Bilibili stock rose more than 10%
2022.11.29 08:38
Bilibili stock rose more than 10%
Budrigannews.com – Bilibili shares (NASDAQ:)are up more than 10% in pre-market trading Tuesday following the Chinese company’s better-than-expected third quarter results.
Bilibili beat the consensus expectation of a loss per share of RMB4.62 (-$0.64) with a loss per share of RMB4.46 (-$0.62).The quarter’s revenue of RMB5.8 billion, or $809.41 million, exceeded the consensus estimate of RMB5.73 billion, or $799.6 million.
Bilibili stated that it expects revenue for this quarter to be between RMB6B ($837.3M) and RMB6.2B ($865.2M), which is lower than the RMB6.25B ($872.2M) consensus estimate of analysts.
The management of the business stated that it is taking steps to implement strict cost control measures in the future.
According to Rui Chen, chairman and chief executive officer of Bilibili, “Putting profitability first, we will take additional initiatives to accelerate our monetization and implement cost containment measures including rationalizing headcount planning and cutting sales and marketing expenses, with our goal set to improve our margins and narrow our losses.”
CLSA analysts stated that Bilibili continues to “face pressure in its gaming and advertising businesses” despite the earnings beat.From $23.30, the analysts lowered their price target to $14.70.
“We anticipate game revenue to regrow 5% YoY, supported by new game, Space Hunter 3, but limited new games still depress overall growth. We expect total revenue to grow 11% YoY to Rmb5.8bn and an adj net loss of Rmb1.7bn, flat QoQ.The new Story Mode and effective sales conversion tools should boost ad revenue by 20% year-over-year, the analysts wrote in a note.
“We don’t think BILI’s lighter 4Q guidance is a big negative surprise because many Chinese internet companies provided weaker-than-expected 4Q outlooks, citing the worsening pandemic and lockdown situation since September as a drag on their business recovery.”
