Bilibili Inc. (NASDAQ:BILI) provides online entertainment services for the young generations in the People’s Republic of China. Its platform offers a range of content, including video services, mobile games, and value-added service, as well as ACG-related comic and audio content. The company’s video services include professional user generated videos, occupationally generated videos, and live broadcasting. Bilibili Inc. was founded in 2009 and is headquartered in Shanghai, the People’s Republic of China.
The Chinese gaming and digital media company’s revenue jumped 91% year over year to 3.84 billion yuan ($588.5 million), accelerating from its 74% growth in the third quarter and beating estimates by $28.8 million.
Its adjusted net loss deepened from 336.9 million yuan to 681.9 million yuan ($104.5 million), but its loss of $0.29 per ADS still topped expectations by a nickel. It expects its revenue to rise 60%-64% year over year in the first quarter, and analysts anticipate 55% revenue growth for the full year.
Listed below are some reasons why investors should own Bilibili stocks.
- Bilibili provides mobile games, streaming video, and other ACG (anime, comics, and gaming) content for China’s Gen Z users. It ended the fourth quarter with 202 million monthly active users. Its daily active users increased 42% to 54 million, and its number of monthly paying users more than doubled to 17.9 million.
- Bilibili’s four businesses (mobile gaming, value-added services, advertising, e-commerce) generated impressive growth in 2020. Its total revenue grew from 64% in 2019 to 77% in 2020
- Bilibili gross margin rose from 17..6% in 2019 to 23.7% in 2020.
- Bilibili’s stock is not that expensive since it trades at 15 times this year’s sales and 11 times next year’s sales. It is still cheaper than many other high-growth tech stocks.
For long term investors, Bilibili is one of the top Chinese tech stock to buy for 2021 and beyond because it generates impressive revenue growth at a reasonable price.