Core Insights - Weibo Corporation reported revenue of $437.87 million for the quarter ended June 2024, a decrease of 0.5% year-over-year, with EPS at $0.48 compared to $0.53 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $435.11 million by 0.64%, while the EPS surpassed the consensus estimate of $0.45 by 6.67% [1] User Metrics - Average daily active users (DAUs) were reported at 256 million, slightly below the average estimate of 259.31 million [3] - Monthly active users (MAUs) stood at 583 million, also below the estimated 597.03 million [4] Revenue Breakdown - Net revenues from value-added services reached $62.60 million, exceeding the average estimate of $56.50 million, reflecting a year-over-year increase of 14.7% [5] - Net revenues from advertising and marketing were $375.28 million, falling short of the average estimate of $378.61 million, with a year-over-year decline of 2.7% [6] Stock Performance - Weibo shares have returned 2.5% over the past month, outperforming the Zacks S&P 500 composite's 2.2% change [6] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [6]

Financial Performance - Net revenues for Q2 2024 were $437.9 million, a decrease of 1% year-over-year, but an increase of 1% on a constant currency basis[3]. - Advertising and marketing revenues were $375.3 million, a decrease of 3% year-over-year, while excluding Alibaba, revenues were $342.9 million, a decrease of 4%[5]. - Value-added services (VAS) revenues increased by 15% year-over-year to $62.6 million, driven primarily by growth in membership services[5]. - Net revenues for the six months ended June 30, 2024, were $714,228 thousand, a decrease of 3.5% compared to $740,974 thousand for the same period in 2023[19]. - Net income attributable to Weibo's shareholders for the six months ended June 30, 2024, was $161,369 thousand, down from $181,879 thousand in the same period of 2023, representing a decline of 11.3%[19]. - Net revenues for the second quarter of 2023 reached $440.24 million, a 11.3% increase from $395.50 million in the previous quarter[27]. User Engagement - Monthly active users (MAUs) reached 583 million, and average daily active users (DAUs) were 256 million in June 2024[3]. - The company emphasized improved user engagement and operating efficiency, focusing on high-quality user acquisition and a vertical content strategy[2]. Income and Margins - Income from operations was $135.4 million, with an operating margin of 31%, up from 28% in the previous year[6]. - Non-GAAP income from operations was $157.6 million, representing a non-GAAP operating margin of 36%, compared to 35% last year[6]. - Net income attributable to Weibo's shareholders was $111.9 million, an increase from $81.4 million in the same period last year[8]. - Basic net income per share attributable to Weibo's shareholders for the six months ended June 30, 2024, was $0.68, compared to $0.77 for the same period in 2023, a decrease of 11.7%[19]. Cash and Investments - Cash, cash equivalents, and short-term investments totaled $2.8 billion as of June 30, 2024[9]. - Cash and cash equivalents as of June 30, 2024, were $1,922,371 thousand, down from $2,584,635 thousand as of December 31, 2023, a decline of 25.7%[21]. - The company’s investment-related loss for the six months ended June 30, 2024, was $(4,725) thousand, compared to a loss of $(25,190) thousand for the same period in 2023, indicating an improvement[19]. - Investment related gain for the second quarter of 2023 was $25.19 million, significantly higher than $4.97 million in the previous quarter[24]. Costs and Expenses - Total costs and expenses for the six months ended June 30, 2024, were $598,248 thousand, compared to $634,075 thousand for the same period in 2023, reflecting a decrease of 5.7%[19]. - Stock-based compensation for the second quarter of 2023 was $26.07 million, compared to $21.01 million in the previous quarter[24]. Assets and Liabilities - Total assets as of June 30, 2024, were $7,102,285 thousand, a decrease from $7,280,358 thousand as of December 31, 2023, representing a decline of 2.4%[21]. - Total liabilities as of June 30, 2024, were $3,688,718 thousand, down from $3,762,742 thousand as of December 31, 2023, a decrease of 2.0%[22]. - The company reported a decrease in accounts receivable, net, to $371,291 thousand as of June 30, 2024, from $440,768 thousand as of December 31, 2023, a decline of 15.7%[21]. - The company’s total shareholders' equity increased to $3,375,350 thousand as of June 30, 2024, from $3,448,888 thousand as of December 31, 2023, a decrease of 2.1%[22]. Previous Quarter Comparisons - Non-GAAP diluted net income per share attributable to Weibo's shareholders was $0.53 for the second quarter of 2023, up from $0.41 in the previous quarter[24]. - Adjusted EBITDA for the second quarter of 2023 was $163.88 million, an increase from $133.03 million in the previous quarter[24]. - Non-GAAP operating margin improved to 35% in the second quarter of 2023, compared to 32% in the previous quarter[24]. - Advertising revenue from non-Ali advertisers was $358.89 million for the second quarter of 2023, compared to $316.40 million in the previous quarter, reflecting a 13.4% increase[27]. - Value-added services revenue increased to $54.57 million in the second quarter of 2023, up from $56.55 million in the previous quarter[27].

