omniture

Weibo Reports Second Quarter 2019 Unaudited Financial Results

2019-08-19 17:30 7652

BEIJING, Aug. 19, 2019 /PRNewswire/ -- Weibo Corporation ("Weibo" or the "Company") (NASDAQ: WB), a leading social media in China, today announced its unaudited financial results for the second quarter ended June 30, 2019.

"Weibo delivered strong user performance this quarter," said Gaofei Wang, CEO of Weibo. "We are delighted to see a notable acceleration in user growth from prior quarter and robust user engagement trends, underpinned by our strengthened social network effect as well as the consistent efforts in user product upgrade and optimization. On monetization, we continued to showcase unique value proposition to advertisers, leveraging the ongoing ad product evolution to mobile, social and video," said Mr. Wang.

Second Quarter 2019 Highlights

  • Net revenues increased 1% year-over-year to $431.8 million, representing an increase of 7% on a constant currency basis [1].
  • Advertising and marketing revenues were $370.7 million, flattish year-over-year.
  • Value-added service ("VAS") revenues increased 8% year-over-year to $61.2 million.
  • Net income attributable to Weibo was $103.0 million, compared to $140.9 for the same period last year, and diluted net income per share was $0.46, compared to $0.62 for the same period last year.
  • Non-GAAP net income attributable to Weibo was $156.4 million, and non-GAAP diluted net income per share was $0.68, both flat year-over-year.
  • Monthly active users ("MAUs") were 486 million in June 2019, a net addition of approximately 55 million users year-over-year. Mobile MAUs represented approximately 94% of MAUs.
  • Average daily active users ("DAUs") were 211 million in June 2019, a net addition of approximately 21 million users year-over-year.

 

[1] On a constant currency (non-GAAP) basis, we assume that the exchange rate in the second quarter of 2019 had been the same as it was in the second quarter of 2018, or RMB6.40=US$1.00.

Second Quarter 2019 Financial Results

For the second quarter of 2019, Weibo's total net revenues were $431.8 million, an increase of 1% compared to $426.6 million for the same period last year.

Advertising and marketing revenues for the second quarter of 2019 were $370.7 million, compared to $369.9 million for the same period last year. Advertising and marketing revenues from small & medium-sized enterprises ("SMEs") and key accounts ("KAs") were $346.5 million, representing an increase of 2% compared to $338.7 million for same period last year.

VAS revenues for the second quarter of 2019 were $61.2 million, an increase of 8% year-over-year compared to $56.6 million for the same period last year. The increase was mainly attributable to the revenues derived from the live streaming business acquired in the fourth quarter of 2018, and was partially offset by the decrease in gaming revenues.

Costs and expenses for the second quarter of 2019 totaled $280.6 million, compared to $271.7 million for the same period last year. Non-GAAP costs and expenses were $265.6 million, compared to $259.3 million for the same period last year.

Income from operations for the second quarter of 2019 was $151.3 million, compared to $154.9 million for the same period last year. Non-GAAP income from operations was $166.2 million, compared to $167.3 million for the same period last year.

Non-operating loss for the second quarter of 2019 was $24.0 million, compared to an income of $10.9 million for the same period last year. Non-operating loss for the second quarter of 2019 included investment related impairment of $31.7 million, which is excluded under non-GAAP measures.

Income tax expenses for the second quarter were $26.1million, compared to $25.1 million for the same period last year.

Net income attributable to Weibo for the second quarter of 2019 was $103.0 million, compared to $140.9 million for the same period last year. Diluted net income per share attributable to Weibo for the second quarter of 2019 was $0.46, compared to $0.62 for the same period last year. Non-GAAP net income attributable to Weibo for the second quarter of 2019 was $156.4 million, compared to $156.1 million for the same period last year. Non-GAAP diluted net income per share attributable to Weibo for the second quarter of 2019 was $0.68, compared to $0.68 for the same period last year.

