BEIJING,
May 16, 2017 /PRNewswire/
--
Weibo Corporation ("Weibo" or the "Company") (NASDAQ: WB), a
leading social media in China,
today announced its unaudited financial results for the first
quarter ended March 31, 2017.
First Quarter 2017 Highlights
- Net revenues totaled $199.2
million, an increase of 67% year-over-year, exceeding the
Company's guidance between $185 million and
$190 million.
- Advertising and marketing revenues were $169.3 million, an increase of 71%
year-over-year.
- Other revenues were $29.9
million, an increase of 49% year-over-year.
- Net income attributable to Weibo was $46.9 million, an increase of 561%
year-over-year, and diluted net income per share was $0.21, compared to $0.03 for the same period last year.
- Non-GAAP net income attributable to Weibo was
$57.8 million, an increase of 254%
year-over-year, and non-GAAP diluted net income per share was
$0.26, compared to $0.07 for the same period last year.
- Adjusted EBITDA was $70.5
million, an increase of 272% year-over-year, or 35% of net
revenues, compared to 16% for the same period last
year.
- Monthly active users ("MAUs") in March 2017 was 340 million, an increase of 30%
year-over-year, 91% of which were mobile users. Average daily
active users in March 2017 was 154
million, an increase of 28% year-over-year.
"Our relentless focus to build the best social media
experience in China is reflected
in Weibo's strong performance in the first quarter of
2017, with revenues growing 67% year over
year, or 76% on a constant currency basis, adjusted EBITDA
margin reaching 35% and MAUs reaching 340 million,"
said Gaofei Wang, Weibo's CEO. "Looking ahead, we continue to see
strong momentum, as we further optimize Weibo to share, discover
and consume information, especially for
the mobile, social and video environment."
First Quarter 2017 Financial Results
For the first quarter of 2017, Weibo reported net revenues
of $199.2 million, compared to
$119.3 million for the same period
last year. Advertising and marketing revenues totaled $169.3 million, compared to $99.2 million for the same period last year; and
advertising and marketing revenues from small & medium-sized
enterprises ("SMEs") and key accounts were $161.5 million, compared to $88.1 million for the same period last year.
Other revenues totaled $29.9 million, compared to $20.0 million for the same period last
year.
Costs and expenses for the first quarter of 2017 totaled
$143.4 million, compared to
$112.1 million for the same period
last year. Non-GAAP costs and expenses were $132.5 million, compared to $103.4 million for the same period last year. The
increase in non-GAAP costs and expenses was primarily due to an
increase in marketing expenses, as well as an increase in turnover
taxes resulting from higher revenues.
Income from operations for the first quarter of 2017 was
$55.9 million, compared to
$7.2 million for the same period last
year. Non-GAAP income from operations was $66.7 million, compared to $15.9 million for the same period last
year.
Non-operating income for the first quarter of 2017 was
$2.1 million, compared to
$0.6 million for the same period last
year. Income tax expenses were $11.3
million, compared to $0.5
million for the same period last year, primarily due to
higher profitability and the change in tax status of the Company's
PRC subsidiary from being fully tax exempted to being subject to
50% of the enterprise income tax rate in 2017.
Net income attributable to Weibo for the first quarter of
2017 was $46.9 million, or diluted
net income per share of $0.21,
compared to $7.1 million for the same
period last year, or diluted net income per share of $0.03. Non-GAAP net income attributable to Weibo
for the first quarter of 2017 was $57.8
million, or diluted net income per share of $0.26, compared to $16.4
million for the same period last year, or diluted net income
per share of $0.07.
As of March 31, 2017,
Weibo's cash, cash equivalents and short-term investments totaled
$444.2 million. For the first quarter
of 2017, cash provided by operating activities was $72.5 million, capital expenditures totaled
$4.5 million, and depreciation and
amortization expenses amounted to $3.4
million.
