Investment Rating - The report maintains a "Buy" rating for Bilibili-W (9626 HK) [5] Core Views - Bilibili achieved its first quarterly profit in 24Q3, with Non-GAAP net profit of RMB 236 million [5] - Revenue reached RMB 7 306 billion in 24Q3, up 26% YoY [5] - Gross profit surged 76% YoY to RMB 2 547 billion, with gross margin increasing 9 9 percentage points to 34 9% [5] - The company announced a share repurchase plan of up to $200 million over the next 24 months [5] Business Performance Revenue Breakdown - Advertising revenue grew 28% YoY to RMB 2 09 billion in 24Q3, driven by improved platform infrastructure, optimized algorithms, and enriched ad products [5] - Value-added services revenue increased 9% YoY to RMB 2 82 billion, with 21 97 million paying members and over 80% annual subscription or auto-renewal rate [5] - Mobile games revenue surged 84% YoY to RMB 1 82 billion, mainly due to the strong performance of the long-term operation game "Three Kingdoms: Strategic World" [5] Operational Data - DAU reached 107 million and MAU reached 348 million in 24Q3, both hitting record highs [6] - Average daily usage time reached 106 minutes, also a historical high [6] - Daily video views increased 23% YoY in 24Q3 [6] - Nearly 2 7 million UP主 earned income on Bilibili in the first three quarters of 2024 [6] Profitability - Operating cash flow reached RMB 2 226 billion in 24Q3, marking the fifth consecutive quarter of positive operating cash flow [6] - Deferred revenue surged 159% YoY to RMB 381 million in 24Q3 [6] Future Outlook - Revenue is expected to reach RMB 26 7 billion in 2024 and RMB 30 6 billion in 2025 [7]

Investment Rating - The report maintains a "Buy" rating for Bilibili (BILI.O) with a current price of $18.83 [2] Core Insights - Bilibili's game "Three Kingdoms: Strategy" (referred to as "S4") has had a strong start, achieving its first quarterly profit in Q3 2024 with total revenue of 73.06 billion yuan, a year-over-year increase of 26% [1] - The company is focusing on enhancing its advertising revenue, which reached 20.94 billion yuan in Q3, up 28% year-over-year, driven primarily by performance advertising [1] - The user engagement metrics are at an all-time high, with daily active users reaching 107 million and monthly active users at 348 million [1] Summary by Sections Financial Performance - Q3 2024 total revenue was 73.06 billion yuan, with game revenue at 18.23 billion yuan (up 84% year-over-year) and advertising revenue at 20.94 billion yuan (up 28% year-over-year) [1] - The adjusted net profit for Q3 was 2.36 billion yuan, marking the company's first quarterly profit since going public [1] - The gross margin improved by 9.9 percentage points to 34.9% due to an optimized revenue structure [1] User Engagement - Daily active users reached 107 million, and monthly active users reached 348 million, both setting new records [1] - The average daily usage time per user increased to 106 minutes, a 6-minute increase year-over-year [1] - The number of creators earning income from the platform reached 2.7 million, with total creator income growing by 24% [1] Future Outlook - The company has slightly adjusted its 2024 net profit forecast to -1.36 billion yuan, while increasing the forecasts for 2025 and 2026 to 4.1 billion yuan and 19.7 billion yuan, respectively [1] - Bilibili plans to continue exploring new game genres and enhance its advertising infrastructure, integrating AI technology to improve efficiency [1]

Investment Rating - The report maintains a "Buy" rating for the company, based on improvements in profitability and revised revenue forecasts for 2024-2026 [5][8]. Core Insights - The company achieved its first quarterly profit, with a significant revenue increase of 26% year-on-year, reaching 7.3 billion yuan in Q3 2024. The revenue breakdown includes value-added services (2.8 billion yuan), advertising (2.1 billion yuan), games (1.8 billion yuan), and IP derivatives (600 million yuan) [3][4]. - The gross margin improved to 35%, a 10 percentage point increase from the previous year, attributed to substantial revenue growth while keeping operational costs stable [3]. - The company expects to continue enhancing its profitability, focusing on commercial monetization through high-margin businesses like advertising and gaming, while also fostering community growth [4]. Financial Performance Summary - Revenue for 2024 is projected at 26.69 billion yuan, with a year-on-year growth rate of 18.5%. The forecasts for 2025 and 2026 are 30.31 billion yuan and 34.07 billion yuan, respectively, with growth rates of 14% and 12% [5][20]. - Non-GAAP net profit is expected to improve significantly, with projections of -175 million yuan in 2024, followed by positive net profits of 1.99 billion yuan in 2025 and 3.36 billion yuan in 2026 [5][20]. - The company’s gross profit margin is anticipated to rise to 32.7% in 2024, further increasing to 36.6% in 2025 and 38% in 2026 [20][23]. Advertising and Game Revenue Growth - Advertising revenue grew by 28% year-on-year to 2.1 billion yuan in Q3 2024, driven by enhanced advertising products and efficiency. The company is implementing a multi-faceted advertising strategy to expand its market reach [4]. - Game revenue saw an impressive 84% year-on-year increase, reaching 1.8 billion yuan, with notable contributions from popular titles [3][4]. Future Outlook - The company aims to maintain a dual focus on commercial growth and community user growth post-profitability, leveraging its monetization strategies to support content creators and enhance community engagement [4]. - The target price for the company's stock is set at 21 USD or 162 HKD, reflecting a P/E ratio of 32x for 2025 and 19x for 2026 [5].

