BEIJING, March 14, 2024 /PRNewswire/ -- Weibo Corporation ("Weibo" or the "Company") (NASDAQ: WB and HKEX: 9898), a leading social media in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2023. "In 2023, we further improved our product's competitiveness and operating efficiency," said Gaofei Wang, CEO of Weibo. "Our user community expanded this year, as we have reinforced our content ecosystem and enhanced core competitiveness of our products. ...

Financial Performance - Weibo's net revenue for Q4 2023 was $463.7 million, a 3% increase year-over-year[2]. - Advertising and marketing revenue for Q4 2023 reached $403.7 million, also up 3% year-over-year[2]. - Value-added services revenue for Q4 2023 was $59.9 million, reflecting a 4% year-over-year increase[2]. - Total net revenue for the fiscal year 2023 was $1.76 billion, a 4% decrease compared to $1.84 billion in 2022[7]. - Operating profit for Q4 2023 was $119.0 million, with an operating margin of 26%[5]. - Operating profit for 2023 was $472.9 million, compared to $480.5 million in 2022, with an operating margin of 27% in 2023 versus 26% in the previous year[8]. - Net profit attributable to Weibo shareholders for Q4 2023 was $83.2 million, translating to diluted earnings per share of $0.34[5]. - Net profit attributable to Weibo shareholders for 2023 was $342.6 million, significantly up from $85.6 million in 2022, with diluted earnings per share of $1.43 compared to $0.36 in 2022[8]. - Non-GAAP operating profit for 2023 was $592.1 million, down from $601.1 million in 2022, with a non-GAAP operating margin of 34% compared to 33% in the previous year[8]. - Non-GAAP net profit attributable to Weibo shareholders for 2023 was $450.6 million, down from $540.1 million in 2022, with diluted non-GAAP earnings per share of $1.88 compared to $2.27 in 2022[8]. User Metrics - Monthly active users in December 2023 reached 598 million, with a net increase of approximately 11 million users year-over-year[2]. Cash and Dividends - The board approved a special cash dividend of approximately $200 million to shareholders[2]. - A special cash dividend of $0.82 per share has been approved, totaling approximately $200 million, to be paid on or around May 6, 2024[11]. - Cash, cash equivalents, and short-term investments totaled $3.2 billion as of December 31, 2023[6]. - Operating cash flow for Q4 2023 was $218.2 million, with capital expenditures of $7.5 million[6]. - Cash generated from operating activities in 2023 was $672.8 million, a 19% increase from $564.1 million in 2022[9]. Costs and Expenses - Total costs and expenses for 2023 amounted to $1.29 billion, down from $1.36 billion in 2022, primarily due to the depreciation of the RMB against the USD and a reduction in personnel-related costs[8]. - Total costs and expenses for the three months ended September 30, 2023, were $308.17 million, an increase of 7.2% compared to $287.53 million for the same period in 2022[17]. Assets and Liabilities - The company reported a total asset value of $7.28 billion as of December 31, 2023, compared to $7.13 billion as of December 31, 2022[20]. - Total liabilities amounted to $3,738,914 as of September 30, 2023, slightly down from $3,762,742 at the end of 2022[21]. - The total equity attributable to Weibo shareholders was $3,330,250 as of September 30, 2023, compared to $3,398,735 at the end of 2022[21]. Revenue Breakdown - Weibo's revenue is primarily derived from advertising and marketing services, which accounted for the majority of its income[17]. - Revenue from advertising and marketing for Q3 2023 was $389,301, a slight decrease from $390,544 in Q3 2022[25]. - Value-added services revenue for Q3 2023 was $52,850, down from $57,454 in Q3 2022[25]. Tax and Regulatory Environment - The income tax expense for 2023 was $145.3 million, up from $30.3 million in 2022, primarily due to tax liabilities related to uncertain tax positions[8]. - The company faces risks including regulatory uncertainties in China and competition in advertising and marketing expenditures[15]. Strategic Focus - The company is focusing on enhancing its mobile-first strategy and improving its social interest graph recommendation engine to increase marketing effectiveness[17].

