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Bilibili reported a profit of about 29 million dollars this quarter, a significant swing from the loss it posted a year ago. While total revenue of 1.17 billion dollars met what analysts expected, the mix of that money is shifting toward more profitable areas. Revenue from advertising grew 30 percent, which helped lift the company's overall profit margins.
User engagement remains a bright spot for the Chinese video site. Daily active users grew to 115 million, and those users are spending an average of 119 minutes per day on the platform. This suggests that even as the company focuses more on making money, it is not losing the attention of its young audience. For long-term owners, the move into steady profitability is a major milestone that makes the business much more sustainable.
Morgan Stanley lowered its target from $31 following the company's latest earnings report. Even with the lower target, the firm's price is still well above where the stock currently trades. The average target across all analysts who follow the company is now about $29. This suggests that while some are tempering their near-term expectations, the general view is that the business is worth more than its current market price.
Source: Morgan Stanley
The company will release its latest financial numbers before the U.S. markets open on Thursday, August 27. Management will follow up with a call to discuss the results. This update is a routine scheduling notice. It gives us a date to look for progress on the company's path toward reaching a profit, which has been a primary focus for the business over the last year.
Source: GlobeNewsWire
Management has delivered eight straight quarters of profit beats by setting conservative targets they can reliably clear. This steady record shows a team that has firm control over their costs and a clear view of where the business is headed.
| Expectation | |
|---|---|
| EPS | $0.28 |
| Revenue | $1.24B |