Bilibili BILI reported third-quarter 2024 non-GAAP earnings of 8 cents per share, missing the Zacks Consensus Estimate by 20%. In the year-ago quarter, BILI had reported a loss of 29 cents per share.
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Revenues increased to $1.02 billion, surpassing the Zacks Consensus Estimate by 0.76%.
In terms of RMB, revenues increased 25.8% year over year to RMB 7.31 billion.
BILI shares were up 1.83% in pre-market trading. The company’s shares have outperformed the Zacks Computer & Technology sector year to date. While BILI shares have appreciated 52.8%, the Computer & Technology sector has returned 29.3%.
Bilibili Inc. Sponsored ADR Price, Consensus and EPS Surprise
Bilibili Inc. Sponsored ADR price-consensus-eps-surprise-chart | Bilibili Inc. Sponsored ADR Quote
BILI’s Top Line Benefits From Strong Mobile Games Growth
Revenues from mobile games (24.9% of total revenues) increased 83.8% year over year to RMB 1.82 billion.
Value Added Services (VAS) revenues (38.6% of total revenues) increased 8.7% year over year to RMB 2.82 billion.
Advertising revenues (28.7% of total revenues) increased 27.8% year over year to RMB 2.09 billion.
Revenues from IP Derivatives and others (7.8% of total revenues) were RMB 567.31 million, down 2.2% year over year.
BILI’s Operating Details
In third-quarter 2024, the gross profit margin was 34.9%, indicating an improvement from the 25% reported in the year-ago quarter.
Research and development (R&D) expenses decreased 15% year over year to RMB 906.1 million. As a percentage of sales, R&D expenses decreased 600 basis points (bps) year over year to 12.4%.
Sales & Marketing (S&M) expenses increased 21.2% year over year to RMB 1.2 billion. As a percentage of sales, S&M expenses decreased 60 bps year over year to 16.5%.
General & Administrative (G&A) expenses increased 1.3% year over year to RMB 505.4 million. As a percentage of sales, G&A expenses decreased 170 bps year over year to 6.9%.
Consequently, total operating expenses were RMB 2.61 billion, indicating an increase of 2.2% from the year-ago quarter.
Non-GAAP loss from operations was RMB 272.2 million, compared with RMB 755.4 million from the prior-year quarter.
BILI’s Balance Sheet Remains Strong
As of Sept. 30, 2024, cash and cash equivalents (including short-term investments) totaled RMB 11.7 billion, compared with RMB 8.76 billion as of June 30, 2024.
Total debt as of Sept. 30, 2024, was RMB 5.02 billion, down from RMB 5.58 billion as of June 30, 2024.
Cash flow from operating activities was RMB 2.23 billion for the reported quarter, up from RMB 277.4 million in the prior quarter.
BILI’s Zacks Rank & Other Stocks to Consider
Currently, BILI carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader sector are Tuya TUYA, NVIDIA NVDA and NetApp NTAP. While Tuya and NVDA sporting a Zacks Rank #1 (Strong Buy) at present, NTAP carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tuya’s shares have lost 33.1% in the year-to-date period. TUYA is set to report third-quarter 2024 results on Nov. 18.
NVIDIA’s shares have skyrocketed 196.3% year to date. NVDA is set to report third-quarter fiscal 2025 results on Nov. 20.
NetApp’s shares have jumped 34% year to date. NTAP is set to report second-quarter fiscal 2025 results on Nov. 21.
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NetApp, Inc. (NTAP) : Free Stock Analysis Report
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