SHANGHAI - Bilibili Inc . (NASDAQ: NASDAQ:BILI), a prominent video community for young generations in China, reported a narrower-than-expected loss for the fourth quarter, while revenue exceeded analyst projections. Despite these positive results, the company's stock fell by 7.86% premarket following the announcement, indicating investor concerns.
For the quarter ended December 31, 2023, Bilibili posted an adjusted net loss of RMB555.8 million (US$78.3 million), which was less than the analyst estimate of RMB1.49 per share, coming in at RMB1.34 per share. This marked a significant improvement of 58% from the same period last year. Total net revenues reached RMB6.35 billion, surpassing the consensus estimate of RMB6.31 billion and representing a 3% increase compared to the same quarter in the previous year.
The company's advertising and value-added services (VAS) revenues were particularly strong, with advertising revenues climbing by 28% year-over-year (YoY) to RMB1.9 billion (US$271.7 million) and VAS revenues increasing by 22% YoY to RMB2.9 billion (US$402.4 million). This growth was attributed to improved advertising product offerings and enhanced advertising efficiency.
Gross profit for the fourth quarter rose by 33% YoY to RMB1.7 billion (US$233.8 million), with gross profit margin improving to 26.1% from 20.3% in the same period last year. This improvement was primarily due to the company's cost reduction efforts, which also contributed to a 17% YoY decrease in total operating expenses.
"We closed the year with healthy community growth and a vastly improved financial profile," said Mr. Rui Chen, chairman and CEO of Bilibili. "Our commercial progress can be seen in our mounting advertising and value-added services revenues."
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