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Bilibili (BILI) Q2 Earnings Top Estimates, Revenues Rise Y/Y

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Bilibili (BILI - Free Report) incurred an adjusted loss of 19 cents per share in second-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 22 cents. Moreover, revenues of $370.5 million beat the consensus mark by 2.9%.

In domestic currency, Bilibili reported an adjusted loss of RMB1.35 per share, much wider than the year-ago quarter’s loss of RMB0.78.

Revenues jumped 70% year over year to RMB2.61 billion.

Average monthly active users (MAU) reached 171.6 million, up 55% from the year-ago quarter.  Mobile MAUs reached 152.9 million, up 59% year over year. Moreover, average monthly paying users (MPU) surged 105% year over year to 12.9 million.

Additionally, average daily active users (DAU) increased 52% year over year to 50.5 million.

Bilibili Inc. Sponsored ADR Price, Consensus and EPS Surprise

Bilibili Inc. Sponsored ADR Price, Consensus and EPS Surprise

Bilibili Inc. Sponsored ADR price-consensus-eps-surprise-chart | Bilibili Inc. Sponsored ADR Quote

Top-Line Details

Mobile game revenues (47.6% of total revenues) grew 36% year over year to RMB1.24 billion ($176.6 million), primarily owing to the success of newly launched mobile game Princess Connect, and the sustained stable performance of existing mobile games.

Value-added services revenues (31.5% of total revenues) surged 153% year over year to RMB825.3 million ($116.8 million). This was primarily attributed to the company’s enhanced monetization efforts, led by increases in the number of paying users for the company’s premium membership program, live broadcasting services and other value-added services.

Advertising revenues (13.3% of total revenues) soared 108% year over year to RMB348.6 million ($49.3 million), mainly attributable to the increase in the number of advertisers, driven by further recognition of Bilibili’s brand name in China’s online advertising market.

E-commerce & others revenues (7.4% of total revenues) were up 58% year over year to RMB195.8 million ($27.7 million), primarily due to higher sales of products through the company’s e-commerce platform.

Operating Details

Gross profit surged 140% year over year to RMB604 million ($85.5 million).

Selling and marketing expenses skyrocketed 181% year over year to RMB675.1 million ($95.6 million). The improvement was primarily attributed to rising channel and marketing expenses associated with the app and the brand, and promotional expenses for Bilibili’s mobile games.

Additionally, an increase in headcount and rising fulfillment costs associated with Bilibili’s e-commerce business resulted in higher expenses.

General and administrative expenses grew 48% year over year to RMB208.4 million ($29.5 million), primarily attributable to a rise in personnel-related expenses.

Research and development expenses soared 53% year over year to RMB330.6 million ($46.7 million), primarily due to an increase in headcount and share-based compensation expenses.

Operating expenses surged 103% year over year to $171.8 million.

Outlook

For the third quarter of 2020, Bilibili expects net revenues between RMB3.05 billion and RMB3.1 billion.

Zacks Rank and Key Picks

Currently, Bilibili carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader technology sector include Apple (AAPL - Free Report) , Lam Research Corporation (LRCX - Free Report) and Synaptics (SYNA - Free Report) , all sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for Apple, Lam Research and Synaptics is currently pegged at 10.6%, 15.4%, and 10%, respectively.

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