Bilibili Stock Surges On Strong Q4 Beat, Positive Outlook: Retail Stays Firmly Bullish On The Chinese Name

Bilibili, Inc.’s (BILI) Nasdaq-listed American Depository Share (ADS) rallied on Thursday after the online entertainment services provider reported its first-ever quarterly GAAP profit.

The Shanghai, China-based company reported fiscal year 2024 fourth-quarter (Q4) adjusted earnings per share (EPS) of 1.07 yuan per ADS or $0.15,  reversing from the 1.07 yuan loss per share reported for the year-ago quarter.

The bottom-line result exceeded the 1.01 yuan-per-share consensus estimate, according to Yahoo Finance,

Quarterly revenue climbed 22% year over year (YoY) to 7.73 billion yuan or $1.06 billion, slightly ahead of the 7.64 billion yuan analysts’ estimate compiled by Finchat. Advertising revenue climbed 24% to $327.2 million, and mobile gaming revenue jumped 79% to $246.3 million.

CFO Sam Fan said the strong growth of high-margin advertising and mobile gaming revenue led to a 68% jump in gross profit. 

Among user metrics, Bilibili’s average daily active users (DAUs) increased to 103 million from 100.1 million in the year-ago period. Fourth-quarter monthly active users (MAUs) were 340 million. 

Bilibili Chairman and CEO Rui Chen said, “We closed 2024 on a strong note, achieving our first quarter of GAAP profitability” 

Chen also emphasized the company’s artificial intelligence opportunity. He expressed confidence that the company can leverage its “high-quality and exclusive data assets” to exploit the new, affordable, open-source AI models.

On Stocktwits, retail sentiment toward Bilibili stock remained ‘extremely bullish’ (85/100), while the message volume perked to an ‘extremely high’ level amid the earnings release.

A bullish watcher premised his optimism on the huge “rebalancing” they see in Chinese tech names as growth accelerates in China.

Another user said Bilibili is a company to bet on, given it is profitable and its key performance metrics are improving across the board.

Bilibili stock climbed 7.43% to $21.84 by the mid-session. The stock has gained about 23% this year.

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