Financial Performance - For Q4 2023, Weibo's net revenues were $463.7 million, a 3% increase year-over-year, or a 5% increase on a constant currency basis[3] - Advertising and marketing revenues for Q4 2023 were $403.7 million, also a 3% increase year-over-year, with a constant currency increase of 5%[3] - For fiscal year 2023, total net revenues were $1.76 billion, a 4% decrease year-over-year, but a 1% increase on a constant currency basis[5] - Total net revenues for the three months ended September 30, 2023, were $442,151 thousand, a decrease of 1.9% from $447,998 thousand for the same period in 2022[27] - Total net revenues for the three months ended September 30, 2023, were $389,301, slightly down from $390,544 in the previous year, reflecting a decrease of approximately 0.3%[35] - Total net revenues for the twelve months ended December 31, 2023, reached $1,836,332, up from $1,759,836 in the previous year, indicating a growth of approximately 4.4%[35] Income and Profitability - Non-GAAP net income attributable to Weibo's shareholders for Q4 2023 was $76.4 million, down from $178.5 million in the same period last year[10] - Net income attributable to Weibo's shareholders for the twelve months ended December 31, 2023 was $342,598 million, compared to $85,555 million for the twelve months ended December 31, 2022, indicating a significant increase[32] - Non-GAAP net income attributable to Weibo's shareholders for the twelve months ended December 31, 2023 was $450,566 million, up from $540,077 million for the twelve months ended December 31, 2022[32] - Non-GAAP operating margin improved to 34% for the twelve months ended December 31, 2023, compared to 33% for the same period in 2022[32] - The company reported a non-GAAP diluted net income per share of $1.88 for the twelve months ended December 31, 2023, compared to $2.27 for the twelve months ended December 31, 2022[32] Operating Metrics - Operating income for Q4 2023 was $119.0 million, with an operating margin of 26%, down from 36% in the previous year[8] - Non-GAAP income from operations for fiscal year 2023 was $592.1 million, with a non-GAAP operating margin of 34%[12] - Weibo's income from operations for the three months ended September 30, 2023, was $133,986 thousand, a decrease of 16.5% from $160,470 thousand for the same period in 2022[27] User Engagement - Monthly active users (MAUs) reached 598 million in December 2023, with a net addition of approximately 11 million users year-over-year[4] Cash Flow and Investments - Cash provided by operating activities for fiscal year 2023 was $672.8 million, a 19% increase year-over-year[14] - The company completed an offering of convertible senior notes totaling $330 million, maturing in December 2030[15] - Cash and cash equivalents decreased from $2,690,768 million as of December 31, 2022 to $2,584,635 million as of December 31, 2023, a decline of 3.9%[29] - Long-term investments rose significantly from $993,630 million as of December 31, 2022 to $1,320,386 million as of December 31, 2023, an increase of 33%[29] Shareholder Returns - Weibo's board approved a special cash dividend of $200 million, translating to $0.82 per ordinary share and ADS[16] Cost Management - Total costs and expenses for the three months ended September 30, 2023, were $308,165 thousand, an increase of 7.2% from $287,528 thousand for the same period in 2022[27] - The company reported a significant increase in product development expenses, which rose to $82,764 thousand for the three months ended September 30, 2023, compared to $99,328 thousand in the same period last year[27] Advertising Revenue - Non-Ali advertisers revenue for the three months ended September 30, 2023, was $367,633, showing a slight increase from $348,271 in the same period last year, representing a growth of approximately 8.3%[35] - Alibaba's revenue as an advertiser decreased to $21,668 for the three months ended September 30, 2023, down from $42,273 in the same period last year, indicating a decline of about 48.7%[35] - Value-added services revenue increased to $52,850 for the three months ended September 30, 2023, compared to $57,454 in the same period last year, marking a decline of about 8.8%[35] - Non-Ali advertisers revenue for the twelve months ended December 31, 2023, was $1,489,676, compared to $1,422,406 in the previous year, representing an increase of about 4.7%[35] - Alibaba's revenue as an advertiser for the twelve months ended December 31, 2023, was $106,974, slightly down from $111,608 in the previous year, reflecting a decrease of approximately 4.7%[35] - Value-added services revenue for the twelve months ended December 31, 2023, was $239,682, compared to $225,822 in the previous year, indicating an increase of about 6.1%[35]

Editor's note: Seeking Alpha is proud to welcome Bargain Buyer as a new contributor. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more » PETER PARKS/AFP via Getty Images Investment Thesis I believe Weibo (NASDAQ:WB) is an undervalued, dominant player in the Chinese social media market that happens to be a low-risk, high-uncertainty bet at current prices. I think the market has ...