Business Outlook
For the second quarter of 2017, Weibo estimates that its
net revenues to be between $240 million and
$250 million, which assumes a RMB to US dollar average
exchange rate of 6.9. 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
AM -- 8 AM Eastern Time on
May 16, 2017 (or 7 PM --
8 PM Beijing Time on May 16, 2017) 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
866-519-4004
Hong Kong Toll Free:
800-906-601
China Toll Free:
400-620-8038
International:
+65 6713-5090
Passcode for all
regions: 18358362
A replay of the conference call will be available through
midnight, Eastern Time on May 23,
2017. The dial-in number is +61 2-8199-0299. The passcode
for the replay is 18358362.
Non-GAAP Financial Measures
This release contains the following non-GAAP financial
measures: non-GAAP costs and expenses, non-GAAP income from
operations, non-GAAP net income attributable to Weibo, non-GAAP
diluted net income per share attributable to Weibo and 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 gain on the sale of
investments and impairment on investments, non-GAAP to GAAP
reconciling items for the loss attributable to non-controlling
interest, and provision for income tax related to the amortization
of intangible assets (other non-GAAP to GAAP reconciling items have
no tax effect). Adjusted EBITDA excludes interest income, income
tax expenses, and depreciation expenses. 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 financial
measures to the nearest comparable GAAP measures are set forth in
the section below titled "Unaudited Reconciliation of Non-GAAP to
GAAP Results."
About Weibo
Weibo is a leading social media for people to create,
share and discover Chinese-language content. It provides an
unprecedented and simple way for people and organizations to
publicly express themselves in real time, interact with others and
stay connected with the world. Any user can post a feed
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 range of advertising and marketing solutions to its
customers, ranging from large companies 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 and promoted
feeds. 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.
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 and marketing 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 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; changes in the macro-economic environment, including
the depreciation of the Renminbi; 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, 2016
filed with the SEC on April 27, 2017
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.
Contact:
Investor
Relations
Weibo Corporation
Phone:
+86 10 5898-3017
Email:
ir@staff.weibo.com
WEIBO
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
2017
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Net
revenues:
|
|
|
|
|
|
|
|
Advertising and marketing
revenues
|
|
$
169,297
|
|
$
99,246
|
|
$
187,870
|
|
Other
revenues
|
|
29,904
|
|
20,044
|
|
24,878
|
|
|
Total net
revenues
|
|
199,201
|
|
119,290
|
|
212,748
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Cost of revenues
(a)
|
|
46,450
|
|
36,626
|
|
49,454
|
|
Sales and marketing
(a)
|
|
47,163
|
|
30,041
|
|
48,006
|
|
Product development
(a)
|
|
39,191
|
|
36,934
|
|
39,869
|
|
General and
administrative (a)
|
|
10,546
|
|
8,538
|
|
11,762
|
|
|
Total costs and
expenses
|
|
143,350
|
|
112,139
|
|
149,091
|
|
Income from
operations
|
|
55,851
|
|
7,151
|
|
63,657
|
|
|
|
|
|
|
|
|
|
|
Non-operating
income (loss):
