Preview | What to look for in Bilibili's quarterly report: Will the net loss continue to narrow?
BOCOM INTL expects Bilibili's fourth-quarter traffic to increase by 10%, with revenue increasing by 3% year-on-year, in line with market expectations. The gross profit margin is expected to expand by 6 percentage points to 26% year-on-year, with adjusted net loss attributable to the parent company at 580 million yuan, continuing the trend of narrowing on a year-on-year and quarter-on-quarter basis.
Before the U.S. stock market opens today (March 7th), Bilibili will announce its fourth-quarter earnings report, and the management will hold an earnings conference call at 8 p.m. Hong Kong time.
In the previous quarter, Bilibili significantly narrowed its net loss year-on-year and exceeded 100 million daily active users. Will this momentum continue?
According to CICC, Bilibili still has potential for advertising growth, with improvements in gross profit margin and a consistent trend of narrowing losses.
Specifically for the fourth quarter expectations, the bank predicts that Bilibili is expected to: increase traffic by 10%, achieve a 3% year-on-year revenue growth, in line with market expectations; the gross profit margin is expected to expand by 6 percentage points year-on-year to 26%, with an adjusted net loss attributable to shareholders of 580 million yuan, continuing the trend of narrowing losses on a quarterly basis.
In detail, advertising and live streaming are expected to maintain robust growth:
- Value-added service (VAS) revenue is expected to increase by 18% year-on-year, driven by live streaming; 2) Advertising revenue is expected to increase by 25% year-on-year, driven by major e-commerce promotions, showing accelerated growth compared to the third quarter.
Revenue in 2024 is expected to maintain robust growth driven by product upgrades and e-commerce.
Additionally, the bank maintains its expectations for Bilibili's mobile game revenue for the quarter, expecting a 6% year-on-year decrease. The focus is on the upcoming launch progress of the independently operated new games "Flaming Sky" and "Three Kingdoms: Strategy for the World," which have already obtained licenses.