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Why Bilibili Shares Jumped 16% This Morning

By Anders Bylund - Updated Feb 25, 2021 at 12:11PM

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The video sharing expert's fourth-quarter results absolutely crushed Wall Street's consensus estimates. Again.

What happened

Shares of Bilibili (BILI 1.48%) rose as much as 16.2% on Thursday morning, driven by an impressive earnings report. The China-based video sharing company's stock fell back to a 10.3% gain as of 11:30 a.m. EST.

So what

Bilibili's fourth-quarter sales more than doubled, going from $288 million to $589 million. Adjusted net losses landed at $0.29 per diluted share, worsening from $0.15 per share in the year-ago quarter. Your average analyst would have settled for a deeper net loss of $0.33 per share on revenue near $551 million.

Two young women smile while looking at a shared smartphone.

Image source: Getty Images.

Now what

"We are in the right place at the right time to capture the opportunity and increase our leadership in China's large video-based market," CEO Rui Chen said.

The company's number of monthly paid users rose 103% to 18 million, lifting the portion of paid customers to total customers from 6.8% to 8.9%. Simply put, Bilibili's monetization is growing stronger and the company is boosting its customer count at the same time. It's no surprise to see share prices on the rise after a strong report like this one.

The stock has now gained 376% in 52 weeks and trades at a lofty 27 times trailing sales. Bilibili continues to serve as a textbook example of high-growth investing.

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