|
|
|
|
|
|
|
|
Gain on sale of and impairment on investments, net
|
|
(122)
|
|
(868)
|
|
(24,232)
|
|
Interest and other income , net
|
|
2,222
|
|
1,420
|
|
2,885
|
|
|
|
|
2,100
|
|
552
|
|
(21,347)
|
|
|
|
|
|
|
|
|
|
|
Income before
income tax expenses
|
|
57,951
|
|
7,703
|
|
42,310
|
|
Income tax
expenses
|
|
(11,316)
|
|
(548)
|
|
(55)
|
|
Net
income
|
|
46,635
|
|
7,155
|
|
42,255
|
|
|
|
|
|
|
|
|
|
|
Less: Net income (loss) attributable to
noncontrolling interest
|
(296)
|
|
57
|
|
(715)
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Weibo
|
$
46,931
|
|
$
7,098
|
|
$
42,970
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
per share attributable to Weibo
|
$
0.21
|
|
$
0.03
|
|
$
0.20
|
|
Diluted net income
per share attributable to Weibo
|
$
0.21
|
|
$
0.03
|
|
$
0.19
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic
|
|
|
|
|
|
|
|
net
income per share attributable to Weibo
|
218,296
|
|
212,269
|
|
217,464
|
|
Shares used in
computing diluted
|
|
|
|
|
|
|
|
net
income per share attributable to Weibo
|
224,632
|
|
219,626
|
|
224,359
|
|
|
|
|
|
|
|
|
|
|
(a) Stock-based
compensation in each category:
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
$
695
|
|
$
508
|
|
$
801
|
|
|
Sales and
marketing
|
|
1,604
|
|
1,018
|
|
1,655
|
|
|
Product
development
|
|
4,994
|
|
3,555
|
|
3,716
|
|
|
General and
administrative
|
|
3,400
|
|
3,406
|
|
3,547
|
|
WEIBO
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
225,734
|
|
$
364,766
|
|
|
|
|
Short-term
investments
|
|
218,469
|
|
31,188
|
|
|
|
|
Accounts
receivable, net
|
|
129,914
|
|
116,054
|
|
|
|
|
Prepaid expenses
and other current assets
|
|
127,813
|
|
66,664
|
|
|
|
|
Amount due from
SINA
|
|
4,962
|
|
18,565
|
|
|
|
|
Current assets
subtotal
|
|
706,892
|
|
597,237
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
23,935
|
|
22,816
|
|
|
Goodwill and
intangible assets, net
|
|
11,453
|
|
11,366
|
|
|
Investments
|
|
420,674
|
|
399,933
|
|
|
Other
assets
|
|
7,588
|
|
5,592
|
|
|
Total
assets
|
|
$
1,170,542
|
|
$
1,036,944
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
Liabilities:
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
60,323
|
|
$
48,997
|
|
|
|
|
Accrued and other
liabilities
|
|
232,993
|
|
180,142
|
|
|
|
|
Deferred
revenues
|
|
57,056
|
|
48,964
|
|
|
|
|
Current liabilities
subtotal
|
|
350,372
|
|
278,103
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
liability
|
|
1,356
|
|
1,483
|
|
|
|
|
Total
liabilities
|
|
351,728
|
|
279,586
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity :
|
|
|
|
|
|
|
|
Weibo
shareholders' equity
|
|
814,949
|
|
753,225
|
|
|
|
Non-controlling
interest
|
|
3,865
|
|
4,133
|
|
|
|
|
Total
shareholders' equity
|
|
818,814
|
|
757,358
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
$
1,170,542
|
|
$
1,036,944
|
|
|
|
|
|
|
|
|
|
|
WEIBO
CORPORATION
|
UNAUDITED
RECONCILIATION OF NON-GAAP TO GAAP RESULTS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
March 31,
2017
|
|
March 31,
2016
|
|
December 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising and
marketing revenues
|
|
$
169,297
|
|
|
|
$
169,297
|
|
$
99,246
|
|
|
|
$
99,246
|
|
$
187,870
|
|
|
|
$
187,870
|
|
Other
revenues
|
|
29,904
|
|
|
|
29,904
|
|
20,044
|
|
|
|
20,044
|
|
24,878
|
|
|
|
24,878
|
|
|
Net
revenues
|
|
$
199,201
|
|
|
|
$
199,201
|
|
$
119,290
|
|
|
|
$
119,290
|
|
$
212,748
|
|
|
|
$
212,748
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10,693)
|
(a)
|
|
|
|
|
(8,487)
|
(a)
|
|
|
|
|
(9,719)
