Bilibili Keeps China's Gen Z Locked In For 119 Minutes Daily

Bilibili Inc. (NASDAQ:BILI) reported mixed fiscal first-quarter 2026 results Tuesday as advertising growth and improving profitability helped offset weakness in its gaming business. Revenue Growth And Earnings Performance The Chinese video-sharing platform posted revenue of $1.08 billion (7.47 billion yuan), up 7% year over year but slightly below analyst estimates of $1.09 billion. Adjusted earnings came in at 19 cents per ADS, beating Wall Street estimates of 12 cents. User Engagement And Platform Growth Often described as China's version of Alphabet Inc.'s (NASDAQ:GOOGL) YouTube because of its focus on long-form user-generated videos and livestreaming, Bilibili continued to report strong engagement trends among younger users. Average daily active users rose 8% year over year to 115.2 million during the quarter. The average daily time spent was 119 minutes, up 11 minutes year over year. Monthly active users exceeded 376 million. Gaming Weakness And Advertising Strength Mobile gaming revenue fell 12% to $220.7 million, primarily due to a tough comparison against the prior-year performance of "San Guo: Mou Ding Tian Xia." Value-added services revenue increased 4% to $422.2 million, driven by premium memberships and other services. Advertising revenue jumped 30% to $375.3 million as the company improved advertising products and efficiency. Revenue from IP derivatives and other businesses declined 4% to $65 million. Margin Expansion And Cash Position Gross margin expanded to 37.1% from 36.3% a year earlier. Adjusted net income rose to $84.9 million (585.43 million yuan), compared with 361.51 million yuan in the prior-year quarter. As of March 31, 2026, Bilibili held $3.51 billion in cash, cash equivalents, time deposits, and short-term investments. Management Commentary On AI And Strategy Chairman and CEO Rui Chen said the company entered 2026 with strong momentum as user engagement and content quality continued improving. He said daily user engagement reached a record high during the quarter, with average usage nearing two hours per day. Chen added that Bilibili's "community-first" strategy and investments in high-quality content helped deepen engagement with younger users while expanding the platform's reach. He also said artificial intelligence is improving content creation, discovery and monetization efficiency across the ecosystem. CFO Sam Fan said the company delivered its 15th consecutive quarter of gross margin expansion, supported by operating leverage and topline growth. He added that Bilibili plans to continue disciplined investment in AI-driven innovation while maintaining a focus on profitability. Bilibili Stock Performance BILI Price Action: Bilibili shares were up 0.70% at $19.76 during premarket trading on Tuesday, according to Benzinga Pro data. Photo via Shutterstock