Investment Rating - The report maintains a "Buy" rating for the company [3][19]. Core Insights - The company's total revenue for Q3 2024 reached 7.31 billion CNY, representing a year-over-year increase of 26% and a quarter-over-quarter increase of 19%. The growth was primarily driven by advertising and gaming businesses [1]. - The gross margin for Q3 2024 was 34.9%, an increase of 9.9 percentage points year-over-year and 5.6 percentage points quarter-over-quarter. Non-GAAP operating profit turned positive for the first time at 272 million CNY, with expectations of reaching 400 million CNY in Q4 2024 [1][2]. - The advertising revenue for Q3 2024 was 2.09 billion CNY, up 28% year-over-year and 3% quarter-over-quarter, contributing to an increase in overall gross profit [1][2]. - The gaming revenue for Q3 2024 was 1.82 billion CNY, showing a significant year-over-year increase of 84% and a quarter-over-quarter increase of 81%, mainly due to the performance of the new game "Three Kingdoms: Strategize the World" [1][2]. Summary by Sections Financial Performance - Q3 2024 total revenue: 7.31 billion CNY (yoy +26%, qoq +19%) [1]. - Q3 2024 gross margin: 34.9% (yoy +9.9pp, qoq +5.6pp) [1]. - Q3 2024 Non-GAAP operating profit: 272 million CNY, first positive result [1]. - Q4 2024 revenue forecast: 7.66 billion CNY (yoy +20.67%, qoq +4.86%) [7]. Revenue Breakdown - Advertising revenue in Q3 2024: 2.09 billion CNY (yoy +28%, qoq +3%) [1]. - Live streaming and VAS revenue in Q3 2024: 2.82 billion CNY (yoy +9%, qoq +10%) [1]. - Gaming revenue in Q3 2024: 1.82 billion CNY (yoy +84%, qoq +81%) [1]. Future Projections - Revenue projections for 2024-2026: 26.76 billion CNY (2024), 31.47 billion CNY (2025), 34.11 billion CNY (2026) [2][11]. - Target price set at 166.43 HKD (approximately 153.73 CNY) based on a 2.4x adjusted PS ratio for 2024 [2].

Investment Rating - The report assigns a "Buy" rating for the company, Bilibili (BILI), with a current price of $18.30 and a fair value of $20.65 [2][9]. Core Insights - The company reported Q3 2024 earnings with revenue reaching 7.3 billion RMB, exceeding Bloomberg's consensus estimate of 6.7134 billion RMB, reflecting a year-over-year growth of 26% and a quarter-over-quarter growth of 19% [2][6]. - Gross margin improved to 34.9%, up 10 percentage points year-over-year and 5 percentage points quarter-over-quarter, driven by rapid growth in the gaming business [2][6]. - The net profit was reported at -795.15 million RMB, compared to a consensus estimate of -106 million RMB [2][6]. - The gaming revenue was 1.66 billion RMB, significantly above the consensus estimate of 2.07 billion RMB, with a year-over-year growth of 84% and quarter-over-quarter growth of 81% [2][6]. - The report anticipates total revenue for Q4 2024 to reach 7.6 billion RMB, with a year-over-year growth of 20% [6][9]. Revenue and Profit Forecast - The company is expected to achieve total revenue of 26.7 billion RMB and 29.5 billion RMB in 2024 and 2025, respectively, representing year-over-year growth of 18% and 10% [6][9]. - Non-GAAP net profit is projected to be -161 million RMB in 2024 and 1.607 billion RMB in 2025, indicating a significant turnaround [6][9]. - The report highlights that advertising revenue is expected to grow by 28% and 22% in 2024 and 2025, reaching 8.2 billion RMB and 9.9 billion RMB, respectively [6][9]. Financial Metrics - The report provides a detailed financial forecast, indicating that the company's gross margin is expected to improve to 33% and 36% in 2024 and 2025, respectively [6][9]. - The company's operating revenue is projected to grow from 22.528 billion RMB in 2023 to 26.687 billion RMB in 2024, reflecting a growth rate of 18% [7][9]. - The report also notes that the company's sales expense ratio is expected to decrease to 17% and 15% in 2024 and 2025, respectively [8][9].

