Jyoti Nivas Pre University College Tesla’s Stock Pitch Business segments Summary with segment financials Presentation do a concise but comprehensive Stock

Jyoti Nivas Pre University College Tesla’s Stock Pitch Business segments Summary with segment financials Presentation do a concise but comprehensive Stock Pitch in PowerPoint.The company assigned : Tesla Inc (NASDAQ: TSLA)Company Overview First page starts with general overview of the company including business overview and business segments summary. Highlights from earnings summary, growth driver or valuation perspective Potential future risks Shareholder Structure Business segments Summary with segment financials Industry Overview Competitor Analysis Financial Analysis Valuation Risks Bilibili (BILI US)
Presentation to the Board of Directors
April 10, 2020
1
Company Overview
Business
Overview
An iconic brand of online entertainment for young generation in China,
headquartered in Shanghai, China. Bilibili started as a content
community inspired by anime, comics and games, or ACG, and have
evolved into a full-spectrum online entertainment world.
Business
Segments
•
•
•
•
Highlights
• Starting as an ACG vertical content community, Bilibili aimed to
expand their user base beyond entire generation Z, a certain group
of user. To reach an estimated MAU cap of 300m, we believed
geographic expansion holding more weight than capturing more age
groups.
• User growth would be the primary goal for next 3-5 years, preparing
for a better constructed monetization model in the future.
• Revenue growth engine switched to live broadcasting and VAS
service given rapid growth of paying users and ARPU, but costs of
acquiring new users would be still high in the near future.
Risks
Share Price History
Mobile Games
Advertising Services
Live Broadcasting and VAS
E-Commerce and Others
• Tightening policy on entertainment contents
• User growth not meet expectation
• Content development costs overweight profits
Financial Indicators
Measure of Performance
EBITDA Margin %
n.a
(most recent fiscal year)
-19.02%
(most recent fiscal year)
Market Cap
6,070
(USD mm)
EV/EBITDA
-16.62
(most recent fiscal year)
8.95
(most recent fiscal year)
$ 27.71
2020-04-28
Net Margin %
Valuation
P/S
Stock Price
2
Shareholder Structure
Shareholders
Holding > 5%
3
Mobile Games
•
Users access the mobile games on the platform and log into and play with their Bilibili accounts. They purchase in-game virtual items that enhance their
game-playing experience.
•
Life cycle of head products are long lasting, such as exclusively distributed mobile games, FOG and Azur Lane. More games will go public after game
version number reopened.
•
Revenue from mobile games always make up more than 65% until 2018Q3.
4
Advertising Services
•
Revenue from advertising service has a huge increase, especially in feed advertisement and performance-based advertisement, reaching a record high of
290 million Yuan in 2019Q4.
•
With its own strength, Bilibili, on behalf of brand advertisers, collaborated with content creators to promote their products.
5
Live Broadcasting and VAS
•
We offer various virtual items for sale on our live broadcasting program. Users can also purchase virtual items on other parts of our platform, and send the
virtual items to their favorite content creators to show appreciation and provide them with monetary rewards.
•
Besides esports and entertainment livestreaming, company tried to step into more areas and open up new monetization channels.
•
Both quarterly paying users and ARPU have been boost up in 2019, reached 7,540 thousands of people and 70.2 Yuan respectively.
6
E-Commerce and Others
•
Company offers ACG-related merchandise and offline events tickets on our platform, and generate revenues from sales of these products.
•
Entering into a business collaboration agreement with Taobao in content-driven e-commerce and commercialization of company’s IP assets prepared a
perfect closed-loop supply chains in the future.
•
Revenues (in RMB) from e-commerce 2015-2019 are 20 million, 41 million (YoY +105.3%), 75 million (YoY +84.0%), 143 million (YoY +92.3%), and 722
million (YoY +401%) respectively.
7
Industry Overview
•
The number of clicks of core ACG material has been increased dramatically as the expansion of user base, but view rate has been gradually decreased to
less than 30% by December 31, 2019.
•
Consumers of generation Z tend to explore more other entertainment contents and are willing to pay for them.
•
More diversified user base and consumer tastes moved Bilibili to a new stage operating 14 categories and 78 subcategories of contents.
•
Total available market has hit 100 million and gone far beyond, in expectation of 146,200 million Yuan by December 31, 2019, making the company be able
to formally enter the market of mid length video and compete with other major apps.
8
Competitor Analysis
•
Competitors: Douyin, Kuaishou
•
Competitive Advantage
•
Subscribers maintain a fast growing rate on all types of contents.
•
Engagement rate between subscribers and content creators significantly higher than the rate of Douyin and rate of Kuaishou.
9
Financial Analysis
($ RMB in Millions)
10
Valuation
11
Catalysts / Risks
Risk of policy tightening regarding to entertainment content, including uploaded
content being reviewed more strictly.
#1
Regulatory Risk
#2
Market Risk
#3
Operational Risk
Risk of monetization rate not being improved.
#4
Operational Risk
Risk of lose the competition to Douyin and Kuaishou of recruiting more loyal
content creators
#5
Financial Risk
Risk of user growth rate of generation Z not meet expectation.
Risk of content costs rising too fast resulting from displaying more long-videos
greater than 30min.
12
News
•
On April 9, 2020, Bilibili announced that Sony Corporation of America (“SCA”), a wholly owned subsidiary of Sony Corporation (“Sony”) and
a global leader providing entertainment services with solid foundation of technology, has entered into a definitive agreement
with Bilibili such that SCA will invest an aggregate amount of approximately US$400 million in cash in Bilibili at the closing of the
transaction.
•
