Bilibili’s 4Q Sales Beat Analysts’ Estimates; Shares Rise 3.8%

Bilibili Inc delivered better-than-expected sales in the fourth quarter as the online entertainment platform saw a 91% jump in its topline that was fuelled by a higher number of users.

In response, shares of Bilibili Inc (BILI) rose 3.8% in Wednesday’s extended trading session. The company posted a net loss per share of $0.29 during the fourth quarter, which was lower than analysts’ expectations of a net loss per share of $0.33.

Revenue increased 91% year-on-year to $588.5 million, topping analysts’ estimates of $551.45 million. Average monthly active users of the platform increased 55% year-on-year to 202 million in 4Q. Additionally, the number of average monthly paying users increased by 103% year-on-year to 17.9 million in 4Q.

For fiscal 2020, the company generated revenue of $1.8 billion, reflecting a 77% jump from 2019.

Bilibili Inc Chairman and CEO Rui Chen said, “2020 was a year of solid execution on our growth strategy as we brought our business to new heights. With a series of high quality content and branding efforts, we continue to influence China’s young generations on an increasing scale.”

Looking ahead to 1Q, Bilibili Inc expects revenues to land between RMB 3.70 billion to RMB 3.80 billion. (See Bilibili Inc stock analysis on TipRanks)

On Feb. 8, Credit Suisse analyst Kenneth Fong raised Bilibili Inc’s price target to $145 (14% upside potential) from $110 but lowered its rating to Hold from Buy. Fong noted, “While there is strong potential ahead when it comes to users and revenue, the current valuation looks fair.”

Turning to the rest of the Street, BILI has a Moderate Buy consensus rating based on 3 Buys and 2 Holds. The average analyst price target of $142.20 implies about 12% upside potential from current levels.

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