Third Quarter 2014 Highlights
-
Net revenues increased 58% year over year to
$84.1 million , exceeding the Company's guidance between$79 million and $82 million . -
Advertising and marketing revenues grew 50% year over year to
$65.4 million . -
Weibo Value Added Services ("Weibo VAS") revenues increased 93% year over year to
$18.8 million . -
Net loss attributable to
Weibo's ordinary shareholders decreased 2% year over year to$5.2 million or$0.03 diluted net loss per share attributable toWeibo's ordinary shareholders. -
Non-GAAP net loss attributable to
Weibo's ordinary shareholders decreased 73% year over year to$1.4 million , or$0.01 non-GAAP diluted net loss per share attributable toWeibo's ordinary shareholders. -
Monthly active users ("MAUs") were 167.0 million as of
September 30, 2014 , an increase of 36% year over year. -
Daily active users ("DAUs") were 76.6 million on average for
September 2014 , an increase of 30% year over year.
"I'm delighted that
Third Quarter 2014 Financial Results
For the third quarter of 2014,
Costs and expenses for the third quarter of 2014 totaled
Loss from operations for the third quarter of 2014 was
Non-operating income for the third quarter of 2014 was
Net loss attributable to
As of
Business Outlook
For the fourth quarter of 2014,
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) and non-GAAP diluted net income (loss) per share attributable to
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 and remeasurement gain upon obtaining control. 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 GAAP measures are set forth in the section below titled "Unaudited Reconciliation of Non-GAAP to GAAP Results."
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About
Safe Harbor Statement
This press release contains forward-looking statements that relate to, among other things,
Contact: |
Investor Relations |
Weibo Corporation |
Phone: +8610-5898 3336 |
Email: ir@staff.weibo.com |
WEIBO CORPORATION | |||||
UNAUDITED CONDENSED COMBINED AND CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
(U.S. Dollars in thousands, except per share data) | |||||
Three months ended | Nine months ended | ||||
September 30, | June 30, | September 30, | |||
2014 | 2013 | 2014 | 2014 | 2013 | |
Net revenues: | |||||
Advertising and marketing | $ 65,373 | $ 43,662 | $ 59,583 | $ 176,809 | $ 92,381 |
Weibo VAS | 18,757 | 9,704 | 17,737 | 52,151 | 24,508 |
Total net revenues | 84,130 | 53,366 | 77,320 | 228,960 | 116,889 |
Costs and Expenses: | |||||
Cost of revenues (a) | 20,670 | 14,524 | 19,700 | 57,813 | 43,649 |
Sales and marketing (a) | 32,414 | 16,753 | 30,006 | 86,269 | 40,209 |
Product development (a) | 31,757 | 24,629 | 32,155 | 92,720 | 74,609 |
General and administrative (a) | 6,919 | 3,225 | 5,931 | 18,322 | 17,519 |
Total costs and expenses | 91,760 | 59,131 | 87,792 | 255,124 | 175,986 |
Loss from operations | (7,630) | (5,765) | (10,472) | (26,164) | (59,097) |
Non-operating income (loss): | |||||
Loss from equity method investment | -- | -- | -- | -- | (1,236) |
Remeasurement gain upon obtaining control | -- | -- | -- | -- | 3,116 |
Change in fair value of investor option liability | -- | 665 | (6,784) | (46,972) | 1,529 |
Interest and other income (expenses), net | 1,943 | (139) | 1,501 | 3,741 | (3,245) |
1,943 | 526 | (5,283) | (43,231) | 164 | |
Loss before income taxes | (5,687) | (5,239) | (15,755) | (69,395) | (58,933) |
