WB(HK:09898)2023-11-09 09:08Financial 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].