Fourth Quarter 2015 Highlights
- Net revenues increased 42% year over year to
$149.0 million , reaching the high end of the Company’s guidance between$146 million and $149 million . - Advertising and marketing revenue increased 47% year over year to
$129.5 million . - Weibo Value-Added Services (“Weibo VAS”) revenue increased 13% year over year to
$19.5 million , despite a 31% year-over-year decline in revenue from data licensing, a deemphasized business. - Net income attributable to Weibo’s ordinary shareholders increased 332% year over year to
$19.1 million , and diluted net income per share was$0.09 , compared to$0.02 for the same period last year. - Non-GAAP net income attributable to Weibo’s ordinary shareholders increased 258% to
$32.9 million and non-GAAP diluted net income per share was$0.15 , compared to$0.04 for the same period last year. - Adjusted EBITDA increased 131% year over year to
$37.0 million . - Monthly active users (“MAUs”) in
December 2015 grew 34% year over year to 236 million, 83% of which were mobile users. Average daily active users (“DAUs”) inDecember 2015 grew 32% year over year to 106 million.
Fiscal Year 2015 Highlights
- Net revenues increased 43% year over year to
$477.9 million . - Advertising and marketing revenue increased 52% year over year to
$402.4 million . - Weibo VAS revenue increased 9% year over year to
$75.5 million . - Net income attributable to Weibo’s ordinary shareholders reached
$34.7 million , or diluted net income per share of$0.16 , compared to a net loss of$65.3 million for 2014, or diluted net loss per share of$0.35 . - Non-GAAP net income attributable to Weibo’s ordinary shareholders was
$68.8 million , or non-GAAP diluted net income per share of$0.32 , compared to a non-GAAP net loss of$2.3 million for 2014, or non-GAAP diluted net loss per share of$0.01 . - Adjusted EBITDA increased 454% year over year to
$85.7 million .
“Weibo ended 2015 on a high note with non-
Fourth Quarter 2015 Financial Results
For the fourth quarter of 2015,
Costs and expenses for the fourth quarter of 2015 totaled
Income from operations for the fourth quarter of 2015 was
Non-operating loss for the fourth quarter of 2015 was
Net income attributable to Weibo’s ordinary shareholders for the fourth quarter of 2015 was
As of
Business Outlook
For the first quarter of 2016,
Non-GAAP Measures
This release contains the following non-GAAP financial measures: non-GAAP costs and expenses, non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP diluted net income (loss) per share attributable to Weibo’s ordinary 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 net of tax, change in fair value of investor option liability, gain on the sale of investments and impairment on investments, net, and dividend income from investments. In addition, adjusted EBITDA excludes depreciation expenses, interest income (expenses) and income tax expenses (benefits). 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 measures to the nearest comparable GAAP measures are set forth in the section below titled “Unaudited Reconciliation of Non-GAAP to GAAP Results.”
