UBS Report: Bilibili's Q4 Revenue Surpasses Expectations with Strong Ad Growth

UBS has released a research report indicating that Bilibili's revenue for the fourth quarter of last year increased by 8% year-on-year, exceeding both the bank's and market expectations by 2%. According to Jin10, the company's advertising business showed remarkable performance, with annual growth accelerating to 27%, surpassing expectations by 3% to 4%. The gross profit margin expanded by 97 basis points to 37.4%, aligning with forecasts. The report highlights that Bilibili repurchased $14.7 million worth of shares in the fourth quarter, with a remaining quota of $68.8 million. UBS believes the company should complete the share buyback before the November deadline. The bank anticipates a positive initial market reaction to the strong fourth-quarter results, particularly due to the significant outperformance in advertising revenue, describing the results as high-quality. UBS maintains a "buy" rating for Bilibili's U.S. stock, with a target price of $40.5.