What happened

Shares of Chinese online entertainment platform Bilibili Inc. (NASDAQ:BILI) surged on Thursday following the company's inaugural quarterly report, which featured triple-digit revenue growth and a big jump in monthly paying users. The stock was up about 11.7% at 12:35 p.m. EDT, adding to gains made earlier this month.

So what

Bilibili reported first-quarter revenue of $138.4 million, up 105% year over year. Mobile game revenue jumped 97% to $109.8 million, live broadcasting revenue surged 151% to $15.3 million, advertising revenue increased 144% to $11.2 million, and other revenue rose 65% to $2.1 million.

A rising stock chart.

Image source: Getty Images.

The number of average monthly active users increased by 35% year over year to 77.5 million. The number of average monthly paying users jumped 190% to 2.5 million. "As the hub for China's distinct and thriving Generation Z culture, we believe we are uniquely positioned to capture the future of online entertainment market in China," said CEO Rui Chen.

Bilibili posted a net loss of $9.2 million and a non-GAAP net loss of $0.5 million, both improvements compared to the prior-year period. Chen commented on the bottom-line progress: "For the first quarter, we generated operating cash flow of ... 471.1 million [yuan] and our net loss margin was 7%, compared to 16% for the same period in 2017."

Now what

Bilibili expects to generate between 970 million yuan and 1 billion yuan of revenue during the second quarter, which translates to a range of $152 million to $157 million.

While Bilibili still isn't profitable, margins are moving in the right direction. Investors focused on this progress and the company's rapid growth on Thursday, pushing the stock higher.