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Bilibili’s Better-Than-Expected Quarter

Bilibili Inc. (NASDAQ:BILI) is a Chinese based company known for their online site that serves as a hub for anime and related comic fans with over 85 million active users monthly.  In trend with the positive earnings reports we have seen across the tech industry this quarter, Bilibili reported an expectation-beating second quarter, proving there may be some steam left in their engines.  BILI shares are currently up 14.22% on the day trading at $13.17 a share.

One major factor that has led to some negative price action on BILI is the People’s Republic of China’s nationwide halt and inspection of major video hosting platforms such as Bilibili’s website.  The inspection and subsequent halt of app store sales was issues on July 26th and was set for 30-days’ time.  The news sent BILI from $13.20 a share down to lows of $9.09 a share, or a 31% decrease.

Over the weekend, the People’s Republic of China ended their inspection with no new sanctions on Bilibili’s anime-based hub.  Subsequently, the app was placed back for sale on smartphone app stores nationwide with no new restrictions.  Last Friday BILI shares were closed at $10.91 a share and then opened back up this Monday trading almost 5% higher at $11.45 a share.

In addition to the positive news of their app being reinstated on smartphone app stores, Bilibili also reported a strong financial second quarter to the 2018 year.

Bilibili’s platform has continued to grow in terms of audience, now sitting at 85 million average monthly users during the second quarter.  This is up 30% year-over-year, showing proof of concept in the platform.  What is interesting is that revenue growth is exceeding their audience growth, which may show they are able to milk their users for more over time.

Revenues for the second quarter beat expectation and rose to $155.1 million which is a 76% increase year-over-year.  Additionally, their mobile sector has grown 61% in terms of revenue bringing in $119.5 million to the company.

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