Bilibili Inc. (NASDAQ:BILI): Is Breakeven Near?

With the business potentially at an important milestone, we thought we'd take a closer look at Bilibili Inc.'s (NASDAQ:BILI) future prospects. Bilibili Inc. provides online entertainment services for the young generations in the People’s Republic of China. The US$8.0b market-cap company’s loss lessened since it announced a CN¥4.8b loss in the full financial year, compared to the latest trailing-twelve-month loss of CN¥2.7b, as it approaches 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.

View our latest analysis for Bilibili

Consensus from 36 of the American Interactive Media and Services analysts is that Bilibili is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of CN¥533m in 2025. So, the company is predicted to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 82% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Bilibili's upcoming projects, though, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that The company has managed its capital judiciously, 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 put together a list of important factors you should further examine:

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.