Bilibili (BILI: NSD) has released its Q3 2023 financial results, reporting a wider net loss than expected and missed revenue estimates, causing its shares to fall over 10%.
Bilibili Q3 Earnings Analysis:
Bilibili’s mobile gaming revenues which accounted for 51% of its total revenues grew 25% YoY to $130.6 million but declined by 8% sequentially. However, the company’s other revenue streams showed strong growth, driven by the increase in its user base and engagement. The company’s live broadcasting and value-added services revenues soared 167% YoY to $63.3 million, thanks to the growth in the number of paying users for its live broadcasting services and premium membership program.
The company’s advertising revenues also jumped 80% YoY to $34.6 million. Moreover, the company’s e-commerce and other revenues surged 703% YoY to $31.6 million, mainly due to higher sales of products through its e-commerce platform.
CEO Remains Confident in Company Growth:
Despite the poor Q3 results, Bilibili’s CEO Rui Chen remained confident in the company’s growth potential and its ability to capture the opportunities in the online entertainment market. For Q4, the company expects revenues to be between $283.5 million and $288.9 million, representing a YoY growth of 64% to 67%, which is marginally below analyst projections of $287.4 million.
Conclusion:
Bilibili’s Q3 financial results may have fallen short of expectations, with a wider net loss and missed revenue estimates. However, the company has shown strong growth in its other revenue streams, including mobile gaming, live broadcasting and value-added services, advertising, and e-commerce. With projected revenues for Q4 showing promising YoY growth, Bilibili is well-positioned to continue its expansion and success in the industry.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
