Bilibili (BILI US) has reported 2Q22 earnings that are expected to be in line with expectations, with a YoY growth of 9% and a non-GAAP net loss of RMB 2 billion. The company's 2Q22 revenue is expected to be lower than previous guidance, with a YoY growth of 13% in games, 6% in advertising, 30% in VAS, and 0% in other segments. The company's operating expenses are expected to remain flat in 2Q22. The company's GPM and operating expenses are expected to improve sequentially in 2H22E, with a GPM of 17% and an operating expense ratio of 20% in 3Q and 4Q22E. The company's stock is expected to be a buy with a target price of RMB 40 ($5.81) based on a P/S multiple of 3.5x FY23E.