Investment Rating - The report maintains a "Buy" rating for Bilibili, with an expected price increase of over 20% within the next six months [1]. Core Insights - Bilibili achieved its first positive adjusted net profit, driven by strong growth in game revenue from the game "Three Kingdoms: Strategy" [1]. - The company's Q3 2024 revenue reached 73.1 billion yuan, exceeding Bloomberg's consensus estimate by 2.3% [1]. - Adjusted net profit for the quarter was 2.4 billion yuan, surpassing Bloomberg's consensus estimate by 2.9%, with a gross margin of 34.9%, also above expectations [1]. Revenue Breakdown - **Mobile Games**: Revenue was 18.2 billion yuan, exceeding Bloomberg's estimate by 9.8%, with a year-over-year growth of 84%, primarily driven by the performance of "Three Kingdoms: Strategy" [1]. - **Advertising**: Revenue reached 20.9 billion yuan, slightly above expectations by 0.3%, with a year-over-year increase of 28%, attributed to improved advertising products and efficiency [1]. - **Value-Added Services (VAS)**: Revenue was 28.2 billion yuan, below expectations by 1.2%, with a year-over-year growth of 9% [1]. - **IP and Derivatives**: Revenue was 5.7 billion yuan, exceeding expectations by 7.8%, but showed a year-over-year decline of 2% [1]. Profitability - Adjusted net profit was 2.4 billion yuan, marking a significant improvement from previous losses, with a gross margin increase of 9.9 percentage points year-over-year [1]. - Operating costs were 47.6 billion yuan, with revenue-sharing costs accounting for 29.1 billion yuan [1]. Future Outlook - The report suggests that Bilibili's cost reduction and efficiency improvements are significant, and the company is expected to benefit from its strategy of developing high-quality self-researched games for global distribution [1]. - Revenue forecasts for FY24E-FY26E are projected at -1.3 billion, 20.6 billion, and 38.6 billion yuan respectively [1].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - The company achieved a revenue of 7.306 billion yuan in Q3 2024, representing a year-over-year increase of 25.85% [5] - The adjusted net profit for Q3 2024 was 236 million yuan, marking a turnaround from loss to profit, successfully meeting the target for adjusted operating profit [5] - The mobile gaming segment exceeded expectations with revenue of 1.818 billion yuan, up 83.8% year-over-year [5] - The advertising business continued to show high growth, with a daily active user count of 107.3 million, a year-over-year increase of 4.4% [5] - The company is expected to achieve revenues of 26.74 billion, 30.17 billion, and 32.84 billion yuan in 2024, 2025, and 2026 respectively, with adjusted net profits projected at -37 million, 1.854 billion, and 2.897 billion yuan for the same years [6] Financial Performance Summary - Total revenue for 2023 was 22.528 billion yuan, with a projected increase to 26.742 billion yuan in 2024, reflecting a growth rate of 19% [7] - The adjusted net profit for 2023 was -3.412 billion yuan, with a significant recovery expected in 2024 to -37 million yuan [7] - The company’s gross margin is projected to improve from 24.2% in 2023 to 39.5% in 2026 [10] - The net profit margin is expected to turn positive in 2025, reaching 2.3% [10] - The company’s total assets are projected to grow from 33.159 billion yuan in 2023 to 35.463 billion yuan in 2026 [9]

