Financial Performance - In Q4 2024, Weibo's net revenue was $456.8 million, a decrease of 1% year-over-year[5]. - Advertising and marketing revenue for Q4 2024 was $385.9 million, down 4% year-over-year, primarily due to a high comparison base from the previous year[7]. - Value-added services revenue increased by 18% year-over-year to $71.0 million in Q4 2024, driven by growth in membership services and gaming-related income[5]. - Operating profit for Q4 2024 was $117.9 million, with an operating margin of 26%[8]. - Net profit attributable to Weibo shareholders in Q4 2024 was $8.9 million, with diluted earnings per share of $0.04[9]. - For the fiscal year 2024, Weibo's total net revenue was $1.75 billion, remaining stable compared to $1.76 billion in 2023[11]. - The fiscal year 2024 advertising and marketing revenue was $1.50 billion, a decrease of 2% from $1.53 billion in 2023[11]. - Value-added services revenue for the fiscal year 2024 reached $256.0 million, an increase of 13% from $225.8 million in 2023[12]. - Operating profit for 2024 is $494.3 million, up from $472.9 million in 2023, with an operating margin of 28% compared to 27% last year[14]. - Net profit attributable to Weibo shareholders for 2024 is $300.8 million, down from $342.6 million in 2023, with diluted earnings per share of $1.16 compared to $1.43 in 2023[15]. - Non-GAAP net profit attributable to Weibo shareholders for 2024 is $478.6 million, an increase from $450.6 million in 2023, with diluted earnings per share of $1.82 compared to $1.88 in 2023[15]. - Cash generated from operating activities for 2024 is $639.9 million, down from $672.8 million in 2023[15]. - The net profit attributable to Weibo shareholders for the twelve months ending December 31, 2024, was $478,637 thousand, a 5.9% increase compared to $450,566 thousand for the previous year[33]. - The adjusted EBITDA for the twelve months ending December 31, 2024, was $606,164 thousand, reflecting a slight decrease from $630,607 thousand in the previous year[35]. Cash and Dividends - As of December 31, 2024, Weibo had cash, cash equivalents, and short-term investments totaling $2.4 billion[10]. - The board approved a dividend of $200 million for the fiscal year 2024, reflecting the company's commitment to enhancing shareholder returns[4]. - The board has adopted a cash dividend policy and declared a cash dividend of $0.82 per share for the 2024 fiscal year, totaling approximately $200 million[17]. - The board will determine the dividend amount based on the company's operating performance, profitability, cash flow, and financial condition[16]. Costs and Expenses - Total costs and expenses for 2024 are $1.26 billion, a decrease of 2% from $1.29 billion in 2023[13]. Comparison with Previous Periods - Total net revenue for Q4 2023 was $463.7 million, a slight increase from $456.8 million in Q3 2023, and $1.76 billion for the full year 2023[27]. - Advertising and marketing revenue for Q4 2023 was $403.7 million, compared to $385.9 million in Q4 2022, while full-year revenue was $1.53 billion, down from $1.50 billion in 2022[27]. - Value-added services revenue increased to $59.9 million in Q4 2023, up from $55.5 million in Q4 2022, with full-year revenue rising to $225.8 million from $226.0 million[27]. - Operating profit for Q4 2023 was $119.0 million, compared to $117.9 million in Q3 2023, and $472.9 million for the full year 2023, up from $494.3 million in 2022[27]. - Net profit attributable to Weibo shareholders for Q4 2023 was $83.2 million, significantly higher than $8.9 million in Q3 2023, with full-year net profit at $342.6 million, compared to $300.8 million in 2022[27]. - Basic earnings per share for Q4 2023 was $0.35, up from $0.04 in Q3 2023, while full-year basic earnings per share increased to $1.45 from $1.27 in 2022[28]. Assets and Liabilities - Cash and cash equivalents decreased to $2.58 billion as of December 31, 2023, from $1.89 billion in 2024[30]. - Total assets decreased to $7.28 billion as of December 31, 2023, compared to $6.50 billion in 2024[30]. - Total liabilities decreased to $3.76 billion as of December 31, 2023, from $2.93 billion in 2024[31]. - Shareholders' equity attributable to Weibo shareholders increased to $3.40 billion as of December 31, 2023, compared to $3.48 billion in 2024[31]. Non-GAAP Metrics - Non-GAAP financial metrics are used to reflect the company's ongoing performance and provide meaningful comparisons across periods[20]. - The company emphasizes that non-GAAP financial metrics should be viewed as a supplement to GAAP metrics and may not be comparable to those used by other companies[22]. - For the three months ending December 31, 2023, the non-GAAP operating profit was $145,856 thousand, representing a 10.7% increase from $131,700 thousand in the previous quarter[33]. - The non-GAAP operating profit margin for the three months ending December 31, 2023, was 31%, compared to 34% for the same period last year[35]. Conference Call - The company will hold a conference call on March 13, 2025, to discuss its financial performance and business operations[18]. Advertising Revenue - Advertising revenue from non-Alibaba advertisers for the three months ending December 31, 2023, was $358,848 thousand, showing a 5.5% increase from $345,528 thousand in the previous quarter[37]. Other Financial Information - The total net income for the three months ending December 31, 2023, was $463,667 thousand, a slight decrease from $464,480 thousand in the previous quarter[37]. - The diluted earnings per share attributable to Weibo shareholders for the three months ending December 31, 2023, was $0.31, compared to $0.53 in the previous quarter[33]. - The company reported a total of 246,382 thousand shares used for calculating diluted earnings per share for the three months ending December 31, 2023[35]. - The revenue from value-added services for the three months ending December 31, 2023, was $59,928 thousand, an increase from $55,000 thousand in the previous quarter[37]. - The company experienced a net investment loss of $(25,544) thousand for the three months ending December 31, 2023, compared to a loss of $(16,905) thousand in the previous quarter[33].

