Third Quarter 2015 Highlights
-
Net revenues increased 48% year over year to
$124.7 million , exceeding the Company's guidance between$120 million and $123 million . - Advertising and marketing revenue increased 62% year over year.
- Weibo Value Added Services ("Weibo VAS") revenue increased 1% year over year, despite a 72% year-over-year decline in revenue from data licensing, a deemphasized business.
-
Net income attributable to
Weibo's ordinary shareholders was$14.5 million , or diluted net income per share of$0.07 , compared to a net loss of$6.7 million for the same period last year, or diluted net loss per share of$0.03 . -
Non-GAAP net income attributable to
Weibo's ordinary shareholders was$22.1 million , or non-GAAP diluted net income per share of$0.10 , compared to a non-GAAP net loss of$1.5 million for the same period last year, or non-GAAP diluted net loss per share of$0.01 . -
Non-GAAP adjusted EBITDA was
$26.5 million , compared to a non-GAAP adjusted EBITDA of$1.9 million for the same period last year. -
Monthly active users ("MAUs") reached 222 million in
September 2015 , up 33% year over year. Mobile MAUs represented 85% of total MAUs inSeptember 2015 . Daily active users ("DAUs") reached 100 million on average forSeptember 2015 , up 30% year over year.
"We continue to see strong momentum in
Third Quarter 2015 Financial Results
For the third quarter of 2015,
Costs and expenses for the third quarter of 2015 totaled
Income from operations for the third quarter of 2015 was
Non-operating income for the third quarter of 2015 was
Net income attributable to
As of
On
Business Outlook
For the fourth quarter of 2015,
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
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 (loss) on the sale of investments and impairment on investments, and dividend income from investments. In addition, non-GAAP 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 GAAP and Non-GAAP Measures."
The unaudited condensed consolidated statements of operations and balance sheets have been prepared assuming that the
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Safe Harbor Statement
This press release contains forward-looking statements that relate to, among other things,
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, | |||
2015 | 2014 | 2015 | 2015 | 2014 | |
Restated (a) | Restated (a) | ||||
Net revenues: | |||||
Advertising and marketing | $ 105,861 | $ 65,373 | $ 87,867 | $ 272,888 | $ 176,809 |
Weibo VAS | 18,873 | 18,757 | 19,975 | 55,978 | 52,151 |
Total net revenues | 124,734 | 84,130 | 107,842 | 328,866 | 228,960 |
Costs and Expenses: | |||||
Cost of revenues (b) | 37,241 | 20,670 | 33,689 | 99,855 | 57,813 |
Sales and marketing (b) | 30,106 | 32,434 | 28,514 | 89,806 | 86,307 |
Product development (b) | 37,493 | 31,757 | 35,009 | 106,830 | 92,720 |
General and administrative (b) | 5,996 | 7,115 | 8,292 | 20,660 | 18,873 |
Total costs and expenses | 110,836 | 91,976 | 105,504 | 317,151 | 255,713 |
Income (loss) from operations | 13,898 | (7,846) | 2,338 | 11,715 | (26,753) |
Non-operating (loss) income: | |||||
Change in fair value of investor option liability | -- | -- | -- | -- | (46,972) |
Gain on sale of and impairment on investments, net | (462) | (2,200) | 608 | 146 | (2,040) |
Interest and other income , net | 1,818 | 1,944 | 1,621 | 4,895 | 3,758 |
1,356 | (256) | 2,229 | 5,041 | (45,254) | |
Income (loss) before income tax expenses | 15,254 | (8,102) | 4,567 | 16,756 | (72,007) |
Income tax benefits (expenses) | (1,030) | 441 | (414) | (1,439) | 1,749 |
Net income (loss) | 14,224 | (7,661) | 4,153 | 15,317 | (70,258) |
Less: Net income (loss) attributable to noncontrolling interest | (253) | (930) | (43) | (306) | (505) |
Net income (loss) attributable to Weibo' ordinary shareholders | $ 14,477 | $ (6,731) | $ 4,196 | $ 15,623 | $ (69,753) |
Basic net income (loss) per share attributable to Weibo's ordinary shareholders | $ 0.07 | $ (0.03) | $ 0.02 | $ 0.08 | $ (0.38) |
