Bilibili ( NASDAQ: BILI ) sank 15.3% lower on Nasdaq early Thursday after its second-quarter earnings , which beat revenue expectations but saw net loss nearly double and offered light guidance for sales.
The company grew its user base and controlled costs amid "the immense challenges of the macro environment and COVID-19 lockdowns" in the second quarter, CEO/Chairman Rui Chen said.
Revenues grew 9% to 4.9B yuan (about $732.9M), as strong gains in value-added services more than mitigated a double-digit drop in mobile game revenues.
Gross profit fell to 738.3M yuan (about $110.2M) from a prior-year 989M yuan, though - and with increases in general/administrative and R&D costs (of 44% and 68% respectively), operating loss swelled to 2.19B yuan (about $327M) from a prior-year 1.52B-yuan loss.
Net loss widened to 2.01B yuan from a prior-year 1.12B yuan; adjusted net loss swelled to 1.97B yuan from a year-ago 1.32B yuan.
Revenue by segment: Mobile games, 1.046B yuan (down 15.2%); Value-added services, 2.103B yuan (up 29%); Advertising, 1.158B yuan (up 10%); E-commerce and others, 601M yuan (up 4%).
User growth stayed strong: Average monthly active users rose 29% to 305.7M, and average daily active users jumped 33% to 83.5M. Average monthly paying users rose 32% to 27.5M.
For Q3, though, it's guiding to net revenues of 5.6B-5.8B yuan vs. expectations closer to 6B yuan.
Bilibili stock ( BILI ) surged through the COVID-19 pandemic (going from around $25 per share to over $150 per share), but before Thursday's drop to the $20 mark it was down 78% over the past year.
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Bilibili tumbles 15% as loss widens, outlook disappoints