Investment Rating - The report maintains a "Buy" rating for the company with a target price of USD 25.00, indicating a potential upside of 34.5% from the current price of USD 18.59 [5][15]. Core Insights - The company achieved its first operational profit in Q3 2024, with revenues of RMB 7.3 billion, reflecting a year-on-year growth of 26% and a quarter-on-quarter growth of 19% [1][2]. - The adjusted operational profit reached RMB 272 million, surpassing market expectations, driven by improved revenue structure and cost management [1][3]. - Game revenue surged by 84% year-on-year, significantly contributing to overall revenue growth, while advertising revenue grew by 28% [2][3]. Financial Overview - Total revenue projections for 2024E are RMB 26.7 billion, with a year-on-year growth of 18.6% [4]. - The company is expected to achieve a net profit of RMB 1.9 billion in 2025, reflecting a significant turnaround from previous losses [4]. - The gross margin is anticipated to improve to 36% in Q4 2024, supported by high-margin game and advertising revenues [2][13]. User Engagement Metrics - Monthly active users (MAU) reached 30 million, with a stable user engagement reflected in daily average usage time [11]. - The company reported a 10% year-on-year increase in total user hours, indicating strong content consumption growth [10]. Market Position and Valuation - The company’s market capitalization stands at approximately USD 6.17 billion, with a year-to-date stock price increase of 52.75% [6]. - The report suggests that the stock price has limited downside potential, with a reasonable target price range of USD 20-28 based on normalized profit margins [3][14].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [6]. Core Insights - The company achieved profitability for the first time since its listing, with a significant increase in gross profit margin and a strong performance in its gaming and advertising segments [1][2]. - The gaming revenue reached 1.82 billion HKD in Q3 2024, representing a year-on-year growth of 84%, driven by the success of the game "Three Kingdoms: Strategy of the World" [1]. - Advertising revenue also saw a robust increase of 28% year-on-year, totaling 2.09 billion HKD in Q3 2024, supported by enhanced capabilities in the e-commerce sector [1]. Financial Performance Summary - In Q3 2024, the company reported revenue of 7.31 billion HKD, a year-on-year increase of 16%, and a Non-GAAP net profit of 236 million HKD, marking a turnaround from losses [1]. - The gross profit margin improved to 34.9%, up 9.88 percentage points year-on-year, with gross profit increasing by 76% to 2.55 billion HKD [1]. - The company plans to repurchase up to 200 million USD of its publicly traded securities over the next 24 months, enhancing shareholder returns [1]. User Engagement and Community Development - The company reported an average of 107 million daily active users in Q3 2024, a 4% increase year-on-year, with an average usage time of 106 minutes per day, up 6% [1]. - Monthly interactions within the community reached 19.3 billion, reflecting a 14% year-on-year growth, indicating a healthy ecosystem [1]. Future Projections - Revenue forecasts for 2024, 2025, and 2026 are projected at 26.74 billion HKD, 31.21 billion HKD, and 34.76 billion HKD, respectively [2]. - Non-GAAP net profits are expected to improve significantly, with projections of -0.07 billion HKD in 2024, 2.24 billion HKD in 2025, and 3.76 billion HKD in 2026 [2].

