Eye-Catching Hot Stock: Bilibili Inc (NASDAQ: BILI)

On Monday, Shares of Bilibili Inc (NASDAQ: BILI) plunged -4.50% to $13.36. The stock recorded $12.97 as its minimum price and hit the max level of $13.64, during its most recent trading session. It traded total volume of 7.24M shares higher than the average volume of 4.53M shares.

Bilibili Inc. (BILI), a leading online entertainment platform for young generations in China, recently declared its unaudited financial results for the first quarter ended March 31, 2018.

First Quarter 2018 Financial Results:

Total net revenues: Total net revenues increased to RMB868.00M (US$138.40M), representing a boost of 105% from the same period of 2017.

Mobile games: Revenues from mobile games increased to RMB688.50M (US$109.80M), representing a boost of 97% from the same period of 2017. The increase was mainly because of the increasing popularity of mobile games such as Fate/Grand Orderand Azur Lane.

Live broadcasting and Value-added services (VAS): Revenues from live broadcasting and VAS increased to RMB95.80M (US$15.30M), representing a boost of 151% from the same period of 2017, mainly attributable to the Company’s improved monetization efforts and promotion of its VAS services.

Advertising: Revenues from advertising increased to RMB70.40M (US$11.20M), representing a boost of 144% from the same period of 2017. This increase was contributed by increasing brand advertising as well as newly launched performance-based advertising attracted by the high-quality traffic of the Company’s platform.

Other revenues: Other revenues increased to RMB13.30M (US$2.10M), representing a boost of 65% from the same period of 2017, mainly attributable to a boost in the sales of products through the Company’s e-commerce platform.

Cost of revenues: Cost of revenues increased by 80% to RMB654.90M (US$104.40M), contrast to RMB363.00M in the same period of 2017. Revenue-sharing costa key component of cost of revenues, was RMB334.50M (US$53.30M), representing a boost of 120% from the same period in 2017.

Gross profit: Gross profit increased to RMB213.10M (US$34.00M), representing a boost of 249% from the same period of 2017.

Total operating expenses: Total operating expenses increased to RMB287.40M (US$45.80M), representing a boost of 107% from the same period of 2017.

Selling and marketing expenses: Selling and marketing expenses were RMB78.90M (US$12.60M), representing a 93% increase year-over-year. The increase was mainly attributable to the increased channel and marketing expenses associated with Bilibili’s app, as well as the promotional expenses for the Company’s mobile games.

General and administrative expenses: General and administrative expenses were RMB102.60M (US$16.40M), representing a 140% increase year over year. The increase was mainly because of the share-based compensation expenses with an IPO condition and a boost in professional service fees.

Research and development expenses: Research and development expenses were RMB105.90M (US$16.90M), representing a 92% increase year over year. The increase was mainly because of increased headcount in research and development personnel.

Loss from operations: Loss from operations was RMB74.30M (US$11.80M), contrast to RMB77.70M in the same period of 2017.

Income tax expense: Income tax expense was RMB3.20M (US$0.50M), contrast to RMB1.80M in the same period of 2017.

Net loss: Net loss was RMB57.80M (US$9.20M) for the first quarter of 2018, contrast to RMB67.40M in the same period of 2017.

Cash Flow and Working Capital:

As of March 31, 2018, the Company had cash and cash equivalents, as well as time deposits of RMB1.10B (US$167.90M), contrast to RMB764.80M as of December 31, 2017.

Net cash offered by operating activities was RMB471.10M (US$75.10M), contrast to RMB205.90M in the same period of 2017.

Outlook:

For the second quarter of 2018, the Company presently anticipates:

  • Net revenues to be between RMB970.00M and RMB1.00B.

BILI has the market capitalization of $3.70B. The return on investment ratio stands at 12.00%. Price to sales ratio was 8.41 while 18.60% of the stock was owned by institutional investors.

Steve Backshall

Steve Backshall

I am Steve Backshall and I give an insight into the most recent news hitting the Technology Sector in Wall Street. I have been an independent financial adviser for over 10 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicizes valuable information for shareholder community. I am an accomplished journalist who has a passion for travel. My desire to see the world has taken me to countries around the world and given me the opportunity to report for some of the top news organizations.

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