What happened
Shares of the Chinese video content company Bilibili (BILI 4.96%) traded nearly 14% lower as of 10:48 a.m. ET today after the company reported earnings results for the second quarter of the year.
So what
Bilibili reported a net loss of $0.73 per American depositary share on total net revenue of nearly $733 million. Earnings missed analyst estimates while revenue beat.
"Confronting the immense challenges of the macro-environment and COVID-19 lockdowns in the second quarter, we are pleased to have continued to grow our high-quality user base and control our expenses," Bilibili CEO Rui Chen said in a statement.
Chen added, "We believe the largest impact of the pandemic is behind us, and we are poised to regain our growth momentum and improve our margins in the second half of 2022."
Bilibili grew monthly active users 29% year over year to 305.7 million, average daily active users by 33% to 83.5 million, and average monthly paying users by 32% to 27.5 million.
Bililbili is guiding for revenue to come in between $800 million and $830 million for the third quarter of the year.
Now what
Investors seemed to be surprised by Bilibili's bigger-than-expected earnings miss today. But management believes the worst impact of COVID-19 is now in the past and the company is guiding for revenue to come in more than 9% higher than Q2 at the low end of its range for the current quarter, so the market's reaction seems a bit harsh today.
