Bilibili Inc ADR

BILI: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$99.00	Jbkx	Twjnpgvm

Bilibili Earnings: Revenue Acceleration and Cost Discipline Pave Way to Imminent Breakeven

Ivan Su

Mar 8, 2024

Bilibili's fourth-quarter earnings were above both our and LSEG consensus estimates, thanks largely to aggressive cost-cutting measures. Management's outlook for 2024 points to even deeper cost reductions than we anticipated. Concerns in the market regarding engagement metrics seem unfounded; we attribute the quarter-on-quarter volatility primarily to seasonality. We are maintaining our $34 fair value estimate for the no-moat company. This valuation is based on our confidence that Bilibili will get to a 20% operating margin in the long term, primarily through operating leverage. Trading at just around $10 now, the share are very undervalued, in our view.

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