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Bilibili (BILI) to Report Q4 Earnings: What's in the Cards?

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Bilibili (BILI - Free Report) is set to report fourth-quarter 2020 results on Feb 24.

For fourth-quarter 2020, revenues are anticipated between RMB3.60 billion and RMB3.70 billion. The company had reported revenues of RMB2.007 billion in the year-ago quarter.

The Zacks Consensus Estimate for revenues is pegged at $479 million, indicating 66.3% upside from the year-ago quarter’s reported figure.

The consensus mark for fourth-quarter loss has remained steady at 34 cents over the past 30 days. The company had incurred a loss of 15 cents in the year-ago quarter.

Notably, the company’s earnings missed the Zacks Consensus Estimate in the trailing three quarters while beating in one, the average negative surprise being 16.6%.
 
Let’s see how things have shaped up for the upcoming announcement.

Factors to Consider

Bilibili’s fourth-quarter top line is expected to have benefited from its enhanced monetization efforts, led by increase in the number of paying users for the company’s premium membership program, live broadcasting services and other value-added services.

In the third quarter of 2020, average monthly paying users (MPUs) reached 15 million, up 89% year over year.

Additionally, strong popularity of both existing and newly launched mobile games is expected to have driven active user growth in the to-be-reported quarter.

In the third quarter, average monthly active users (MAUs) reached 197.2 million, and mobile MAUs reached 183.5 million, representing increases of 54% and 61%, respectively, from the year-ago quarter. User-base growth, particularly mobile gamers, are expected to have increased during the holiday season boosted by social-distancing guidelines in the to-be-reported quarter.

Moreover, increasing number of advertisers, driven by further recognition of Bilibili’s brand name in China’s online advertising market is expected to have boosted advertising revenues in the to-be reported quarter.

Further, the company’s solid partner base and expanding strategic partnerships, comprising the likes of Alibaba (BABA - Free Report) and Tencent (TCEHY - Free Report) , have been key catalysts.

However, increasing channel and marketing expenses associated with Bilibili’s app and brand, as well as promotional expenses for the company’s mobile games are expected to have kept margins under pressure in the to-be-reported quarter.

What Our Model Suggests

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Bilibili has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

A Key Pick

Here is a company, which, per our model, has the right combination of elements to post an earnings beat in its upcoming release.

CrowdStrike Holdings Inc. (CRWD - Free Report) has an Earnings ESP of +23.94% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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