As of June 30, 2019, Weibo's cash, cash equivalents and short-term investments totaled $1.56 billion. For the second quarter of 2019, cash provided by operating activities was $132.8 million, capital expenditures totaled $3.2 million, and depreciation and amortization expenses amounted to $6.7 million.

Other Development

On July 5, 2019, the Company completed the offering of US$800 million in aggregate principal amount of senior notes due 2024 (the "Notes"). The Notes were issued at par value and bear annual interest at a rate of 3.500% per year, payable semiannually in arrears on January 5 and July 5 of each year, beginning on January 5, 2020. The Notes will mature on July 5, 2024, unless previously repurchased or redeemed in accordance with their terms prior to maturity.

Business Outlook

For the third quarter of 2019, Weibo estimates its net revenues to increase 6% year-over-year to 9% 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 7AM8AM Eastern Time on August 19, 2019 (or 7PM8PM Beijing Time on August 19, 2019) 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

Mainland China: 

400-620-8038

International: 

+65 6713-5090

Passcode for all regions:

7349347

A replay of the conference call will be available from 22:00 China Standard Time on August 19, 2019 to 21:59 China Standard Time on August 27, 2019. The dial-in number is +61 2-8199-0299. The passcode for the replay is 7349347.

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 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 related to the amortization of intangible assets (other non-GAAP to GAAP reconciling items have no tax effect), and amortization of convertible debt issuance cost. Adjusted EBITDA excludes interest income, net, 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 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, except per share data)

                       
                       
     

Three months ended

 

Six months ended

     

June 30,

 

March 31,

 

June 30,

     

2019

 

2018

 

2019

 

2019

 

2018

                       

Net revenues:

                   

     Advertising and marketing

 

$             370,660

 

$             369,942

 

$             341,141

 

$             711,801

 

$             672,891

     Value-added service

 

61,176

 

56,647

 

58,036

 

119,212

 

103,581

 

Net revenues

 

431,836

 

426,589

 

399,177

 

831,013

 

776,472

                       

Costs and expenses:

                   

     Cost of revenues (1)

 

81,972

 

61,790

 

82,817

 

164,789

 

124,692

     Sales and marketing (1)

 

106,405

 

139,977

 

106,151

 

212,556

 

245,840

     Product development(1)

 

70,368

 

60,613

 

69,853

 

140,221

 

121,136

     General and administrative(1)

 

21,825

 

9,313

 

17,287

 

39,112

 

20,529

 

Total costs and expenses

 

280,570

 

271,693

 

276,108

 

556,678

 

512,197

Income from operations

 

151,266

 

154,896

 

123,069

 

274,335

 

264,275

                       

Non-operating income (loss):

                   
                       

    Impairment on, gain/loss on sale of and
        fair value change of investments, net 

 

(41,954)

 

(1,535)

 

37,797

 

(4,157)

 

(3,034)

    Interest and other income , net

 

17,999

 

12,481

 

10,781

 

28,780

 

21,609

     

(23,955)

 

10,946

 

48,578

 

24,623

 

18,575

                       

Income before income tax expenses

 

127,311

 

165,842

 

171,647

 

298,958

 

282,850

     Income tax expenses

 

(26,073)

 

(25,148)

 

(21,073)

 

(47,146)

 

(43,445)

                       

Net income

 

101,238

 

140,694

 

150,574

 

251,812

 

239,405

                       

    Less: Net income (loss) attributable to
    non-controlling interests

(1,758)

 

(220)

 

132

 

(1,626)

 

(594)

                       

Net income attributable to Weibo

$             102,996

 

$             140,914

 

$             150,442

 

$             253,438

 

$             239,999

                       
                       

Basic net income per share attributable to Weibo

$                    0.46

 

$                    0.63

 

$                    0.67

 

$                    1.13

 

$                    1.08

Diluted net income per share attributable to Weibo

$                    0.46

 

$                    0.62

 

$                    0.66

 

