WB(HK:09898)2024-08-22 09:00Financial Performance - Net revenue for Q2 2024 was $437.9 million, a decrease of 1% year-over-year, or an increase of 1% when adjusted for fixed exchange rates[4]. - Advertising and marketing revenue for Q2 2024 was $375.3 million, down 3% year-over-year, or down 1% when adjusted for fixed exchange rates[4]. - Value-added services revenue increased by 15% year-over-year to $62.6 million, primarily driven by growth in membership services[5]. - Operating profit for Q2 2024 was $135.4 million, with an operating margin of 31%, compared to 28% in the same period last year[5]. - Non-GAAP net profit attributable to Weibo shareholders was $126.3 million, with a diluted EPS of $0.48[5]. - The company reported a decrease in total costs and expenses by 5% year-over-year to $302.5 million[5]. - Non-operating profit for Q2 2024 was $11.4 million, compared to a non-operating loss of $13.8 million in the same period last year[5]. - Net income attributable to Weibo shareholders was $81.387 million for the quarter ended June 30, 2023, compared to $49.438 million for the quarter ended March 31, 2024, representing an increase of 64.5%[11]. - Basic net income per share attributable to Weibo shareholders was $0.35 for the quarter ended June 30, 2023, compared to $0.21 for the quarter ended March 31, 2024, indicating a growth of 66.7%[12]. - Operating profit for the quarter ended June 30, 2023, was $123.453 million, compared to $99.737 million for the quarter ended March 31, 2024, showing an increase of 23.8%[11]. - The company reported a total net revenue of $440.240 million for the quarter ended June 30, 2023, compared to $395.497 million for the quarter ended March 31, 2024, marking a growth of 11.3%[11]. - Revenue from advertising and marketing for the six months ended June 30, 2024, was $714,228, compared to $740,974 for the same period in 2023, a decrease of about 3.6%[18]. - The adjusted EBITDA for the six months ended June 30, 2024, was $293,393, compared to $297,625 for the same period in 2023, indicating a slight decrease of 1.1%[16]. - The company reported a net profit of $199,842,000 for the six months ended June 30, 2024, compared to $195,170,000 for the same period last year, reflecting an increase of approximately 1.4%[21]. - Total costs and expenses amounted to $620,997,000, down from $634,075,000 year-over-year, indicating a decrease of about 2.1%[21]. - The company achieved a gross profit of $247,144,000 before income tax expenses, up from $235,947,000, marking an increase of around 4.6%[21]. - The adjusted net profit attributable to shareholders was $210,647,000, compared to $181,879,000, reflecting a growth of about 15.8%[21]. - The company reported a total of $271,650,000 in profit before income tax expenses, an increase from $222,968,000, representing a growth of approximately 21.8%[21]. User Engagement - Monthly active users reached 583 million in June 2024, while daily active users averaged 256 million[4]. - The company emphasized enhancing user engagement and operational efficiency as key strategies for future growth[3]. - The company is continuously improving its social interest graph recommendation engine to enhance marketing effectiveness and user engagement[9]. - Weibo's revenue primarily comes from advertising and marketing services, which are crucial for its financial performance[9]. Assets and Liabilities - Cash, cash equivalents, and short-term investments totaled $2.8 billion as of June 30, 2024[6]. - As of June 30, 2024, total assets decreased to $7,102,285 from $7,280,358 as of December 31, 2023, representing a decline of approximately 2.4%[13][14]. - The company's cash and cash equivalents decreased to $1,922,371 as of June 30, 2024, down from $2,584,635 as of December 31, 2023, a reduction of about 25.7%[13]. - Total liabilities decreased to $3,688,718 as of June 30, 2024, from $3,762,742 as of December 31, 2023, a decline of approximately 2%[14]. - Long-term investments decreased slightly to $1,281,402 as of June 30, 2024, from $1,320,386 as of December 31, 2023, a reduction of about 2.9%[13][14]. Compliance and Accounting - The company’s total assets and liabilities were evaluated under both US GAAP and IFRS, with no significant discrepancies found in the financial reporting[20]. - The company is committed to maintaining compliance with both US GAAP and IFRS standards, ensuring transparency and accuracy in financial reporting[19]. - As of December 31, 2023, total assets reported under US GAAP amounted to $7,280,358, while under IFRS, it was $7,322,919, reflecting a difference of $42,561[22]. - The net goodwill and intangible assets were reported at $300,565 under US GAAP, adjusted to $289,461 under IFRS after accounting for redeemable non-controlling interests[22]. - Long-term investments were valued at $1,320,386 under US GAAP, increasing to $1,376,307 under IFRS after fair value adjustments[22]. - Total liabilities under US GAAP were $3,762,742, while under IFRS, they amounted to $3,892,810, indicating a difference of $130,068[22]. - The total equity attributable to shareholders was $3,398,735 under US GAAP, adjusted to $3,338,694 under IFRS after accounting for convertible bonds and other adjustments[22]. - The company reported a total of $666,833 in accrued expenses and other current liabilities under US GAAP, which adjusted to $666,497 under IFRS[22]. - The convertible preferred stock was valued at $317,625 under US GAAP, with an adjustment to $356,545 under IFRS due to fair value measurement[22]. - The company’s total liabilities and equity under US GAAP were $7,280,358, while under IFRS, it was $7,322,919, showing a difference of $42,561[22]. - The company’s non-controlling interests were reported at $50,153 under US GAAP, adjusted to $91,415 under IFRS after accounting for fair value changes[22]. - The adjustments between US GAAP and IFRS reflect differences in accounting policies, particularly in the treatment of convertible bonds, leases, and equity incentives[23][24][25][26][27]. Acquisition and Financial Liabilities - The company entered into a series of share purchase agreements to acquire a majority stake in Shanghai Mask Information Technology Co., Ltd. on October 31, 2020[28]. - The redeemable non-controlling interests were recognized at fair value on the acquisition date, including the redemption rights as part of the purchase price[28]. - The overall increase in redeemable non-controlling interests was recorded up to the redemption value from the acquisition date[28]. - The fair value of the redeemable non-controlling interests is treated as permanent equity, excluding the redemption rights[28]. - The fair value of the redemption rights is recognized separately as a financial liability on the balance sheet[28]. - The initial recognition of the financial liability reduces the parent company's equity[28]. - Subsequent changes in the carrying amount of the financial liability are recognized as financial expenses in the income statement[28]. - The company has an obligation to purchase the remaining equity interests held by the founder and CEO of Mask Technology at fair value[28]. - The application of acquisition accounting results in lower goodwill due to the separate recognition of the financial liability[28]. - The redeemable non-controlling interests are classified as financial liabilities due to the conditional events not fully controlled by the company[28].