Diluted net income (loss) per share attributable to Weibo's ordinary shareholders | $ 0.07 | $ (0.03) | $ 0.02 | $ 0.07 | $ (0.38) |
Shares used in computing basic net income (loss) per share attributable to Weibo's ordinary shareholders | 209,356 | 201,302 | 207,512 | 207,287 | 181,548 |
Shares used in computing diluted net income (loss) per share attributable to Weibo's ordinary shareholders | 217,681 | 201,302 | 218,125 | 217,426 | 181,548 |
(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 had been in existence throughout the periods. | |||||
(b) Stock-based compensation in each category: | |||||
Cost of revenues | $ 380 | $ 205 | $ 289 | $ 921 | $ 561 |
Sales and marketing | 924 | 525 | 735 | 2,353 | 1,215 |
Product development | 3,028 | 1,156 | 2,401 | 7,737 | 2,737 |
General and administrative | 2,917 | 1,757 | 3,568 | 8,778 | 4,759 |
WEIBO CORPORATION | ||||
UNAUDITED CONDENSED COMBINED AND CONSOLIDATED BALANCE SHEETS | ||||
(U.S. Dollars in thousands) | ||||
September 30, 2015 |
December 31, 2014 |
|||
Restated (a) | ||||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | $ 203,776 | $ 284,865 | ||
Short-term investments | 149,521 | 166,414 | ||
Accounts receivable, net | 102,543 | 120,210 | ||
Prepaid expenses and other current assets | 37,902 | 18,375 | ||
Amount due from SINA | 3,878 | -- | ||
Current assets subtotal | 497,620 | 589,864 | ||
Property and equipment, net | 24,051 | 30,874 | ||
Goodwill and intangible assets, net | 14,020 | 15,191 | ||
Investments | 225,839 | 63,777 | ||
Other assets | 24,349 | 3,808 | ||
Total assets | $ 785,879 | $ 703,514 | ||
Liabilities and Shareholders' Equity | ||||
Liabilities: | ||||
Current liabilities: | ||||
Accounts payable | $ 2,276 | $ 2,420 | ||
Accrued liabilities | 146,967 | 87,595 | ||
Deferred revenues | 31,933 | 20,957 | ||
Amount due to SINA | -- | 24,279 | ||
Current liabilities subtotal | 181,176 | 135,251 | ||
Long-term liabilities | 579 | 873 | ||
Total liabilities | 181,755 | 136,124 | ||
Shareholders' equity : | ||||
Weibo ordinary shareholders' equity | 596,357 | 559,204 | ||
Non-controlling interest | 7,767 | 8,186 | ||
Total shareholders' equity | 604,124 | 567,390 | ||
Total liabilities and shareholders' equity | $ 785,879 | $ 703,514 | ||
(a)The unaudited condensed combined and consolidated statements of balance sheet have been prepared assuming that the Weibo funds acquired from SINA on June 30, 2015 had been in existence throughout the periods. |
WEIBO CORPORATION | |||||||||||||||||||||
UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS | |||||||||||||||||||||
(U.S. Dollars in thousands, except per share data) | |||||||||||||||||||||
Three months ended | |||||||||||||||||||||
September 30, 2015 | September 30, 2014 | June 30, 2015 | |||||||||||||||||||
Restated | |||||||||||||||||||||
Actual | Adjustments | Non-GAAP Results | Actual | Adjustments | Non-GAAP Results | Actual | Adjustments | Non-GAAP Results | |||||||||||||
Advertising and marketing | $ 105,861 | $ 105,861 | $ 65,373 | $ 65,373 | $ 87,867 | $ 87,867 | |||||||||||||||
Weibo VAS | 18,873 | 18,873 | 18,757 | 18,757 | 19,975 | 19,975 | |||||||||||||||
Net revenues | $ 124,734 | $ 124,734 | $ 84,130 | $ 84,130 | $ 107,842 | $ 107,842 | |||||||||||||||
(7,249) | (a) | (3,643) | (a) | (6,993) | (a) | ||||||||||||||||
(364) | (b) | (277) | (b) | (373) | (b) | ||||||||||||||||
Total costs and expenses | $ 110,836 | $ (7,613) | $ 103,223 | $ 91,976 | $ (3,920) | $ 88,056 | $ 105,504 | $ (7,366) | $ 98,138 | ||||||||||||
7,249 | (a) | 3,643 | (a) | 6,993 | (a) | ||||||||||||||||
364 | (b) | 277 | (b) | 373 | (b) | ||||||||||||||||
Income (loss) from operations | $ 13,898 | $ 7,613 | $ 21,511 | $ (7,846) | $ 3,920 | $ (3,926) | $ 2,338 | $ 7,366 | $ 9,704 | ||||||||||||
7,249 | (a) | 3,643 | (a) | 6,993 | (a) | ||||||||||||||||
262 | (b) | 214 | (b) | 268 | (b) | ||||||||||||||||
150 | (c) | 1,359 | (c) | (516) | (c) | ||||||||||||||||
