Bilibili Inc (NASDAQ:BILI) reported third-quarter FY23 revenue of $795.7 million (RMB5.8 billion), flat year-on-year, missing the consensus of $817.3 million.
The Chinese video-sharing platform’s adjusted EPS loss of $(0.29) missed the consensus loss of $(0.26).
Drivers: Average daily active users (DAUs) climbed 14% Y/Y to 102.8 million.
Revenues from mobile games were $135.9 million, down 33% Y/Y, mainly due to the high base from the release of Space Hunter 3 in June 2022 and lower-than-expected revenues from certain new games. Value-added services (VAS) revenues grew 17% Y/Y to $355.7 million, led by increased revenues from live broadcasting and other value-added services.
Advertising increased by 21% Y/Y to $224.5 million. Revenue from IP derivatives and others (formerly known as e-commerce) decreased 23% Y/Y to $79.5 million, primarily due to reduced revenues from IP derivative sales.
Bilibili held $2.0 billion in cash and equivalents.
Chair and CEO Mr. Rui Chen said, “Our DAUs surpassed an exciting milestone of 100 million, marking a 14% year-over-year increase to 103 million. Additionally, users’ average daily time spent on our platform reached a historical high of 100 minutes, boosting total user time spent by 19% year-over-year.”
Outlook: Bilibili expects FY23 revenues at the low end of RMB22.5 billion – RMB23.5 billion due to lower-than-expected mobile game revenues.
The stock has lost 50.6% YTD.
Price Action: BILI shares traded lower by 4.12% at $12.79 in the premarket session on the last check Wednesday.