The unaudited condensed combined and consolidated statements of operations and balance sheets have been prepared assuming that the
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About
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 CORPORATION | ||||||||||||||||||||||
UNAUDITED CONDENSED COMBINED AND CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||
(U.S. Dollars in thousands, except per share data) | ||||||||||||||||||||||
Three months ended | Twelve months ended | |||||||||||||||||||||
December 31, | September 30, | December 31, | ||||||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | ||||||||||||||||||
As adjusted (a) | As adjusted (a) | |||||||||||||||||||||
Net revenues: | ||||||||||||||||||||||
Advertising and marketing | $ | 129,527 | $ | 87,973 | $ | 105,861 | $ | 402,415 | $ | 264,782 | ||||||||||||
Weibo VAS | 19,498 | 17,239 | 18,873 | 75,476 | 69,390 | |||||||||||||||||
Total net revenues | 149,025 | 105,212 | 124,734 | 477,891 | 334,172 | |||||||||||||||||
Cost of revenues (b) | 42,105 | 25,786 | 37,241 | 141,960 | 83,599 | |||||||||||||||||
Sales and marketing (b) | 36,253 | 34,054 | 30,106 | 126,059 | 120,361 | |||||||||||||||||
Product development (b) | 36,614 | 33,112 | 37,493 | 143,444 | 125,832 | |||||||||||||||||
General and administrative (b) | 8,265 | 7,610 | 5,996 | 28,925 | 26,483 | |||||||||||||||||
Total costs and expenses | 123,237 | 100,562 | 110,836 | 440,388 | 356,275 | |||||||||||||||||
Income (loss) from operations | 25,788 | 4,650 | 13,898 | 37,503 | (22,103 | ) | ||||||||||||||||
Non-operating income (loss): | ||||||||||||||||||||||
Gain on sale of and impairment on investments, net | (7,207 | ) | - | (462 | ) | (7,061 | ) | (2,040 | ) | |||||||||||||
Interest and other income , net | 1,443 | 3,017 | 1,818 | 6,338 | 6,775 | |||||||||||||||||
Change in fair value of investor option liability | - | - | - | - | (46,972 | ) | ||||||||||||||||
(5,764 | ) | 3,017 | 1,356 | (723 | ) | (42,237 | ) | |||||||||||||||
Income (loss) before income tax expenses | 20,024 | 7,667 | 15,254 | 36,780 | (64,340 | ) | ||||||||||||||||
Income tax expenses | (1,152 | ) | (2,877 | ) | (1,030 | ) | (2,591 | ) | (1,128 | ) | ||||||||||||
Net income (loss) | 18,872 | 4,790 | 14,224 | 34,189 | (65,468 | ) | ||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest |
(250 | ) | 362 | (253 | ) | (556 | ) | (143 | ) | |||||||||||||
Net income (loss) attributable to Weibo' ordinary shareholders |
$ | 19,122 | $ | 4,428 | $ | 14,477 | $ | 34,745 | $ | (65,325 | ) | |||||||||||
Basic net income (loss) per share attributable to Weibo’s ordinary shareholders |
$ | 0.09 | $ | 0.02 | $ | 0.07 | $ | 0.17 | $ | (0.35 | ) | |||||||||||
Diluted net income (loss) per share attributable to Weibo’s ordinary shareholders |
$ | 0.09 | $ | 0.02 | $ | 0.07 | $ | 0.16 | $ | (0.35 | ) | |||||||||||
Shares used in computing basic | ||||||||||||||||||||||
net income (loss) per share attributable to Weibo’s ordinary shareholders |
210,764 | 202,844 | 209,356 | 208,163 | 186,878 | |||||||||||||||||
Shares used in computing diluted | ||||||||||||||||||||||
net income (loss) per share attributable to Weibo’s ordinary shareholders |
219,464 | 216,845 | 217,681 | 217,918 | 186,878 | |||||||||||||||||
(a) The unaudited condensed combined and consolidated statements of operations have been prepared assuming that the Weibo funds acquired from SINA on June 30, 2015 as if they had been owned by Weibo for all periods. | ||||||||||||||||||||||
