• First-quarter total revenue came in at RMB 7.47 billion, and adjusted earnings per share were RMB 1.31.
• Mobile gaming revenue saw a steep decline during the quarter, stealing the spotlight from advertising unit strength.
• Average daily time spent on the company’s platform was 119 minutes, up by 11 minutes.

Video-sharing and gaming platform Bilibili (BILI) on Tuesday posted a mixed first-quarter report, as strength in its value-added services and advertising segments was offset by declines in growth in mobile games, IP derivatives, and other segments.

BILI Q1 Results In Focus

The company, referred to as the "YouTube of China," had average daily active users (DAUs) of 115.2 million, up 8% from last year. Average daily time spent on its platform stood at 119 minutes, up 11 minutes.

The company saw a 30% surge in advertising revenue and a 4% increase in value-added services in the first quarter (Q1). Those gains were overshadowed by a 12% decline in mobile games and 4% fall in IP derivatives and others.

It is notable that the mobile games unit saw a 79% growth last year due to the outperformance of its exclusively licensed game, San Guo: Mou Ding Tian Xia. The company said the game is now transitioning into “a stable and mature life cycle.”

For Q1, total revenue nearly fell 7% to RMB 7.47 billion ($1.08 billion), below the RMB 7.49 billion consensus estimate polled by Fiscal AI. Adjusted earnings per share came in at RMB 1.31, better than the RMB 0.42 per-share expectation.

What Retail Thinks About BILI

On Stocktwits, retail sentiment about BILI turned ‘bullish' from ‘bearish’ over the last 24 hours.

Wall Street also shares the sentiment, with 30 of 31 analysts covering the stock rating it a ‘Buy’ or higher, and one at ‘Hold.’

However, one user on the platform took note of the decline in share value in recent months, saying, “just a chart that's been in a foul mood for three months straight.”

BILI stock has lost 20% so far this year and is up 6% over the past 12 months, underperforming the S&P 500.

Over 6.27 million shares have changed hands on the Nasdaq by 10:30 am ET, which is 2.6x its three-month average trading volume.

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(RMB 1 = $0.15)