Net income (loss) attributable to Weibo's ordinary shareholders | $ 14,477 | $ 7,661 | $ 22,138 | $ (6,731) | $ 5,216 | $ (1,515) | $ 4,196 | $ 6,745 | $ 10,941 | ||||||||||||
Diluted net income (loss) per share attributable to Weibo's ordinary shareholders | $ 0.07 | $ 0.10 | $ (0.03) | $ (0.01) | $ 0.02 | $ 0.05 | |||||||||||||||
Shares used in computing diluted net income (loss) per share attributable to Weibo's ordinary shareholders | 217,681 | 217,681 | 201,302 | 201,302 | 218,125 | 218,125 | |||||||||||||||
Non-GAAP adjusted EBITDA: | |||||||||||||||||||||
Non-GAAP net income (loss) | $ 22,138 | $ (1,515) | $ 10,941 | ||||||||||||||||||
Depreciation expenses | 4,696 | 5,739 | 5,521 | ||||||||||||||||||
Interest income, net | (1,433) | (1,983) | (1,562) | ||||||||||||||||||
Income tax expenses (benefits) | 1,121 | (378) | 507 | ||||||||||||||||||
Non-GAAP adjusted EBITDA | $ 26,522 | $ 1,863 | $ 15,407 | ||||||||||||||||||
WEIBO CORPORATION | |||||||||||||||||||||
UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS | |||||||||||||||||||||
(U.S. Dollars in thousands, except per share data) | |||||||||||||||||||||
Nine months ended | |||||||||||||||||||||
September 30, 2015 | September 30, 2014 | ||||||||||||||||||||
Restated | |||||||||||||||||||||
Actual | Adjustments |
Non-GAAP Results |
Actual | Adjustments |
Non-GAAP Results |
||||||||||||||||
Advertising and marketing | $ 272,888 | $ 272,888 | $ 176,809 | $ 176,809 | |||||||||||||||||
Weibo VAS | 55,978 | 55,978 | 52,151 | 52,151 | |||||||||||||||||
Net revenues | $ 328,866 | $ 328,866 | $ 228,960 | $ 228,960 | |||||||||||||||||
(19,789) | (a) | (9,272) | (a) | ||||||||||||||||||
(1,108) | (b) | (830) | (b) | ||||||||||||||||||
Total costs and expenses | $ 317,151 | $ (20,897) | $ 296,254 | $ 255,713 | $ (10,102) | $ 245,611 | |||||||||||||||
19,789 | (a) | 9,272 | (a) | ||||||||||||||||||
1,108 | (b) | 830 | (b) | ||||||||||||||||||
Income (loss) from operations | $ 11,715 | $ 20,897 | $ 32,612 | $ (26,753) | $ 10,102 | $ (16,651) | |||||||||||||||
9,272 | (a) | ||||||||||||||||||||
19,789 | (a) | 619 | (b) | ||||||||||||||||||
799 | (b) | 1,367 | (c) | ||||||||||||||||||
(366) | (c) | 46,972 | (d) | ||||||||||||||||||
Net income (loss) attributable to Weibo's ordinary shareholders | $ 15,623 | $ 20,222 | $ 35,845 | $ (69,753) | $ 58,230 | $ (11,523) | |||||||||||||||
Diluted net income (loss) per share attributable to Weibo's ordinary shareholders | $ 0.07 | $ 0.16 | $ (0.38) | $ (0.06) | |||||||||||||||||
Shares used in computing diluted net income (loss) per share attributable to Weibo's ordinary shareholders | 217,426 | 217,426 | 181,548 | 181,548 | |||||||||||||||||
Non-GAAP adjusted EBITDA: | |||||||||||||||||||||
Non-GAAP net income (loss) | $ 35,845 | $ (11,523) | |||||||||||||||||||
Depreciation expenses | 15,476 | 16,202 | |||||||||||||||||||
Interest income, net | (4,376) | (3,728) | |||||||||||||||||||
Income tax benefits | 1,716 | (1,538) | |||||||||||||||||||
Non-GAAP adjusted EBITDA | $ 48,661 | $ (587) | |||||||||||||||||||
(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 gain (loss) on sale of investments, (impairment) on investments, net, and dividend income from investments. | |||||||||||||||||||||
(d) To adjust the change in fair value of investor option liability. |
WEIBO CORPORATION | |||||
UNAUDITED ADDITIONAL INFORMATION | |||||
(U.S. Dollars in thousands) | |||||
Three months ended | Nine months ended | ||||
September 30, | June 30, | September 30, | |||
2015 | 2014 | 2015 | 2015 | 2014 | |
Net revenues | |||||
Advertising and marketing: | |||||
Advertising and marketing other than Alibaba | $ 73,331 | $ 37,845 | $ 59,444 | $ 177,442 | $ 107,238 |
Alibaba | 32,530 | 27,528 | 28,423 | 95,446 | 69,571 |
Subtotal | 105,861 | 65,373 | 87,867 | 272,888 | 176,809 |
Weibo VAS | 18,873 | 18,757 | 19,975 | 55,978 | 52,151 |
$ 124,734 | $ 84,130 | $ 107,842 | $ 328,866 | $ 228,960 |
CONTACT: Investor RelationsWeibo Corporation Phone: +86 10 5898-3112 Email: ir@staff.weibo.com