Shares of Bilibili (BILI 5.58%) are surging today thanks to a great third-quarter earnings report. As of 11:30 a.m. EST, the China-based video-sharing company's stock was trading 19.4% higher.
Bilibili's third-quarter net revenue rose 83% year over year, landing at $475 million. The company reported an adjusted net loss of $0.41 per American depositary share (ADS), up from $0.15 per share in the year-ago period. The Street consensus pointed to a net loss of $0.37 per ADS on sales near $466 million. Investors shrugged off the small bottom-line miss to focus on exceptional revenue growth instead.
The average number of active users rose 54% to 197 million and Bilibili saw 184 million active mobile users, a 61% year-over-year increase. The company nearly doubled its monthly paying users from 7.9 million to 15 million accounts. Management expects this skyrocketing growth to continue for the foreseeable future since Bilibili can tap into a very large demographic of potential users.
"While Bilibili has become a household name among young generations, there are large groups of potential users who are just beginning to learn about us," CFO Xin Fan said on the earnings call. "During the third quarter, we launched a series of online and offline campaigns to promote our brand proposition to an even broader audience across different demographics."
It's no surprise to see investors embracing Bilibili's strong revenue growth today. The stock has now gained 157% year to date and tripled over the last 52 weeks.