Weibo Corporation ("Weibo" or the "Company") (Nasdaq:WB), a leading
social media in China, today announced its unaudited financial
results for the quarter ended March 31, 2015.
First Quarter 2015 Highlights
- Net revenues increased 43% year over year to $96.3 million,
exceeding the Company's guidance between $93 million and $96
million.
- Advertising and marketing revenues increased 53% year over year
to $79.2 million.
- Weibo Value Added Services ("Weibo VAS") revenues increased 9%
year over year to $17.1 million.
- Net loss attributable to Weibo's ordinary shareholders
decreased 94% year over year to $2.9 million, or $0.01 diluted net
loss per share.
- Non-GAAP net income attributable to Weibo's ordinary
shareholders was $2.9 million, or non-GAAP diluted net income per
share of $0.01, compared to a non-GAAP net loss of $4.8 million for
the same period last year.
- Non-GAAP adjusted EBITDA was $6.9 million, compared to a
non-GAAP adjusted EBITDA of negative $0.5 million for the same
period last year.
- Monthly active users ("MAU") were 198 million for the month of
March 2015, up 38% year over year. Mobile MAU was 86% of total MAU
in March. Daily active users ("DAU") were 89 million on average for
the month of March 2015, up 34% year over year.
"Weibo's MAU grew at its fastest pace since our IPO
in March with mobile MAU up 57% year over year," stated Gaofei
Wang, Weibo's CEO. "On the monetization front, Weibo's advertising
and marketing revenues also saw strong growth in the first quarter,
particularly in the small and medium-sized enterprise segment where
revenues grew 125% year over year, boosted by the momentum
generated from Weibo's self-service platform."
First Quarter 2015 Financial
Results
For the first quarter of 2015, Weibo reported net
revenues of $96.3 million, compared to $67.5 million for the same
period last year. Advertising and marketing revenues for the first
quarter of 2015 totaled $79.2 million, compared to $51.9 million
for the same period last year. Weibo VAS revenues for the first
quarter of 2015 totaled $17.1 million, compared to $15.7 million
for the same period last year.
Costs and expenses for the first quarter of 2015
totaled $100.6 million, compared to $75.6 million for the same
period last year. Non-GAAP costs and expenses for the first quarter
of 2015 was $94.7 million, up 30% from the same period last year.
The increase in non-GAAP costs and expenses was mainly due to an
increase in personnel-related costs, marketing expenditures,
revenue share of Weibo VAS and infrastructure-related costs from
the growth in traffic.
Loss from operations for the first quarter of 2015
was $4.3 million, compared to a loss from operations of $8.1
million for the same period last year. Non-GAAP income from
operations for the first quarter of 2015 was $1.6 million, compared
to a non-GAAP loss from operations of $5.6 million for the same
period last year.
Non-operating income for the first quarter of 2015
was $1.5 million, compared to a non-operating loss of $39.9 million
for the same period last year, which included a loss of $40.2
million from the change in fair value of investor option liability
related to Alibaba's investment.
Net loss for the first quarter of 2015 was $2.8
million, compared to a net loss of $47.4 million for the same
period last year. Diluted net loss per share attributable to
Weibo's ordinary shareholders for the first quarter of 2015 was
$0.01, compared to a diluted net loss of $0.31 per share for the
same period last year. Non-GAAP net income attributable to Weibo's
ordinary shareholders for the first quarter of 2015 was $2.9
million, compared to a non-GAAP net loss of $4.8 million for the
same period last year. Non-GAAP diluted net income per share
attributable to Weibo's ordinary shareholders for the first quarter
of 2015 was $0.01, compared to a non-GAAP diluted net loss of $0.03
per share for the same period last year.
As of March 31, 2015, Weibo's cash, cash
equivalents and short-term investments totaled $452.5 million. For
the first quarter of 2015, cash provided by operating activities
was $7.1 million, capital expenditures totaled $3.8 million, and
depreciation and amortization expenses amounted to $5.6
million.
