Weibo Stories Second Quarter 2022 Unaudited Monetary Outcomes

BEIJING, Sept. 1, 2022 /PRNewswire/ — Weibo Company (“Weibo” or the “Firm”) (NASDAQ: WB and HKEX: 9898), a number one social media in China, at present introduced its unaudited monetary outcomes for the second quarter ended June 30, 2022.

“We navigated via the challenges from COVID-19 resurgence within the second quarter,” mentioned Gaofei Wang, CEO of Weibo. “Our consumer group and engagement continued with wholesome development regardless of cutback in channel funding, leveraging our distinctive positioning and aggressive benefit within the social media sector. On monetization, though broad-based headwinds weighed on promoting demand within the close to time period, we’re inspired to see resilient efficiency of sure sectors and the gradual pick-up of the general promoting enterprise after the pandemic. Weibo additionally delivered a non-GAAP working margin of 32% within the second quarter, which additional improved from the primary quarter of 2022, as we executed in opposition to our effectivity initiatives to optimize prices and bills. Trying forward, we stay assured in our differentiated worth proposition and long-term monetization alternatives.”

Second Quarter 2022 Highlights

• Web revenues have been $450.2 million, a lower of twenty-two% year-over-year or a lower of 19% year-over-year on a continuing foreign money foundation ^[1].
• Promoting and advertising and marketing revenues have been $385.6 million, a lower of 23% year-over-year.
• Worth-added companies (“VAS”) revenues have been $64.6 million, a lower of 10% year-over-year.
• Revenue from operations was $93.9 million, representing an working margin of 21%.
• Web revenue attributable to Weibo’s shareholders was $28.3 million and diluted internet revenue per share was $0.12.
• Non-GAAP revenue from operations was $145.3 million, representing a non-GAAP working margin of 32%.
• Non-GAAP internet revenue attributable to Weibo’s shareholders was $109.7 million and non-GAAP diluted internet revenue per share was $0.46.
• Month-to-month energetic customers (“MAUs”) have been 582 million in June 2022, a internet addition of roughly 16 million customers on a year-over-year foundation. Cellular MAUs represented 95% of MAUs.
• Common each day energetic customers (“DAUs”) have been 252 million in June 2022, a internet addition of roughly 7 million customers on a year-over-year foundation.

Second Quarter 2022 Monetary Outcomes

For the second quarter of 2022, Weibo’s complete internet revenues have been $450.2 million, a lower of twenty-two% in comparison with $574.5 million for a similar interval final yr.

Promoting and advertising and marketing revenues for the second quarter of 2022 have been $385.6 million, a lower of 23% in comparison with $502.3 million for a similar interval final yr. Promoting and advertising and marketing revenues excluding advert revenues from Alibaba have been $361.8 million, a lower of twenty-two% in comparison with $462.4 million for a similar interval final yr. The lower was primarily resulted from challenges from COVID-19 resurgence and restriction and lockdown in main areas of China, in addition to macro uncertainties which have a broad-based damaging affect on the promoting trade in China.  

VAS revenues for the second quarter of 2022 have been $64.6 million, a lower of 10% year-over-year in comparison with $72.1 million for a similar interval final yr. The lower of VAS revenues was primarily as a result of much less income contribution from membership service and game-related companies.

Prices and bills for the second quarter of 2022 totaled $356.2 million, a lower of seven% in comparison with $381.2 million for a similar interval final yr. The lower was primarily resulted from a 25% year-over-year lower of gross sales and advertising and marketing bills, as a result of our disciplined channel investments.

Revenue from operations for the second quarter of 2022 was $93.9 million, in comparison with $193.2 million for a similar interval final yr. Working margin was 21%, in comparison with 34% final yr. Non-GAAP revenue from operations was $145.3 million, in comparison with $223.2 million for a similar interval final yr. Non-GAAP working margin was 32%, in comparison with 39% final yr.

Non-operating loss for the second quarter of 2022 was $47.4 million, in comparison with a lack of $65.3 million for a similar interval final yr. Non-operating loss for the second quarter of 2022 primarily included (i) a $21.7 million internet curiosity and different loss; (ii) an $18.7 million internet loss from honest worth change of investments, which was excluded below non-GAAP measures; (iii) a $7.0 million funding associated impairment, which was excluded below non-GAAP measures. 

