Bilibili, Inc: Strong Ads While Gaming Faces Tough Comps Before New 2H Launches

Research evidence excerpt

Bilibili, Inc: Strong Ads While Gaming Faces Tough Comps Before New 2H Launches

Equity Research

China Technology

20 May 2026

Bilibili, Inc

Strong Ads While Gaming Faces

Tough Comps Before New 2H Earnings Review

BILI OVERWEIGHTLaunches

Unchanged

BILI delivered its highest ads revenue yoy growth (30%) since China Technology POSITIVE

2Q24 in 1Q26 while the gaming segment awaits new releases; Unchanged

operating metrics are robust; we maintain our OW rating and Price Target USDUnchanged34.00

PT. Price (19-May-26) USD 20.00

Potential Upside/Downside +70.0%

Source: Bloomberg, Barclays Research

Summary: Despite investor concerns (some unwarranted, in our view) around BILI’s lack of an

AI story, the company continued to deliver solid results with record gross margins and

Market Cap (USD mn) 8500continued op margin expansion. BILI delivered solid results across the board with the ads

Shares Outstanding (mn) 425.03business up +30% yoy, the highest yoy growth rate it has recorded since 2Q24, on the back of

Free Float (%) N/Aimprovements in ads targeting and conversion supported by the integration of AI. AI-powered

52 Wk Avg Daily Volume (mn) 2.9creative tools helped deliver a meaningful increase in ads click-through rates, generally in the

Dividend Yield (%) N/Adouble-digit range per management. But, more importantly, BILI's content ecosystem and user

Return on Equity TTM (%) 9.41base are healthy and vibrant, as evidenced by growing MAU (+2% yoy), growing DAU (+7% yoy),

Current BVPS (USD) 36.80and growing avg. daily time spent by users on the platform (+10% yoy). The mobile game

Source: Bloomberg

segment recorded three consecutive Qs of negative yoy growth due to tough comps and a lack

of new game releases, a trend that will likely continue into 2Q26. That said, 3 new games