Business Outlook
For the second quarter of 2015, Weibo estimates
that its net revenues to be between $102 million and $105 million,
which assumes that certain planned initiatives with Alibaba are
still expected to begin in the second quarter, but revenue for
which may need to be deferred to the second half of 2015 for
revenue recognition purposes. This forecast reflects Weibo's
current and preliminary view, which is subject to change.
Non-GAAP Measures
This release contains the following non-GAAP
financial measures: non-GAAP costs and expenses, non-GAAP income
(loss) from operations, non-GAAP net income (loss), non-GAAP
diluted net income (loss) per share attributable to Weibo's
ordinary shareholders and non-GAAP adjusted EBITDA. These non-GAAP
financial measures should be considered in addition to, not as a
substitute for, measures of the Company's financial performance
prepared in accordance with U.S. GAAP.
The Company's non-GAAP financial measures exclude
stock-based compensation, amortization of intangible assets net of
tax, and change in fair value of investor option liability. In
addition, non-GAAP adjusted EBITDA excludes depreciation expenses,
interest income (expenses) and income tax expenses (benefits). The
Company's management uses these non-GAAP financial measures in
their financial and operating decision-making, because management
believes these measures reflect the Company's ongoing operating
performance in a manner that allows more meaningful
period-to-period comparisons. The Company believes that these
non-GAAP financial measures provide useful information to investors
and others in the following ways: (i) in comparing the Company's
current financial results with the Company's past financial results
in a consistent manner, and (ii) in understanding and evaluating
the Company's current operating performance and future prospects in
the same manner as management does, if they so choose. The Company
also believes that the non-GAAP financial measures provide useful
information to both management and investors by excluding certain
expenses, gains (losses) and other items (i) that are not expected
to result in future cash payments or (ii) that are non-recurring in
nature or may not be indicative of the Company's core operating
results and business outlook.
Use of non-GAAP financial measures has limitations.
The Company's non-GAAP financial measures do not include all income
and expense items that affect the Company's operations. They may
not be comparable to non-GAAP financial measures used by other
companies. Accordingly, care should be exercised in understanding
how the Company defines its non-GAAP financial measures.
Reconciliations of the Company's non-GAAP measures to the nearest
comparable GAAP measures are set forth in the section below titled
"Unaudited Reconciliation of GAAP and Non-GAAP Measures."
Conference Call
Weibo will host a conference call at 9 PM – 10 PM
Eastern Time on May 14, 2015 (or 9 AM – 10 AM Beijing Time on May
15, 2015) to present an overview of the Company's financial
performance and business operations. A live webcast of the call
will be available through the Company's corporate website at
http://ir.weibo.com. The conference call can be accessed as
follows:
US Toll Free: +1 (888) 346-8982 Hong Kong Toll
Free: +852 800-905-945 China Toll Free: +86 400-120-1203
International: +1 (412) 902-4272 Passcode for all regions:
Weibo
A replay of the conference call will be available through
midnight Eastern Time, May 28, 2015. The dial-in number is +1 (412)
317-0088. The passcode for the replay is 10065841.
About Weibo Corporation
Weibo is a leading social media for people to create, share and
discover Chinese-language content. Weibo combines the means of
public self-expression in real time with a powerful platform for
social interaction, as well as content aggregation and
distribution. Any user can create and post a feed of up to 140
Chinese characters and attach multi-media or long-form content.
User relationships on Weibo may be asymmetric; any user can follow
any other user and add comments to a feed while reposting. This
simple, asymmetric and distributed nature of Weibo allows an
original feed to become a live viral conversation stream.