Core Viewpoint - Weibo Corporation will announce its unaudited financial results for Q4 and fiscal year 2024 on March 13, 2025, before the U.S. market opens, followed by a conference call to discuss financial performance and business operations [1]. Company Overview - Weibo is a leading social media platform that allows users to create, share, and discover content online, combining real-time public self-expression with social interaction and content distribution [3]. - The platform enables users to create and post feeds with multimedia and long-form content, allowing for asymmetric user relationships where any user can follow others and engage with their content [3]. Advertising and Marketing Solutions - Weibo generates a substantial majority of its revenue from advertising and marketing services, including social display advertisements and promoted marketing offerings [4]. - The company employs a "mobile first" philosophy, displaying content in a simple information feed format and offering native advertisements that align with the platform's content [4]. - Weibo has developed a social interest graph recommendation engine to enhance marketing effectiveness by targeting audiences based on demographics, social relationships, interests, and behaviors [4].

Financial Data and Key Metrics Changes - Weibo's total revenue for Q3 2024 reached $464.5 million, up 5% year-over-year, with ad revenue at $398.6 million, up 2% year-over-year, and VAS revenue at $65.9 million, up 25% year-over-year [13][49][56] - Non-GAAP operating income was $164.5 million, representing a non-GAAP operating margin of 35% [13][49] - Net income attributable to Weibo was $139.2 million, with a net margin of 30% [58] Business Line Data and Key Metrics Changes - Advertising and marketing revenues were $398.6 million, with mobile ad revenues contributing approximately 94% of total ad revenue [50] - VAS revenue growth was primarily driven by membership and games-related services, with a 25% increase [56] - The FMCG sector showed strong momentum in food and beverage and apparel, while the automotive sector continued to grow due to the shift towards electric vehicles [51][52] Market Data and Key Metrics Changes - In September 2024, Weibo's MAUs reached 587 million and average DAUs reached 257 million, reflecting a pullback from the Olympics peak [12][47] - The ad revenue from the food and beverage sector showed strong year-over-year growth, driven by the Olympics [33] - The automotive sector's ad revenue was bolstered by the transition to electric vehicles and effective content ecosystem cultivation [52][35] Company Strategy and Development Direction - Weibo is focusing on enhancing its hot trend marketing capabilities and content marketing to sustain high operating efficiency [43][44] - The company aims to optimize brand and performance-ad offerings to improve competitiveness and expand market share [44] - Weibo's strategy includes leveraging event-driven marketing models, particularly around major events like the Olympics, to attract advertisers [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the advertising market, anticipating a gradual recovery due to government stimulus measures [54][66] - There are expectations for double-digit growth in certain sectors due to national subsidy policies targeting consumer electronics [66] - Despite challenges in the luxury products and real estate sectors, management sees potential for growth in the food and beverage and automotive sectors [66][70] Other Important Information - The Paris Olympic Games significantly boosted Weibo's ad revenue, surpassing that of the Tokyo Olympics [20][33] - Weibo's cash, cash equivalents, and short-term investments totaled $2.2 billion as of September 30, 2024 [59] Q&A Session Summary Question: Fourth quarter advertisement outlook in light of macro stimulus - Management noted a slight decrease in consumer demand but remains optimistic about Q4 due to government policies aimed at boosting demand, particularly in the 3C and consumer electronics sectors [62][66] Question: Drivers behind VAS services growth and future expectations - Management highlighted the continuous growth of membership services and the focus on high-quality user acquisition as key drivers for VAS revenue growth [73][75] Question: Updates on AI progress in content production and operational efficiencies - Management reported significant improvements in operational efficiency through AI applications, including intelligent search functions and AI-assisted content generation for key accounts [80][82]