(b) Stock-based compensation in each category: | ||||||||||||||||||||||
Cost of revenues | $ | 275 | $ | 194 | $ | 380 | $ | 1,196 | $ | 755 | ||||||||||||
Sales and marketing | 856 | 368 | 924 | 3,209 | 1,583 | |||||||||||||||||
Product development | 2,473 | 1,655 | 3,028 | 10,210 | 4,392 | |||||||||||||||||
General and administrative | 3,006 | 2,290 | 2,917 | 11,784 | 7,049 | |||||||||||||||||
WEIBO CORPORATION | |||||||||||||
UNAUDITED CONDENSED COMBINED AND CONSOLIDATED BALANCE SHEETS | |||||||||||||
(U.S. Dollars in thousands) | |||||||||||||
December 31, | December 31, | ||||||||||||
2015 | 2014 | ||||||||||||
As adjusted (a) | |||||||||||||
Assets |
|||||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents | $ | 237,440 | $ | 284,865 | |||||||||
Short-term investments | 98,439 | 166,414 | |||||||||||
Accounts receivable, net | 120,230 | 120,210 | |||||||||||
Prepaid expenses and other current assets | 42,295 | 18,357 | (b) | ||||||||||
Current assets subtotal | 498,404 | 589,846 | |||||||||||
Property and equipment, net | 22,850 | 30,874 | |||||||||||
Goodwill and intangible assets, net | 13,083 | 15,191 | |||||||||||
Investments | 294,679 | 63,777 | |||||||||||
Other assets | 10,173 | 3,826 | (b) | ||||||||||
Total assets | $ | 839,189 | $ | 703,514 | |||||||||
Liabilities and Shareholders' Equity |
|||||||||||||
Liabilities: | |||||||||||||
Current liabilities: | |||||||||||||
Accounts payable | $ | 2,532 | $ | 2,420 | |||||||||
Accrued liabilities | 154,964 | 87,595 | |||||||||||
Deferred revenues | 39,091 | 20,957 | |||||||||||
Amount due to SINA | 12,188 | 24,279 | |||||||||||
Current liabilities subtotal | 208,775 | 135,251 | |||||||||||
Long-term liability | 2,385 | 873 | |||||||||||
Total liabilities | 211,160 | 136,124 | |||||||||||
Shareholders' equity : | |||||||||||||
Weibo ordinary shareholders' equity | 620,672 | 559,204 | |||||||||||
Non-controlling interest | 7,357 | 8,186 | |||||||||||
Total shareholders' equity | 628,029 | 567,390 | |||||||||||
Total liabilities and shareholders' equity | $ | 839,189 | $ | 703,514 | |||||||||
(a) The unaudited condensed combined and consolidated balance sheets have been prepared assuming that the Weibo funds acquired from SINA on June 30, 2015 as if they had been owned by Weibo for all periods. | |||||||||||||
(b) In 2015, Weibo early adopted the guidance of ASU 2015-17 issued by FASB in November 2015, which requires entities to present deferred tax assets ("DTA") and deferred tax liabilities as non-current in the balance sheets. Pursuant to the guidance, Weibo retrospectively reclassified $18 thousand of current DTA from prepaid expenses and other current assets into other assets in the consolidated balance sheet as of December 31, 2014. |
WEIBO CORPORATION | ||||||||||||||||||||||||||||||||||||||||
UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS | ||||||||||||||||||||||||||||||||||||||||
(U.S. Dollars in thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||||||||||||||||
December 31, 2015 | December 31, 2014 | September 30, 2015 | ||||||||||||||||||||||||||||||||||||||
As adjusted | ||||||||||||||||||||||||||||||||||||||||
Non-GAAP | Non-GAAP | Non-GAAP | ||||||||||||||||||||||||||||||||||||||
Actual | Adjustments | Results | Actual | Adjustments | Results | Actual | Adjustments | Results | ||||||||||||||||||||||||||||||||
