BILIBILI(HK:09626) 美股研究社·2025-03-04 10:56Core Viewpoint - Bilibili (B站) has achieved a significant turnaround by reporting its first comprehensive quarterly profit in Q4 2024, despite still being in an overall loss for the year. The company’s revenue for the year reached 26.83 billion RMB, a 19% increase year-on-year, while its net loss narrowed by 72% to 1.36 billion RMB [1][5]. Financial Performance - In Q4 2024, Bilibili's revenue was 7.73 billion RMB, representing a 22% year-on-year growth, with a net profit of 889.34 million RMB, a significant improvement from a net loss of 12.97 billion RMB in the same quarter last year [3][5]. - The company’s total revenue for 2024 was 26.83 billion RMB, with major contributions from various segments: - Value-added services: 11 billion RMB, up 11% - Advertising: 8.19 billion RMB, up 28% - Mobile games: 5.61 billion RMB, up 40% [2][7]. Business Segments - The growth in Bilibili's revenue was primarily driven by its gaming and advertising businesses. In Q4 2024, advertising revenue reached 2.39 billion RMB, a 24% increase year-on-year, while the gaming segment saw a revenue of 1.8 billion RMB, a 79% increase [6][7]. - The successful launch of the mobile game "Three Kingdoms: Strategize the World" contributed significantly to the gaming revenue, generating 26.8 million USD in its first month [6][7]. User Demographics and Engagement - Bilibili's average user age is 25, which aligns with a demographic that is actively engaged in purchasing, making the platform attractive for advertisers targeting younger consumers [6][12]. - The platform's daily active users saw a decline of 4 million, and monthly active users decreased by 8 million in Q4 2024, indicating potential challenges in user growth [17]. Cost Management and Efficiency - Bilibili managed to reduce its total operating expenses by 4% in 2024, with significant cuts in R&D expenses by 18% and general administrative expenses by 4% [14][15]. - The company has reduced its workforce from 12,000 in 2021 to approximately 8,137 by mid-2024, which has contributed to cost savings [15]. Market and Policy Influences - The growth in advertising revenue was bolstered by government subsidies for consumer electronics, which increased demand for related advertisements on the platform [12][13]. - However, the sustainability of this growth is questioned, as past similar policies have led to a decline in sales post-subsidy periods [17]. Future Challenges - Despite the positive financial results, Bilibili faces challenges in maintaining long-term profitability, with concerns over user growth stagnation and potential declines in gaming and advertising revenues [17][18]. - The advertising market remains competitive, with a shift in spending towards short videos, which may limit Bilibili's future revenue growth [18].