BEIJING, May 10, 2021 /PRNewswire/ -- 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.
PRE-REGISTER LINK:
http://apac.directeventreg.com/registration/event/2687308
Additionally, a live webcast of the call will be available
through the Company's corporate website at http://ir.weibo.com.
A telephone replay will be available from 22:00 PM China Standard Time on May 10, 2021 to 20:59
PM China Standard Time on May 17,
2021. To access the recording, please use the following
dial-in information listed below:
United
States:
|
+1 855 452
5696
|
Hong
Kong:
|
800 963
117
|
Mainland
China:
|
400 602
2065
|
International:
|
+61 2 8199
0299
|
Replay
PIN:
|
2687308
|
Non-GAAP Financial Measures
This release contains the following non-GAAP financial measures:
non-GAAP income from operations, non-GAAP net income attributable
to Weibo's shareholders, non-GAAP diluted net income per share
attributable to Weibo's shareholders 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, non-cash
compensation cost to non-controlling interest shareholders, net results of impairment on,
gain/loss on sale of and fair value change of investments, non-GAAP
to GAAP reconciling items on the share of equity method
investments, non-GAAP to GAAP reconciling items for the income/loss
attributable to non-controlling interests, provision for income tax
primarily related to the amortization of intangible assets and fair
value change of investments, and amortization of convertible debt
and unsecured senior notes issuance
cost. Adjusted EBITDA excludes interest income, net, income tax
expenses (benefit), 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 content online. Weibo combines the means of public
self-expression in real time with a powerful platform for social
interaction, content aggregation and content distribution. Any user
can create and post a feed and attach multi-media and 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 companies of all sizes. The Company
generates a substantial majority of its revenues from the sale of
advertising and marketing services, including the sale of social
display advertisement and promoted marketing
offerings. Designed with a "mobile first" philosophy, Weibo
displays content in a simple information feed format and offers
native advertisement that conform to the information feed on our
platform. To support the mobile format, we have developed and
continuously refining our social interest graph recommendation
engine, which enables our 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-Fs 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 5898-3336
Email: ir@staff.weibo.com
WEIBO
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands of
U.S. dollars, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
2021
|
|
2020
|
|
2020
|
|
Net
revenues:
|
|
|
|
|
|
|
|
Advertising and
marketing
|
|
$
390,011
|
|
$
275,422
|
|
$
453,477
|
|
Value-added
service
|
|
68,885
|
|
47,967
|
|
59,933
|
|
|
Net
revenues
|
|
458,896
|
|
323,389
|
|
513,410
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Cost of revenues
(1)
|
|
79,770
|
|
74,110
|
|
87,288
|
|
Sales and marketing
(1)
|
|
143,975
|
|
99,102
|
|
139,136
|
|
Product
development(1)
|
|
96,566
|
|
74,409
|
|
90,229
|
|
General and
administrative(1)
|
|
29,981
|
|
17,753
|
|
15,113
|
|
|
Total costs and
expenses
|
|
350,292
|
|
265,374
|
|
331,766
|
|
Income from
operations
|
|
108,604
|
|
58,015
|
|
181,644
|
|
|
|
|
|
|
|
|
|
|
Non-operating
income (loss):
|
|
|
|
|
|
|
|
Impairment on, gain/loss on sale of and
fair value change of
investments, net
|
|
(58,200)
|
|
