BILIBILI(09626) 长江证券·2024-03-11 16:00Investment Rating - The investment rating for the company is "Buy" and it is maintained [4]. Core Insights - The company reported Q4 2023 revenue of 6.3 billion, a year-on-year increase of 3%. Gross profit reached 1.7 billion, up 33% year-on-year. Non-GAAP net loss was 555 million, narrowing by 58% [5][6]. - For the full year 2023, total revenue was 22.5 billion, also a 3% year-on-year increase, with gross profit of 5.4 billion, up 41% year-on-year. Non-GAAP net loss for the year was 3.4 billion, narrowing by 49% [5][6]. - The company achieved positive operating cash flow of 640 million in Q4 2023 and for the entire year [5][6]. Revenue Breakdown - In Q4 2023, advertising revenue was 1.9 billion, growing 28% year-on-year. For the full year, advertising revenue reached 6.4 billion, a 27% increase, accounting for 28% of total revenue, up 5 percentage points [5][6]. - Value-added services revenue in Q4 2023 was 2.9 billion, increasing 22% year-on-year, driven by live streaming. For the full year, this segment generated 9.9 billion, a 14% increase [5][6]. - Game revenue in Q4 2023 was 1 billion, down 12% year-on-year, with full-year revenue at 4 billion, a decline of 20% due to fewer new game launches [5][6]. Operational Metrics - Daily active users (DAU) and monthly active users (MAU) were 100 million and 336 million, respectively. The average daily video views for the year were 4.3 billion, a 25% increase year-on-year [5][6]. - The number of active content creators (UP主) increased by 16% year-on-year in Q4 2023, with those having over 10,000 followers growing by 30% [5][6]. Profitability Analysis - The gross profit margin in Q4 2023 improved to 26.1%, driven by enhanced monetization efficiency and reduced operational costs [6]. - Non-GAAP operating expenses decreased by 12% year-on-year in Q4 2023, leading to a 53% reduction in Non-GAAP operating loss [6]. Earnings Forecast - The company is expected to optimize its business structure, maintaining high growth in advertising and value-added services. Revenue projections for 2024 and 2025 are 25.2 billion and 28.2 billion, respectively, while maintaining a "Buy" rating [6].