Income tax benefits (expenses) | 441 | (66) | 732 | 1,749 | (742) |
Net loss | (5,246) | (5,305) | (15,023) | (67,646) | (59,675) |
Less: Net (loss) income attributable to non-controlling interest | (26) | -- | 349 | 323 | -- |
Net loss attributable to Weibo' ordinary shareholders | $ (5,220) | $ (5,305) | $ (15,372) | $ (67,969) | $ (59,675) |
Basic net loss per share attributable to Weibo's ordinary shareholders | $ (0.03) | $ (0.04) | $ (0.08) | $ (0.37) | $ (0.41) |
Diluted net loss per share attributable to Weibo's ordinary shareholders | $ (0.03) | $ (0.04) | $ (0.08) | $ (0.37) | $ (0.41) |
Shares used in computing basic net loss per share attributable to Weibo's ordinary shareholders | 201,302 | 148,040 | 192,190 | 181,548 | 146,071 |
Shares used in computing diluted net loss per share attributable to Weibo's ordinary shareholders | 201,302 | 148,040 | 192,190 | 181,548 | 146,071 |
(a) Stock-based compensation in each category: | |||||
Cost of revenues | $ 205 | $ 73 | $ 187 | $ 561 | $ 4,113 |
Sales and marketing | 525 | 161 | 433 | 1,215 | 5,913 |
Product development | 1,156 | 310 | 989 | 2,737 | 8,764 |
General and administrative | 1,757 | 325 | 1,831 | 4,759 | 10,832 |
WEIBO CORPORATION | ||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||
(U.S. Dollars in thousands) | ||
September 30, | December 31, | |
2014 | 2013 | |
Assets | ||
Current assets: | ||
Cash and cash equivalents | $ 358,744 | $ 246,436 |
Short-term investments | 165,292 | 252,342 |
Accounts receivable, net | 69,825 | 47,304 |
Prepaid expenses and other current assets | 20,055 | 5,693 |
Current assets subtotal | 613,916 | 551,775 |
Property and equipment, net | 32,741 | 35,702 |
Goodwill and intangible assets, net | 10,043 | 10,588 |
Long-term investments | 21,784 | 5,500 |
Other assets | 14,312 | 3,369 |
Total assets | $ 692,796 | $ 606,934 |
Liabilities, Mezzanine Equity and Shareholders' Equity (Deficit) | ||
Liabilities: | ||
Current liabilities: | ||
Accounts payable | $ 2,233 | $ 824 |
Accrued liabilities | 87,368 | 56,414 |
Deferred revenues | 19,832 | 15,031 |
Amount due to SINA | 25,432 | 267,722 |
Investor option liability | -- | 29,504 |
Current liabilities subtotal | 134,865 | 369,495 |
Long-term liabilities | 550 | 768 |
Total liabilities | 135,415 | 370,263 |
Mezzanine equity - preferred shares | -- | 479,612 |
Shareholders' equity (deficit): | ||
Weibo ordinary shareholders' equity (deficit) | 557,031 | (242,941) |
Non-controlling interest | 350 | -- |
Total shareholders' equity (deficit) | 557,381 | (242,941) |
Total liabilities, mezzanine equity and shareholders' equity (deficit) | $ 692,796 | $ 606,934 |
WEIBO CORPORATION | ||||||||||||
UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS | ||||||||||||
(U.S. Dollars in thousands, except per share data) | ||||||||||||
Three months ended | ||||||||||||
September 30, 2014 | September 30, 2013 | June 30, 2014 | ||||||||||
Non-GAAP | Non-GAAP | Non-GAAP | ||||||||||
Actual | Adjustments | Results | Actual | Adjustments | Results | Actual | Adjustments | Results | ||||
Advertising and marketing | $ 65,373 | $ 65,373 | $ 43,662 | $ 43,662 | $ 59,583 | $ 59,583 | ||||||
Weibo VAS | 18,757 | 18,757 | 9,704 | 9,704 | 17,737 | 17,737 | ||||||
Net revenues | $ 84,130 | $ 84,130 | $ 53,366 | $ 53,366 | $ 77,320 | $ 77,320 | ||||||
(3,643) | (a) | (3,440) | (a) | |||||||||
(277) | (b) | (869) | (a) | (273) | (b) | |||||||
