BiliBili Hits Record High on Positive Q1 Results

Chinese online entertainment platform company Bilibili reported its first quarter results on Monday and revealed consistent double digit revenue growth.

Shares hit a record high as a result as Wall Street digested the results.

For the first quarter, total net revenues reached RMB2,315.5 million (US$327.0 million), a 69% increase from the same period in 2019. Average monthly active users (MAUs) reached 172.4 million, and mobile MAUs reached 156.4 million, representing increases of 70% and 77%, respectively, from the same period in 2019.

Average daily active users (DAUs) reached 50.8 million, a 69% increase from the same period in 2019. Average monthly paying users (MPUs1) reached 13.4 million, a 134% increase from the same period in 2019.

“We kicked off 2020 with a stellar set of results. Both MAUs and DAUs grew at phenomenal rates while our level of community engagement reached an all-time high,” said Mr. Rui Chen, Chairman of the Board and Chief Executive Officer of Bilibili. “With our broad and growing content library, increasing brand equity and unique community experience, Bilibili’s platform has increased its mass-market appeal and become many people’s first choice for content creation and consumption. In the first quarter, our daily time spent per user soared to a record high level of 87 minutes, while our monthly active content creators and their content submissions more than doubled compared with the same period last year. Additionally, we continue to strengthen our market position by expanding our strategic partnerships. In April, we were excited to bring our long-standing partnership with Sony to the next level with its equity investment and business collaboration plans. Building on our early 2020 momentum, we will continue to cultivate our library of content, enhance our community bond, and work to improve our monetization capabilities to fuel our user and top-line growth.”

Mr. Sam Fan, Chief Financial Officer of Bilibili, said, “Our strong user metrics have laid a solid foundation for our financial growth. Our MPUs grew 134% to a record 13.4 million, demonstrating our platform’s strong monetization capabilities. Total net revenues once again exceeded our guidance, reaching RMB2.3 billion, representing a 69% increase year-over-year. As our top line grows, our gross margin continued to expand for the fourth consecutive quarter reaching 23% in the first quarter of 2020, showing improving operational efficiency. Looking ahead, we will continue to execute on our growth strategies with a focus on quality.”

Bilibili, which provides an online entertainment platform serving younger generations in China that covers a range of genres and media formats, including videos, live broadcasting, and mobile games, had its IPO back in March of 2018.

The company remarked on the impact of COVID-19 and said that “the outbreak of COVID-19 has caused delays in the delivery of the merchandise sold on the Company’s platform to the customers during the first quarter of 2020. The delivery has been gradually recovering in the second quarter of 2020. However, if the impact of COVID-19 is prolonged or worsens further, it may still disrupt the delivery.”

Disclaimer: We have no position in Bilibili Inc – ADR (NASDAQ: BILI) and have not been compensated for this article.