Bilibili Shares Jump after Releasing Financial Results
On Feb. 24, 2021, China’s leading video streaming platform Bilibili (NASDAQ: BILI) announced unaudited financial results for the fourth quarter of the year, as well as for the fiscal year ending on Dec. 31, 2020. Shares jumped over 5% after the release.
Bilibili’s total net revenues reached 3,840.1 million yuan ($588.5 million) in the fourth quarter of 2020, with a surge of 91% from the previous year. The average monthly active users (MAUs) reached 202 million and mobile MAUs reached 186.5 million, increasing 55% and 61% respectively from the same period in 2019. The average daily active users (DAUs) touched 54.0 million, up 42%.
“2020 was an exceptional year as we achieved milestone success in bringing our business to a new height,” said Bilibili’s CEO Chen Rui. “Our users remained highly engaged and spent an average of 75 minutes daily on our platform in 2020 Q4, reflecting the firm’s appealing content offering. We will continue to influence China’s young generations on an increasing scale while gaining wider recognition among mass audiences. In China’s competitive video-based market, we will deliver sustainable returns to our partners over the long term.”
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Businesses are turning to Bilibili to interact with younger generations. The firm’s advertising revenue grew to 722.4 million yuan – a surge of 149% year-over-year – in 2020 Q4, marking the seventh consecutive quarter of accelerated growth.
Bilibili’s full-spectrum digital entertainment model is also boosting its mobile game segment, with revenues from mobile games increasing by 30% year-over-year.
Bilibili is trying to expand its target audience beyond Generation Z. According to iResearch’s latest report, over 86% of the firm’s MAUs were below the age of 35 in 2020. Chen believes this group will be the driving force for all kinds of consumption in China, especially in terms of video-based products.
The firm also made a revenue estimation for 2021 Q1 based on the current market conditions and the ongoing COVID-19 pandemic, saying they expect net revenue to be between 3.70 billion yuan and 3.80 billion yuan.