$                    1.12

 

$                    1.06

                       

Shares used in computing basic

                   

   net income per share attributable to Weibo

225,262

 

223,542

 

224,924

 

225,094

 

223,224

Shares used in computing diluted

                   

   net income per share attributable to Weibo

226,277

 

232,768

 

232,894

 

226,210

 

225,995

                       
                       

(1) Stock-based compensation in each category:

                   
 

Cost of revenues

 

$                 1,118

 

$                 1,445

 

$                 1,112

 

$                 2,230

 

$                 2,456

 

Sales and marketing

 

2,129

 

2,831

 

2,039

 

4,168

 

4,799

 

Product development

 

6,618

 

6,064

 

6,058

 

12,676

 

11,115

 

General and administrative

 

4,269

 

1,908

 

3,686

 

7,955

 

4,892

 

 

WEIBO CORPORATION

 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

(In thousands)

 
                 
         

June 30,

 

December 31,

 
         

2019

 

2018

 
                 

Assets

 
 

Current assets:

         
     

Cash and cash equivalents

 

$                        961,340

 

$                     1,234,596

 
     

Short-term investments

 

598,466

 

591,269

 
     

Accounts receivable, net

 

465,635

 

369,093

 
     

Prepaid expenses and other current assets

 

285,937

 

168,821

 
     

Amount due from SINA(1)

 

328,692

 

105,319

 
     

      Current assets subtotal

 

2,640,070

 

2,469,098

 
                 
 

Property and equipment, net

 

43,672

 

45,623

 
 

Goodwill and intangible assets, net

 

48,851

 

50,449

 
 

Long-term investments

 

907,181

 

694,586

 
 

Other assets(2)

 

28,362

 

14,926

 
 

Total assets

 

$                     3,668,136

 

$                     3,274,682

 
                 

Liabilities and Shareholders' Equity 

 
 

Liabilities:

           
   

Current liabilities:

         
     

Accounts payable

 

$                        133,251

 

$                        123,730

 
     

Accrued expenses and other current liabilities(2)

 

412,979

 

317,437

 
     

Deferred revenues

 

121,438

 

99,994

 
     

Income tax payable

 

69,418

 

88,683

 
     

     Current liabilities subtotal

 

737,086

 

629,844

 
                 
   

Long-term liabilities:

         
     

Convertible debt

 

886,195

 

884,123

 
     

Other long-term liabilities(2)

 

20,672

 

12,577

 
     

     Total liabilities

 

1,643,953

 

1,526,544

 
                 
 

Shareholders' equity :

         
   

Weibo shareholders' equity 

 

2,025,404

 

1,745,459

 
   

Non-controlling interests

 

(1,221)

 

2,679

 
     

Total shareholders' equity 

 

2,024,183

 

1,748,138

 
                 
 

Total liabilities and shareholders' equity 

 

$                     3,668,136

 

$                     3,274,682

 
                 
 

(1) Included short-term loans to SINA of $235.0 million as of June 30, 2019 and $43.6 million as of December 31, 2018.

                 
 

(2) The Company adopted the new leasing guidance (ASU 2016-2) started from January 1, 2019, which requires that a lessee
recognize the assets and liabilities that arise from operating leases. The Company recognized a right-of-use asset and a liability
relating to lease payments (the Lease Liability) in the statements of financial position for lease contracts having terms beyond 12
months period. The adoption of new leasing guidance resulted in recognition of $13.0 million of right-of-use asset and a total of
$13.7 million of leasing liability as of June 30, 2019.

