WB(09898)2022-09-01 09:30Financial Performance - For Q2 2022, Weibo reported net revenue of $450.2 million, a decrease of 22% year-over-year, and a 19% decline when adjusted for fixed exchange rates[4]. - Advertising and marketing revenue was $385.6 million, down 23% year-over-year, primarily due to the resurgence of COVID-19 and macroeconomic uncertainties affecting the advertising industry in China[5]. - Operating profit for Q2 2022 was $93.9 million, with an operating margin of 21%, down from 34% in the same period last year[5]. - Non-GAAP operating profit was $145.3 million, with a non-GAAP operating margin of 32%, compared to 39% in the previous year[5]. - Net profit attributable to Weibo shareholders was $28.3 million, translating to diluted earnings per share of $0.12, down from $81 million and $0.35 per share year-over-year[5]. - The company reported a total cost and expenses of $356.2 million, a decrease of 7% year-over-year, mainly due to a 25% reduction in sales and marketing expenses[5]. - Net revenue for the second quarter of 2022 was $450.15 million, a decrease of 21.7% compared to $574.47 million in the same period of 2021[12]. - Operating profit for the second quarter of 2022 was $93.94 million, down 51.4% from $193.24 million in the same quarter of 2021[12]. - The total cost and expenses for the second quarter of 2022 amounted to $356.21 million, a decrease of 6.6% from $381.23 million in the same quarter of 2021[12]. - The net profit attributable to Weibo shareholders for the second quarter of 2022 was $28.30 million, a decline of 65.1% from $81.03 million in the same period of 2021[12]. - Basic and diluted earnings per share attributable to Weibo shareholders were both $0.12 for the second quarter of 2022, compared to $0.36 in the same quarter of 2021[13]. - Adjusted EBITDA for Q2 2022 was $132,911, down 42.7% from $232,423 in Q2 2021[17]. - The adjusted net profit attributable to Weibo shareholders for Q2 2022 was $109,695, down 40% from $182,805 in Q2 2021[17]. User Engagement - Monthly active users reached 582 million in June 2022, with a net increase of approximately 16 million users year-over-year, and mobile users accounted for 95% of total monthly active users[4]. - Daily active users averaged 252 million in June 2022, with a net increase of approximately 7 million users year-over-year[4]. - The company emphasizes the importance of user engagement and expanding its active user base for future growth[11]. Financial Metrics and Reporting - The company uses non-GAAP financial metrics to reflect ongoing operational performance, allowing for meaningful comparisons over periods[9]. - Non-GAAP metrics include operating profit, net profit attributable to shareholders, diluted earnings per share, and adjusted EBITDA, excluding certain costs and non-cash items[9]. - The company reported a total of 235.52 million basic shares used for calculating earnings per share for the second quarter of 2022, compared to 228.10 million in the same quarter of 2021[13]. - The number of diluted shares used for calculating non-GAAP earnings per share was 243,778 for Q2 2022, an increase from 236,308 in Q2 2021[17]. Cash and Assets - As of June 30, 2022, Weibo had cash, cash equivalents, and short-term investments totaling $3 billion[6]. - Total assets as of June 30, 2022, were $7.20 billion, down from $7.52 billion as of December 31, 2021[15]. - Total liabilities as of June 30, 2022, were $3.67 billion, a decrease from $3.83 billion as of December 31, 2021[14]. - Cash and cash equivalents as of June 30, 2022, were $2.34 billion, down from $2.42 billion as of December 31, 2021[15]. Strategic Initiatives - Weibo's primary revenue source comes from advertising and marketing services, with a focus on mobile-first solutions and native advertising[10]. - The company has developed a social interest graph recommendation engine to enhance targeted marketing based on user demographics and behavior[10]. - The company plans to focus on expanding its market presence and enhancing product offerings in the upcoming quarters[16]. Risks and Uncertainties - Forward-looking statements regarding financial performance and operational plans are subject to inherent risks and uncertainties[11]. - Key risks include limited operating history in new businesses, regulatory uncertainties in China, and reliance on advertising revenue[11]. - Weibo's financial performance may be affected by macroeconomic conditions, including currency depreciation and global economic uncertainties[11]. - The company does not undertake an obligation to update the information provided in the press release unless required by law[11]. ESG Reporting - Weibo released its first Environmental, Social, and Governance (ESG) report in August 2022, detailing its initiatives and performance in these areas[7]. Conference Call - The management team will hold a conference call on September 1, 2022, to report on the company's financial and operational performance[8].