Investment Rating - The report assigns a "Buy" rating for the company, with a current price of $8.51 and a target value of $11.86, indicating a potential upside of approximately 39% [2][4]. Core Insights - The company reported Q3 2024 earnings, with revenue reaching $464 million, exceeding Bloomberg's consensus estimate by 6%. The net profit attributable to shareholders was $139 million, also surpassing expectations by 16% [2][4]. - The advertising revenue for Q3 was $399 million, showing a year-over-year increase of 2% and a quarter-over-quarter increase of 6%, driven by the summer Olympics [2][4]. - The report highlights the company's strong performance in the FMCG sector, particularly in food and beverage, as well as apparel and footwear categories, which contributed to the overall growth [2][4]. Financial Summary - For Q3 2024, the company achieved a gross margin of 80%, up 1.4 percentage points year-over-year and 0.6 percentage points quarter-over-quarter [2][4]. - The report forecasts that by 2025, the company's revenue will reach $1.848 billion, with an adjusted net profit of $490 million, reflecting a growth of 6.7% [2][4]. - The financial projections indicate a stable revenue structure, with expected growth rates of 0.2% in 2024 and 4.8% in 2025 [2][4]. Earnings Forecast - The adjusted net profit for 2024 is projected to be $481 million, with a year-over-year growth of 6.7% [2][4]. - The report anticipates that the company's earnings per share (EPS) will be $1.60 in 2024, maintaining a price-to-earnings (P/E) ratio of 4.3 [2][4]. Market Position - The company is positioned as a key player in the social media advertising space, leveraging event-driven marketing opportunities, particularly during significant events like the Olympics [2][4]. - The report emphasizes the potential for the company to attract advertising budgets from various sectors, indicating a robust demand for its advertising services [2][4].

Investment Rating - The report maintains a "BUY" rating for Weibo, with a target price of US$15.00, reflecting a potential upside of 76.3% from the current price of US$8.51 [2][16]. Core Insights - Weibo's 3Q24 results exceeded expectations, with net revenue increasing by 5% YoY to US$465 million, driven by stabilization in advertising revenue and strong growth in VAS revenue [1][2]. - The company is cautiously optimistic about macroeconomic policy stimulus but anticipates a delayed impact on consumption and advertising demand [1][2]. - Advertising revenue in 3Q24 rose by 2% YoY to US$399 million, primarily due to growth in the food & beverage and automobile sectors, while some sectors like cosmetics and handsets faced challenges [1][2]. - VAS revenue grew significantly by 25% YoY in 3Q24, supported by enhanced membership services [1][2]. - The forecast for 4Q24 indicates a potential decline in advertising revenue by 4% YoY, attributed to a high-base effect and soft demand in certain verticals [1][2]. Financial Performance Summary - For FY24E, total revenue is projected at US$1,755 million, with adjusted net profit expected to be US$466.9 million [5][9]. - The non-GAAP operating profit margin (OPM) for 3Q24 was 35.4%, a decrease of 1.6 percentage points YoY, mainly due to increased sales and marketing expenses [1][2]. - The adjusted EPS for FY24E is estimated at US$1.97, with a gradual increase expected in subsequent years [5][9]. User Engagement Metrics - Monthly Active Users (MAUs) decreased by 3% YoY to 587 million as of September 2024, but the Daily Active Users (DAU) to MAU ratio improved to 43.8% [1][2]. - Total interactions on Weibo's front page increased significantly on a quarter-over-quarter basis, indicating improved user engagement [1][2].

