After reading Station $Bilibili Inc.(BILI)$
Gross profit increased 66% year on year, and gross margin continued to rise to 23.1% for four consecutive quarters (15% in the same period last year). The adjusted net loss narrowed sharply by 51% year on year, getting closer to the balance of profit and loss.
The increase in gross margin is largely due to “cost reduction”. For example, its marketing expenses fell 22% year over year. However, judging from the growth in user market data, the cost reduction of Station B was not at the cost of shrinking business. The number of daily active users reached 96.5 million, an increase of 15% over the previous year, with monthly activity of 324 million, daily activity/monthly activity reaching 30%. The average daily usage time of users was 94 minutes, a record high for the same period. More people use Station B and use it more.
Losses can be narrowed by 51% on the basis of maintaining market growth. Station B truly grasps the essence of “reducing costs and increasing efficiency”. Only reducing costs without increasing costs is leaving the roots behind to quench thirst; reducing costs also requires increasing efficiency; this is sustainable.
In terms of commercialization, the marketing value of Station B, which has always been underestimated, was also unleashed in Q2. Q2 ad revenue increased 36% year over year (Tencent's ad revenue for the same period increased 34%), all outperforming the market. In addition to brand and herb advertising, the conversion ability of Site B has also been verified. E-commerce advertising revenue increased by more than 140% year on year, and the number of UP owners receiving revenue through various delivery advertising products increased 220% year over year. Some time ago, Station B set up a trading ecosystem center to further strengthen the company's product and technology infrastructure for commercial transactions and enhance the platform's “trading and consumption” capabilities. The second half of the year is even more worth looking forward to.
All in all, Station B's Q2 performance represents the status of quite a few internet companies. Reducing costs and increasing efficiency must never be at the expense of the future of the business. If there is no point in just reducing costs without increasing efficiency, like Station B, reducing costs and increasing efficiency at the same time to maintain basic market growth is what enterprises should pursue now.
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Great Q, JD will be at $50 before the end of the year. Any selling is just filling the shorts with cheap shares. Russia must be winning because the G7 is attacking China now. I am not buying anything with a high PE in any country.
Had a great day buying 4 China stocks at unbelievably low prices. I just put orders on the bid near the lowest day prices and get filled. Low PE stocks are a gift right now, enjoy.
It will be green , unfortunately I already ran out of money to buy on the today's dip
Really good report. We are going to 50-60 in 3 months
I see this stock moving upward…