Weibo enables its advertising and marketing customers to promote
their brands, products and services to users. Weibo offers a wide
variety of advertising and marketing solutions to its customers,
ranging from large brand advertisers to Alibaba/e-commerce
merchants to small and medium sized enterprises to individuals. The
Company generates a substantial majority of revenues from the sale
of advertising and marketing services, including the sale of social
display ads, promoted feeds and event-based ad solutions. Weibo has
developed and is continuously refining its social interest graph
recommendation engine, which enables its customers to perform
people marketing and target audiences based on user demographics,
social relationships, interests and behaviors, to achieve greater
relevance, engagement and marketing effectiveness on Weibo.
Safe Harbor Statement
This press release contains forward-looking statements that
relate to, among other things, Weibo's expected financial
performance and strategic and operational plans (as described,
without limitation, in the "Business Outlook" section and in
quotations from management in this press release. Weibo may also
make forward-looking statements in the Company's periodic reports
to the U.S. Securities and Exchange Commission ("SEC"), in press
releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Statements
that are not historical facts, including statements about the
Company's beliefs and expectations, are forward-looking statements.
These forward-looking statements can be identified by terminology,
such as "will," "expects," "anticipates," "future," "intends,"
"plans," "believes," "confidence," "estimates" and similar
statements. Forward-looking statements involve inherent risks and
uncertainties. A number of important factors could cause actual
results to differ materially from those contained in any
forward-looking statement. Potential risks and uncertainties
include, but are not limited to, Weibo's limited operating history
in certain new businesses; failure to grow active user base and the
level of user engagement; the uncertain regulatory landscape in
China; fluctuations in the Company's quarterly operating results;
the Company's reliance on advertising sales for a majority of its
revenues; failure to successfully develop, introduce, drive
adoption of or monetize new features and products; failure to
compete effectively for advertising and marketing spending; failure
to develop the small and medium enterprise market by the Company or
through cooperation with other parties, including Alibaba; failure
to successfully integrate acquired businesses; risks associated
with the Company's investments, including equity pick-up and
impairment; failure to compete successfully against new entrants
and established industry competitors; and adverse changes in
economic and political policies of the PRC government and its
impact on the Chinese economy. Further information regarding these
and other risks is included in Weibo's annual report on Form 20-F
for the fiscal year ended December 31, 2014 filed with the SEC on
April 28, 2015 and other filings with the SEC. All information
provided in this press release is current as of the date hereof,
and Weibo assumes no obligation to update such information, except
as required under applicable law.
WEIBO
CORPORATION |
CONDENSED COMBINED AND
CONSOLIDATED STATEMENTS OF OPERATIONS |
