SHANGHAI, China - Bilibili Inc . (NASDAQ: NASDAQ:BILI), a leading video community for young generations in China, reported a narrower adjusted net loss for the first quarter, with revenue slightly surpassing analyst expectations.
Despite the positive earnings report, Bilibili's stock saw a 2% decrease, indicating a cautious reaction from the market.
The company's adjusted net loss for the quarter was RMB455.9 million (US$63.1 million), improving by 56% year-over-year (YoY) and beating the analyst estimate of RMB1.28 per share by RMB0.22, coming in at RMB1.06 per share.
Total net revenues for the first quarter reached RMB5.66 billion (US$784.5 million), a 12% increase YoY and just above the consensus estimate of RMB5.63 billion. The company's gross profit saw a significant rise of 45% YoY to RMB1.61 billion (US$222.3 million), with a gross profit margin of 28.3%, up from 21.8% in the same quarter last year.
"We are off to a good start in 2024," said Mr. Rui Chen, chairman and chief executive officer of Bilibili. "Our community is thriving with our increasingly diverse content, driving DAUs up 9% YoY to 102.4 million."
The company's advertising business was a standout performer with a 31% YoY increase in revenue, attributed to improved advertising product offerings and efficiency. Value-added services (VAS) revenue also grew by 17% YoY, led by live broadcasting and other services. However, mobile games revenue declined by 13% YoY due to decreased revenues from certain legacy games.
Bilibili's efforts in commercialization and operational efficiency were highlighted by CFO Mr. Sam Fan, who noted the narrowed adjusted operating loss and net loss, as well as a positive operating cash flow of RMB637.7 million (US$88.3 million), a significant turnaround from the negative RMB630.0 million in the same period last year.
The company's focus remains on enhancing commercialization capabilities and advancing on the path to profitability while maintaining its commitment to content creators and the community.
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