Financial Data and Key Metrics Changes - Total revenues in Q3 2024 reached RMB 7.3 billion, a 26% year-over-year increase [2][8] - Adjusted net profit for the quarter was RMB 236 million, marking the first quarterly adjusted net profit for the company [2][8] - Gross profit rose by 76% year-over-year to RMB 2.5 billion, with a gross profit margin increasing to 34.9% from 25% in the same period last year [2][8] Business Line Data and Key Metrics Changes - Game revenue surged by 84% year-over-year to RMB 1.8 billion, driven by the success of the strategy game "San Guo, Mou Ding Tian Xia, San Mou" [5][6] - Advertising revenue increased by 28% year-over-year to RMB 2.1 billion, with performance-based ads growing nearly 50% [5][6] - VAST business revenues grew by 9% year-over-year to RMB 2.8 billion, with fan-charging revenues surging over 500% [6][7] Market Data and Key Metrics Changes - Daily active users (DAUs) reached 107 million, while monthly active users (MAUs) hit 348 million, both record highs [2][4] - Average daily time spent per user increased to 106 minutes, up from 100 minutes in the same period last year [4] - Monthly interactions surpassed 19.3 billion, marking a 14% year-over-year increase [4] Company Strategy and Development Direction - The company aims to focus on core businesses such as advertising and games, which have higher income ceilings and profit margins [13][14] - Plans to continue investing in key infrastructure to support content creation and distribution, reinforcing its position in high-quality video content [3][4] - The company is committed to building a welcoming video community and curating diverse content to cater to evolving user needs [3][4] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the domestic economy in the mid to long term, despite short-term uncertainties in advertising budgets across different industries [20][21] - The company views its first quarter of profitability as a new starting point and expects to leverage this momentum for sustainable growth [7][15] - The average age of users is now 25, indicating increasing spending power and potential for future commercialization [3][13] Other Important Information - The company's MSCI ESG rating was upgraded to an A, reflecting improvements in its ESG practices [4] - The successful performance of the esports team Bilibili Games in the League of Legends S14 World Championship was highlighted as a significant achievement [4] Q&A Session Summary Question: Management's strategic view on Bilibili after achieving breakeven - Management emphasized that the recent profitability is a natural outcome of business model evolution and industry expansion, with a focus on community and commercial growth going forward [10][11] Question: Key driver behind advertising growth in Q3 - The strong performance in advertising revenue was attributed to nearly 50% growth in performance-based ads and effective platform infrastructure improvements [16][17] Question: Performance and future plans for the game "San Guo, Mou Ding Tian Xia, San Mou" - Management noted that the game is one of the best performers in the market, with plans for long-term operation and user engagement strategies [22][23]

Investment Rating - The report maintains a "Buy" rating for the company [2][6]. Core Insights - The company achieved a revenue of 7.306 billion yuan in Q3 2024, representing a year-on-year growth of 26%. The net profit attributable to shareholders was -0.08 billion yuan, a 94% year-on-year reduction, and the adjusted net profit was 0.236 billion yuan, marking the first time the company turned profitable under non-GAAP standards [1][2]. - The gross margin for Q3 2024 was 34.9%, an increase of nearly 5 percentage points year-on-year, with nine consecutive quarters of sequential growth [1]. - The new game "Three Kingdoms: Strategy Determination" performed well, ranking second in the App Store's game sales chart after its launch, contributing positively to the company's gaming business [1][2]. - Daily Active Users (DAU) and Monthly Active Users (MAU) reached historical highs of 107 million and 348 million, respectively, with average daily usage time also hitting a record of 106 minutes [2]. - Advertising revenue for Q3 2024 was 2.094 billion yuan, a year-on-year increase of 28%, driven by product optimization and efficiency improvements [2]. Financial Projections - The company is expected to see revenue growth rates of 19.3%, 14.9%, and 8.4% for the years 2024, 2025, and 2026, respectively, reaching revenues of 26.876 billion yuan, 30.886 billion yuan, and 33.494 billion yuan [2][6]. - The forecasted Non-GAAP net profit for 2024 is projected to be -0.068 billion yuan, turning positive in 2025 with 0.531 billion yuan and further increasing to 1.392 billion yuan in 2026 [6][7].

