Bilibili Prepares for Q3 2024 Earnings Release Amid Strong Revenue Growth
Bilibili (BILI) will announce its third-quarter 2024 results on November 14. The company anticipates breakeven non-GAAP earnings for the period.
Currently, the Zacks Consensus Estimate for this quarter’s earnings stands at 10 cents per share, a modest increase of one cent over the past month. Revenue estimates are set at $1.01 billion, indicating a robust growth rate of 27.26% compared to the same quarter last year.
Bilibili has a mixed track record in recent quarters, beating the Zacks Consensus Estimate in two of the last four quarters while missing in the other two. On average, the company has posted a negative earnings surprise of 4.46%.
Bilibili Inc. Sponsored ADR Price and EPS Surprise
Bilibili Inc. Sponsored ADR price-eps-surprise | Bilibili Inc. Sponsored ADR Quote
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Let’s delve into the factors influencing BILI leading up to this report:
Key Drivers Impacting Bilibili’s Performance
Bilibili’s revenue has seen significant growth, particularly in advertising, which rose by 30% year-over-year in Q2 2024. Enhancements in ad placements and the introduction of new video-style ads have improved overall ad efficiency.
The company’s strategic focus on lucrative ad sectors such as mobile games, e-commerce, artificial intelligence, and education is expected to bolster this quarter’s results.
Game revenues have also increased by 13% from the prior year in Q2. The success of titles like San Guo: Mou Ding Tian Xia, which rapidly grossed RMB 1 billion (approximately $138 million), has contributed to this upward trend. The growth has likely also been aided by enduring titles like Azur Lane and Fate/Grand Order.
Increased monetization within the creator ecosystem suggests a favorable impact on revenue growth in Q3. New initiatives, such as fan charging and premium content, incentivize creators and amplify user spending.
Value-added services (VAS) also showed an 11% year-over-year rise in Q2 2024. Expansions into live broadcasting and Professional User Generated Video (PUGV) content are expected to contribute positively to VAS growth in the upcoming report.
Average daily video views for Bilibili surged by 18% year-over-year by the end of Q2 2024, with users spending an average of 99 minutes a day on the platform. Premium memberships expanded to 22.3 million, showcasing a strong and loyal user base. Such rising engagement is anticipated to drive revenue across advertising, games, and VAS in Q3.
Earnings Predictions
According to the Zacks model, a combination of a positive Earnings ESP and a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) enhances the probability of an earnings beat. Bilibili’s situation aligns perfectly with this model.
Bilibili holds an Earnings ESP of +10.00% and a Zacks Rank of #2. Investors hoping to track potential stock movements can utilize our Earnings ESP Filter for insights.
Consider These Other Stocks
Investors should also look at these companies, which have similar potential to outperform their earnings projections:
NVIDIA (NVDA) has an Earnings ESP of +2.30% and a Zacks Rank of #2. With a year-to-date return of 193.4%, NVDA is scheduled to announce its Q3 2024 results on November 20.
Best Buy (BBY) shows an Earnings ESP of +0.06% and a Zacks Rank of #2. Having returned 14% year to date, BBY will report its third-quarter fiscal 2025 results on November 26.
GDS Holdings (GDS) boasts an Earnings ESP of +4.76% with a Zacks Rank of #2. GDS shares have climbed 160.9% year to date and are set to announce Q3 2024 results on November 19.
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Bilibili Inc. Sponsored ADR (BILI) : Free Stock Analysis Report
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