Chinese internet company Bilibili reported first-quarter results early Thursday that exceeded revenue estimates but fell short on earnings, as Covid-19 lockdowns created new challenges. BILI stock plunged.
The company reported an adjusted loss of 66 cents a share on revenue of $797.3 million. Analysts expected Bilibili to report a loss of 62 cents on revenue of $757 million, according to Refinitiv. The wider-than-expected loss was partly the result of an unexpected resurgence in Covid-19 and lockdowns.
"In the face of the unexpected Covid-19 resurgence and lockdowns, the first quarter presented new challenges impacting businesses nationwide, particularly in Shanghai, where our headquarters is based," Chief Executive Rui Chen said in written remarks with the BILI earnings release.
Revenue jumped 30% from the year-ago period. The number of daily active users climbed 32%.
BILI Stock: Cost Containment Measures To Follow
Chief Financial Officer Sam Fan added in written remarks, "While selectively investing in R&D that helps us improve our commercialization capabilities, we also progressed our expense control initiatives, resulting in a quarter-over-quarter decrease in sales and marketing expenses. More cost containment efforts will follow in the coming quarters."
BILI stock plunged 14.8%, closing at 25.32 on the stock market today.
For the second quarter, Bilibili expects net revenues to be between $724.8 million and $739.7 million. That's above analyst estimates of $711.6 million.
China stocks in the internet sector, led by Alibaba and Tencent Holdings had their best day Wednesday in nearly three months amid signs that heavy-handed regulations are easing.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