Investment Rating - The report maintains a "BUY" rating for Bilibili with a target price of US$22.00, reflecting an upside potential of 18.3% from the current price of US$18.59 [3][7]. Core Insights - Bilibili reported a total revenue of RMB7.31 billion for 3Q24, representing a 26% year-over-year increase, which exceeded both the report's and Bloomberg's consensus estimates [1]. - The company achieved quarterly breakeven with an adjusted net income of RMB236 million, a significant improvement from an adjusted net loss of RMB878 million in 3Q23 [1]. - The strong performance is attributed to the success of the new game title SanMou and effective cost optimization initiatives [1]. - For 4Q24, total revenue is expected to grow by 21% year-over-year, with adjusted net margin projected to expand to 5.3% [1]. Revenue Performance - Mobile games revenue surged by 84% year-over-year to RMB1.82 billion in 3Q24, driven primarily by SanMou's performance [1]. - Advertising revenue increased by 28% year-over-year to RMB2.09 billion, supported by approximately 50% growth in performance-based ads [1]. - Value-Added Services (VAS) revenue rose by 9% year-over-year to RMB2.82 billion, mainly due to growth in premium membership and Fan Charging revenue [1]. Future Outlook - The report forecasts continued revenue growth momentum into 4Q24, with mobile games, advertising, and VAS revenues expected to grow by 78%, 24%, and 5% year-over-year, respectively [1]. - SanMou's upcoming Season 4 launch is anticipated to further boost mobile game revenue in 4Q24 [1]. - Management expects advertising revenue to maintain faster-than-industry growth, supported by increasing ad inventories and improving monetization efficiency [1]. Margin Expansion - The overall gross profit margin expanded by 9.9 percentage points year-over-year to 34.9% in 3Q24, attributed to cost optimization and strong mobile game performance [1]. - Adjusted net margin improved by 18.4 percentage points year-over-year to 3.2% in 3Q24, with expectations for further expansion to 5.3% in 4Q24 [1]. Financial Forecasts - The report updates the revenue forecasts for FY24-26, increasing them by 1-5% due to robust game performance [1]. - For FY24E, total revenue is projected at RMB26.78 billion, with a gross margin of 32.8% and an adjusted net profit of RMB68 million [2][4].

Financial Data and Key Metrics Changes - No specific financial data or key metrics changes mentioned in the provided content [1][2][3][4][5] Business Line Data and Key Metrics Changes - No specific business line data or key metrics changes mentioned in the provided content [1][2][3][4][5] Market Data and Key Metrics Changes - No specific market data or key metrics changes mentioned in the provided content [1][2][3][4][5] Company Strategy and Development Direction and Industry Competition - No specific company strategy, development direction, or industry competition mentioned in the provided content [1][2][3][4][5] Management Commentary on Operating Environment and Future Outlook - The company will discuss its business outlook and make forward-looking statements during the call, but no specific commentary on the operating environment or future outlook is provided in the content [3] Other Important Information - The non-GAAP financial measures provided are for comparison purposes only, with definitions and reconciliation tables available in the news release [4] - The conference is being recorded, and an investor presentation and webcast replay will be available on the Bilibili IR website [4] Summary of Q&A Session - No Q&A session content provided in the documents [1][2][3][4][5]

Investor Presentation 1 November 2024 ilfdilli ( *- *)つロ干杯~ Q Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "confident," "potential," "continue," or other similar expressions. Among other ...

Bilibili (BILI) came out with quarterly earnings of $0.08 per share, missing the Zacks Consensus Estimate of $0.10 per share. This compares to loss of $0.29 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -20%. A quarter ago, it was expected that this Chinese video sharing website would post a loss of $0.10 per share when it actually produced a loss of $0.09, delivering a surprise of 10%. Over the last four quarters, the compa ...