(2,938)
|
|
(185,371)
|
|
Interest and other income , net
|
|
13,504
|
|
12,905
|
|
9,531
|
|
|
|
|
(44,696)
|
|
9,967
|
|
(175,840)
|
|
|
|
|
|
|
|
|
|
|
Income before
income tax expenses
|
|
63,908
|
|
67,982
|
|
5,804
|
|
Benefit (provision) of
income taxes
|
|
(14,945)
|
|
(15,883)
|
|
25,314
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
48,963
|
|
52,099
|
|
31,118
|
|
Less: Net income (loss) attributable to
non-controlling
interests
|
|
(857)
|
|
(9)
|
|
2,076
|
|
Net income
attributable to Weibo's shareholders
|
|
$
49,820
|
|
$
52,108
|
|
$
29,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
per share attributable to Weibo's shareholders
|
$
0.22
|
|
$
0.23
|
|
$
0.13
|
|
Diluted net income
per share attributable to Weibo's shareholders
|
$
0.22
|
|
$
0.23
|
|
$
0.13
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic net income
|
|
|
|
|
|
|
|
per share attributable to Weibo's shareholders
|
|
227,771
|
|
226,392
|
|
227,495
|
|
Shares used in
computing diluted net income
|
|
|
|
|
|
|
|
per share attributable to Weibo's shareholders
|
|
229,302
|
|
227,029
|
|
228,489
|
|
|
|
|
|
|
|
|
|
|
(1) Stock-based
compensation in each category:
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
$
1,413
|
|
$
1,347
|
|
$
1,475
|
|
|
Sales and
marketing
|
|
2,251
|
|
2,216
|
|
3,097
|
|
|
Product
development
|
|
8,076
|
|
6,909
|
|
10,203
|
|
|
General and
administrative
|
|
4,013
|
|
4,822
|
|
4,545
|
|
WEIBO
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands of
U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
2,292,740
|
|
$
1,814,844
|
|
|
|
|
Short-term
investments
|
|
1,118,452
|
|
1,682,048
|
|
|
|
|
Accounts
receivable, net
|
|
511,327
|
|
492,010
|
|
|
|
|
Prepaid expenses
and other current assets
|
|
382,912
|
|
296,757
|
|
|
|
|
Amount due from
SINA(1)
|
|
505,976
|
|
548,900
|
|
|
|
|
Current assets
subtotal
|
|
4,811,407
|
|
4,834,559
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
59,899
|
|
60,632
|
|
|
Goodwill and
intangible assets, net
|
|
205,405
|
|
208,688
|
|
|
Long-term
investments
|
|
1,206,307
|
|
1,179,466
|
|
|
Other non-current
assets
|
|
213,641
|
|
51,772
|
|
|
Total
assets
|
|
$
6,496,659
|
|
$
6,335,117
|
|
|
|
|
|
|
|
|
|
|
Liabilities,
Redeemable Non-controlling Interests and Shareholders'
Equity
|
|
Liabilities:
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
152,332
|
|
$
149,509
|
|
|
|
|
Accrued expenses
and other current liabilities
|
|
633,142
|
|
562,333
|
|
|
|
|
Deferred
revenues
|
|
148,055
|
|
143,684
|
|
|
|
|
Income tax
payable
|
|
122,454
|
|
102,844
|
|
|
|
|
Current liabilities
subtotal
|
|
1,055,983
|
|
958,370
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
Convertible
debt
|
|
893,435
|
|
892,399
|
|
|
|
|
Unsecured senior
notes
|
|
1,536,688
|
|
1,536,112
|
|
|
|
|
Other long-term
liabilities
|
|
58,767
|
|
61,906
|
|
|
|
|
Total
liabilities
|
|
3,544,873
|
|
3,448,787
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
non-controlling
interests
|
|
64,197
|
|
57,714
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity :
|
|
|
|
|
|
|
|
Weibo
shareholders' equity
|
|
2,870,359
|
|
2,812,425
|
|
|
|
Non-controlling
interests
|
|
17,230
|
|
16,191
|
|
|
|
|
Total
shareholders' equity
|
|
2,887,589
|
|
2,828,616
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities,
redeemable non-controlling interests and
shareholders' equity
|
|
$
6,496,659
|
|
$
6,335,117
|
|
|
|
|
|
|
|
|
|
|
|
(1) Included
short-term loans to and interest receivable from SINA of $522.5
million as of March 31, 2021
and $547.9 million as of December 31, 2020.
