Earnings stock under focus: Bilibili Inc – ADR (NASDAQ: BILI)

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Bilibili Inc – ADR (NASDAQ: BILI) stock rose over 0.06% on 19th May, 2020 (as of 9:46 am GMT-4; Source: Google finance) after the company in the first quarter of FY 20 has reported 69% rise in the total net revenues to RMB2,315.5 million (US$327.0 million). The company has reported adjusted net loss of RMB474.6 million (US$67.0 million) for 1Q 2020, compared to RMB145.4 million in the same period of 2019. At the end of March, 2020, the Company had cash and cash equivalents, time deposits, as well as short-term investments of RMB7.9 billion (US$1.1 billion), compared to RMB8.1 billion as of December 31, 2019. On the other hand, 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 is now gradually recovering in the second quarter of 2020.


Meanwhile in April, 2020, the Company and Sony Corporation of America (“SCA”) had signed a share purchase agreement. According to the agreement, SCA subscribed for 17,310,696 newly issued Class Z ordinary shares of the Company at the total purchase price of US$23.1071 per Class Z ordinary share, which was equivalent to US$23.1071 per American Depositary Share (“ADS”). The deal had closed on April 9, 2020 and the Company received a total consideration of about US$400 million. After the closing, SCA beneficially owned approximately 4.98% of the Company’s total issued and outstanding shares.

Moreover, the revenues from mobile games rose 32% to RMB1,150.6 million (US$162.5 million), from the same period of 2019. The increase was on the back of the increasing popularity of both existing and newly launched mobile games. The revenues from Value-added services (VAS) (formerly known as Live broadcasting and VAS) were RMB793.6 million (US$112.1 million), which represents an increase of 172% from the same period of 2019, mainly due to the Company’s enhanced monetization efforts, led by increases in the number of paying users for the Company’s premium membership program, live broadcasting services and other value-added services. The revenues from advertising were RMB214.3 million (US$30.3 million), which reflects an increase of 90% from the same period of 2019. The revenues from e-commerce and others were RMB157.1 million (US$22.2 million), which represents an increase of 64% from the same period of 2019, mainly driven the increase in sales of products through the Company’s e-commerce platform.

For the second quarter of 2020, the Company currently expects net revenues to be in the range of RMB2.50 billion and RMB2.55 billion.

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