Shanghai, China – Bilibili Inc. . (NASDAQ: NASDAQ:), China’s leading video community for younger generations, reported a narrower adjusted net loss for the first quarter, with revenue slightly beating analysts’ expectations.
Despite the positive earnings report, Bilibili shares fell 2%, indicating a cautious market reaction.
The company’s adjusted net loss for the quarter was 455.9 million yuan ($63.1 million), up 56% year-on-year and beating analysts’ estimates of 1.28 yuan per share by 0.22 yuan. 0.22 yuan. 1.06 yuan per share.
Total net income for the first quarter reached 5.66 billion yuan ($784.5 million), up 12% year-on-year and slightly above the consensus estimate of 5.63 billion yuan. The company’s gross profit rose significantly by 45% YoY to RMB 1.61 billion (USD 222.3 million), and its gross profit margin stood at 28.3%, compared with 21.8% in the same quarter last year.
“We are off to a good start in 2024,” said Mr. Rui Chen, Chairman and CEO of Bilibili. “Our community is thriving thanks to our increasingly diverse content, resulting in a 9% year-over-year increase in daily users to 102.4 million.”
The company’s advertising business delivered outstanding results, with revenue up 31% year-on-year, driven by improvements in the offering and performance of advertising products. Value-added services (VAS) revenue also grew 17% year-on-year, driven primarily by live streaming and other services. However, mobile gaming revenue declined 13% YoY due to lower revenue from some legacy games.
Bilibili’s efforts in commercialization and operational efficiency were noted by CFO Sam Feng, who noted a reduction in adjusted operating losses and net losses, as well as positive operating cash flow of RMB 637.7 million (USD 88.3 million), which is a significant improvement from the negative figure of 630.0 million yuan in the same period last year.
The company remains focused on expanding commercialization opportunities and advancing the path to profitability, while maintaining its commitment to content creators and the community.
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