we're building on Sunmo's success and expanding our presence in the Three Kingdoms IP. In April, we soft-launched NCard, Sun Guo by Jiang Hai, a lighter casual card game that has received positive feedback on its core gameplay. We're iterating the product and optimizing user acquisition as we prepare for its official launch this July. Meanwhile, our new SLG title, 三王, 三國志, 王道天下, began initial testing in late March. Built on the original 三國志 IP with enhanced 3D visuals, 三王 targets a differentiated group of SLG fans and complements 三謀. Early user feedback was encouraging, and we plan to roll the game out late this year. Beyond NCard and 三王, our self-developed simulation game, LumiMaster, 想要把 Lumi, entered its paid testing in May, it has been well received for its cozy art style and accessible gameplay, and we plan to bring it to global gamers in Q4 this year. Our jointly operated pipeline for the coming quarters is also expanding into more genres, giving us broader player coverage and a more balanced portfolio. Turning to our VAS business, VAS revenue grew by 4% year over year to RMB 2.9 billion in Q1. We kept refining our live broadcasting operations delivering a stable performance with improved gross margin. Premium members reached 24.8 million by the end of the first quarter, up 5% year-over-year. Around 80% are on annual or auto-renewal plans. Our found charging program also kept growing at a healthy pace. Revenue was up over 50% year-over-year, driven by stronger creator-user relationships and users' growing willingness to directly support content they love. In April, we published our 2025 ESG report, outlining our continued focus on high-quality content, healthy community development, and steady improvements in governance and operations. Given our reach and influence among China's young generation, we take this responsibility very seriously, and we have maintained our A rating by MSCI, reflecting our consistent approach to long-term sustainable growth. To close, we believe great content and a strong community bring people together. The value we have built is just beginning to show its potential. With AI as the accelerator, our community and commercial ecosystems are reinforcing each other more than ever. We will stay focused on strengthening that flywheel and investing in areas that support long-term growth, taking Bilibili to the next level. We are excited about what is ahead. With that, I will turn the call over to Sam to walk through our financials in more detail. Sam?