Spencer Platt Chinese social media stock Weibo (NASDAQ:WB) has underperformed even its PRC peers this week on the back of a Bank of America Securities downgrade, dipping below $9 per share, which represents not only the 52-week low, but a low for the entire trading history of the stock. With a strong record of profitability, single digit price-to-earnings ratio, a third of its market cap in net cash, half its market cap in long term investments, and a powerhouse competitive position as China's equivalen ...

Exhibit 99.1 INDEX TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Page Unaudited Interim Condensed Consolidated Balance Sheets as of December 31, 2022 and September 30, 2023 F-2 Unaudited Interim Condensed Consolidated Statements of Comprehensive Income for the Nine Months ended September 30, 2022 and 2023 F-3 Unaudited Interim Condensed Consolidated Statements of Shareholders’ Equity for the Nine Months ended September 30, 2022 and 2023 F-4 Unaudited Interim Condensed Consolidated Stateme ...

Weibo Corporation (NASDAQ:WB) Q3 2023 Results Conference Call November 9, 2023 6:00 AM ET Company Participants Sandra Zhang - IR Gaofei Wang - CEO Fei Cao - CFO Conference Call Participants Miranda Zhuang - Bank of America Daisy Chen - Haitong International Timothy Zhao - Goldman Sachs Operator Good day, and thank you for standing by. Welcome to the Weibo Reports Third Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded. I would ...

Financial Performance - For Q3 2023, Weibo reported net revenue of $442.2 million, a decrease of 3% year-over-year, but a 2% increase when adjusted for fixed exchange rates[3]. - Advertising and marketing revenue was $389.3 million, down 1% year-over-year, or up 3% when adjusted for fixed exchange rates[3]. - Value-added services revenue decreased by 12% year-over-year to $52.9 million, primarily due to a decline in gaming-related revenue[4]. - Total net revenue for the three months ended September 30, 2023, was $442.151 million, a decrease of 2.5% compared to $453.560 million for the same period in 2022[11]. - Advertising and marketing revenue for the nine months ended September 30, 2023, was $1,130.275 million, down 6.3% from $1,206.106 million for the same period in 2022[11]. - The company reported a net profit attributable to shareholders of $(17.137) million for the three months ended September 30, 2023, compared to a profit of $81.387 million for the same period in 2022[11]. - For the nine months ended September 30, 2023, total net revenue was $1,296,169 thousand, a decrease of 6.6% compared to $1,388,334 thousand for the same period in 2022[19]. Profitability Metrics - Operating profit for Q3 2023 was $134.0 million, with an operating margin of 30%, compared to 27% in the same quarter last year[4]. - Non-GAAP operating profit was $163.9 million, with a non-GAAP operating margin of 37%[4]. - Weibo reported a basic net loss per share attributable to shareholders of $(0.07) for the three months ended September 30, 2022, compared to a profit of $0.33 for the same period in 2023, reflecting a significant improvement[12]. - The diluted net income per share attributable to Weibo shareholders was $0.57 for the three months ended September 30, 2023, compared to $0.50 for the same period in 2022, reflecting a positive trend in earnings[16]. User Engagement - Monthly active users reached 605 million in September 2023, with a net increase of approximately 21 million users year-over-year[3]. - Daily active users averaged 260 million in September 2023, reflecting a net increase of about 8 million users year-over-year[3]. Financial Health - As of September 30, 2023, Weibo had cash, cash equivalents, and short-term investments totaling $2.8 billion[5]. - The company reported a total asset value of $6,710,537 thousand as of September 30, 2023, down from $7,129,454 thousand at the end of 2022, indicating a decrease in total assets[13]. - The total liabilities decreased to $3,433,087 thousand as of September 30, 2023, from $3,738,914 thousand at the end of 2022, indicating improved financial health[15]. Strategic Initiatives - The company plans to enhance its content ecosystem by increasing investments in key verticals to drive user engagement and monetization potential[2]. - The company emphasized a "mobile-first" approach in its advertising and marketing solutions, aiming to enhance user engagement and marketing effectiveness[9]. - The company is continuously improving its social interest graph recommendation engine to better target audiences based on demographics and behavior[9]. - The company is likely to continue focusing on enhancing its advertising revenue streams and exploring new market opportunities[19]. Future Outlook - Future outlook includes potential risks related to user growth and engagement, regulatory uncertainties in China, and competition in advertising and marketing expenditures[10]. - The management believes that non-GAAP financial metrics provide useful information for evaluating the company's ongoing performance and future prospects[8].

