Some hot Chinese ADRs gain in morning trading with Bilibili surging 14%.

Bilibili's total revenue grew 16% year-over-year to RMB 6.13 billion ( $843.1 million ) , beating analysts' estimates of $837.17 million. Bilibili's adjusted loss per share of RMB 0.65 ( $0.09 ) also came in narrower than the expected loss of $0.11.

Bilibili saw robust growth across its key revenue streams, with advertising revenues surging 30% year-over-year, value-added services climbing 11%, and mobile games revenues rising 13%. The company's gross profit margin expanded to 29.9%, compared to 23.1% a year ago, marking the eighth consecutive quarter of margin improvement.

Significantly, Bilibili's adjusted net loss narrowed by 72% year-over-year, and the company generated operating cash flow of RMB 1.75 billion ( $240.9 million ) in the quarter. These metrics underscore Bilibili's accelerating path towards profitability, a key focus for investors.

Bilibili also reported continued user growth, with average daily active users increasing 6% year-over-year to 102.3 million, and daily average time spent per user rising to 99 minutes, up from 94 minutes a year ago.