Revenue Growth - Total net revenues were RMB7.31 billion (US$1,041.0 million), representing a 26% year-over-year increase[2] - Total net revenues for the three months ended September 30, 2024, were RMB 7,305,620 thousand, a 19.2% increase compared to RMB 6,127,144 thousand in the previous quarter[27] - Mobile games revenues were RMB1.82 billion (US$259.7 million), representing an 84% year-over-year increase[2] - Mobile games revenue for the three months ended September 30, 2024, increased by 81.0% to RMB 1,822,609 thousand compared to RMB 1,007,367 thousand in the previous quarter[27] - Advertising revenues were RMB2.09 billion (US$298.5 million), representing a 28% year-over-year increase[2] Profitability - Gross profit was RMB2.55 billion (US$363.0 million), representing a 76% year-over-year increase, with gross profit margin reaching 34.9%[2] - Gross profit for the three months ended September 30, 2024, was RMB 2,547,186 thousand, a 38.9% increase from RMB 1,833,201 thousand in the previous quarter[27] - Net loss narrowed by 94% year-over-year to RMB79.8 million (US$11.4 million)[2] - Net loss attributable to Bilibili Inc.'s shareholders for the three months ended September 30, 2024, decreased significantly to RMB 79,515 thousand from RMB 608,700 thousand in the previous quarter[27] - Adjusted net profit was RMB235.9 million (US$33.6 million), compared with an adjusted net loss of RMB863.5 million in the same period last year[2] - Adjusted net profit for the three months ended September 30, 2024 was RMB 235.9 million, compared to an adjusted net loss of RMB 270.99 million for the three months ended June 30, 2024[31] - Adjusted net loss for the nine months ended September 30, 2024 was RMB 490.97 million, an improvement from the adjusted net loss of RMB 2.86 billion for the nine months ended September 30, 2023[31] - Adjusted net profit per share for the three months ended September 30, 2024 was RMB 0.57, compared to an adjusted net loss per share of RMB 0.65 for the three months ended June 30, 2024[32] - Adjusted net loss per share for the nine months ended September 30, 2024 was RMB 1.14, an improvement from the adjusted net loss per share of RMB 6.95 for the nine months ended September 30, 2023[32] - Adjusted net profit attributable to Bilibili Inc.'s shareholders for the three months ended September 30, 2024 was RMB 236.19 million, compared to an adjusted net loss of RMB 2.87 billion for the nine months ended September 30, 2023[31] User Metrics - Average daily active users (DAUs) reached 107.3 million, compared with 102.8 million in the same period last year[2] Cash Flow and Financial Position - Operating cash flow was RMB2.23 billion (US$317.1 million), compared with RMB277.4 million in the same period last year[2] - Cash flow from operating activities for the three months ended September 30, 2024, was RMB 2,225,629 thousand, a 27.1% increase from RMB 1,750,540 thousand in the previous quarter[30] - Cash and cash equivalents, time deposits, and short-term investments totaled RMB15.23 billion (US$2.17 billion) as of September 30, 2024[15] - Cash and cash equivalents as of September 30, 2024, were RMB 7,463,154 thousand, a 3.8% increase from RMB 7,191,821 thousand as of December 31, 2023[29] - Total assets as of September 30, 2024, were RMB 32,021,300 thousand, a 3.4% decrease from RMB 33,159,067 thousand as of December 31, 2023[29] Share Repurchase and Compensation - The company announced a share repurchase program of up to US$200 million over the next 24 months[17] - Share-based compensation expenses for the three months ended September 30, 2024, were RMB 297,111 thousand, a 14.5% increase from RMB 259,479 thousand in the previous quarter[28] - Share-based compensation expenses for the three months ended September 30, 2024 were RMB 297.11 million, compared to RMB 259.48 million for the three months ended June 30, 2024[31] Operating Expenses - Total operating expenses for the three months ended September 30, 2024, were RMB 2,613,865 thousand, an 8.1% increase from RMB 2,418,336 thousand in the previous quarter[27] - Research and development expenses for the three months ended September 30, 2024, were RMB 906,072 thousand, a 1.3% increase from RMB 894,701 thousand in the previous quarter[27] - Amortization expense related to intangible assets for the three months ended September 30, 2024 was RMB 41.78 million, consistent with the previous quarter[31] Other Financial Metrics - Weighted average number of ordinary shares for the three months ended September 30, 2024 was 417.85 million, a slight increase from 416.29 million in the previous quarter[32] - Adjusted loss from operations for the three months ended September 30, 2024 was RMB 523.91 million, compared to an adjusted loss of RMB 2.75 billion for the nine months ended September 30, 2023[31] - Net loss attributable to noncontrolling interests for the three months ended September 30, 2024 was RMB 15.83 million, compared to a net loss of RMB 10.81 million for the nine months ended September 30, 2023[31]

