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Bilibili (BILI) Q4 Earnings Top Estimates, Revenues Rise Y/Y

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Bilibili (BILI - Free Report) reported an adjusted loss of 29 cents per share in fourth-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 34 cents. Moreover, revenues of $588.5 million beat the consensus mark by 22.9%.

In domestic currency, Bilibili incurred an adjusted loss of RMB1.88 per share, wider than the year-ago quarter’s loss of RMB1.01.

Revenues soared 91% year over year to RMB3.84 billion on contributions from a solid content portfolio, robust game offerings, growing recognition of the company’s brand name and a widening audience base.

Top Line Details

Mobile game revenues (29.4% of total revenues) jumped 30% year over year to RMB1.13 billion ($173.1 million), driven by the growing traction of the newly-launched mobile games.
 

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Bilibili Inc. Sponsored ADR Price, Consensus and EPS Surprise

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Value-added services revenues (32.5% of total revenues) surged 118% year over year to RMB1.25billion ($191.1 million). This uptick was led by Bilibili’s enhanced monetization efforts, driven by increases in the number of paying users for the company’s premium membership program, live broadcasting services and other value-added services.

Advertising revenues (18.8% of total revenues) soared 149% year over year to RMB722.4 million ($110.7 million), on further recognition of the company’s brand name in China’s online advertising market, along with advertising efficiency enhancement.

E-commerce & others revenues (19.3% of total revenues) skyrocketed 168% year over year to RMB740.8 million ($113.5 million), primarily on higher sales of products through the company’s e-commerce platform as well as content licensing.

 

Operating Details

Gross profit soared 137% year over year to RMB944.1 million ($144.7 million).

Sales and marketing expenses flared up 147% year over year to RMB1.02 billion ($156.4 million). This upswing primarily resulted from rising channel and marketing expenses associated with the app and the brand, and promotional expenses for Bilibili’s mobile games, along with increase in headcount.

General and administrative expenses shot up 115% year over year to RMB342.8 million ($52.5 million), chiefly on a rise in personnel-related expenses as well as elevated rental expenses.

Research and development expenses soared 97%, year over year, to RMB484 million ($74.2 million), mainly due to an increase in headcount and share-based compensation expenses.

Operating expenses surged 126% year over year to RMB1.85 billion ($283.1 million).

Operating loss came in at RMB903.4 million ($138.4 million) compared with the RMB419.9 million reported in the year-ago quarter.   

User Base Details

In the reported quarter, average monthly active users (MAU) reached 202 million, up 55% from the year-ago quarter. Mobile MAUs reached 186.5 million, up 61% year over year. Moreover, average monthly paying users (MPU) surged 103% year over year to 17.9 million.

Markedly, monthly average active content creators on the company’s platform were 1.9 million, up from the year-earlier quarter’s 1 million.

Additionally, average daily active users (DAU) increased 42% year over year to 54 million.

This spike is user base resulted from the robust adoption of company’s video-based content offerings especially by young population below the age of 35 and increased customer engagement on its platform.

Balance Sheet

As of Dec 31, 2020, Bilibili, had cash and cash equivalents, time deposits, as well as short-term investments worth RMB12.8 billion ($2billion) compared with RMB14.1 billion ($2.1 billion) as of Sep 30, 2020.

Outlook

For the first quarter of 2021, Bilibili projects net revenues between RMB3.7 billion and RMB3.8 billion.

Management anticipates the top line to continue benefiting from a strong content library and a solid gaming portfolio. Moreover, growing platform engagement and strength in company’s video-based content offerings led by spike in user activity from a young population will likely fuel user-base expansion.

Zacks Rank & Stocks to Consider

Bilibili currently carries a Zacks Rank #5 (Strong Sell).

Better-ranked stocks in the broader technology sector include Zoom (ZM - Free Report) , Marvell Technology (MRVL - Free Report) and CrowdStrike Holdings (CRWD - Free Report) . All three stocks carry a Zacks Rank of #2 (Buy), currently. You can see the complete list of today’s Zacks #1Rank (Strong Buy) stocks here.

Zoom, Marvell and CrowdStrike are scheduled to report their quarterly numbers on Mar 1, 3 and 16, respectively.

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