Financial Data and Key Metrics Changes - Weibo's total revenues for Q2 2023 reached $440.2 million, a decrease of 2% year-over-year, but an increase of 5% on a constant currency basis [21][22] - Advertising revenues were $385.7 million, flat year-over-year, or up 7% on a constant currency basis, with 94% of ad revenues coming from mobile [21][22] - Non-GAAP operating income was $153.8 million, representing a non-GAAP operating margin of 35%, an increase from 32% in the same period last year [21][26] - Net income attributable to Weibo increased by 15% to $126.4 million, with a net margin of 29% compared to 24% last year [21][26] Business Line Data and Key Metrics Changes - The entertainment vertical saw over 20% year-over-year growth in traffic and user engagement, driven by offline activities [12][18] - The online gaming vertical experienced over 50% growth in traffic and 40% growth in engaged users, with significant user engagement growth exceeding 100% [12][13] - The healthcare vertical grew nearly 30% in traffic, leading to over 30% year-over-year revenue growth [18] Market Data and Key Metrics Changes - The automobile and digital product sectors showed strong recovery, with ad revenues from the automobile sector growing by 40% year-over-year [17][33] - The luxury sector experienced rapid year-over-year revenue growth due to increased marketing budgets and a rebound in the entertainment sector [17][18] - The cosmetics and personal care sector continued to show slower-than-expected recovery, impacting overall ad revenue growth [19][35] Company Strategy and Development Direction - The company is focusing on improving user acquisition capabilities and enhancing user engagement through targeted marketing and content distribution [9][10] - Weibo is increasing investment in vertical content, particularly in entertainment, online gaming, and anime, to drive user engagement and traffic recovery [11][12] - The company aims to support verticals like food and travel to regain traffic contributions that have declined due to COVID-19 [36][42] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery pace for the second half of the year, despite some macroeconomic challenges [30][32] - The company anticipates a better recovery in August compared to July, with a focus on traffic support for key verticals [31][32] - Management highlighted the importance of adapting strategies to support verticals facing headwinds, such as cosmetics and travel [35][42] Other Important Information - Weibo completed a special dividend distribution of $0.85 per ordinary share, totaling $200 million [27] - The company reported cash and short-term investments totaling $2.83 billion as of June 30, 2023 [27] Q&A Session Summary Question: Outlook for the second half of the year and ad revenue growth - Management noted a positive growth trajectory in Q2, with a 13% quarter-over-quarter growth and 7% year-over-year growth, driven by holidays and increased ad placements [30] - For July and August, growth rates were slightly down compared to June, but management remains confident in recovery for the second half [31][32] Question: User growth outlook and operational strategies - Management emphasized the need to increase traffic efficiency and focus on high ARPU clients, particularly among iPhone and Huawei users [38] - The company plans to support traffic recovery in culture and entertainment, with significant growth in interactive users [39][40] Question: AIGC deployment and application scenarios - Management discussed AIGC's role in enhancing content production for key accounts and improving engagement for medium to long-tail accounts [45][46] - AIGC is expected to supplement vertical traffic and content, particularly in travel and food sectors [46][48]

