WB(HK:09898)2023-05-25 09:27Financial Performance - Net revenue for Q1 2023 was $413.8 million, a decrease of 15% year-over-year, and a 7% decrease when adjusted for fixed exchange rates[3]. - Advertising and marketing revenue was $355.3 million, down 17% year-over-year, while value-added services revenue increased by 2% to $58.5 million[4]. - The company reported a net profit attributable to Weibo shareholders of $100.5 million, compared to a net loss of $67.5 million in the same period last year[5]. - Operating profit for Q1 2023 was $96.5 million, with an operating margin of 23%, compared to 21% in the same period last year[4]. - Non-GAAP operating profit was $128.6 million, with a non-GAAP operating margin of 31%, up from 29% year-over-year[4]. - Total revenue for the quarter ending March 31, 2023, was $413.778 million, down from $484.622 million in the same quarter of the previous year, representing a decrease of approximately 14.6%[22]. - Adjusted EBITDA for Q1 2023 was $133,744 thousand, down from $153,088 thousand in Q1 2022, indicating a decline of approximately 12.6%[20]. User Metrics - Monthly active users reached 593 million in March 2023, with a net increase of approximately 11 million users year-over-year[3]. Cash and Investments - Cash, cash equivalents, and short-term investments totaled $2.8 billion as of March 31, 2023[5]. - The company’s cash and cash equivalents decreased from $2,690,768 thousand as of December 31, 2022, to $2,284,216 thousand as of March 31, 2023[17]. Dividends and Shareholder Returns - The board approved a special cash dividend of $0.85 per share, totaling approximately $200 million, to be paid on or around July 19, 2023[6]. Costs and Expenses - The total costs and expenses for the three months ended March 31, 2023, were $317.3 million, compared to $484.6 million for the same period in 2022[14]. - Operating costs increased from $2,337 million in Q1 2022 to $2,536 million in Q1 2023, reflecting a rise of 8.4%[15]. - The total assets decreased from $7,129,454 thousand as of December 31, 2022, to $7,014,237 thousand as of March 31, 2023[17]. - The total liabilities decreased from $3,738,914 thousand as of December 31, 2022, to $3,539,622 thousand as of March 31, 2023[18]. Management and Strategy - The company aims to enhance monetization potential by focusing on resilient industries and growth opportunities amid economic challenges[2]. - The management team held a conference call on May 25, 2023, to discuss the financial and operational overview of the company[8]. - The company continues to focus on mobile-first advertising solutions and has developed a social interest graph recommendation engine to enhance marketing effectiveness[12]. - Weibo's management believes that non-GAAP financial measures provide useful information for assessing the company's ongoing performance[10]. Risks and Challenges - The company faces risks including regulatory uncertainties in China and competition in the advertising market[13]. - Weibo's financial performance is subject to fluctuations, and the company has acknowledged the impact of macroeconomic conditions on its operations[13]. Share Performance - The basic net loss per share attributable to Weibo shareholders was $(0.29) for March 31, 2022, improved to $0.43 by March 31, 2023[15]. - The company reported a total of 236,895 diluted shares used for calculating net loss per share attributable to Weibo shareholders for Q1 2023[20]. Product Development - The company plans to continue focusing on product development, with product development expenses rising from $13,336 thousand in Q1 2022 to $13,800 thousand in Q1 2023[15].