Transaction is expected to close on or before April 10, 2020, subject to customary closing conditions.
•
Upon the closing, SCA will beneficially own approximately 4.98% of Bilibili’s total issued shares.
•
Enter into a business collaboration agreement to pursue collaboration opportunities within the area of entertainment business in the
Chinese market, including anime and mobile games.
13
Bilibili (BILI US)
Presentation to the Board of Directors
April 10, 2020
1
Company Overview
Business
Overview
An iconic brand of online entertainment for young generation in China,
headquartered in Shanghai, China. Bilibili started as a content
community inspired by anime, comics and games, or ACG, and have
evolved into a full-spectrum online entertainment world.
Business
Segments
•
•
•
•
Highlights
• Starting as an ACG vertical content community, Bilibili aimed to
expand their user base beyond entire generation Z, a certain group
of user. To reach an estimated MAU cap of 300m, we believed
geographic expansion holding more weight than capturing more age
groups.
• User growth would be the primary goal for next 3-5 years, preparing
for a better constructed monetization model in the future.
• Revenue growth engine switched to live broadcasting and VAS
service given rapid growth of paying users and ARPU, but costs of
acquiring new users would be still high in the near future.
Risks
Share Price History
Mobile Games
Advertising Services
Live Broadcasting and VAS
E-Commerce and Others
• Tightening policy on entertainment contents
• User growth not meet expectation
• Content development costs overweight profits
Financial Indicators
Measure of Performance
EBITDA Margin %
n.a
(most recent fiscal year)
-19.02%
(most recent fiscal year)
Market Cap
6,070
(USD mm)
EV/EBITDA
-16.62
(most recent fiscal year)
8.95
(most recent fiscal year)
$ 27.71
2020-04-28
Net Margin %
Valuation
P/S
Stock Price
2
Shareholder Structure
Shareholders
Holding > 5%
3
Mobile Games
•
Users access the mobile games on the platform and log into and play with their Bilibili accounts. They purchase in-game virtual items that enhance their
game-playing experience.
•
Life cycle of head products are long lasting, such as exclusively distributed mobile games, FOG and Azur Lane. More games will go public after game
version number reopened.
•
Revenue from mobile games always make up more than 65% until 2018Q3.
4
Advertising Services
•
Revenue from advertising service has a huge increase, especially in feed advertisement and performance-based advertisement, reaching a record high of
290 million Yuan in 2019Q4.
•
With its own strength, Bilibili, on behalf of brand advertisers, collaborated with content creators to promote their products.
5
Live Broadcasting and VAS
•
We offer various virtual items for sale on our live broadcasting program. Users can also purchase virtual items on other parts of our platform, and send the
virtual items to their favorite content creators to show appreciation and provide them with monetary rewards.
•
Besides esports and entertainment livestreaming, company tried to step into more areas and open up new monetization channels.
•
Both quarterly paying users and ARPU have been boost up in 2019, reached 7,540 thousands of people and 70.2 Yuan respectively.
6
E-Commerce and Others
•
Company offers ACG-related merchandise and offline events tickets on our platform, and generate revenues from sales of these products.
•
Entering into a business collaboration agreement with Taobao in content-driven e-commerce and commercialization of company’s IP assets prepared a
perfect closed-loop supply chains in the future.
•
Revenues (in RMB) from e-commerce 2015-2019 are 20 million, 41 million (YoY +105.3%), 75 million (YoY +84.0%), 143 million (YoY +92.3%), and 722
million (YoY +401%) respectively.
7
Industry Overview
•
The number of clicks of core ACG material has been increased dramatically as the expansion of user base, but view rate has been gradually decreased to
less than 30% by December 31, 2019.
•
Consumers of generation Z tend to explore more other entertainment contents and are willing to pay for them.
•
More diversified user base and consumer tastes moved Bilibili to a new stage operating 14 categories and 78 subcategories of contents.
•
Total available market has hit 100 million and gone far beyond, in expectation of 146,200 million Yuan by December 31, 2019, making the company be able
to formally enter the market of mid length video and compete with other major apps.
8
Competitor Analysis
•
Competitors: Douyin, Kuaishou
•
Competitive Advantage
•
Subscribers maintain a fast growing rate on all types of contents.
•
Engagement rate between subscribers and content creators significantly higher than the rate of Douyin and rate of Kuaishou.
9
Financial Analysis
($ RMB in Millions)
10
Valuation
11
Catalysts / Risks
Risk of policy tightening regarding to entertainment content, including uploaded
content being reviewed more strictly.
#1
Regulatory Risk
#2
Market Risk
#3
Operational Risk
Risk of monetization rate not being improved.

#4
Operational Risk
Risk of lose the competition to Douyin and Kuaishou of recruiting more loyal
content creators
#5
Financial Risk
Risk of user growth rate of generation Z not meet expectation.
Risk of content costs rising too fast resulting from displaying more long-videos
greater than 30min.
12
News
•
On April 9, 2020, Bilibili announced that Sony Corporation of America (“SCA”), a wholly owned subsidiary of Sony Corporation (“Sony”) and
a global leader providing entertainment services with solid foundation of technology, has entered into a definitive agreement
with Bilibili such that SCA will invest an aggregate amount of approximately US$400 million in cash in Bilibili at the closing of the
transaction.
•
Transaction is expected to close on or before April 10, 2020, subject to customary closing conditions.
•
Upon the closing, SCA will beneficially own approximately 4.98% of Bilibili’s total issued shares.
•
Enter into a business collaboration agreement to pursue collaboration opportunities within the area of entertainment business in the
Chinese market, including anime and mobile games.
13

Purchase answer to see full
attachment