Bilibili’s losses narrow on improving efficiency

The Latest: Video site Bilibili Inc. (9626.HK, BILI.US) on Thursday reported its revenue rose 3% year-on-year to 6.3 billion yuan ($876 million) in last year’s fourth quarter, while its loss narrowed 13% to 1.3 billion yuan.

Looking Up: The company’s average daily active users exceeded 100 million in the fourth quarter, up 8% year-on-year. Those users’ average daily usage time remained constant at 95 minutes.

Take Note: The company’s full-year loss narrowed significantly by 36% to 4.8 billion yuan, with its adjusted loss narrowing 49% to 3.4 billion yuan.

Digging Deeper: Founded in 2009, Bilibili is a video-sharing website. Despite consistently losing money since its 2018 listing on the Nasdaq, it has been narrowing those losses lately on improving efficiency. Its advertising revenue in the fourth quarter and full year increased by 28% and 27% year-on-year, respectively; its value-added services revenue rose by 22% and 14%. Its fourth-quarter gross profit margin of 26.1% represented a nearly 6 percentage point improvement year-on-year, marking the sixth consecutive quarter of increase.

Market Reaction: Bilibili’s stock opened lower on Friday and closed down 2% at HK$83.9 by the midday break, near a 52-week low.

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