Revenue tax bills have been $17.5 million, in comparison with $46.9 million for a similar interval final yr.

Web revenue attributable to Weibo’s shareholders for the second quarter of 2022 was $28.3 million, in comparison with $81.0 million for a similar interval final yr. Diluted internet revenue per share attributable to Weibo’s shareholders for the second quarter of 2022 was $0.12, in comparison with $0.35 for a similar interval final yr. Non-GAAP internet revenue attributable to Weibo’s shareholders for the second quarter of 2022 was $109.7 million, in comparison with $182.8 million for a similar interval final yr. Non-GAAP diluted internet revenue per share attributable to Weibo’s shareholders for the second quarter of 2022 was $0.46, in comparison with $0.79 for a similar interval final yr.

As of June 30, 2022, Weibo’s money, money equivalents and short-term investments totaled $3.0 billion. For the second quarter of 2022, money offered by working actions was $83.0 million, capital expenditures totaled $14.8 million, and depreciation and amortization bills amounted to $14.1 million.

Environmental, Social and Governance (“ESG”)

Weibo launched its first annual ESG report in August 2022, which particulars Weibo’s initiatives and efficiency within the respect of environmental, social and governance, with focuses on the considerations of stakeholders (http://ir.weibo.com/esg).

Convention Name

Weibo’s administration workforce will host a convention name from 7:00 AM to eight:00 AM Jap Time on September 1, 2022 (or 7:00 PM – 8:00 PM Beijing Time on September 1, 2022) to current an outline of the Firm’s monetary efficiency and enterprise operations.

Individuals who want to dial in to the teleconference should register via the beneath public participant hyperlink. Dial in and instruction shall be within the affirmation electronic mail upon registering.

Individuals Registration Hyperlink: https://register.vevent.com/register/BIafafec22bbd342a7aa40d105c47d0e6b

This name shall be webcast reside and the replay shall be out there for 12 months. Each shall be out there via the Firm’s company web site at http://ir.weibo.com.

Non-GAAP Monetary Measures

This launch comprises the next non-GAAP monetary measures: non-GAAP revenue from operations, non-GAAP internet revenue attributable to Weibo’s shareholders, non-GAAP diluted internet revenue per share attributable to Weibo’s shareholders and adjusted EBITDA. These non-GAAP monetary measures ought to be thought-about along with, not as an alternative choice to, measures of the Firm’s monetary efficiency ready in accordance with U.S. GAAP.

The Firm’s non-GAAP monetary measures exclude stock-based compensation, amortization of intangible property ensuing from enterprise acquisitions, non-cash compensation price to non-controlling curiosity shareholders, impairment of intangible property, internet outcomes of impairment on, achieve/loss on sale of and honest worth change of investments, non-GAAP to GAAP reconciling objects on the share of fairness technique investments, non-GAAP to GAAP reconciling objects for the revenue/loss attributable to non-controlling pursuits, revenue tax expense associated to the amortization and impairment of intangible property ensuing from enterprise acquisitions and honest worth change of investments (different non-GAAP to GAAP reconciling objects don’t have any tax impact), and amortization of convertible debt and senior notes issuance price. Adjusted EBITDA excludes curiosity revenue, internet, revenue tax bills, and depreciation bills.

The Firm’s administration makes use of these non-GAAP monetary measures of their monetary and working decision-making, as a result of administration believes these measures mirror the Firm’s ongoing working efficiency in a fashion that enables extra significant period-to-period comparisons. The Firm believes that these non-GAAP monetary measures present helpful info to traders and others within the following methods: (i) in evaluating the Firm’s present monetary outcomes with the Firm’s previous monetary leads to a constant method, and (ii) in understanding and evaluating the Firm’s present working efficiency and future prospects in the identical method as administration does, in the event that they so select. The Firm additionally believes that the non-GAAP monetary measures present helpful info to each administration and traders by excluding sure bills, features (losses) and different objects (i) that aren’t anticipated to end in future money funds or (ii) which are non-recurring in nature or might not be indicative of the Firm’s core working outcomes and enterprise outlook.

