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Bilibili Shares Plunge 13% on Bigger-Than-Expected Q1 Loss -Breaking

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© Reuters Bilibili (BILI) Shares Plunge 13% on Bigger-than-expected Q1 Loss

By Senad Karaahmetovic

Premarket trading on Thursday saw Bilibili shares drop by over 13% after it reported an unexpectedly large loss per share in the first quarter.

Live-streaming companies reported an adjusted loss of 4.20 Yuan per share in Q1. This compares to the loss of 1.87 Yuan per share during the previous year. Analysts were anticipating a loss of 3.93 Yuan per share.

The net revenue was 5.05 billion Yuan. This is a 30% increase YoY, and close to the consensus estimate of 5.06 trillion yuan. Up 31%, the company had 293.6 million active users per month during that period.

Bilibili projects net revenue of between 4.85 billion and 4.95 trillion yuan in the second quarter. That’s a significant increase from the 4.85 billion estimate.

“We are determined to advance our commercialization capabilities, which include growing our paying users and gaining market share in the advertising sector,” said Bilibili CEO Rui Chen.

The CEO also noted that this year the “cost control and expense reduction will be paramount to helping us weather the macro headwinds.”

Alex Poon, a Morgan Stanley analyst noted that Q1’s loss margin had increased. The analyst noted that Q2 revenue guidance was “better than feared but we think games and ads (higher margin businesses) would be weak.”

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