WB(WB) - 2025 Q2 - Quarterly Results

Management Commentary and Business Highlights Weibo's Q2 2025 performance was driven by strategic user product enhancements, AI integration, and strong advertising monetization - Focused on integrating social products and upgrading the recommendation system to improve user engagement and content consumption[2] - The user community for AI-powered intelligent search grew robustly, driving an increase in overall user search needs[2] - The advertising business showed a solid trend, capitalizing on new product launch marketing and demand from the June 18 e-commerce festival[2][5] Financial Performance Summary Weibo's Q2 2025 net revenues rose 2% to $444.8 million, with improved profitability and a stable user base Revenue Analysis Total revenue increased 2% to $444.8 million, driven by advertising and marketing, with VAS revenues slightly declining Q2 2025 Revenue Breakdown (YoY) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Net Revenues | $444.8M | $437.9M | +2% | | Advertising & Marketing | $383.4M | $375.3M | +2% | | - from Alibaba | $35.7M | $32.4M | +10% | | - ex-Alibaba | $347.6M | $342.9M | +1% | | Value-Added Services (VAS) | $61.4M | $62.6M | -2% | Profitability Analysis Profitability improved with GAAP operating income up 8% to $145.6 million and net income rising to $125.7 million - Total costs and expenses decreased by 1% YoY to $299.2 million, primarily due to reduced general and administrative expenses[7] Q2 2025 Profitability Metrics (GAAP vs. Non-GAAP) | Metric | Q2 2025 (GAAP) | Q2 2024 (GAAP) | Q2 2025 (Non-GAAP) | Q2 2024 (Non-GAAP) | | :--- | :--- | :--- | :--- | :--- | | Income from Operations | $145.6M | $135.4M | $161.8M | $157.6M | | Operating Margin | 33% | 31% | 36% | 36% | | Net Income (to shareholders) | $125.7M | $111.9M | $143.2M | $126.3M | | Diluted EPS (to shareholders) | $0.48 | $0.43 | $0.54 | $0.48 | Cash Flow and Balance Sheet Weibo maintained strong liquidity with $2.11 billion in cash and investments, generating $24.8 million from operations - Cash, cash equivalents, and short-term investments totaled $2.11 billion as of June 30, 2025[11] Q2 2025 Cash Flow Highlights | Metric | Amount | | :--- | :--- | | Cash provided by operating activities | $24.8 million | | Capital expenditures | $17.6 million | | Depreciation and amortization expenses | $14.8 million | User Metrics Weibo's user base remained stable in June 2025, with 588 million MAUs and 261 million DAUs User Metrics (June 2025) | Metric | Count | | :--- | :--- | | Monthly Active Users (MAUs) | 588 million | | Average Daily Active Users (DAUs) | 261 million | Detailed Financial Statements This section presents unaudited consolidated financial statements, including operations, balance sheets, and GAAP to non-GAAP reconciliations Unaudited Condensed Consolidated Statements of Operations For Q2 2025, net revenues were $444.8 million, with income from operations at $145.6 million and net income of $125.7 million Condensed Consolidated Statements of Operations (Three Months Ended June 30) | (In thousands of U.S. dollars) | 2025 | 2024 | | :--- | :--- | :--- | | Net revenues | $444,798 | $437,873 | | Total costs and expenses | $299,228 | $302,488 | | Income from operations | $145,570 | $135,385 | | Net income | $126,698 | $113,537 | | Net income attributable to Weibo's shareholders | $125,685 | $111,931 | Unaudited Condensed Consolidated Balance Sheets As of June 30, 2025, total assets were $6.54 billion, with liabilities decreasing and shareholders' equity growing to $3.65 billion Condensed Consolidated Balance Sheets Highlights | (In thousands of U.S. dollars) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $6,539,145 | $6,504,499 | | Cash and cash equivalents | $1,156,292 | $1,890,632 | | Short-term investments | $952,876 | $459,852 | | Total Liabilities | $2,863,437 | $2,925,613 | | Total Shareholders' Equity | $3,649,891 | $3,533,783 | Unaudited Reconciliation of Non-GAAP to GAAP Results This section reconciles GAAP to non-GAAP net income, detailing adjustments for stock-based compensation and intangible amortization Reconciliation of GAAP to Non-GAAP Net Income (Three Months Ended June 30) | (In thousands of U.S. dollars) | 2025 | 2024 | | :--- | :--- | :--- | | Net income attributable to Weibo's shareholders (GAAP) | $125,685 | $111,931 | | Add: Stock-based compensation | $12,019 | $17,207 | | Add: Amortization of intangible assets | $4,161 | $5,011 | | Add: Investment related gain/loss, net | $3,112 | $(245) | | Other adjustments | $(1,747) | $(7,633) | | Non-GAAP net income attributable to Weibo's shareholders | $143,215 | $126,252 | Other Information This section provides supplementary details, including conference call logistics, non-GAAP explanations, and forward-looking statements - The company will host a conference call on August 14, 2025, to discuss financial performance and business operations[12] - The report utilizes non-GAAP financial measures, excluding items like stock-based compensation and intangible asset amortization, to reflect ongoing operating performance[15][16] - The press release contains forward-looking statements protected under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995[23]