Bilibili Misses Q1 Non-GAAP EPS by $0.03, but Revenue Beats Expectations

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Bilibili ($NASDAQ:BILI) released its first quarter earnings results after the market close on Wednesday, May 15th. Do you think this will affect Bilibili’s market and earnings in the long term? The short answer is that it is too soon to say definitively how this will affect Bilibili’s market and earnings in the long term. However, it is worth noting that the company’s strong revenue growth in the first quarter was driven by strong growth in its advertising and marketing revenues, as well as its live streaming revenues. These are both areas that should continue to grow at a strong pace in the second quarter and beyond. As such, it is possible that this miss will not have a significant impact on Bilibili’s market and earnings in the long term.

Market Reaction

The media coverage of Bilibili’s stock market performance has been mostly positive until now. However, on Thursday the stock opened at $25.3 and closed at the same price, plunging by 14.8% from the previous closing price of 29.7.

VI Analysis

The company’s fundamentals reflect its long-term potential. The following analysis of BILIBILI is made simple by the VI app. The VI Star Chart shows that BILIBILI is strong in assets and growth, but weak in profit and dividends. BILIBILI has an intermediate health score of 5/10, considering its cash flows and debt. It might be able to safely ride out any crisis without the risk of bankruptcy. BILIBILI is classified as a ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. At the right price, it is suitable for those who want to invest for high capital gains. High growth companies are deemed more volatile as they attempt to grow faster.

Summary

The stock market is a tricky place, and even the most seasoned of investors can make a misstep now and again. Bilibili, a Chinese video-streaming service, is a case in point. The company recently released its first-quarter earnings results, and while it beat expectations on revenue, it missed on non-GAAP earnings per share by $0.03. This miss was enough to spook investors, and the stock price fell by 14.8% the following day. Despite this recent stumble, we believe that Bilibili is still a good long-term investment. The company is growing quickly, and it has a solid foothold in the Chinese market. Additionally, its recent acquisition of Huya Live gives it a strong presence in the live-streaming space. We believe that Bilibili is positioned for continued growth, and we recommend that investors consider buying the stock on any weakness.