Investment Rating - The report maintains a "BUY" rating for the company with a target price of US$15.00, down from the previous target of US$15.50, indicating a potential upside of 76.3% from the current price of US$8.51 [9]. Core Insights - The company reported a 5% year-over-year increase in net revenue for Q3 2024, reaching US$465 million, which exceeded Bloomberg consensus estimates by 7% [6]. - Advertising revenue grew by 2% year-over-year to US$399 million, primarily driven by strong performance in the food and beverage sector due to the Paris Olympics [7]. - The management remains cautiously optimistic about macroeconomic policy stimulus, although they believe the effects will take time to materialize [8]. Financial Performance Summary - For FY24E, the company expects revenue of US$1,755 million, with adjusted net profit projected at US$467 million and adjusted EPS at US$1.97 [12]. - The non-GAAP operating profit margin for Q3 2024 was 35.4%, a decline of 1.6 percentage points year-over-year, attributed to increased sales and marketing investments [8]. - The company anticipates a 4% decline in advertising revenue for Q4 2024 due to high base effects and weak demand in certain consumer-related verticals [8]. Revenue Breakdown - The company’s revenue for Q3 2024 was supported by a 25% increase in value-added services (VAS) revenue, which reached US$66 million [7]. - Monthly active users (MAUs) decreased by 3% year-over-year to 587 million, but the daily active users to monthly active users ratio improved to 43.8% [7]. Future Outlook - The management expects that the advertising business recovery will require more time, particularly in sectors like cosmetics and luxury goods, where demand has not shown significant improvement [8]. - The company is projected to benefit from policy stimulus and a gradual recovery in consumer spending, with a non-GAAP P/E ratio of 5x for FY25, indicating a favorable margin of safety [8].

Core Insights - Weibo Corporation reported revenue of $464.48 million for the quarter ended September 2024, reflecting a year-over-year increase of 5.1% and a positive surprise of 6.68% over the Zacks Consensus Estimate of $435.42 million [1] - The earnings per share (EPS) for the quarter was $0.53, down from $0.57 in the same quarter last year, but exceeded the consensus estimate of $0.46 by 15.22% [1] Financial Performance Metrics - Average daily active users (DAUs) were reported at 257 million, slightly below the estimated 257.95 million [3] - Monthly active users (MAUs) totaled 587 million, compared to the average estimate of 593.9 million [3] - Net revenues from value-added services reached $65.87 million, surpassing the average estimate of $57.82 million, marking a year-over-year increase of 24.6% [3] - Net revenues from advertising and marketing amounted to $398.62 million, exceeding the average estimate of $377.60 million, with a year-over-year growth of 2.4% [3] Stock Performance - Over the past month, Weibo's shares have declined by 5.6%, while the Zacks S&P 500 composite has increased by 0.6% [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

