Preview | What to look for in Bilibili's quarterly report: Will the net loss continue to narrow?

Before the U.S. stock market opens today (March 7th), Bilibili will announce its fourth-quarter earnings report, and the management will hold an earnings conference call at 8 p.m. Hong Kong time. In the previous quarter, Bilibili significantly narrowed its net loss year-on-year and exceeded 100 million daily active users. Will this momentum continue? According to CICC, Bilibili still has potential for advertising growth, with improvements in gross profit margin and a consistent trend of narrowing losses. Specifically for the fourth quarter expectations, the bank predicts that Bilibili is expected to: increase traffic by 10%, achieve a 3% year-on-year revenue growth, in line with market expectations; the gross profit margin is expected to expand by 6 percentage points year-on-year to 26%, with an adjusted net loss attributable to shareholders of 580 million yuan, continuing the trend of narrowing losses on a quarterly basis. In detail, advertising and live streaming are expected to maintain robust growth: Value-added service (VAS) revenue is expected to increase by 18% year-on-year, driven by live streaming; 2) Advertising revenue is expected to increase by 25% year-on-year, driven by major e-commerce promotions, showing accelerated growth compared to the third quarter. Revenue in 2024 is expected to maintain robust growth driven by product upgrades and e-commerce. Additionally, the bank maintains its expectations for Bilibili's mobile game revenue for the quarter, expecting a 6% year-on-year decrease. The focus is on the upcoming launch progress of the independently operated new games "Flaming Sky" and "Three Kingdoms: Strategy for the World," which have already obtained licenses.