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Weibo Reports First Quarter 2021 Unaudited Financial Results

 

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 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 PM8:00 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

 

 

 

 

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SOURCE Weibo Corporation

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