In its upcoming report, Weibo Corporation (WB) is predicted by Wall Street analysts to post quarterly earnings of $0.45 per share, reflecting a decline of 15.1% compared to the same period last year. Revenues are forecasted to be $435.11 million, representing a year-over-year decrease of 1.2%.The current level reflects a downward revision of 1.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their init ...

BEIJING, July 31, 2024 /PRNewswire/ -- Weibo Corporation (Nasdaq: WB and HKEX: 9898), a leading social media for people to create, share and discover content, will announce its unaudited financial results for the second quarter 2024 before the U.S. market opens on Thursday, August 22, 2024. Following the announcement, Weibo's management team will host a conference call from 7 AM – 8 AM Eastern Time on August 22, 2024 (or 7 PM – 8 PM Beijing Time on August 22, 2024) to present an overview of the Company's fi ...

Investment Rating - The report maintains a "Buy" rating for the company, indicating a potential upside of 93.8% from the current price of $8.77 to a target price of $17.00 [2][3]. Core Insights - The company's total revenue for Q1 2024 decreased by 4% year-over-year to $395 million, aligning with consensus estimates. Non-GAAP net income also fell by 4% to $107 million, exceeding consensus estimates by 24% [2]. - Advertising revenue showed a mixed performance, with a 5% decline year-over-year to $339 million, primarily due to pressure in the cosmetics and beauty verticals. However, domestic beauty brands saw over 50% growth in advertising revenue [2][3]. - The company has adjusted its revenue forecasts for FY24-26 down by 2% to reflect the shrinking advertising budgets of cosmetics and beauty brands [2][3]. Revenue and Profitability Summary - FY22A revenue was $1,836 million, FY23A was $1,760 million, and FY24E is projected at $1,724 million, with a slight recovery expected in FY25E and FY26E [3][10]. - Adjusted net profit for FY22A was $540.1 million, FY23A was $450.6 million, and FY24E is expected to be $447.4 million, indicating a decline in profitability [3][10]. - The report highlights a non-GAAP operating profit margin (OPM) of 31.8% for Q1 2024, an increase of 0.7 percentage points year-over-year, attributed to strict control over operating costs [2][3]. User Engagement Metrics - Monthly Active Users (MAU) decreased by 1% year-over-year to 588 million, while Daily Active Users (DAU) remained stable at 255 million. The company is focusing on acquiring high-quality users [2][3]. - The report indicates that the company is investing in key content verticals such as automotive, online gaming, and healthcare to enhance user interaction and verified account growth [2][3]. Financial Position - As of March 31, 2024, the company had cash and cash equivalents of $2.1 billion, sufficient to cover upcoming debt obligations and shareholder return plans [2][3]. - The report notes a projected decline in non-GAAP OPM to 32.9% for FY24E, reflecting ongoing operational challenges [2][3].