 
 
 
 

 

 

WEIBO CORPORATION

UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS

(In thousands, except per share data)

                                           
       

Three months ended

 
       

June 30, 2019

 

June 30, 2018

 

March 31, 2019

 
                           
               

Non-GAAP

         

Non-GAAP

         

Non-GAAP

 
       

Actual

 

Adjustments

 

Results

 

Actual

 

Adjustments

 

Results

 

Actual

 

Adjustments

 

Results

 
                                           

Advertising and marketing

 

$          370,660

     

$          370,660

 

$       369,942

     

$       369,942

 

$       341,141

     

$       341,141

 

Value-added service

 

61,176

     

61,176

 

56,647

     

56,647

 

58,036

     

58,036

 
 

Net revenues

 

$          431,836

     

$          431,836

 

$       426,589

     

$       426,589

 

$       399,177

     

$       399,177

 
                                           
                                           
           

(14,134)

 (a) 

       

(12,248)

 (a) 

       

(12,895)

 (a) 

   
           

(849)

 (b) 

       

(164)

 (b) 

       

(860)

 (b) 

   

Total costs and expenses

 

$          280,570

 

$        (14,983)

 

$          265,587

 

$       271,693

 

$        (12,412)

 

$       259,281

 

$       276,108

 

$        (13,755)

 

$       262,353

 
                                           
                                           
           

14,134

 (a) 

       

12,248

 (a) 

       

12,895

 (a) 

   
           

849

 (b) 

       

164

 (b) 

       

860

 (b) 

   

Income from operations

 

$          151,266

 

$          14,983

 

$          166,249

 

$       154,896

 

$          12,412

 

$       167,308

 

$       123,069

 

$          13,755

 

$       136,824

 
                                           
                                           
           

14,134

 (a) 

                   

12,895

 (a) 

   
           

849

 (b) 

       

12,248

 (a) 

       

860

 (b) 

   
           

41,954

 (c) 

       

164

 (b) 

       

(37,797)

 (c) 

   
           

(2,820)

 (d) 

       

1,535

 (c) 

       

1,249

 (d) 

   
           

(1,588)

 (e) 

       

277

 (e) 

       

(45)

 (e) 

   
           

(127)

 (f) 

       

(41)

 (f) 

       

(126)

 (f) 

   
           

1,037

 (g) 

       

1,035

 (g) 

       

1,035

 (g) 

   

Net income attributable to Weibo

$          102,996

 

$          53,439

 

$          156,435

 

$       140,914

 

$          15,218

 

$       156,132

 

$       150,442

 

$        (21,929)

 

$       128,513

 
                                           

Diluted net income per share attributable to Weibo

$                 0.46

     

$                 0.68

*

$              0.62

*

   

$              0.68

*

$              0.66

*

   

$              0.56

*

                                           

Shares used in computing  diluted

                                     

    net income per share attributable to Weibo

226,277

 

6,754

 (h) 

233,031

 

232,768

     

232,768

 

232,894

     

232,894

 
                                           

Adjusted EBITDA:

                                     
                                           
 

Non-GAAP net income attributable to Weibo

       

$          156,435

         

$       156,132

         

$       128,513

 
   

Interest income,net

         

(15,648)

         

(12,604)

         

(14,208)

 
   

Income tax expenses

         

26,200

         

25,189

         

21,199

 
   

Depreciation expenses

         

5,891

         

4,626

         

5,305

 
 

Adjusted EBITDA

         

$          172,878

         

$       173,343

         

$       140,809

 

 

 

WEIBO CORPORATION

UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS

(In thousands, except per share data)

                                           
       

Six months ended

             
       

June 30, 2019

 

June 30, 2018

             
               

Non-GAAP

         

Non-GAAP

             
       

Actual

 

Adjustments

 

Results

 

Actual

 

Adjustments

 

Results

             
                                           

Advertising and marketing

 

$          711,801

     

$          711,801

 

$       672,891

     

$       672,891

             

Value-added service

 

119,212

     

119,212

 

103,581

     

103,581

             
 

Net revenues

 

$          831,013

     

$          831,013

 

$       776,472

     

$       776,472

             
                                           
                                           
           

(27,029)

 (a) 

       

(23,262)

 (a) 

               
           

(1,709)

 (b) 

       

(333)

