Bilibili (BILI) Stock: Running For The Top On Earnings


Bilibili Inc - ADR BILI Stock NewsBilibili Inc – ADR (NASDAQ: BILI) is having an overwhelmingly strong start to the trading session this morning after the company announced its earnings for the first quarter. Of course, the report proved to be positive, leading to excitement among investors and sending the stock screaming for the top. Today, w’ell talk about:

  • The earnings report;
  • what we’re seeing from the stock;
  • and what we’ll be watching for with regard to BILI ahead.

BILI Heads For The Top On Earnings

As mentioned above, Bilibili is having a great day in the market today after the company reported its earnings for the first quarter of fiscal 2018. Here’s what we saw from the report:

  • Loss – During the first quarter, BILI reported a net-loss in the amount of $9.2 million. That works out to a loss of $1.69 per share. On an adjusted basis, the company’s net loss came to $0.5 million.
  • Revenue – Revenue proved to be a big hit for the company. During the quarter, the company generated revenue in the amount of $138.4 million. That figure proved growth of 105% on a year over year basis.

In a statement, Rui Chen, CEO at BILI, had the following to offer:

We are pleased to report strong operational and financial results for our first quarter as a public company, with remarkable growth across our three primary business streams… As a premier entertainment platform serving young generations in China, we continue to offer new immersive content, vibrant interaction among users and dynamic community environment. Our MAUs reached over 77 million in the first quarter, and we have seen a substantial increase in the number of paying users, demonstrating our strong momentum driven by the implementation of our monetization strategies. 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. 

The above statement was followed up by Sam Fan, CFO at BILI. Here’s what he had to offer:

The 105% increase in total net revenues in the first quarter of 2018 from the same period in 2017 was driven by our robust growth of revenues from mobile games, live broadcasting and value-added services, and advertising… We are also improving our operating efficiency while continuing to grow our business. For the first quarter, we generated operating cash flow of RMB471.1 million and our net loss margin was 7%, compared to 16% for the same period in 2017.

What We’re Seeing From The Stock

As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive. With revenue that has more than doubled on a year over year basis and shrinking losses, Bilibili is making moves in the right direction. So, it’s no surprise to see that excited investors are sending the stock on a run for the top. Currently (10:09), BILI is trading at $14.26 per share after a gain of $1.82 per share or 14.64% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on BILI. In particular, we’re interested in following the story surrounding the company’s continued growth and hopeful that it does indeed continue. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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