Bilibili's Q3 Earnings: Revenue Surges As Games Lead the Way, Stock Buyback And More

Benzinga11-14

Bilibili Inc (NASDAQ:BILI) reported fiscal third-quarter revenue of $1.04 billion (7.31 billion Chinese yuan), up by 26% year-on-year, beating the analyst consensus estimate of $1.01 billion. 

The Chinese video-sharing platform's adjusted EPADS of $0.08 missed the analyst consensus loss estimate of $0.10.

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Drivers: Average daily active users (DAUs) climbed 4.4% Y/Y to 107.3 million. Revenues from mobile games were $259.7 million, up by 84% Y/Y, mainly attributable to the strong performance of the company's exclusively licensed game, San Guo: Mou Ding Tian Xia.

Value-added services (VAS) revenues grew 9% Y/Y to $402.0 million, led by increases in revenues from live broadcasting and other value-added services.

Advertising increased by 28% Y/Y to $298.5 million, mainly attributable to the company's improved advertising product offerings and enhanced advertising efficiency.

Revenue from IP derivatives and others decreased 2% Y/Y to $80.8 million.

Adjusted net profit was $33.6 million. Bilibili held $2.17 billion in cash and equivalents as of September. It generated $317.1 million in operating cash flow for the quarter.

Share Buyback: The board of directors has authorized a share repurchase program under which the company can repurchase up to $200 million of its publicly traded securities for the next 24 months.

Bilibili Chairman and CEO Rui Chen reported strong growth across community metrics and core business segments this quarter. Daily active users (DAUs) and monthly active users (MAUs) reached record highs of 107 million and 348 million, respectively. The average daily time spent by users increased to 106 minutes, up by 6 minutes from the same period last year. Chen highlighted the company's success in boosting user engagement and driving value through a variety of commercial offerings. He emphasized that achieving the first adjusted net profit marks a significant milestone, setting the stage for further development of commercialization efforts and continued growth.

CFO Sam Fan noted strong performance in high-margin segments like mobile games and advertising, which accelerated overall revenue growth and improved profitability. Gross profit jumped 76% year-over-year, with the gross margin rising to 34.9% from 25.0% in the same period last year.

Bilibili stock surged over 83% year-to-date.

Price Action: BILI stock is down 5.67% at $20.07 premarket at the last check Thursday.

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