(Yicai Global) Nov. 18 -- Bilibili’s plunged after its net loss widened 144 percent and despite the Chinese video-streaming and mobile gaming company achieving its best-ever quarterly revenue.

Bilibili [HKG: 9626] closed 10.8 percent lower in Hong Kong today at HKD630 (USD80.88). In New York yesterday, its stock [NASDAQ: BILI] slid 9 percent to USD81.03.

Bilibili’s net loss was CNY2.7 billion (USD417 million) in the three months ended Sept. 30, versus CNY1.1 billion a year ago, according to the Shanghai-based firm’s earning results released yesterday. Revenue jumped 61 percent to CNY5.2 billion (USD816 million), buoyed by value-added services and advertising.

Sales from value-added services soared 95 percent to CNY1.9 billion and advertising income more than doubled to CNY1.2 billion. Third-quarter revenue from mobile games also rose, gaining 9 percent to CNY1.4 billion. Operating expenses jumped 57 percent to CNY2.9 billion, driven by fast-growing general, administrative, and research and development costs.

Average monthly active users reached 267.2 million, a gain of 35 percent, and average daily active users rose 35 percent to 72.1 million. Average monthly paying users soared 59 percent to 23.9 million.

“Our strong third quarter results, once again, demonstrate our ability to execute and deliver our growth strategy in our peak summer season,” Chief Executive Chen Rui said on the firm’s earnings conference call. “Importantly, our community is becoming more engaged and even bigger.”

For the current quarter, the entertainment platform popular among young people expects revenue of between CNY5.7 billion and CNY5.8 billion, up about 50 percent from the same period last year.

When asked on the call about the metaverse, Juliet Yang, executive director of investor relations, said many companies are already developing products based on the concept, and Bilibili is one of them.

The metaverse is a virtual world people can enter by wearing a head-mounted display similar to VR glasses. The concept has become a hot one since Mark Zuckerberg said Facebook was changing its name to Meta and switching its focus to building a metaverse.

“Bilibili has a very large base of content creators,” Yang said. “That makes Bilibili the ideal platform to further explore this metaverse concept.”

Editor: Futura Costaglione