 (b) 

               

Total costs and expenses

 

$          556,678

 

$        (28,738)

 

$          527,940

 

$       512,197

 

$        (23,595)

 

$       488,602

             
                                           
                                           
                                           
           

27,029

 (a) 

       

23,262

 (a) 

               
           

1,709

 (b) 

       

333

 (b) 

               

Income from operations

 

$          274,335

 

$          28,738

 

$          303,073

 

$       264,275

 

$          23,595

 

$       287,870

             
                                           
                                           
                                           
                                           
           

27,029

 (a) 

                           
           

1,709

 (b) 

       

23,262

 (a) 

               
           

4,157

 (c) 

       

333

 (b) 

               
           

(1,571)

 (d) 

       

3,034

 (c) 

               
           

(1,633)

 (e) 

       

159

 (e) 

               
           

(253)

 (f) 

       

(83)

 (f) 

               
           

2,072

 (g) 

       

2,070

 (g) 

               

Net income attributable to Weibo

$          253,438

 

$          31,510

 

$          284,948

 

$       239,999

 

$          28,775

 

$       268,774

             
                                           

Diluted net income per share attributable to Weibo

$                 1.12

     

$                 1.25

*

$              1.06

     

$              1.18

*

           
                                           

Shares used in computing  diluted

                                     

    net income per share attributable to Weibo

226,210

 

6,753

 (h) 

232,963

 

225,995

 

6,753

 (h) 

232,748

             
                                           

Adjusted EBITDA:

                                     
                                           
 

Non-GAAP net income attributable to Weibo

       

$          284,948

         

$       268,774

             
   

Interest income, net

         

(29,856)

         

(23,513)

             
   

Income tax expenses

         

47,399

         

43,528

             
   

Depreciation expenses

         

11,196

         

9,147

             
 

Adjusted EBITDA

         

$          313,687

         

$       297,936

             
                                           
                                           

(a)  To exclude stock-based compensation.

                                     

(b)  To exclude amortization of intangible assets.

                                   

(c)  To exclude net results of impairment on, gain/loss on sale of and fair value change of investments.

                           

(d)  To exclude the non-GAAP to GAAP reconciling items on the share of equity method investments.

                           

(e)  To exclude non-GAAP to GAAP reconciling items for the income/loss attributable to non-controlling interests.

                         

(f)   To exclude the provision for income tax related to item (b). Other non-GAAP to GAAP reconciling items have no income tax effect.

                     

    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 the Company does not expect they can be realized in the foreseeable future.

(g)  To exclude the amortization of convertible debt issuance cost. 

                                 

(h)  To adjust the number of shares for dilution resulted from convertible debt which were anti-dilutive under GAAP measures.

                       

*  Net income attributable to Weibo is adjusted for interest expense of convertible debt for calculating diluted EPS.

                         

 

 

WEIBO CORPORATION

UNAUDITED ADDITIONAL INFORMATION

(In thousands)

                       
   

Three months ended

 

Six months ended

 
   

June 30,

 

March 31,

 

June 30,

 
   

2019

 

2018

 

2019

 

2019

 

2018

 
                       

Net revenues

                   
 

Advertising and marketing

                   
 

     Small & medium-sized enterprises and key accounts

$          346,541

 

$        338,662

 

$            324,506

 

$          671,047

 

$        615,275

 
 

     Alibaba

24,119

 

31,280

 

16,635

 

40,754

 

57,616

 
 

         Subtotal

370,660

 

369,942

 

341,141

 

711,801

 

672,891

 
                       
 

Value-added service

61,176

 

56,647

 

58,036

 

119,212

 

103,581

 
   

$          431,836

 

$        426,589

 

$            399,177

 

$          831,013

 

$        776,472

 

 

 

Cision View original content:http://www.prnewswire.com/news-releases/weibo-reports-second-quarter-2019-unaudited-financial-results-300903386.html

Source: Weibo Corporation
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