Investing.com -- Bilibili reported better-than-expected first-quarter earnings on Tuesday, while revenue came in broadly in line, as strong advertising growth and steady user engagement helped offset a decline in mobile gaming.

The Chinese video platform operator posted earnings per share (EPS) of RMB1.41 for the quarter, topping the analyst consensus estimate of RMB1.16. Revenue came in at RMB7.47 billion ($1.08 billion), up 7% year over year, roughly in line with the RMB7.49 billion Wall Street had expected.

The company’s shares slipped around 1% in U.S. premarket trading by 06:13 ET.

Advertising was the standout performer, with revenues rising 30% year over year to RMB2.59 billion, which Bilibili said was "mainly attributable to the company’s improved advertising product offerings and enhanced advertising efficiency."

“Our performance in the first quarter demonstrates the strong momentum we brought into 2026,” said CEO Rui Chen.

"During the quarter, user engagement reached a new record high, with average daily time spent nearing the two-hour mark and total user time spent increasing 19% year over year," he said.

Value-added services, which include premium memberships, generated RMB2.91 billion, up 4% from the same period a year ago. IP derivatives and other revenues slipped 4% to RMB448.2 million.

Mobile gaming was the weak spot in the quarter. Revenues fell 12% year over year to RMB1.52 billion, primarily due to a tough comparison with the prior-year period, when the title San Guo: Mou Ding Tian Xia delivered an exceptional performance. The company said the game has since transitioned into a stable and mature life cycle.

Average daily active users grew 8% year over year to 115.2 million during the quarter, while average daily time spent reached 119 minutes, up 11 minutes from the same period a year ago.