User Engagement And High-Margin Businesses Fuel Bilibili Q4 Growth, CEO Highlights AI Potential

On Thursday, Bilibili Inc. BILI reported fiscal fourth-quarter revenue of $1.06 billion (7.73 billion Chinese yuan), up 22% year over year, almost in-line with the analyst consensus estimate of $1.07 billion. 

The Chinese video-sharing platform’s adjusted EPADS of $0.15 beat the analyst consensus estimate of $0.14. The stock price gained after the report.

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Drivers: Average daily active users (DAUs) reached 103.0 million from 100.1 million a year ago. In the fourth quarter, MAUs reached 340 million, with users spending an average of 99 minutes daily on the platform.

Revenues from mobile games were $246.3 million, up by 79% Y/Y, mainly attributable to the strong performance of the company’s exclusively licensed game, San Guo: Mou Ding Tian Xia.

Value-added services (VAS) revenues grew 8% Y/Y to $422.4 million, led by increases in revenues from other value-added services and premium membership.

Advertising increased by 24% Y/Y to $327.2 million, mainly attributable to the company’s improved advertising product offerings and enhanced advertising efficiency. Revenue from IP derivatives and others decreased 16% Y/Y to $63.7 million.

Adjusted net profit was $61.9 million. Bilibili held $2.27 billion in cash and equivalents as of December. It generated $191.9 million in operating cash flow for the quarter.

Chair and CEO Rui Chen noted that in the fourth quarter, DAUs and MAUs reached 103 million and 340 million, respectively, with users spending an average of 99 minutes daily on our platform. Strong advertising and mobile game businesses boosted revenue. Rui Chen remains encouraged by the emergence of new open-source AI models, making AI solutions accessible and cost-effective.

CFO Sam Fan highlighted strong growth in its high-margin advertising and mobile games businesses, which drove total net revenues up.

Price Action: BILI stock is up 15.40% to $23.46 at the last check on Thursday.

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