Advertising and marketing | $ | 129,527 | $ | 129,527 | $ | 87,973 | $ | 87,973 | $ | 105,861 | $ | 105,861 | ||||||||||||||||||||||||||||
Weibo VAS | 19,498 | 19,498 | 17,239 | 17,239 | 18,873 | 18,873 | ||||||||||||||||||||||||||||||||||
Net revenues | $ | 149,025 | $ | 149,025 | $ | 105,212 | $ | 105,212 | $ | 124,734 | $ | 124,734 | ||||||||||||||||||||||||||||
(6,610 | ) | (a) | (4,507 | ) | (a) | (7,249 | ) | (a) | ||||||||||||||||||||||||||||||||
(359 | ) | (b) | (381 | ) | (b) | (364 | ) | (b) | ||||||||||||||||||||||||||||||||
Total costs and expenses | $ | 123,237 | $ | (6,969 | ) | $ | 116,268 | $ | 100,562 | $ | (4,888 | ) | $ | 95,674 | $ | 110,836 | $ | (7,613 | ) | $ | 103,223 | |||||||||||||||||||
6,610 | (a) | 4,507 | (a) | 7,249 | (a) | |||||||||||||||||||||||||||||||||||
359 | (b) | 381 | (b) | 364 | (b) | |||||||||||||||||||||||||||||||||||
Income from operations | $ | 25,788 | $ | 6,969 | $ | 32,757 | $ | 4,650 | $ | 4,888 | $ | 9,538 | $ | 13,898 | $ | 7,613 | $ | 21,511 | ||||||||||||||||||||||
6,610 | (a) | 7,249 | (a) | |||||||||||||||||||||||||||||||||||||
269 | (b) | 4,507 | (a) | 273 | (b) | |||||||||||||||||||||||||||||||||||
7,207 | (c) | 287 | (b) | 462 | (c) | |||||||||||||||||||||||||||||||||||
(267 | ) | (d) | (12 | ) | (d) | (323 | ) | (d) | ||||||||||||||||||||||||||||||||
Net income attributable to Weibo's ordinary shareholders |
$ | 19,122 | $ | 13,819 | $ | 32,941 | $ | 4,428 | $ | 4,782 | $ | 9,210 | $ | 14,477 | $ | 7,661 | $ | 22,138 | ||||||||||||||||||||||
Diluted net income per share attributable to Weibo’s ordinary shareholders |
$ | 0.09 | $ | 0.15 | $ | 0.02 | $ | 0.04 | $ | 0.07 | $ | 0.10 | ||||||||||||||||||||||||||||
Shares used in computing diluted | ||||||||||||||||||||||||||||||||||||||||
net income per share attributable to Weibo’s ordinary shareholders |
219,464 | 219,464 | 216,845 | 216,845 | 217,681 | 217,681 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA: | ||||||||||||||||||||||||||||||||||||||||
Non-GAAP net income | $ | 32,941 | $ | 9,210 | $ | 22,138 | ||||||||||||||||||||||||||||||||||
Interest income, net | (1,152 | ) | (1,766 | ) | (1,433 | ) | ||||||||||||||||||||||||||||||||||
Income tax expenses | 1,242 | 2,971 | 1,121 | |||||||||||||||||||||||||||||||||||||
Depreciation expenses | 4,006 | 5,647 | 4,696 | |||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 37,037 | $ | 16,062 | $ | 26,522 | ||||||||||||||||||||||||||||||||||
WEIBO CORPORATION | ||||||||||||||||||||||||||||||||||||||||
UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS | ||||||||||||||||||||||||||||||||||||||||
(U.S. Dollars in thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||||
Twelve months ended | ||||||||||||||||||||||||||||||||||||||||
December 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||||||||||
As adjusted | ||||||||||||||||||||||||||||||||||||||||
Non-GAAP | Non-GAAP | |||||||||||||||||||||||||||||||||||||||
Actual | Adjustments | Results | Actual | Adjustments | Results | |||||||||||||||||||||||||||||||||||
Advertising and marketing | $ | 402,415 | $ | 402,415 | $ | 264,782 | $ | 264,782 | ||||||||||||||||||||||||||||||||
Weibo VAS | 75,476 | 75,476 | 69,390 | 69,390 | ||||||||||||||||||||||||||||||||||||
Net revenues | $ | 477,891 | $ | 477,891 | $ | 334,172 | $ | 334,172 | ||||||||||||||||||||||||||||||||
(26,399 | ) | (a) | (13,779 | ) | (a) | |||||||||||||||||||||||||||||||||||