Investment Rating - The report maintains a "BUY" rating for Weibo, indicating a potential return of over 15% over the next 12 months [2][12]. Core Insights - Weibo's total revenue for 1Q24 decreased by 4% YoY to US$395 million, with non-GAAP net income down by 4% YoY to US$107 million, but ahead of consensus estimates due to better control of operating expenses [2][3]. - Advertising revenue is expected to remain flat YoY in 2Q24, primarily due to a decline in the cosmetics and beauty vertical, although management anticipates a recovery in the ad business in 2H24, supported by improved consumer sentiment and the upcoming Olympic event [2][3]. - The target price has been lowered to US$17.00 from US$18.80, reflecting a discount to peers' average valuation [2][3]. Revenue and Profitability - Total revenue forecasts for FY24-26 have been reduced by 2%, mainly due to shrinking ad budgets from cosmetics and beauty brands [2][3]. - The adjusted net profit for FY24E is projected at US$447 million, with a slight decline of 0.7% YoY, while FY25E and FY26E are expected to grow by 10.1% and 5.7% respectively [3][6]. - Non-GAAP operating profit margin improved to 31.8% in 1Q24, attributed to a 10% YoY reduction in total operating expenses [2][3]. Advertising Revenue Performance - Advertising revenue declined by 5% YoY to US$339 million in 1Q24, with the cosmetics and beauty vertical being the primary contributor to this decline [2][3]. - Despite the challenges in the cosmetics sector, domestic beauty brands saw over 50% growth in ad revenue in 1Q24, while other verticals like online games and 3C products experienced double-digit growth [2][3]. User Metrics and Strategy - Monthly Active Users (MAUs) decreased by 1% YoY to 588 million, while Daily Active Users (DAUs) remained flat at 255 million [2][3]. - The company is focusing on acquiring high-quality users through optimized channel investments, which is expected to increase the percentage of high-ARPU users [2][3]. Financial Position - As of March 31, Weibo had cash and cash equivalents of US$2.1 billion, sufficient to cover upcoming senior notes due in July 2024 and shareholder return initiatives [2][3]. - The company is expected to maintain a relatively stable cash position, with projected cash at the end of FY24E at US$2.6 billion [10].

Financial Data and Key Metrics Changes - Weibo's total revenues for Q1 2024 reached $395.5 million, a decrease of 4% year-over-year, or flat on a constant currency basis [7][29] - Total advertising revenues were $339 million, reflecting a decrease of 5% year-over-year, also flat on a constant currency basis [30] - Non-GAAP operating income was $125.8 million, representing a non-GAAP operating margin of 32%, a modest increase year-over-year [7][29] - Net income attributable to Weibo was $106.6 million, with a net margin of 27%, flat compared to the same period last year [29][33] Business Line Data and Key Metrics Changes - Mobile ad revenue accounted for approximately 95% of total ad revenue, amounting to $322.5 million [30] - The online game sector showed strong momentum with double-digit growth, benefiting from game license approvals and ad budgets for new titles [30][31] - The VAS (Value-Added Services) revenue was $56.5 million, a decrease of 3% year-over-year, but an increase of 1% on a constant currency basis [32] Market Data and Key Metrics Changes - The handset online game industry sustained double-digit growth year-over-year, while the cosmetic and beauty sector continued to decline year-over-year [23][24] - Ad revenues from domestic beauty brands grew over 50% year-over-year, although this growth did not fully offset the decline from international brands [24] - The food and beverage and apparel sectors returned to positive growth, while the FMCG category continued to face challenges [31][32] Company Strategy and Development Direction - Weibo's strategic objectives for 2024 include growing user scale and engagement, enhancing content ecosystem competitiveness, and improving operating efficiency [8][28] - The company is focusing on high-quality user acquisition and engagement, optimizing channel collaboration, and enhancing social and hot-trend products [9][10] - Weibo aims to strengthen its monetization capabilities by leveraging its strengths in hot-trends and IPs, while also driving vertical content ecosystems [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the recovery of advertiser sentiment in Q2 and the second half of the year, with expectations for improved performance in various sectors [36][39] - The company noted that while the cosmetic and beauty sector faced challenges, there was a positive trend in domestic brands, and they plan to strengthen cooperation with e-commerce platforms [24][25] - Management highlighted the importance of focusing on high ARPU users and enhancing user engagement to drive overall performance [55][59] Other Important Information - Weibo completed the distribution of a special dividend of $0.82 per ordinary share, totaling approximately $200 million [33] - The company released its third ESG report, detailing initiatives in areas such as cybersecurity, content quality, and social responsibility [34][35] Q&A Session Summary Question: Outlook for advertisement business in Q2 and second half - Management expects a cautious recovery in advertiser sentiment, with positive trends noted in various industries except for cosmetics [36][37] - Focus will be on effective-based advertising and leveraging hot topics and IPs for marketing campaigns [39][40] Question: User base adjustments and forecasts - Management confirmed a focus on acquiring high-quality users with higher ARPU, expecting stable or slight increases in DAU [52][55] - The strategy includes prioritizing user engagement and content generation capabilities to enhance overall performance [57][59]

