Chinese video streaming site Bilibili on Thursday posted better-than-expected financial results for the quarter ending in June, but the company’s shares dropped as regulatory concerns linger.

Why it matters: Bilibili’s share drop reflects investors’ concerns about the loss-making company amid China’s regulatory crackdowns on the tech sector. 

READ MORE: CHINA VOICES | ‘Bilibili is becoming Chinese Youtube’

Details: Bilibili’s revenue jumped 72% year-on-year to RMB 4.49 billion ($696.2 million) in the second quarter of this year, topping the high end of the forecasts (RMB 4.25 billion to RMB 4.35 billion) compiled by Yahoo Finance. The company’s share dropped 6% on Thursday on the Nasdaq.

  • Bilibili’s stock hit a low in 2021 earlier this week as China’s tech crackdown continued to trigger sell-offs affecting a wide range of listed Chinese tech majors, including Alibaba and Tencent.
  • Bilibili keeps attracting more users who are spending more time on the platform. The firm’s monthly active users jumped 38% year on year to 237 million in the second quarter. Users spend, on average, 81 minutes on the platform every day, a record high.
  • The company’s net loss widened 96% from RMB 570.9 million to RMB 1.12 billion due to rising marketing, administration, and research and development spending.
  • Sam Fan, Bilibili’s chief financial officer, attributed the company’s revenue growth to the rapid rise of its advertising business, which grew more than 200% since the same period in 2020 and represented 23% of Bilibili’s total net revenues, according to the earnings report. 
  • The company expects its net revenues for the third quarter of 2021 to be between RMB 5.1 billion and RMB 5.2 billion.
  • CEO Chen Rui said he feels “optimistic” about China’s regulatory moves in the video content and gaming content industry. “We believe our industry is experiencing fast growth, certain regulation is actually beneficial for this industry’s long-term and healthy growth,” Chen said during a Thursday earnings call. 

Context: Bilibili hit a record of more than 65 million daily active users in early August, making it China’s third-largest long-form video site, following iQiyi and Tencent Video.

  • Bilibili started in 2012 as a content hub for Chinese fans of animation, comics, and games. The company has in recent years evolved into a mainstream video site offering a variety of content. 

Emma Lee (Li Xin) was TechNode's e-commerce and new retail reporter until June 2022, when she moved to Sixth Tone to cover technology and consumption. Get in touch with her via or Twitter.