|
WEIBO
CORPORATION
|
UNAUDITED
RECONCILIATION OF NON-GAAP TO GAAP RESULTS
|
(In thousands of
U.S. dollars, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
|
|
|
2021
|
|
2020
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
$
|
108,604
|
|
$
|
58,015
|
|
$
|
181,644
|
|
Add:
|
Stock-based
compensation
|
|
|
15,753
|
|
|
15,294
|
|
|
19,320
|
|
|
Amortization of
intangible assets
|
|
|
4,519
|
|
|
828
|
|
|
3,174
|
|
|
Non-cash compensation cost to
non-controlling interest shareholders
|
|
|
8,631
|
|
|
-
|
|
|
-
|
|
Non-GAAP income
from operations
|
$
|
137,507
|
|
$
|
74,137
|
|
$
|
204,138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Weibo's shareholders
|
$
|
49,820
|
|
$
|
52,108
|
|
$
|
29,042
|
|
Add:
|
Stock-based
compensation
|
|
|
15,753
|
|
|
15,294
|
|
|
19,320
|
|
|
Amortization of
intangible assets
|
|
|
4,519
|
|
|
828
|
|
|
3,174
|
|
|
Non-cash compensation cost to
non-controlling interest shareholders
|
|
|
8,631
|
|
|
-
|
|
|
-
|
|
|
Net results of
impairment on, gain/loss on sale of and fair value change of
investments
|
|
|
58,200
|
|
|
2,938
|
|
|
185,371
|
|
|
Non-GAAP to GAAP
reconciling items on the share of equity method
investments
|
|
|
(1,075)
|
|
|
(5,285)
|
|
|
(6,399)
|
|
|
Non-GAAP to GAAP reconciling
items for the income/loss attributable to non-controlling
interests
|
359
|
|
|
3
|
|
|
(562)
|
|
|
Tax effects on
non-GAAP adjustments(1)
|
|
|
(7,148)
|
|
|
172
|
|
|
(18,889)
|
|
|
Amortization of convertible
debt and unsecured senior notes issuance cost
|
|
|
1,612
|
|
|
1,369
|
|
|
1,611
|
|
Non-GAAP net
income attributable to Weibo's shareholders
|
$
|
130,671
|
|
$
|
67,427
|
|
$
|
212,668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted
net income per share attributable to Weibo's
shareholders
|
$
|
0.57
|
*
|
$
|
0.30
|
|
$
|
0.92
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing GAAP diluted net income per share attributable to Weibo's
shareholders
|
|
229,302
|
|
|
227,029
|
|
|
228,489
|
|
Add:
|
The number of shares
for dilution resulted from convertible
debt(2)
|
|
|
6,753
|
|
|
-
|
|
|
6,753
|
|
Shares used in
computing non-GAAP diluted net income per share attributable to
Weibo's shareholders
|
|
|
236,055
|
|
|
227,029
|
|
|
235,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
attributable to Weibo's shareholders
|
|
$
|
130,671
|
|
$
|
67,427
|
|
$
|
212,668
|
|
|
|
Interest
income,net
|
|
|
(3,939)
|
|
|
(13,349)
|
|
|
(4,021)
|
|
|
|
Income tax expenses
(benefits)
|
|
|
22,093
|
|
|
15,711
|
|
|
(6,425)
|
|
|
|
Depreciation
expenses
|
|
|
7,909
|
|
|
5,974
|
|
|
7,511
|
|
|
Adjusted
EBITDA
|
|
$
|
156,734
|
|
$
|
75,763
|
|
$
|
209,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) To exclude
the provision for income tax primarily related to amortization of
intangible assets and fair value change of investments.
|
|
|
|
|
The Company
considered the tax implication arising from the reconciliation
items and part of these items recorded in entities in
tax
|
|
|
|
|
free
jurisdictions were without relevant tax implications. For
impairment on investments, valuation allowances were made for
those
|
|
|
|
|
differences as
the Company does not expect they can be realized in the foreseeable
future.
|
|
|
|
|
|
|
|
|
|
|
(2) To adjust
the number of shares for dilution resulted from convertible debt
which were anti-dilutive under GAAP measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Net income
attributable to Weibo's shareholders is adjusted for interest
expense of convertible debt for calculating diluted EPS.
|
|
|
|
|
WEIBO
CORPORATION
|
UNAUDITED
ADDITIONAL INFORMATION
|
(In thousands of
U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2021
|
|
2020
|
|
2020
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
Advertising and
marketing
|
|
|
|
|
|
|
|
Non-Ali
advertisers
|
$
356,711
|
|
$
247,855
|
|
$
393,945
|
|
|
Alibaba - as an
advertiser
|
33,300
|
|
27,567
|
|
59,532
|
|
|
Subtotal
|
390,011
|
|
275,422
|
|
453,477
|
|
|
|
|
|
|
|
|
|
|
Value-added
service
|
68,885
|
|
47,967
|
|
59,933
|
|
|
|
$
458,896
|
|
$
323,389
|
|
$
513,410
|
|
View original
content:http://www.prnewswire.com/news-releases/weibo-reports-first-quarter-2021-unaudited-financial-results-301287361.html
SOURCE Weibo Corporation