Core Insights - Weibo Corporation reported revenue of $395.5 million for Q1 2024, a year-over-year decline of 4.4% and an EPS of $0.41 compared to $0.47 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $396.5 million, resulting in a surprise of -0.25%, while the EPS exceeded the consensus estimate of $0.40 by 2.50% [1] Performance Metrics - Average daily active users (DAUs) were reported at 255 million, below the estimated 262.37 million [2] - Monthly active users (MAUs) stood at 588 million, compared to the estimated 609.59 million [2] - Net revenues from value-added services were $56.55 million, slightly above the estimated $53.89 million, but a decline of 3.3% year-over-year [2] - Net revenues from advertising and marketing were $338.95 million, below the estimated $342.19 million, reflecting a year-over-year decline of 4.6% [2] Stock Performance - Weibo shares have returned +4% over the past month, while the Zacks S&P 500 composite increased by +6.1% [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [2]

Core Viewpoint - Weibo Corporation reported a solid start to 2024, focusing on user acquisition, content optimization, and improved monetization strategies, while aiming to enhance shareholder returns [1] Financial Performance - Net revenues for Q1 2024 were US$395.5 million, a decrease of 4% year-over-year, or flat on a constant currency basis [2][4] - Advertising and marketing revenues were US$339.0 million, down 5% year-over-year, or flat on a constant currency basis [2][4] - Value-added services (VAS) revenues were US$56.5 million, a decrease of 3% year-over-year, but an increase of 1% on a constant currency basis [2][4] - Income from operations was US$99.7 million, with an operating margin of 25%, compared to 23% in the previous year [5] - Net income attributable to Weibo's shareholders was US$49.4 million, with diluted net income per share of US$0.19 [7] - Non-GAAP income from operations was US$125.8 million, representing a non-GAAP operating margin of 32% [5][7] User Engagement - Monthly active users (MAUs) reached 588 million in March 2024, while average daily active users (DAUs) were 255 million [2] Cost Management - Total costs and expenses for Q1 2024 were US$295.8 million, a decrease of 7% compared to US$317.3 million in the same period last year [5] - The decrease in costs was attributed to lower personnel-related costs and marketing expenses [5] Non-Operating Results - Non-operating loss for Q1 2024 was US$23.6 million, compared to non-operating income of US$29.8 million in the same period last year [6] - The non-operating loss included net interest and other losses of US$18.6 million and a loss from fair value change of investments of US$3.6 million [6] Cash Position - As of March 31, 2024, Weibo's cash, cash equivalents, and short-term investments totaled US$3.3 billion [7]

Corporate Governance - Weibo Corporation held its 2024 annual general meeting of shareholders where several resolutions were adopted, including the re-election of Mr. Charles Chao, Mr. Pochin Christopher Lu, and Mr. Gaofei Wang as directors of the Company [1] Company Overview - Weibo is a leading social media platform in China that allows users to create, share, and discover content online, combining public self-expression with social interaction and content distribution [2] - The platform enables users to post feeds with multimedia and long-form content, allowing for asymmetric user relationships where any user can follow others and engage with their content [2] Advertising and Marketing - Weibo generates a substantial majority of its revenue from advertising and marketing services, offering a variety of solutions for companies of all sizes [3] - The platform features social display advertisements and promoted marketing offerings, utilizing a recommendation engine to enhance audience targeting based on demographics, social relationships, interests, and behaviors [3]