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Can Investments in Content Aid Bilibili's (BILI) Q3 Earnings?
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Bilibili Inc. (BILI - Free Report) is set to report third-quarter 2018 results on Nov 20.
In the last reported quarter, Bilibili posted loss of a penny wider than the Zacks Consensus Estimate of a break-even.
Revenues of $155.1 million surged 76% from the year-ago quarter.
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $147.5 million. The consensus mark for the bottom line is pegged at loss of 9 cents per share.
Let’s see how things are shaping up prior to this announcement.
Expanding E-sports Gaming Content
Bilibili is looking to boost e-sports gaming content offerings on its platform. Gaming was the third most (of the top five) popular content category in second-quarter fiscal 2018.
In third-quarter 2018, Bilibili bought a team in Activision’s Overwatch League 2019 season. The 2018 league had a scintillating start with more than 10 million viewers watching the event in the first week of the inaugural season. The recently concluded 2018 season attracted increased viewership, sponsors and media coverage.
E-sports is the top viewed video content on Bilibili’s platform. Further, with the e-sports economy expected to total $906 million in 2018, up from $696 million in 2017, per Newzoo and scale up to $1.5 billion by 2020, the company’s move in this direction makes sense as this is expected to boost engagement levels and increase active users.
Notably, average monthly active users (MAUs) and mobile MAUs were 85.0 million and 71.4 million, up 30% and 39% year over year respectively, in the last reported quarter.
Additionally, during third quarter, the company extended its partnership with Aniplex to provide new and improved content for its mobile game Fate/Grand Order. Notably, Fate/Grand Order and Azur Lane primarily contributed to 61% increase in mobile game revenues (77% of total revenues) to $119.5 million in second-quarter 2018.
Bilibili Inc. Sponsored ADR Price and EPS Surprise
Bilibili differentiates its platform by providing varied and premium content to its users. The company is continuously bringing in new content for categories like entertainment, lifestyle, games, anime and the technology, which were the top five popular content categories in the last reported quarter.
During third quarter, Bilibili bought minority equity stake in Japanese-based Fun-Media aimed at expanding its animation based content. Additionally, the company acquired majority equity stake in in Zenith Group Holdings to expand its virtual idols content on the platform.
Further, Bilibili also partnered with Discovery to introduce “bilibili x Discovery” channel to the younger audience in China. The companies will co-produce content.
Addition of premium and exciting content may help Bilibili increase its average monthly paying users, which already witnessed significant growth, up 177% year over year to 3 million in the last reported quarter. Further, ad dollars are also expected to increase as the company boosts its content and user base. Notably, advertising revenues increased 132% year over year to $14.5 million.
However, for third-quarter 2018, new user expansion may take a toll due to unavailability of Bilibili mobile app from Jul 26, 2018 to Aug 25, 2018, after nationwide online inspection was conducted by Central Cyberspace Administration (CCA) on short-video content providers.
Moreover, with total audience for e-sports expected to grow to approximately 600 million by 2020 from about 400 million in 2017, per BBC, other players are looking to gain a share of the pie. Companies like Twitter , Disney and streaming platforms like Twitch are increasingly inking deals to air e-sports content on their platforms. This may limit user growth for Bilibili.
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Can Investments in Content Aid Bilibili's (BILI) Q3 Earnings?
Bilibili Inc. (BILI - Free Report) is set to report third-quarter 2018 results on Nov 20.
In the last reported quarter, Bilibili posted loss of a penny wider than the Zacks Consensus Estimate of a break-even.
Revenues of $155.1 million surged 76% from the year-ago quarter.
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $147.5 million. The consensus mark for the bottom line is pegged at loss of 9 cents per share.
Let’s see how things are shaping up prior to this announcement.
Expanding E-sports Gaming Content
Bilibili is looking to boost e-sports gaming content offerings on its platform. Gaming was the third most (of the top five) popular content category in second-quarter fiscal 2018.
In third-quarter 2018, Bilibili bought a team in Activision’s Overwatch League 2019 season. The 2018 league had a scintillating start with more than 10 million viewers watching the event in the first week of the inaugural season. The recently concluded 2018 season attracted increased viewership, sponsors and media coverage.
E-sports is the top viewed video content on Bilibili’s platform. Further, with the e-sports economy expected to total $906 million in 2018, up from $696 million in 2017, per Newzoo and scale up to $1.5 billion by 2020, the company’s move in this direction makes sense as this is expected to boost engagement levels and increase active users.
Notably, average monthly active users (MAUs) and mobile MAUs were 85.0 million and 71.4 million, up 30% and 39% year over year respectively, in the last reported quarter.
Additionally, during third quarter, the company extended its partnership with Aniplex to provide new and improved content for its mobile game Fate/Grand Order. Notably, Fate/Grand Order and Azur Lane primarily contributed to 61% increase in mobile game revenues (77% of total revenues) to $119.5 million in second-quarter 2018.
Bilibili Inc. Sponsored ADR Price and EPS Surprise
Bilibili Inc. Sponsored ADR Price and EPS Surprise | Bilibili Inc. Sponsored ADR Quote
Can Premium Content Boost Paying Users Growth?
Bilibili differentiates its platform by providing varied and premium content to its users. The company is continuously bringing in new content for categories like entertainment, lifestyle, games, anime and the technology, which were the top five popular content categories in the last reported quarter.
During third quarter, Bilibili bought minority equity stake in Japanese-based Fun-Media aimed at expanding its animation based content. Additionally, the company acquired majority equity stake in in Zenith Group Holdings to expand its virtual idols content on the platform.
Further, Bilibili also partnered with Discovery to introduce “bilibili x Discovery” channel to the younger audience in China. The companies will co-produce content.
Addition of premium and exciting content may help Bilibili increase its average monthly paying users, which already witnessed significant growth, up 177% year over year to 3 million in the last reported quarter. Further, ad dollars are also expected to increase as the company boosts its content and user base. Notably, advertising revenues increased 132% year over year to $14.5 million.
However, for third-quarter 2018, new user expansion may take a toll due to unavailability of Bilibili mobile app from Jul 26, 2018 to Aug 25, 2018, after nationwide online inspection was conducted by Central Cyberspace Administration (CCA) on short-video content providers.
Moreover, with total audience for e-sports expected to grow to approximately 600 million by 2020 from about 400 million in 2017, per BBC, other players are looking to gain a share of the pie. Companies like Twitter , Disney and streaming platforms like Twitch are increasingly inking deals to air e-sports content on their platforms. This may limit user growth for Bilibili.
Bilibili currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>