Bilibili BILI shares have surged 59.2% year to date (YTD), outperforming the Zacks Computer & Technology sector’s appreciation of 30.5% and the Zacks Internet - Services industry’s return of 31.1%.

BILI shares have also outperformed peers like Tencent TCEHY, iQIYI IQ and Huya HUYA in the same time frame.

While TCEHY shares have soared 36.3%, HUYA and IQ shares have lost 18% and 57.5%, respectively, YTD.

BILI’s performance can be attributed to strong mobile game revenues, driven by a diverse portfolio, growing creator monetization, and record-high user engagement and retention metrics.

BILI’s Earnings Estimates Trend Steady

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $1.07 billion, indicating year-over-year growth of 21.35%. The consensus mark for earnings is currently pegged at 19 cents per share, unchanged over the past 30 days.

The Zacks Consensus Estimate for 2024 revenues is pegged at $3.71 billion, indicating year-over-year growth of 16.89%. The consensus mark for earnings is currently pegged at 5 cents per share, unchanged over the past 30 days.

BILI shares have beaten the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average negative surprise being 4.25%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Robust Mobile Games Revenues Aid BILI’s Prospects

Bilibili’s top-line growth has been benefiting from strong mobile game revenues, which increased 83.8% year over year in the third quarter of 2024. BILI has a solid games portfolio, with titles like San Guo: Mou Ding Tian Xia (San Mou), which has become Bilibili’s fastest title to hit the RMB 1 billion ($138 million) game grossing mark.

BILI has also launched the Japanese RPG game, Jujutsu Kaisen Phantom Parade, Zhou Shu Hui Zhan and Ye Xingyun, which has been well received. The mobile game segment’s growth is also supported by the success of legacy games like Azur Lane and Fate/Grand Order.

BILI aims to expand its growing player base with new games and updates. The highly anticipated sequel, Girls’ Frontline 2: Exilium, is expected to drive significant revenue growth and solidify Bilibili’s position in the gaming market.

The increasing monetization of the creator ecosystem is also boosting top-line growth. Initiatives like fan charging and premium content drive income growth for creators, further encouraging content generation and user spending.

Exiting third-quarter 2024, the average daily time spent per user rose to 106 minutes with robust user retention and engagement. The average daily video views exceeded 5.7 billion, up 23% year over year.

What Should Investors Do With BILI Stock?

BILI benefits from strong mobile gaming revenues, robust user engagement and growing creator monetization, making it poised for solid growth prospects.

BILI currently has a Zacks Rank #2 (Buy) and Growth Score of B, a favorable combination that offers a strong investment opportunity, per the Zacks proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Tencent Holding Ltd. (TCEHY) : Free Stock Analysis Report

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