Bilibili (BILI) posts wider-than-expected loss in Q4

Bilibili Inc. (NASDAQ: BILI) reported a wider loss in the fourth quarter of 2019 due to higher costs and expenses. The bottom line was wider than the analysts’ expectations while the top line exceeded consensus estimates. Further, the China-based video-sharing platform guided first-quarter revenue above the consensus view.

Net loss was RMB387.2 million, compared to a loss of RMB190.8 million in the previous year quarter. On an adjusted basis, loss per share widened to RMB1.01 ($0.15) from RMB0.46 a year ago. Net revenues jumped by 74% to RMB2.01 billion ($288.4 million). Analysts had expected a loss of RMB0.97 per share on revenue of RMB1.97 billion for the fourth quarter.

Looking ahead into the first quarter, the company expects net revenue in the range of RMB2.15-2.20 billion. This is above the consensus estimates of RMB2.08 billion. The forecast is based on the current market conditions and reflects the company’s preliminary estimates.

For 2020, the company will continue to cultivate a healthy content ecosystem and enhance its community bond to further its growth momentum. The company continues to convert its fast-growing traffic to paying users with diverse premium content and services.

For the fourth quarter, revenue from mobile games increased by 22% aided by the increasing popularity of both existing and newly launched mobile games. Revenues from live broadcasting and VAS soared by 183%, mainly attributable to its enhanced monetization efforts, led by increases in the number of paying users for live broadcasting services and its premium membership program and other VAS.

Revenues from advertising jumped by 81% as the enhancement of recognition of Bilibili’s brand name in China’s online advertising market drove revenues from brand advertising and performance-based advertising higher. Revenues from e-commerce and others surged by 241% on higher sales of products through its e-commerce platform.

At the end of the quarter, the number of monthly active users was 130.3 million, which represents a 40% year-over-year increase. The number of mobile active users climbed 46% annually to 116.1 million. Daily active users increased 41% to 37.9 million, while revenue per mobile active users advanced 24% to RMB15.4. The non-game revenue per mobile active users jumped by 83% to RMB8.7.