(U.S. Dollars in
thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
Three months
ended |
|
March
31, |
December 31, |
|
2015 |
2014 |
2014 |
Net revenues: |
|
|
|
Advertising and
marketing |
$ 79,160 |
$ 51,853 |
$ 87,973 |
Weibo VAS |
17,130 |
15,657 |
17,239 |
Total net
revenues |
96,290 |
67,510 |
105,212 |
|
|
|
|
Costs and Expenses: |
|
|
|
Cost of revenues
(a) |
28,925 |
17,443 |
25,786 |
Sales and marketing
(a) |
31,177 |
23,849 |
34,045 |
Product development
(a) |
34,328 |
28,808 |
33,112 |
General and
administrative (a) |
6,169 |
5,472 |
7,397 |
Total costs and
expenses |
100,599 |
75,572 |
100,340 |
Income (loss) from
operations |
(4,309) |
(8,062) |
4,872 |
|
|
|
|
Non-operating income
(loss): |
|
|
|
Change in fair value of
investor option liability |
-- |
(40,188) |
-- |
Interest and other
income (expenses), net |
1,459 |
297 |
3,017 |
|
1,459 |
(39,891) |
3,017 |
|
|
|
|
Income (loss) before income tax
expenses |
(2,850) |
(47,953) |
7,889 |
Income tax (expenses)
benefits |
5 |
576 |
(2,877) |
|
|
|
|
Net income (loss) |
(2,845) |
(47,377) |
5,012 |
Less: Net income (loss)
attributable to noncontrolling interest |
49 |
-- |
421 |
|
|
|
|
Net income (loss) attributable to
Weibo's ordinary shareholders |
$ (2,894) |
$ (47,377) |
$ 4,591 |
|
|
|
|
|
|
|
|
Basic net income (loss) per share
attributable to Weibo's ordinary shareholders |
$ (0.01) |
$ (0.31) |
$ 0.02 |
Diluted net income (loss) per share
attributable to Weibo's ordinary shareholders |
$ (0.01) |
$ (0.31) |
$ 0.02 |
|
|
|
|
Shares used in computing
basic |
|
|
|
net income (loss) per share
attributable to Weibo's ordinary shareholders |
204,985 |
150,596 |
202,844 |
Shares used in computing
diluted |
|
|
|
net income (loss) per share
attributable to Weibo's ordinary shareholders |
204,985 |
150,596 |
216,845 |
|
|
|
|
|
|
|
|
(a) Stock-based compensation in each
category: |
|
|
|
Cost of
revenues |
$ 252 |
$ 169 |
$ 194 |
Sales and
marketing |
694 |
257 |
368 |
Product
development |
2,308 |
592 |
1,655 |
General and
administrative |
2,293 |
1,171 |
2,290 |
|
WEIBO
CORPORATION |
CONDENSED CONSOLIDATED
BALANCE SHEETS |
(U.S. Dollars in
thousands) |
(Unaudited) |
|
|
|
|
March 31, |
December 31, |
|
2015 |
2014 |
Assets |
|
|
Current assets: |
|
|
Cash and cash
equivalents |
$ 284,372 |
$ 283,462 |
Short-term
investments |
168,169 |
166,414 |
Accounts receivable,
net |
133,262 |
120,210 |
Amount due from
SINA |
2,380 |
-- |
Prepaid expenses and
other current assets |
22,154 |
16,104 |
Current assets
subtotal |
610,337 |
586,190 |
|
|
|
Property and equipment,
net |
29,291 |
30,874 |
Goodwill and intangible assets,
net |
14,812 |
15,191 |
Investments |
46,454 |
45,199 |
Other assets |
3,023 |
327 |
Total assets |
$ 703,917 |
$ 677,781 |
|
|
|
Liabilities and Shareholders'
Equity |
|
|
Liabilities: |
|
|
Current
liabilities: |
|
|
Accounts
payable |
$ 2,261 |
$ 2,420 |
Accrued
liabilities |
108,715 |
87,478 |
Deferred
revenues |
21,162 |
20,957 |
Amount due to
SINA |
-- |
1,717 |
Current liabilities
subtotal |
132,138 |
112,572 |
|
|
|
Long-term
liabilities |
780 |
873 |
Total
liabilities |
132,918 |
113,445 |
|
|
|
Shareholders' equity: |
|
|
Weibo ordinary
shareholders' equity |
569,893 |
563,281 |
Non-controlling
interest |
1,106 |
1,055 |
Total shareholders'
equity |
570,999 |
564,336 |
|
|
|
Total liabilities and shareholders'
equity |
$ 703,917 |
$ 677,781 |
|
WEIBO
CORPORATION |
RECONCILIATION OF GAAP