|
(a)
|
|
|
|
|
|
|
|
|
(155)
|
(b)
|
|
|
|
|
(241)
|
(b)
|
|
|
|
|
(154)
|
(b)
|
|
|
Total costs and
expenses
|
|
$
143,350
|
|
$
(10,848)
|
|
$
132,502
|
|
$
112,139
|
|
$
(8,728)
|
|
$
103,411
|
|
$
149,091
|
|
$
(9,873)
|
|
$
139,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,693
|
(a)
|
|
|
|
|
8,487
|
(a)
|
|
|
|
|
9,719
|
(a)
|
|
|
|
|
|
|
|
|
155
|
(b)
|
|
|
|
|
241
|
(b)
|
|
|
|
|
154
|
(b)
|
|
|
Income from
operations
|
|
$
55,851
|
|
$
10,848
|
|
$
66,699
|
|
$
7,151
|
|
$
8,728
|
|
$
15,879
|
|
$
63,657
|
|
$
9,873
|
|
$
73,530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,693
|
(a)
|
|
|
|
|
8,487
|
(a)
|
|
|
|
|
9,719
|
(a)
|
|
|
|
|
|
|
|
|
155
|
(b)
|
|
|
|
|
241
|
(b)
|
|
|
|
|
154
|
(b)
|
|
|
|
|
|
|
|
|
122
|
(c)
|
|
|
|
|
868
|
(c)
|
|
|
|
|
24,232
|
(c)
|
|
|
|
|
|
|
|
|
(29)
|
(d)
|
|
|
|
|
(280)
|
(d)
|
|
|
|
|
(72)
|
(d)
|
|
|
|
|
|
|
|
|
(39)
|
(e)
|
|
|
|
|
(60)
|
(e)
|
|
|
|
|
(39)
|
(e)
|
|
|
Net income
attributable to Weibo
|
$
46,931
|
|
$
10,902
|
|
$
57,833
|
|
$
7,098
|
|
$
9,256
|
|
$
16,354
|
|
$
42,970
|
|
$
33,994
|
|
$
76,964
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to Weibo
|
$
0.21
|
|
|
|
$
0.26
|
|
$
0.03
|
|
|
|
$
0.07
|
|
$
0.19
|
|
|
|
$
0.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net income per share attributable to Weibo
|
224,632
|
|
|
|
224,632
|
|
219,626
|
|
|
|
219,626
|
|
224,359
|
|
|
|
224,359
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable to Weibo
|
|
|
|
|
$
57,833
|
|
|
|
|
|
$
16,354
|
|
|
|
|
|
$
76,964
|
|
|
|
Interest
income
|
|
|
|
|
|
(1,911)
|
|
|
|
|
|
(1,300)
|
|
|
|
|
|
(2,158)
|
|
|
|
Income tax
expenses
|
|
|
|
|
|
11,355
|
|
|
|
|
|
608
|
|
|
|
|
|
94
|
|
|
|
Depreciation
expenses
|
|
|
|
|
|
3,245
|
|
|
|
|
|
3,300
|
|
|
|
|
|
3,338
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
$
70,522
|
|
|
|
|
|
$
18,962
|
|
|
|
|
|
$
78,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) To
exclude stock-based compensation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) To
exclude amortization of intangible assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) To
exclude net gain on the sale of investments and impairment on
investments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) To
exclude Non-GAAP to GAAP reconciling items for the loss
attributable to non-controlling interests.
|
|
|
|
|
|
|
|
|
|
|
|
(e) To
exclude the provision for income tax related to item (b). Other
non-GAAP to GAAP reconciling items have no income tax
effect.
|
|
|
|
|
|
|
|
|
|
Most of the
reconciliation items were recorded in entities in tax free
jurisdictions hence no income tax
implications.
|
For impairment on
investments, valuation allowances were made for those differences
the Company does not expect to realize the benefit in the
foreseeable future.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIBO
CORPORATION
|
UNAUDITED
ADDITIONAL INFORMATION
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
2017
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
Advertising and
marketing revenues
|
|
|
|
|
|
|
|
|
Small & medium-sized
enterprises and key accounts
|
|
$
161,506
|
|
$
88,126
|
|
$
163,187
|
|
|
Alibaba
|
|
7,791
|
|
11,120
|
|
24,683
|
|
|
Subtotal
|
|
169,297
|
|
99,246
|
|
187,870
|
|
|
|
|
|
|
|
|
|
|
|
Other
revenues
|
|
29,904
|
|
20,044
|
|
24,878
|
|
|
|
|
$
199,201
|
|
$
119,290
|
|
$
212,748
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/weibo-reports-first-quarter-2017-financial-results-300458256.html
SOURCE Weibo