$BILIBILI-W (09626.HK)$ Announcement released, in the third quarter of 2024, the company's net revenue reached 7.306 billion yuan (1.041 billion USD), an increase of 26% year-on-year. Among them, mobile game revenue was 1.823 billion yuan (0.26 billion USD), an increase of 84% year-on-year. Advertising revenue was 2.094 billion yuan (0.298 billion USD), an increase of 28% year-on-year.

Gross profit was 2.547 billion yuan (0.363 billion USD), an increase of 76% year-on-year. The gross margin reached 34.9%, an increase from 25.0% in the same period last year. The net loss was 79.8 million yuan (11.4 million USD), a year-on-year narrowing of 94%. The adjusted net income was 0.236 billion yuan (33.6 million USD), compared to an adjusted net loss of 0.863 billion yuan in the same period last year.

Operating cash flow for the third quarter of 2024 was 2.226 billion yuan (0.317 billion USD), compared to an inflow of 0.277 billion yuan in the same period last year.

The company had an average daily active user count (DAU) of 0.1073 billion, compared to 0.1028 billion in the same period last year.

The company announced today that its board of directors has authorized a share repurchase plan, under which the company may repurchase publicly traded securities not exceeding 0.2 billion USD within the next 24 months. Shareholders approved the annual share repurchase authorization granted to the board of directors at the annual general meeting held on June 28, 2024, which will be effective until the next annual general meeting.

"In this quarter, our community indicators and key business metrics have maintained strong growth momentum," said Chen Rui, chairman and CEO of bilibili. "Our daily active users and monthly active users reached new highs of 0.107 billion and 348 million, respectively. The average daily usage time for users also reached a new high of 106 minutes, an increase of 6 minutes compared to the same period last year. With our thriving community and highly engaged users, we have the capability and the opportunity to explore and unlock greater user value through diverse commercialization products. Total revenue in the third quarter reached 7.306 billion yuan, a year-on-year increase of 26%. In particular, our revenues from mobile games and advertising businesses have grown by 84% and 28% year-on-year, respectively. In our continuous efforts to enhance commercialization efficiency, we have achieved a positive adjusted net income for the first time under non-GAAP accounting standards this quarter. This milestone is merely a new starting point. Looking ahead, we will continue to improve our commercialization capabilities while strengthening our community ecosystem to bring long-term value to all partners."

Mr. Fan Xin, chief financial officer of bilibili, stated, "In the third quarter, driven by the strong growth of our high gross margin mobile game and advertising businesses, our total revenue achieved accelerated growth, and the gross margin significantly improved. Our gross profit surged 76% year-on-year, with the gross margin rising sharply from 25.0% in the same period last year to 34.9%. Therefore, we achieved an adjusted operating profit of 0.272 billion yuan, compared to an adjusted operating loss of 0.755 billion yuan in the same period last year. The significant improvement in financial performance demonstrates the resilience of our business model and the immense commercialization potential inherent in our community. We will take this milestone as a new starting point to continue driving future sustainable growth."