(1,467 | ) | (b) | (1,211 | ) | (b) | |||||||||||||||||||||||||||||||||||
Total costs and expenses | $ | 440,388 | $ | (27,866 | ) | $ | 412,522 | $ | 356,275 | $ | (14,990 | ) | $ | 341,285 | ||||||||||||||||||||||||||
26,399 | (a) | 13,779 | (a) | |||||||||||||||||||||||||||||||||||||
1,467 | (b) | 1,211 | (b) | |||||||||||||||||||||||||||||||||||||
Income (loss) from operations | $ | 37,503 | $ | 27,866 | $ | 65,369 | $ | (22,103 | ) | $ | 14,990 | $ | (7,113 | ) | ||||||||||||||||||||||||||
13,779 | (a) | |||||||||||||||||||||||||||||||||||||||
26,399 | (a) | 906 | (b) | |||||||||||||||||||||||||||||||||||||
1,103 | (b) | 2,040 | (c) | |||||||||||||||||||||||||||||||||||||
7,061 | (c) | (685 | ) | (d) | ||||||||||||||||||||||||||||||||||||
(522 | ) | (d) | 46,972 | (e) | ||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Weibo's ordinary shareholders |
$ | 34,745 | $ | 34,041 | $ | 68,786 | $ | (65,325 | ) | $ | 63,012 | $ | (2,313 | ) | ||||||||||||||||||||||||||
Diluted net income (loss) per share attributable to Weibo’s ordinary shareholders |
$ | 0.16 | $ | 0.32 | $ | (0.35 | ) | $ | (0.01 | ) | ||||||||||||||||||||||||||||||
Shares used in computing diluted | ||||||||||||||||||||||||||||||||||||||||
net income (loss) per share attributable to Weibo’s ordinary shareholders |
217,918 | 217,918 | 186,878 | 186,878 | ||||||||||||||||||||||||||||||||||||
Adjusted EBITDA: | ||||||||||||||||||||||||||||||||||||||||
Non-GAAP net income (loss) | $ | 68,786 | $ | (2,313 | ) | |||||||||||||||||||||||||||||||||||
Interest income, net | (5,528 | ) | (5,494 | ) | ||||||||||||||||||||||||||||||||||||
Income tax expenses | 2,958 | 1,433 | ||||||||||||||||||||||||||||||||||||||
Depreciation expenses | 19,482 | 21,849 | ||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 85,698 | $ | 15,475 | ||||||||||||||||||||||||||||||||||||
(a) To adjust stock-based compensation. | ||||||||||||||||||||||||||||||||||||||||
(b) To adjust amortization of intangible assets and tax provision on acquired intangible assets. | ||||||||||||||||||||||||||||||||||||||||
(c) To adjust net (gain) on the sale of investments, impairment on investments and dividend (income) from investments. | ||||||||||||||||||||||||||||||||||||||||
(d) To adjust Non-GAAP to GAAP reconciling items for the gain (loss) attributable to non-controlling interests. | ||||||||||||||||||||||||||||||||||||||||
(e) To adjust the change in fair value of investor option liability. | ||||||||||||||||||||||||||||||||||||||||
WEIBO CORPORATION | ||||||||||||||||||||
UNAUDITED ADDITIONAL INFORMATION | ||||||||||||||||||||
(U.S. Dollars in thousands) | ||||||||||||||||||||
Three months ended | Twelve months ended | |||||||||||||||||||
December 31, | September 30, | December 31, | ||||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | ||||||||||||||||
Net revenues | ||||||||||||||||||||
Advertising and marketing: | ||||||||||||||||||||
Advertising and marketing other than Alibaba | $ | 81,323 | $ | 49,957 | $ | 73,331 | $ | 258,765 | $ | 157,195 | ||||||||||
Alibaba | 48,204 | 38,016 | 32,530 | 143,650 | 107,587 | |||||||||||||||
Subtotal | 129,527 | 87,973 | 105,861 | 402,415 | 264,782 | |||||||||||||||
Weibo VAS | 19,498 | 17,239 | 18,873 | 75,476 | 69,390 | |||||||||||||||
$ | 149,025 | $ | 105,212 | $ | 124,734 | $ | 477,891 | $ | 334,172 |
Contact: Investor RelationsWeibo Corporation Phone: +86 10 5898-3112 Email: ir@staff.weibo.com