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.

Timothy Green has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.