Bilibili Inc. (NASDAQ:BILI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Bilibili Inc. provides online entertainment services for the young generations in the People’s Republic of China. The US$7.8b market-cap company posted a loss in its most recent financial year of CN¥4.8b and a latest trailing-twelve-month loss of CN¥2.7b shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Bilibili will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for Bilibili

Bilibili is bordering on breakeven, according to the 36 American Interactive Media and Services analysts. They expect the company to post a final loss in 2024, before turning a profit of CN¥533m in 2025. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 82% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Bilibili's growth isn’t the focus of this broad overview, however, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 31% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Bilibili which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Bilibili, take a look at Bilibili's company page on Simply Wall St. We've also compiled a list of key factors you should look at:

1. Valuation: What is Bilibili worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Bilibili is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Bilibili’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.