Financial Performance - For Q3 2024, Weibo reported net revenue of $464.5 million, a 5% increase year-over-year from $442.2 million[10]. - Advertising and marketing revenue reached $398.6 million, up 2% from $389.3 million in the same quarter last year[10]. - Value-added services revenue grew by 25% year-over-year to $65.9 million, driven by upgrades in membership services[10]. - Operating profit for Q3 2024 was $141.3 million, maintaining an operating margin of 30%[4]. - Net profit attributable to Weibo shareholders was $130.6 million, with diluted earnings per share of $0.50, compared to $77.5 million and $0.32 in the same quarter last year[5]. - Non-GAAP operating profit was $164.5 million, with a non-GAAP operating margin of 35%[5]. - The company experienced a non-operating profit of $23.6 million in Q3 2024, compared to a non-operating loss of $28.4 million in the same period last year[11]. - Total costs and expenses for Q3 2024 were $323.2 million, a 5% increase from $308.2 million in the previous year[10]. - Total net revenue for the three months ended September 30, 2023, was $442.151 million, a slight increase from $437.873 million in the previous quarter[22]. - Advertising and marketing revenue for the same period was $389.301 million, compared to $375.277 million in the previous quarter, reflecting a growth of approximately 3%[22]. - Net profit attributable to Weibo shareholders for the three months ended September 30, 2023, was $77.489 million, down from $111.931 million in the previous quarter, indicating a decrease of about 31%[22]. - Operating profit for the three months ended September 30, 2023, was $133.986 million, compared to $135.385 million in the previous quarter, showing a marginal decline[22]. - The total cost and expenses for the three months ended September 30, 2023, amounted to $308.165 million, an increase from $302.488 million in the previous quarter[22]. - The company reported a decrease in value-added services revenue to $52.850 million for the three months ended September 30, 2023, down from $62.596 million in the previous quarter[22]. User Engagement - Monthly active users reached 587 million in September 2024, while daily active users averaged 257 million[6][7]. - The company anticipates continued focus on enhancing its advertising and marketing solutions to improve user engagement and revenue generation[20]. - Weibo is actively working on refining its social interest graph recommendation engine to better target audiences based on demographics and interests[18]. - The company faces risks related to user engagement and competition in the advertising market, which may impact future financial performance[20]. Cash and Investments - Total cash, cash equivalents, and short-term investments amounted to $2.2 billion as of September 30, 2024[12]. - Cash and cash equivalents decreased from $2,584,635 thousand at the end of 2023 to $1,203,977 thousand by September 30, 2024[26]. - Total assets decreased from $7,280,358 thousand at the end of 2023 to $6,625,116 thousand by September 30, 2024[29]. - The total liabilities decreased from $3,762,742 thousand at the end of 2023 to $2,947,175 thousand by September 30, 2024[29]. - Long-term investments increased from $1,320,386 thousand at the end of 2023 to $1,445,467 thousand by September 30, 2024[26]. - The company’s total equity attributable to Weibo shareholders increased from $3,398,735 thousand at the end of 2023 to $3,583,469 thousand by September 30, 2024[29]. Future Outlook - The company expects future revenue growth driven by increased advertising and value-added services[38]. - The revenue from value-added services is projected to reach $185,007 thousand for the nine months ending September 30, 2024, indicating a positive growth trend[38]. - The company is focusing on expanding its advertising client base beyond Alibaba to enhance revenue streams[38]. - New product and technology developments are expected to support market expansion and improve service offerings in the upcoming quarters[38].

Group 1 - Analysts project Weibo Corporation (WB) will announce quarterly earnings of $0.46 per share, a decline of 19.3% year over year [1] - Revenues are expected to reach $435.42 million, declining 1.5% from the same quarter last year [1] - There has been no revision in the consensus EPS estimate over the last 30 days, indicating analysts' reconsideration of their initial forecasts [1] Group 2 - The estimate for 'Net revenues- Value-added service' is projected at $57.82 million, reflecting a year-over-year change of -3.9% [4] - 'Net revenues- Advertising and marketing' are expected to be $377.60 million, indicating a change of -4% from the prior-year quarter [4] Group 3 - The average prediction for 'Average daily active users (DAUs)' is 257.95 million, down from 260 million in the same quarter last year [5] - 'Monthly active users (MAUs)' are expected to be 593.90 million, compared to 605 million a year ago [5] - Weibo shares have returned -11.8% over the past month, contrasting with the Zacks S&P 500 composite's +3.1% change [5]

Company Overview - Weibo Corporation (WB) shares increased by 7.1% to close at $10.80, with notable trading volume compared to typical sessions [1] - The stock has gained 34.8% over the past four weeks, driven by increased user engagement and partnerships enhancing advertising revenue and content ecosystem [1] Earnings Expectations - The upcoming quarterly earnings are expected to be $0.46 per share, reflecting a year-over-year decline of 19.3% [1] - Revenue is projected at $435.42 million, which is a decrease of 1.5% from the same quarter last year [1] Market Sentiment - The consensus EPS estimate for Weibo has remained unchanged over the last 30 days, indicating a lack of upward trend in earnings estimate revisions [2] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [2] Industry Context - Weibo is part of the Zacks Internet - Content industry, which includes other companies like Airbnb, Inc. (ABNB) [2] - Airbnb's consensus EPS estimate has decreased by 2.1% over the past month, with a year-over-year change of -7.1% [2]