Financial Performance - For Q2 2023, Weibo reported net revenue of $440.2 million, a decrease of 2% year-over-year, but a 5% increase when adjusted for fixed exchange rates[4]. - Advertising and marketing revenue was $385.7 million, remaining flat compared to the same period last year, with a 7% increase when adjusted for fixed exchange rates[4]. - Value-added services revenue decreased by 16% year-over-year to $54.6 million, primarily due to a reduction in membership service income[5]. - Operating profit for Q2 2023 was $123.5 million, with an operating margin of 28%, up from 21% in the same quarter last year[5]. - Net profit attributable to Weibo shareholders was $81.4 million, translating to diluted earnings per share of $0.34, compared to $0.12 in the prior year[5]. - Total net revenue for the second quarter of 2023 was $440,240 thousand, a decrease of 2.2% compared to $450,152 thousand in the same period of 2022[13]. - Advertising and marketing revenue for Q2 2023 was $385,674 thousand, showing a slight increase from $385,559 thousand in Q2 2022[13]. - Net income attributable to Weibo shareholders for Q2 2023 was $81,387 thousand, compared to $28,300 thousand in Q2 2022, representing a significant increase of 187.5%[13]. - Basic net income per share attributable to Weibo shareholders for Q2 2023 was $0.35, up from $0.12 in Q2 2022[14]. - The company reported a total operating profit of $123,453 thousand for Q2 2023, an increase from $93,938 thousand in Q2 2022[13]. - Operating profit for Q2 2023 reached $123,453 thousand, a 27.8% increase from $96,490 thousand in Q1 2023[17]. - Non-GAAP net profit attributable to Weibo shareholders for Q2 2023 was $126,376 thousand, up from $111,229 thousand in Q1 2023, marking a 13.6% increase[18]. - Adjusted EBITDA for Q2 2023 was $163,881 thousand, compared to $133,744 thousand in Q1 2023, representing a 22.5% increase[18]. User Engagement - Monthly active users reached 599 million in June 2023, with a net increase of approximately 17 million users year-over-year[4]. - Daily active users averaged 258 million in June 2023, reflecting a net increase of about 5 million users year-over-year[4]. Cash and Investments - As of June 30, 2023, Weibo had cash, cash equivalents, and short-term investments totaling $2.8 billion[6]. - Cash and cash equivalents as of June 30, 2023, were $2,360,744 thousand, down from $2,690,768 thousand as of December 31, 2022[15]. - Long-term investments increased to $1,309,217 thousand as of June 30, 2023, compared to $993,630 thousand as of December 31, 2022[15]. Dividends and Shareholder Returns - The company declared a special cash dividend of $0.85 per share in July 2023, totaling approximately $200 million[3]. Operational Strategy - The company continues to focus on expanding its advertising services and enhancing user engagement through new product developments and market strategies[19]. - The majority of the company's revenue comes from advertising and marketing services, focusing on a mobile-first approach[11]. - The company has developed a social interest graph recommendation engine to enhance marketing effectiveness based on user demographics and behavior[11]. - The company has a commitment to continuously improve its platform and develop new features and products[12]. Risks and Forward-Looking Statements - Forward-looking statements regarding financial performance and operational plans will be made during the call, highlighting potential risks and uncertainties[12]. - The company faces risks related to user growth, regulatory environment, and competition in the advertising market[12]. Financial Reporting and Metrics - Non-GAAP operating profit was $153.8 million, with a non-GAAP operating margin of 35%, compared to 32% in the same quarter last year[5]. - Non-GAAP financial metrics will be discussed, including operating profit and net profit attributable to shareholders[9]. - The company emphasizes the importance of non-GAAP metrics for reflecting ongoing operational performance and facilitating meaningful comparisons over periods[9]. Conference Call - The company will hold a conference call on August 24, 2023, to report its financial and operational performance[8]. Financial Position - Total assets decreased to $6,878,933 thousand as of June 30, 2023, from $7,129,454 thousand as of December 31, 2022[16]. - Total liabilities decreased to $3,685,299 thousand as of June 30, 2023, from $3,738,914 thousand as of December 31, 2022[16]. - The company reported a significant increase in operating profit for the first half of 2023, totaling $219,943 thousand, compared to $196,787 thousand in the same period of 2022[17]. - The company’s non-GAAP operating profit for the first half of 2023 was $282,345 thousand, slightly down from $287,019 thousand in the first half of 2022[17]. Shareholder Equity and Liabilities - Shareholders' equity totaled $3,344,745,000, slightly decreasing from $3,345,116,000, representing a marginal decline of 0.01%[24]. - The company’s total equity attributable to shareholders was $3,330,250,000, down from $3,296,276,000, reflecting a decrease of approximately 1%[24]. Accounting Standards - The adjustments between US GAAP and IFRS accounting standards were detailed, highlighting differences in the treatment of convertible bonds and lease liabilities[26].