Shares of Chinese video-sharing platform Bilibili Inc. rose sharply in Hong Kong after the company reported a narrower fourth-quarter loss.
Bilibili’s shares jumped as much as 10% to 168.50 Hong Kong dollars (US$21.47) on Friday, and were last 7.9% higher. The company’s American depositary receipts closed 9.7% higher at $21.57 overnight.
The company said Thursday that its fourth-quarter net loss narrowed to US$217.1 million, which it attributed to solid growth in daily active users and better gross margins.
Bilibili also guided for net revenues to rise 10%-19% to range between 24 billion yuan (US$3.47 billion) and CNY26 billion in 2023.
The platform’s narrower net loss beat market estimates, Nomura analysts Jialong Shi and Thomas Shen said in a note.
The Nomura analysts expect Bilibili’s net loss to continue to narrow in 2023 before breaking even in 2024, as the company works on cutting operating expenses and improving platform monetization.