Bilibili (BILI) AI Stock Analysis

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Bilibili

(NASDAQ:BILI)

66Neutral

Bilibili's overall stock score reflects strong revenue growth and improved cash flow, but ongoing challenges with profitability weigh on its financial performance. The recent earnings call was notably positive, highlighting strategic wins and profitability, which boosts confidence. Technical indicators suggest stability, though caution is warranted. Valuation remains a concern due to net losses. The combination of these factors results in a balanced yet cautious outlook.

Positive Factors

Profitability

The company turned profitable for the first time on GAAP net level.

Revenue Growth

Solid revenue growth driven by VAS segment, with better-than-expected adoption of the fan charging program and slight beats in game and advertising revenues.

Share Buyback

A share repurchase program of US$200 million was announced, representing about 3% of the market cap, which can be seen as a positive signal to investors.

Negative Factors

Investment Phase

The heavy investment phase is largely completed, with expense growth expected to continue trailing revenue, backed by improved ad tech stack and advertiser penetration.

Operational Costs

Ongoing margin expansion was supported by cost optimization initiatives and strong mobile game performance, with overall gross profit margin expanding significantly.

Bilibili (BILI) vs. S&P 500 (SPY)

Market Cap

$7.87B

Dividend YieldN/A

Average Volume (3M)6.14M

Price to Earnings (P/E)―

Beta (1Y)1.23

Revenue Growth17.42%

EPS Growth72.64%

CountryUS

Employees8,088

SectorCommunication Services

Sector Strength76

IndustryElectronic Gaming & Multimedia

Share Statistics

EPS (TTM)-0.45

Shares Outstanding333,053,160

10 Day Avg. Volume4,818,400

30 Day Avg. Volume6,137,384

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)3.07

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$24.32

Price Target Upside55.70% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering7

Bilibili Business Overview & Revenue Model

Company DescriptionBilibili Inc. provides online entertainment services for the young generations in the People's Republic of China. Its platform offers a range of content, including video services, mobile games, and value-added service, as well as ACG-related comic and audio content. The company's video services include professional user generated videos, occupationally generated videos, and live broadcasting. Bilibili Inc. was founded in 2009 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes MoneyBilibili generates revenue through a diversified model comprising several key streams. The primary source is mobile gaming, where the company collaborates with game developers to distribute and operate games, earning a share of the in-game purchases. Additionally, Bilibili monetizes through advertising services, leveraging its large and engaged user base to attract advertisers. The company also earns from live broadcasting by selling virtual items to viewers who support their favorite streamers. Furthermore, Bilibili offers premium memberships that provide users with exclusive content and features, contributing to its subscription revenue. Significant partnerships with content creators and media companies help enhance its content offerings, further driving user engagement and monetization.

Bilibili Financial Statement Overview

Summary

Bilibili demonstrates significant revenue growth and improved cash flow generation. However, continued net losses and negative profit margins indicate challenges in achieving profitability. The balance sheet shows moderate leverage and a stable equity position, but the negative return on equity highlights the impact of ongoing losses. Overall, while there are positive trends in revenue and cash flow, achieving profitability remains a key challenge.

Income Statement

Neutral

Bilibili's revenue showed strong growth with a 19.1% increase from 2023 to TTM. However, the company is facing challenges with profitability as indicated by a negative EBIT margin of -5.0% and a negative net profit margin of -5.0% for TTM. The gross profit margin stands at 32.7%, showing ability to cover costs, but not enough to offset operating expenses leading to negative net income.

Balance Sheet

Positive

The company has a relatively balanced capital structure with a debt-to-equity ratio of 0.34, indicating moderate leverage. The equity ratio is 43.2%, suggesting a stable asset base funded by equity. However, the return on equity is negative due to net losses, which is a concern for investors looking for profitability.

Cash Flow

Positive

Bilibili's free cash flow turned positive in the TTM, indicating improved cash-generating ability. The operating cash flow to net income ratio is strong at 1.77, showing effective cash conversion. The free cash flow to net income ratio also improved, suggesting operational efficiencies despite net income losses.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
26.83B	22.53B	21.90B	19.38B	12.00B
	Gross Profit
8.77B	5.44B	3.85B	4.04B	2.84B
	EBIT
-1.34B	-5.06B	-8.36B	-6.43B	-3.14B
	EBITDA
1.19B	-1.67B	-5.02B	-3.95B	-1.07B
	Net Income Common Stockholders
-1.35B	-4.82B	-7.51B	-6.81B	-3.05B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.54B	15.04B	19.56B	30.22B	12.76B
	Total Assets
32.70B	33.16B	41.83B	52.05B	23.87B
	Total Debt
4.84B	7.64B	15.30B	19.02B	8.44B
	Net Debt
-5.41B	453.08M	5.13B	11.49B	3.76B
	Total Liabilities
18.59B	18.75B	26.59B	30.34B	16.08B
	Stockholders Equity
14.11B	14.39B	15.24B	21.70B	7.60B
Cash Flow		Free Cash Flow
4.26B	-1.06B	-6.65B	-6.33B	-1.49B
	Operating Cash Flow
6.01B	266.62M	-3.91B	-2.65B	753.10M
	Investing Cash Flow
-138.09M	1.76B	10.61B	-24.58B	-8.91B
	Financing Cash Flow
-2.83B	-5.07B	-4.35B	30.39B	8.34B