Financial Performance - Total net revenue for Q3 2024 reached RMB 7.306 billion (USD 1.041 billion), an increase of 26% year-over-year[7] - Gross profit was RMB 2.547 billion (USD 363 million), representing a 76% year-over-year increase, with a gross margin of 34.9%, up from 25.0% in the same period last year[7] - Adjusted net profit for Q3 2024 was RMB 236 million (USD 33.6 million), compared to an adjusted net loss of RMB 863 million in the same period last year[7] - Operating cash flow for Q3 2024 was RMB 2.226 billion (USD 317 million), compared to RMB 277 million in the same period last year[7] - Net loss narrowed by 94% to RMB 798 million (USD 114 million) compared to the same period in 2023[12] - Total operating expenses were RMB 2.614 billion (USD 372 million), reflecting a 2% increase from the previous year[10] - Adjusted operating profit was RMB 272 million (USD 38.8 million), compared to an adjusted operating loss of RMB 755 million in the same period last year[11] Revenue Breakdown - Mobile gaming revenue was RMB 1.823 billion (USD 260 million), up 84% year-over-year, driven by the strong performance of the exclusive licensed game "Three Kingdoms: Strategizing the World"[9] - Advertising revenue amounted to RMB 2.094 billion (USD 298 million), a 28% increase year-over-year, attributed to optimized advertising products and improved efficiency[9] - Value-added services revenue was RMB 2.821 billion (USD 402 million), a 9% increase year-over-year, mainly due to growth in live streaming and other value-added services[9] User Engagement - Daily active users (DAUs) reached 107.3 million, compared to 102.8 million in the same period last year, with average daily usage time increasing to 106 minutes[8] - The company is focused on retaining and enhancing user engagement, providing quality content, and expanding its product and service offerings[20] - The significant improvement in financial performance demonstrates the resilience of the company's business model and the substantial commercialization potential of its community[8] Cost Management - Operating costs amounted to RMB 4.758 billion (USD 678 million), an increase of 9% compared to the same period in 2023, primarily due to higher revenue sharing costs[10] - Sales and marketing expenses rose to RMB 1.202 billion (USD 171 million), a 21% increase year-over-year, driven by higher marketing expenditures for exclusive licensed games[11] - Research and development expenses decreased by 15% to RMB 906 million (USD 129 million), mainly due to the termination of several game projects in the previous year[11] - The company is actively managing costs and expenses as part of its strategic initiatives[20] Future Outlook - The company aims to enhance its commercialization capabilities and strengthen its community ecosystem for long-term value creation[8] - The company continues to focus on enhancing its user engagement and expanding its market presence, which is expected to drive future revenue growth[27] - Forward-looking statements are identified by terms such as "will," "expect," "anticipate," and involve inherent risks and uncertainties that may cause actual results to differ significantly from those projected[20] Shareholder Information - The company announced a share repurchase plan, authorizing up to USD 200 million in repurchases over the next 24 months[14] - The company will hold an earnings conference call on November 14, 2024, to discuss its third-quarter performance[15] - The company has a dedicated investor relations team available for inquiries, indicating a commitment to transparency and communication with stakeholders[21] Regulatory and Economic Environment - The company acknowledges the competitive landscape of the online entertainment industry and its impact on future performance[20] - The company is subject to regulatory policies and economic conditions in China, which may influence its operational strategies[20] Cash and Assets - Cash and cash equivalents, along with short-term investments, totaled RMB 15.234 billion (USD 2.171 billion) as of September 30, 2024[12] - Total assets as of September 30, 2024, were RMB 32,021,300, a decrease from RMB 33,159,067 as of December 31, 2023[25] - Total liabilities as of September 30, 2024, were RMB 18,298,184, down from RMB 18,754,800 as of December 31, 2023[25]