Bilibili Shares Drop Despite Q2 Earnings Beat - Ready Why - Bilibili (NASDAQ:BILI)

Online entertainment company Bilibili Inc BILI reported second-quarter FY21 revenue growth of 72% year-on-year to $696.2 million (RMB4.5 billion), beating the analyst consensus of $663.3 million.
Average monthly active users (MAUs) increased 38% Y/Y to 237.1 million, and Mobile MAUs rose 44% Y/Y to 220.5 million.
Average daily active users (DAUs) climbed 24% Y/Y to 62.7 million, and Average monthly paying users (MPUs) jumped 62% Y/Y to 20.9 million.
Revenues from mobile games were $191.0 million, VAS grew 98% Y/Y to $253.2 million, advertising jumped 201% Y/Y to $162.5 million. E-commerce revenues increased 195% Y/Y to $89.5 million.
Adjusted EPS loss of $(0.35) beat the analyst consensus loss of $(0.55).
Bilibili held $4.3 billion in cash and equivalents as of Jun. 30.
The Q2 saw sticky and engaged users, with the average user time spent on Bilibili rising to an impressive 81 minutes per user per day.
Q2 saw a more balanced revenue mix, mainly from advertising, which grew by over 200% Y/Y, representing 23% of total net revenues.
Outlook: Bilibili sees Q3 revenues of RMB5.1 billion - RMB5.2 billion versus the analyst consensus of $783.1 million (~RMB 5.08 billion).
Recently, Bilibili's stock price reacted to China's latest internet industry regulations.
Price Action: BILI shares traded lower by 3.30% at $66.20 in the premarket session on the last check Thursday.

Bilibili Shares Drop Despite Q2 Earnings Beat - Ready Why