Social Media Marketing & Monitoring

Chinese Social Media Leader Weibo Reports Q1 Financial Results

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Weibo Corporation (“Weibo” or the “Company”) (NASDAQ: WB), a leading social media in China, today announced its unaudited financial results for first quarter ended March 31, 2021.

“We started the year of 2021 with a strong quarter,” said Gaofei Wang, CEO of Weibo. “Weibo’s user base and engagement continued to grow from prior quarter, leveraging our effective channel investments, enriched video offerings and our strength in social distribution and hot trends. On the monetization front, we are glad to see broad-based year-over-year growth across industries and robust momentum with certain differentiated ad products, demonstrating our competitiveness in fulfilling advertiser’s increasing brand plus performance needs.” Mr. Wang concluded.

First Quarter 2021 Highlights

  • Net revenues were $458.9 million, an increase of 42% year-over-year or an increase of 31% year-over-year on a constant currency basis [1].
  • Advertising and marketing revenues were $390.0 million, an increase of 42% year-over-year.
  • Value-added service (“VAS”) revenues were $68.9 million, an increase of 44% year-over-year.
  • Income from operations was $108.6 million, representing an operating margin of 24%.
  • Non-GAAP income from operations was $137.5 million, representing a non-GAAP operating margin of 30%.
  • Net income attributable to Weibo was $49.8 million and diluted net income per share was $0.22.
  • Non-GAAP net income attributable to Weibo was $130.7 million and non-GAAP diluted net income per share was $0.57.
  • Monthly active users (“MAUs”) were 530 million in March 2021, a decrease of 4% year-over-year and an increase of 2% quarter-over-quarter. Mobile MAUs represented 94% of MAUs.
  • Average daily active users (“DAUs”) were 230 million in March 2021, a decrease of 5% year-over-year and an increase of 2% quarter-over-quarter.

[1] On a constant currency (non-GAAP) basis, we assume that the exchange rate in the first quarter of 2021 had been the same as it was in the first quarter of 2020, or RMB 6.98=US$1.00.

First Quarter 2021 Financial Results

For the first quarter of 2021, Weibo’s total net revenues were $458.9 million, an increase of 42% compared to $323.4 million for the same period last year.

Advertising and marketing revenues for the first quarter of 2021 were $390.0 million, an increase of 42% compared to $275.4 million for the same period last year. Advertising and marketing revenues excluding ad revenues from Alibaba were $356.7 million, an increase of 44% compared to $247.9 million for the same period last year, primarily attributable to broad-based robust growth of ad spend across industries from the trough for the same period last year.

VAS revenues for the first quarter of 2021 were $68.9 million, an increase of 44% year-over-year compared to $48.0 million for the same period last year, mainly attributable to revenues derived from the interactive entertainment company acquired in November 2020.

Costs and expenses for the first quarter of 2021 totaled $350.3 million, an increase of 32% compared to $265.4 million for the same period last year. The increase was primarily due to increased marketing expense and higher personal related cost.

Income from operations for the first quarter of 2021 was $108.6 million, compared to $58.0 million for the same period last year. Operating margin was 24%, compared to 18% last year. Non-GAAP income from operations was $137.5 million, compared to $74.1 million for the same period last year. Non-GAAP operating margin was 30%, compared to 23% last year.

Non-operating loss for the first quarter of 2021 was $44.7million, compared to an income of $10.0 million for the same period last year. Non-operating loss for the first quarter of 2021 mainly included (i) a $58.2 million net loss on sale of and fair value change of investments, which is excluded under non-GAAP measures; and (ii) a $13.5 million net interest and other income.

Income tax expense were $14.9 million, compared to $15.9 million for the same period last year.

Net income attributable to Weibo for the first quarter of 2021 was $49.8 million, compared to $52.1 million for the same period last year. Diluted net income per share attributable to Weibo for the first quarter of 2021 was $0.22, at similar level for the same period last year. Non-GAAP net income attributable to Weibo for the first quarter of 2021 was $130.7 million, compared to $67.4 million for the same period last year. Non-GAAP diluted net income per share attributable to Weibo for the first quarter of 2021 was $0.57, compared to $0.30 for the same period last year.

As of March 31, 2021, Weibo’s cash, cash equivalents and short-term investments totaled $3.41 billion. For the first quarter of 2021, cash provided by operating activities was $244.3 million, capital expenditures totaled $6.0 million, and depreciation and amortization expenses amounted to $12.4 million.

Appointment of Independent Director

The Company announced that its board of directors has appointed Mr. Yan Wang as an independent director of the Company. Mr. Wang served as a director of SINA Corporation, the parent of the Company from May 2003 to March 2021 and also held various executive roles in SINA since its inception. The appointment is effective immediately.

Business Outlook

For the second quarter of 2021, Weibo estimates its net revenues to increase by 25% to 30% year-over-year on a constant currency basis. This forecast reflects Weibo’s current and preliminary view, which is subject to change.

Conference Call

Weibo’s management team will host a conference call from 7:00 AM to 8:00 AM Eastern Time on May 10, 2021 (or 7:00 PM – 8:00 PM Beijing Time on May 10, 2021) to present an overview of the Company’s financial performance and business operations.

Please register in advance of the conference call using the link provided below. Upon registering, you will be provided with dial-in numbers, passcode and unique registrant ID by email. To join the conference, please use the conference access information provided in the email received at the point of registering.

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