AND NON-GAAP FINANCIAL MEASURES |
(U.S. Dollars in
thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
March 31,
2015 |
March 31,
2014 |
December 31,
2014 |
|
|
|
|
Non-GAAP |
|
|
|
Non-GAAP |
|
|
|
Non-GAAP |
Non-GAAP Results: |
Actual |
Adjustments |
|
Results |
Actual |
Adjustments |
|
Results |
Actual |
Adjustments |
|
Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising and
marketing |
$ 79,160 |
|
|
$ 79,160 |
$ 51,853 |
|
|
$ 51,853 |
$ 87,973 |
|
|
$ 87,973 |
Weibo VAS |
17,130 |
|
|
17,130 |
15,657 |
|
|
15,657 |
17,239 |
|
|
17,239 |
Net
revenues |
$ 96,290 |
|
|
$ 96,290 |
$ 67,510 |
|
|
$ 67,510 |
$ 105,212 |
|
|
$ 105,212 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,547) |
(a) |
|
|
(2,189) |
(a) |
|
|
(4,507) |
(a) |
|
|
|
(371) |
(b) |
|
|
(280) |
(b) |
|
|
(381) |
(b) |
|
Total costs and
expenses |
$ 100,599 |
$ (5,918) |
|
$ 94,681 |
$ 75,572 |
$ (2,469) |
|
$ 73,103 |
$ 100,340 |
$ (4,888) |
|
$ 95,452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,547 |
(a) |
|
|
2,189 |
(a) |
|
|
4,507 |
(a) |
|
|
|
371 |
(b) |
|
|
280 |
(b) |
|
|
381 |
(b) |
|
Income (loss) from
operations |
$ (4,309) |
$ 5,918 |
|
$ 1,609 |
$ (8,062) |
$ 2,469 |
|
$ (5,593) |
$ 4,872 |
$ 4,888 |
|
$ 9,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,189 |
(a) |
|
|
|
|
|
|
|
5,547 |
(a) |
|
|
191 |
(b) |
|
|
4,507 |
(a) |
|
|
|
269 |
(b) |
|
|
40,188 |
(c) |
|
|
275 |
(b) |
|
Net income (loss) attributable to
Weibo's ordinary shareholders |
$ (2,894) |
$ 5,816 |
|
$ 2,922 |
$ (47,377) |
$ 42,568 |
|
$ (4,809) |
$ 4,591 |
$ 4,782 |
|
$ 9,373 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per share
attributable to Weibo's ordinary shareholders |
$ (0.01) |
|
|
$ 0.01 |
$ (0.31) |
|
|
$ (0.03) |
$ 0.02 |
|
|
$ 0.04 |
Shares used in computing diluted net
income (loss) per share attributable to Weibo's ordinary
shareholders |
204,985 |
11,488 |
(d) |
216,473 |
150,596 |
-- |
|
150,596 |
216,845 |
-- |
|
216,845 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted
EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
(loss) |
|
|
|
$ 2,922 |
|
|
|
$ (4,809) |
|
|
|
$ 9,373 |
Depreciation
expenses |
|
|
|
5,259 |
|
|
|
5,134 |
|
|
|
5,647 |
Interest income,
net |
|
|
|
(1,380) |
|
|
|
(347) |
|
|
|
(1,764) |
Income tax expenses
(benefits) |
|
|
|
88 |
|
|
|
(487) |
|
|
|
2,971 |
Non-GAAP adjusted
EBITDA |
|
|
|
$ 6,889 |
|
|
|
$ (509) |
|
|
|
$ 16,227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) To adjust
stock-based compensation. |
(b) To adjust
amortization of intangible assets and tax provision on amortization
of acquired intangible assets. |
(c) To adjust the
change in fair value of investor option liability. |
(d) To adjust the
number of shares used in computing diluted net income per share
from diluted net loss per share. |
|
WEIBO
CORPORATION |
ADDITIONAL
INFORMATION |
(U.S. Dollars in
thousands) |
(Unaudited) |
|
|
|
|
|
Three months
ended |
|
March
31, |
December 31, |
|
2015 |
2014 |
2014 |
|
|
|
|
Net revenues |
|
|
|
Advertising and
marketing revenues: |
|
|
|
Other than
Alibaba |
$ 44,667 |
$ 31,992 |
$ 49,957 |
Alibaba |
34,493 |
19,861 |
38,016 |
Subtotal |
79,160 |
51,853 |
87,973 |
|
|
|
|
Weibo VAS |
17,130 |
15,657 |
17,239 |
|
$ 96,290 |
$ 67,510 |
$ 105,212 |
CONTACT: Investor Relations
Weibo Corporation
Phone: +86 10 5898-3231
Email: ir@staff.weibo.com
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