Bilibili Inc. (NASDAQ:BILI) In an Acquisition Spree Following Strong Q3 2018 Earnings

Amidst regulatory hurdles in the vast Chinese Technology space, Bilibili Inc (NASDAQ:BILI) manage to post better-than-expected third quarter earnings and is now focused in enriching its offerings.

Acquisition of NetEase’s affiliates assets

The giant Chinese online entertainment platform targeting millennials has inked a definitive agreement to acquire significant assets belonging to NetEase Inc affiliates. NetEase is among the leading online comic platforms with interest in PC and mobile gaming. The company has partnered with notable players in the industry to produce exciting content for its users.

Following a successful third quarter, Bilibili, Inc is looking to augment its offerings thus prompting the acquisition. Through the agreement, Bilibili, Inc will assume ownership of NetEase Comic’s proprietary rights to a variety of popular storylines from renowned publishers and comic artists.

Justifying the acquisition Ms. Carly Lee, Chief operating officer at Bilibili, Inc stated that, “NetEase Comics’ extensive comic resources and reputation for a great user experience make it an exciting addition to our newly launched Bilibili comic business.” Ms. Lee added that the new additions add to the company’s existing library of premium licensed ACG content further stamping the company’s position as the industry leader.

Remarkable Q3 2018 Financial report

Bilibili, Inc is in a quest to live up to its remarkable third quarter results where it reported revenue growth of 48% representing $157.1 million. The company further posted a net loss of $35.8 million with a net loss margin of 23% compared to a 2% net loss margin reported for the same period last year. The loss was a natural precedent of the substantial investments the company undertook during the third quarter period.

BilibiliInc’s platforms witnessed an influx of Average monthly active users (MAUs) of approximately 92.7 million and mobile MAUs of 80 million-25%, and 33% rises respectively, from those of the same period last year.

The numbers continue to fascinate as the average monthly paying users hit a whopping 3.5 million representing a 202% rise from last year’s results for the same period. BilibiliInc’s CEO and Chairman of the Board, Mr.Rui Chen credits the outstanding figures to the company’s library of engaging content that is driving traffic to its platforms. The Chairman adds that the company has relentlessly upgraded its offerings through the PUGV ecosystem and multiple strategic cooperation agreements.

Bilibili Inc, stock rises

Following the solid Q3 2018 financial results, BilibiliInc’s stock surged nearly 15.6% in November. Besides the good numbers, the surge in Bilibili’s stock prices is partly credited to strategic partnerships the company secured coupled with favorableanalysts’ ratings.

Bilibili partnered with Japanese video Game Publisher- GREE enabling the company to develop new games and strategically expand to theJapanese market. The deal came in weeks prior to the announcement of the third quarter results.

Analysts covering Bilibili Inc’s stock including Morgan Stanley and Alex Poon gave the stock an “equal weight” status with a target price of $14 from the previous $11. However, for the just concluded trading session, the company’s stock closed at $14.72 representing a 3.08% gain. The stock gained 61.94% from its 52-week all time low. The session witnessed over 3.05 million Bilibili shares changing hands scoring the stock a 0.70 relative volume.


Bilibili Inc completed the trading session with a market valuation of $3.91 billion, a shares rating of 1.7 and an Earning Per Share (EPS) of $-0.29.

Although BilibiliInc’s shares have so far lost ground from the November all-time high, the shares continue to appeal to investors.

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