Bilibili Technical Analysis

Technical Analysis Sentiment

Negative

Last Price15.62

Price Trends

50DMA

19.80

Negative

100DMA

19.24

Negative

200DMA

18.46

Negative

Market Momentum

MACD

-0.32

Positive

RSI

42.48

Neutral

STOCH

13.21

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BILI, the sentiment is Negative. The current price of 15.62 is below the 20-day moving average (MA) of 19.92, below the 50-day MA of 19.80, and below the 200-day MA of 18.46, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 42.48 is Neutral, neither overbought nor oversold. The STOCH value of 13.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BILI.

Bilibili Risk Analysis

Bilibili disclosed 105 risk factors in its most recent earnings report. Bilibili reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Bilibili Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTES	79 Outperform	$66.22B	15.48	22.60%	2.60%	0.23%	-0.09%
EA	74 Outperform	$35.27B	34.44	14.04%	0.56%	-2.99%	-0.46%
BILI	66 Neutral	$7.87B	―	-9.43%	―	17.42%	72.64%
TTWO	62 Neutral	$34.34B	―	-51.45%	―	1.00%	-148.89%
PLTK	62 Neutral	$1.82B	11.10	-220.61%	8.26%	-0.69%	-31.96%
Sector *	58 Neutral	$24.96B	3.11	-10.53%	4.28%	2.32%	-43.03%
RBLX	54 Neutral	$35.34B	―	-628.33%	―	28.68%	22.57%

* Communication Services Sector Average

Performance Comparison

BILI

Bilibili

15.62

4.54

40.97%

Electronic Arts

134.62

5.31

4.11%

NTES

NetEase

92.35

-1.97

-2.09%

TTWO

Take-Two

197.53

43.88

28.56%

PLTK

Playtika Holding

4.65

-1.91

-29.12%

RBLX

Roblox

52.53

14.31

37.44%

Bilibili Earnings Call Summary

Earnings Call Date: Mar 25, 2025 | % Change Since: -21.39% | Next Earnings Date: May 21, 2025

Earnings Call Sentiment Positive

Bilibili's earnings call highlighted significant achievements in revenue growth, profitability, and community engagement, with strong performance in mobile games and advertising. The partnership with CCTV and successful fan charging program further underscored growth. However, challenges from the macro environment were noted. Overall, the positives significantly outweighed the negatives.

Highlights

Record-Breaking Revenue and Growth

Bilibili achieved total revenues of RMB 7.7 billion in Q4 and RMB 26.8 billion for the full year, reflecting year-over-year increases of 22% and 19%, respectively.

First GAAP Net Profit

Bilibili reported its first GAAP net profit of RMB 89 million in Q4, with an adjusted net profit reaching RMB 452 million.

Mobile Games Revenue Surge

Mobile games revenues surged by 79% year-over-year in Q4 and 40% for the year, driven by expansion into the strategy game genre.

Advertising Business Growth

Advertising revenue increased by 24% year-over-year in Q4 and 28% for the year, with strong growth in performance-based ad revenues by over 40% year-over-year.

Community Engagement

DAUs and MAUs reached 103 million and 340 million, respectively, with users spending an average of 99 minutes daily on the platform.

Fan Charging Program Success

The fan charging program saw creators' total earnings increase by nearly 500% in 2024.

Partnership with CCTV for Spring Festival Gala

Successful partnership with CCTV for the Spring Festival Gala, attracting over 230 million views and a 20% increase in DAUs compared to the previous year.

Lowlights

Challenging Macro Environment

Despite strong performance, challenges from the macro environment were acknowledged, impacting brand and native ad revenues.

Company Guidance

During the Bilibili Fourth Quarter and Fiscal Year 2024 Financial Results and Business Update Conference Call on February 20, 2025, the company provided detailed guidance on its financial and operational performance. Bilibili reported a total revenue of RMB 7.7 billion in Q4 and RMB 26.8 billion for the full year, marking year-over-year increases of 22% and 19%, respectively. The advertising sector showed robust growth, with revenues increasing by 24% in Q4 and 28% for the year. Mobile games revenue surged by 79% in Q4 and 40% for the year. The company achieved its first GAAP net profit of RMB 89 million in Q4, while the adjusted net profit reached RMB 452 million. The gross profit margin for Q4 was 36.1%, contributing to a 68% year-over-year growth in gross profit. Daily active users (DAUs) and monthly active users (MAUs) reached 103 million and 340 million, respectively. Users spent an average of 99 minutes daily on the platform. Bilibili's user base comprises nearly 70% of China's Gen Z population, with an average age of 25. The company emphasized its strategic focus on high-quality content, community engagement, and commercialization, while also exploring opportunities in AI to enhance its offerings.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.