How did BILI's Q4 2024 earnings surprise investors?

Bilibili Inc. (BILI) surprised investors with its Q4 2024 earnings report, showcasing significant improvements in financial performance and marking notable milestones. Here's a detailed analysis:

1. **First GAAP Net Profit Achieved**: Bilibili Inc. reported its first GAAP net profit in the fourth quarter of 2024, marking a significant milestone in its financial performance. This achievement reflects improved profitability and operational efficiency.
2. **Revenue Growth**: The company's total revenues for the fourth quarter were RMB7.7 billion, representing a 22% year-over-year increase. This growth was driven by strong performance in advertising and mobile games. Advertising revenues increased by 24% year-over-year in Q4 and 28% for the full year, reaching RMB2.4 billion. Mobile games revenue saw a substantial boost, growing by 79% year-over-year to RMB1.8 billion in Q4 and 40% for the full year.

|code|Ticker|Name|Date|Percentage Change|Percentage Change YoY|market_code|
|---|---|---|---|---|---|---|
|BILI|BILI.O|Bilibili|20240102|-4.6015||185|
|BILI|BILI.O|Bilibili|20240103|3.9621|-71.6427738135284|185|
|BILI|BILI.O|Bilibili|20240104|-3.1483||185|
|BILI|BILI.O|Bilibili|20240105|-4.876||185|
|BILI|BILI.O|Bilibili|20240108|0|100|185|
|BILI|BILI.O|Bilibili|20240109|-2.4281||185|
|BILI|BILI.O|Bilibili|20240110|-0.6452|-134.83989416275176|185|
|BILI|BILI.O|Bilibili|20240111|1.1132|154.66509526615596|185|
|BILI|BILI.O|Bilibili|20240112|-2.2936|-137.65412910579215|185|
|BILI|BILI.O|Bilibili|20240116|-5.7277|-218.460838452152|185|

3. **Profit Margin Improvements**: Bilibili's gross profit margin improved significantly, reaching 36.1% in Q4, up from 26.1% in the same period last year. This improvement contributed to a 68% year-over-year growth in gross profit. The company's net profit for Q4 was RMB89 million, and adjusted net profit stood at RMB452 million.
4. **Cash Flow Strength**: Bilibili reported a robust operating cash flow of RMB1.4 billion in Q4. The company's free cash flow for the full year was RMB4.3 billion, indicating strong liquidity and financial health.
5. **Technical Milestone**: Bilibili's ADR reached an important technical milestone, with its Relative Strength (RS) Rating improving to 91, up from 88 the day before. This exclusive rating from Investor's Business Daily measures share price performance and suggests that the stock is currently in a strong technical position.

Overall, Bilibili's Q4 2024 earnings report showcased robust growth in revenue, significant improvements in profit margins, and the achievement of GAAP net profitability. These factors, combined with positive cash flow and technical indicators, likely contributed to investor optimism and confidence in the company's future prospects.