Total costs and expenses | $ 91,760 | $ (3,920) | $ 87,840 | $ 59,131 | $ (869) | $ 58,262 | $ 87,792 | $ (3,713) | $ 84,079 | |||
3,643 | (a) | 3,440 | (a) | |||||||||
277 | (b) | 869 | (a) | 273 | (b) | |||||||
Loss from operations | $ (7,630) | $ 3,920 | $ (3,710) | $ (5,765) | $ 869 | $ (4,896) | $ (10,472) | $ 3,713 | $ (6,759) | |||
3,440 | (a) | |||||||||||
3,643 | (a) | 869 | (a) | 214 | (b) | |||||||
214 | (b) | (665) | (c) | 6,784 | (c) | |||||||
Net loss attributable to Weibo's ordinary shareholders | $ (5,220) | $ 3,857 | $ (1,363) | $ (5,305) | $ 204 | $ (5,101) | $ (15,372) | $ 10,438 | $ (4,934) | |||
Basic and diluted net loss per share attributable to Weibo's ordinary shareholders | $ (0.03) | $ (0.01) | $ (0.04) | $ (0.03) | $ (0.08) | $ (0.03) | ||||||
Shares used in computing basic and diluted net loss per share attributable to Weibo's ordinary shareholders | 201,302 | -- | 201,302 | 148,040 | -- | 148,040 | 192,190 | -- | 192,190 | |||
WEIBO CORPORATION | ||||||||
UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS | ||||||||
(U.S. Dollars in thousands, except per share data) | ||||||||
Nine months ended | ||||||||
September 30, 2014 | September 30, 2013 | |||||||
Non-GAAP | Non-GAAP | |||||||
Actual | Adjustments | Results | Actual | Adjustments | Results | |||
Advertising and marketing | $ 176,809 | $ 176,809 | $ 92,381 | $ 92,381 | ||||
Weibo VAS | 52,151 | 52,151 | 24,508 | 24,508 | ||||
Net revenues | $ 228,960 | $ 228,960 | $ 116,889 | $ 116,889 | ||||
(9,272) | (a) | |||||||
(830) | (b) | (29,622) | (a) | |||||
Total costs and expenses | $ 255,124 | $ (10,102) | $ 245,022 | $ 175,986 | $ (29,622) | $ 146,364 | ||
9,272 | (a) | |||||||
830 | (b) | 29,622 | (a) | |||||
Loss from operations | $ (26,164) | $ 10,102 | $ (16,062) | $ (59,097) | $ 29,622 | $ (29,475) | ||
9,272 | (a) | 29,622 | (a) | |||||
619 | (b) | (1,529) | (c) | |||||
46,972 | (c) | (3,116) | (d) | |||||
Net loss attributable to Weibo' ordinary shareholders | $ (67,969) | $ 56,863 | $ (11,106) | $ (59,675) | $ 24,977 | $ (34,698) | ||
Basic and diluted net loss per share attributable to Weibo's ordinary shareholders | $ (0.37) | $ (0.06) | $ (0.41) | $ (0.24) | ||||
Shares used in computing basic and diluted net loss per share attributable to Weibo's ordinary shareholders | 181,548 | -- | 181,548 | 146,071 | -- | 146,071 | ||
(a) To adjust stock-based compensation. | ||||||||
(b) To adjust amortization of intangible assets and tax provision on amortization of acquired intangible assets. | ||||||||
(c) To adjust the change in fair value of investor option liability. | ||||||||
(d) To adjust the remeasurement gain upon obtaining control. | ||||||||
WEIBO CORPORATION | |||||
UNAUDITED ADDITIONAL INFORMATION | |||||
(U.S. Dollars in thousands) | |||||
Three months ended | Nine months ended | ||||
September 30, | June 30, | September 30, | |||
2014 | 2013 | 2014 | 2014 | 2013 | |
Net revenues | |||||
Advertising and marketing: | |||||
Advertising and marketing other than Alibaba | $ 37,845 | $ 23,511 | $ 37,401 | $ 107,238 | $ 67,085 |
Alibaba * | 27,528 | 20,151 | 22,182 | 69,571 | 25,296 |
Subtotal | 65,373 | 43,662 | 59,583 | 176,809 | 92,381 |
Weibo VAS | 18,757 | 9,704 | 17,737 | 52,151 | 24,508 |
$ 84,130 | $ 53,366 | $ 77,320 | $ 228,960 | $ 116,889 | |
*Revenue related to the strategic alliance between Weibo and Alibaba formed on April 29, 2013. |