What happened

Bilibili (NASDAQ:BILI) stock soared 48.6% in May, according to data from S&P Global Market Intelligence. For some context, the S&P 500 returned 2.4% in the month.

Shares of the Chinese online entertainment company, which targets China's Generation Z (those born from 1990 to 2009), have continued to rise in June. The stock's total gain since the company's initial public offering in March at $11.50 per share was a whopping 60.2% through June 11. 

Screenshot of Bilibili's mobile app showing a smart phone with several images.

Image source: Bilibili.

So what

Bilibili's big May gain was largely driven by the company's release on May 23 of promising first-quarter 2018 financial results. In its first quarterly report since going public, revenue was up 105% year over year to $138.4 million. Mobile game revenue rose 97% to $109.8 million, live broadcasting and valued-added revenue increased 151% to $15.3 million, advertising revenue rose 144% to $11.2 million, and other revenue increased 65% to $2.1 million. Net loss and adjusted net loss both narrowed, coming in at $9.2 million and $0.5 million, respectively. 

Key user stats moved in the right direction, with average monthly active users in the quarter increasing 35% year over year to 77.5 million, average monthly paying users rising 190% to 2.5 million, and average monthly paying users for mobile games up by 79% to roughly 800,000. 

Now what 

It's early in the game for Bilibili as a publicly traded company, but its first quarterly report as a public company was encouraging, with revenue soaring and its loss narrowing. Moreover, the consensus among the three Wall Street analysts who follow the stock is that it will achieve profitability this year.

That said, Bilibili stock is quite volatile, making it best suited for investors with higher risk tolerances.

Beth McKenna has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.