Use of non-GAAP monetary measures has limitations. The Firm’s non-GAAP monetary measures don’t embrace all revenue and expense objects that have an effect on the Firm’s operations. They might not be similar to non-GAAP monetary measures utilized by different firms. Accordingly, care ought to be exercised in understanding how the Firm defines its non-GAAP monetary measures. Reconciliations of the Firm’s non-GAAP monetary measures to the closest comparable GAAP measures are set forth within the part beneath titled “Unaudited Reconciliation of Non-GAAP to GAAP Outcomes.”

About Weibo

Weibo is a number one social media for folks to create, share and uncover content material on-line. Weibo combines the technique of public self-expression in actual time with a robust platform for social interplay, content material aggregation and content material distribution. Any consumer can create and submit a feed and connect multi-media and long-form content material. Person relationships on Weibo could also be uneven; any consumer can comply with every other consumer and add feedback to a feed whereas reposting. This easy, uneven and distributed nature of Weibo permits an authentic feed to develop into a reside viral dialog stream.

Weibo allows its promoting and advertising and marketing prospects to advertise their manufacturers, services to customers. Weibo provides a variety of promoting and advertising and marketing options to firms of all sizes. The Firm generates a considerable majority of its revenues from the sale of promoting and advertising and marketing companies, together with the sale of social show commercial and promoted advertising and marketing choices. Designed with a “cellular first” philosophy, Weibo shows content material in a easy info feed format and provides native commercial that conform to the data feed on our platform. To help the cellular format, we have developed and repeatedly refining our social curiosity graph advice engine, which allows our prospects to carry out folks advertising and marketing and goal audiences primarily based on consumer demographics, social relationships, pursuits and behaviors, to attain better relevance, engagement and advertising and marketing effectiveness.

Protected Harbor Assertion

This press launch comprises forward-looking statements that relate to, amongst different issues, Weibo’s anticipated monetary efficiency and strategic and operational plans (as described, with out limitation, within the “Enterprise Outlook” part and in quotations from administration on this press launch. Weibo can also make forward-looking statements within the Firm’s periodic reviews to the U.S. Securities and Change Fee (“SEC”), in bulletins, circulars or different publications made on the web site of The Inventory Change of Hong Kong Restricted (the “Hong Kong Inventory Change”), in press releases and different written supplies and in oral statements made by its officers, administrators or staff to 3rd events. Statements that aren’t historic information, together with statements in regards to the Firm’s beliefs and expectations, are forward-looking statements. These forward-looking statements will be recognized by terminology, resembling “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “confidence,” “estimates” and related statements. Ahead-looking statements contain inherent dangers and uncertainties. A lot of necessary components may trigger precise outcomes to vary materially from these contained in any forward-looking assertion. Potential dangers and uncertainties embrace, however aren’t restricted to, Weibo’s restricted working historical past in sure new companies; failure to develop energetic consumer base and the extent of consumer engagement; the unsure regulatory panorama in China; fluctuations within the Firm’s quarterly working outcomes; the Firm’s reliance on promoting and advertising and marketing gross sales for a majority of its revenues; failure to efficiently develop, introduce, drive adoption of or monetize new options and merchandise; failure to compete successfully for promoting and advertising and marketing spending; failure to efficiently combine acquired companies; dangers related to the Firm’s investments, together with fairness pick-up and impairment; failure to compete efficiently in opposition to new entrants and established trade rivals; the continued affect of the COVID-19 pandemic on the Firm’s operations and on basic financial circumstances; dangers related to weak or unsure international financial circumstances and their affect on the extent of expenditures on promoting; dangers related to unrest, terrorist threats and the struggle in Ukraine and the related international results; adjustments within the macro-economic surroundings, together with the depreciation of the Renminbi; and antagonistic adjustments in financial and political insurance policies of the PRC authorities and its affect on the Chinese language economic system. Additional info concerning these and different dangers is included in Weibo’s annual report on Type 20-Fs and different filings with the SEC and the Hong Kong Inventory Change. All info offered on this press launch is present as of the date hereof, and Weibo assumes no obligation to replace such info, besides as required below relevant regulation.

Contact:

Investor Relations
Weibo Company
Cellphone: +86 10 5898-3336
Electronic mail: [email protected]

SOURCE Weibo Company