Bilibili Falls 5% Despite Strong Q2 Results, Path to Profitability

Stock Track08-22

Bilibili Inc. shares jumped 5.92% in morning trading, despite the Chinese video-sharing platform reported better-than-expected second-quarter results and signaled accelerating momentum towards profitability.

The company's total revenue grew 16% year-over-year to RMB 6.13 billion ($843.1 million), beating analysts' estimates of $837.17 million. Bilibili's adjusted loss per share of RMB 0.65 ($0.09) also came in narrower than the expected loss of $0.11.

Bilibili saw robust growth across its key revenue streams, with advertising revenues surging 30% year-over-year, value-added services climbing 11%, and mobile games revenues rising 13%. The company's gross profit margin expanded to 29.9%, compared to 23.1% a year ago, marking the eighth consecutive quarter of margin improvement.

Significantly, Bilibili's adjusted net loss narrowed by 72% year-over-year, and the company generated operating cash flow of RMB 1.75 billion ($240.9 million) in the quarter. These metrics underscore Bilibili's accelerating path towards profitability, a key focus for investors.

Bilibili also reported continued user growth, with average daily active users increasing 6% year-over-year to 102.3 million, and daily average time spent per user rising to 99 minutes, up from 94 minutes a year ago.

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