Investment Rating - The report maintains a "Buy" rating for Bilibili (09626) [6][8]. Core Views - Bilibili achieved a revenue of 7.3 billion CNY in Q3 2024, representing a year-on-year growth of 26%, driven primarily by gaming and advertising businesses. The adjusted net profit was 240 million CNY, marking the first profitable quarter with a profit margin of 3.2% [6]. - The company announced a share repurchase plan, intending to buy back up to 200 million USD worth of shares over the next two years [7]. - User metrics reached new highs, with a Monthly Active User (MAU) count of 348 million, a year-on-year increase of 2%, and a Daily Active User (DAU) count of 107 million, a year-on-year increase of 4% [7]. - The report highlights the strong performance of the game "Three Kingdoms: Strategizing the World," which contributed significantly to gaming revenue, achieving 1.8 billion CNY in Q3, a year-on-year increase of 84% [10]. - Advertising revenue also saw substantial growth, reaching 2.1 billion CNY in Q3, a historical high with a year-on-year increase of 28% [10]. Financial Summary - Revenue projections for Bilibili are as follows: - 2022: 21,899 million CNY - 2023: 22,528 million CNY - 2024E: 26,738 million CNY - 2025E: 30,657 million CNY - 2026E: 33,038 million CNY [5][14]. - The adjusted net profit forecast for 2024 has been revised to -87 million CNY, while projections for 2025 and 2026 have been increased to 1.71 billion CNY and 3.088 billion CNY, respectively [8]. - The report indicates a significant improvement in gross margin, which reached 35% in Q3, reflecting a year-on-year increase of 10 percentage points [11].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company achieved its first quarterly profit since going public, with a revenue of 7.3 billion yuan in Q3 2024, representing a year-over-year increase of 26% and a quarter-over-quarter increase of 19% [1][3] - The mobile gaming segment saw significant growth, with revenue increasing by 84% year-over-year to 1.823 billion yuan, driven by the success of the exclusive game "Three Kingdoms: Strategy" [3] - The advertising business also performed well, with revenue growing by 28% year-over-year to 2.094 billion yuan, supported by improved advertising products and efficiency [3][5] Summary by Sections Operating Performance - Monthly Active Users (MAU) grew by 2% year-over-year to 348 million, while Daily Active Users (DAU) increased by 4% to 107 million [3] - User engagement metrics improved, with average daily usage time rising from 100 minutes to 106 minutes, and Average Revenue Per User (ARPU) increasing by 23% to 21 yuan [3] Financial Metrics - The company reported a gross margin of 34.9%, up 9.9 percentage points year-over-year and 4.9 percentage points quarter-over-quarter [3] - Adjusted net profit for Q3 2024 was 240 million yuan, a significant improvement from a loss of 860 million yuan in Q3 2023 [3] Mobile Gaming Business - The exclusive game "Three Kingdoms: Strategy" ranked in the top three of the iOS game sales chart for three consecutive seasons, contributing to the mobile gaming revenue surge [3] Value-Added Services - Revenue from value-added services increased by 9% year-over-year to 2.821 billion yuan, driven by growth in live streaming and other services [3] Advertising Business - The advertising revenue growth was primarily attributed to enhancements in advertising products and increased efficiency, with significant contributions from the gaming, e-commerce, and automotive sectors [5]

Core Insights - Bilibili (BILI) reported third-quarter 2024 non-GAAP earnings of 8 cents per share, missing the Zacks Consensus Estimate by 20%, while revenues increased to $1.02 billion, surpassing the estimate by 0.76% [1] - The company's shares have appreciated 52.8% year to date, outperforming the Zacks Computer & Technology sector, which returned 29.3% [2] Revenue Breakdown - Revenues from mobile games, accounting for 24.9% of total revenues, increased 83.8% year over year to RMB 1.82 billion [3] - Value Added Services (VAS) revenues, making up 38.6% of total revenues, increased 8.7% year over year to RMB 2.82 billion [3] - Advertising revenues, which represent 28.7% of total revenues, increased 27.8% year over year to RMB 2.09 billion [3] - Revenues from IP Derivatives and others, comprising 7.8% of total revenues, decreased 2.2% year over year to RMB 567.31 million [3] Operating Performance - The gross profit margin improved to 34.9% from 25% in the year-ago quarter [4] - Research and development (R&D) expenses decreased 15% year over year to RMB 906.1 million, representing 12.4% of sales, a decrease of 600 basis points [4] - Sales & Marketing (S&M) expenses increased 21.2% year over year to RMB 1.2 billion, accounting for 16.5% of sales, a decrease of 60 basis points [4] - General & Administrative (G&A) expenses increased 1.3% year over year to RMB 505.4 million, representing 6.9% of sales, a decrease of 170 basis points [5] - Total operating expenses were RMB 2.61 billion, up 2.2% from the year-ago quarter, with a non-GAAP loss from operations of RMB 272.2 million, improved from RMB 755.4 million in the prior year [5] Financial Position - As of September 30, 2024, cash and cash equivalents totaled RMB 11.7 billion, up from RMB 8.76 billion as of June 30, 2024 [6] - Total debt decreased to RMB 5.02 billion from RMB 5.58 billion as of June 30, 2024 [6] - Cash flow from operating activities was RMB 2.23 billion for the reported quarter, significantly up from RMB 277.4 million in the prior quarter [7] Market Position - BILI currently holds a Zacks Rank 2 (Buy) [8] - Other top-ranked stocks in the sector include Tuya (TUYA), NVIDIA (NVDA), and NetApp (NTAP) [8]