BILIBILI(BILI) 光大证券·2024-11-22 09:24Investment 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]