Why Bilibili (BILI) Shares Are Falling Today - Bilibili (NASDAQ:BILI)

Bilibili Inc BILI reported first-quarter FY23 revenue growth of 0.3% year-on-year to $738.2 million (RMB5.1 billion), beating the consensus of $729.3 million.
Drivers: Average monthly active users (MAUs) reached 315.2 million. Average daily active users (DAUs) climbed 18% Y/Y to 93.7 million.
Revenues from mobile games were $164.8 million, down 17% Y/Y, attributable to the lack of new game launches. VAS grew 5% Y/Y to $314 million, led by increased paying users. Advertising increased by 22% Y/Y to $185.2 million. Revenue from IP derivatives and others (formerly known as E-commerce and others) decreased 15% Y/Y to $74.3 million, mainly attributable to the decrease in sales of derivative merchandise of animation, comics, and games ("ACG") IPs.
Adjusted EPS loss of $(0.37) beat the consensus loss of $(0.41).
Bilibili held $2.8 billion in cash and equivalents.
"We started the first quarter of 2023 on a positive note with a notable improvement in our gross profit and a significant reduction in our losses," said Rui Chen, chairman and chief executive officer of Bilibili. "We continue to execute our strategy of prioritizing profitability while fostering a vibrant and highly engaged community for our users and creators."
Outlook: Bilibili reiterates FY23 revenues of $3.5 billion - $3.8 billion vs. the consensus of $3.50 billion.
Price Action: BILI shares traded lower by 1.66% at $15.40 in the premarket session on the last check Thursday.

Momentum84.52

Growth74.97

Quality-

Value55.03

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Why Bilibili Shares Are Falling Today