Bilibili Inc_ 4Q24 Result Operating Profit Beat

Summary of Bilibili Inc 4Q24 Earnings Call Company Overview - Company: Bilibili Inc (BILI.O, BILI US) - Industry: China Internet and Other Services - Market Cap: US$9,359 million - **Stock Rating**: Equal-weight - **Price Target**: US$18.00, representing an 11% downside from the current price of US$20.33 as of February 19, 2025 Financial Performance - Total Revenue: Rmb7.6 billion, a 22% year-over-year increase and 1% above Morgan Stanley estimates [1][2] - Non-GAAP Operating Profit: Rmb481 million, 19% above Morgan Stanley estimates and 21% above consensus [2] - Non-GAAP Net Income: Rmb453 million, in line with Morgan Stanley estimates and 20% above consensus [2] Revenue Breakdown - Mobile Games: Rmb1.8 billion, down 1% quarter-over-quarter but up 79% year-over-year, driven by the contribution from the game "San Mou" [6] - Live Broadcasting and VAS: Rmb3.1 billion, up 8% year-over-year, showing resilience [6] - Advertising: Rmb2.4 billion, up 24% year-over-year, maintaining industry-leading growth [6] - E-commerce and Others: Rmb465 million, down 16% year-over-year [6] Cost and Profitability Metrics - Gross Profit: Rmb2.788 billion, with a gross margin of 36.1%, up 9.9 percentage points year-over-year [2] - Operating Profit: Rmb126 million, a significant improvement from previous quarters [2] - Net Income: Rmb90 million, a notable recovery from losses in prior quarters [2] Key Insights - Operational Efficiency: Improved management of operating expenses, particularly in general and administrative costs, contributed to better profitability [2] - Market Position: Bilibili continues to show strong growth in advertising revenue, indicating a robust market position despite challenges in other segments [6] - Future Guidance: The company is expected to continue its growth trajectory, with revenue projections for the next fiscal years showing an upward trend [3] Risks and Considerations - Upside Risks: Stronger-than-expected advertising revenue growth and better user retention for mobile games could enhance performance [9] - Downside Risks: Potential competition leading to lower monthly active user growth and higher costs in sales and marketing could impact margins [9] Conclusion Bilibili Inc's 4Q24 results reflect a strong recovery in revenue and profitability, driven by effective cost management and growth in key segments like advertising and live broadcasting. However, the company faces challenges from competition and market dynamics that could affect future performance.