0001104659-21-140888 | 6-K | XBRL Viewer

Print Document View Excel Document

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2021
Document Information [Line Items]
Entity Registrant Name	WEIBO CORPORATION
Entity Central Index Key	0001595761
Document Type	6-K
Document Period End Date	Sep. 30, 2021
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Amendment Flag	false

UNAUDITED INTERIM CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 1,828,691	$ 2,005,106	$ 1,814,844
Short-term investments	878,487	930,822	1,682,048
Accounts receivable due from third parties, net of allowances of $29,061 and $35,219 as of December 31, 2020 and September 30, 2021, respectively	544,283	467,246	314,159
Prepaid expenses and other current assets (including loans to and interest receivable from other related parties of $158,622 and $283,904 as of December 31, 2020 and September 30, 2021, respectively)	944,044	587,293	296,757
Amount due from SINA (Note 10)	515,534	498,618	548,900
Total current assets	4,850,466	4,653,048	4,834,559
Property and equipment, net	64,396	61,033	60,632
Operating lease assets	10,666	12,260	7,176
Intangible assets, net	170,756	157,177	146,976
Goodwill	128,576	113,604	61,712
Long-term investments	1,195,549	1,123,258	1,179,466
Other non-current assets	577,627	582,345	44,596
Total assets	6,998,036	6,702,725	6,335,117
Current liabilities (including amounts of the consolidated VIEs without recourse to the primary beneficiary of $538,269 and $710,781 as of December 31, 2020 and September 30, 2021, respectively.)
Accounts payable	177,647	159,497	149,509
Accrued and other liabilities	732,519	692,390	556,753
Operating lease liability, short-term	4,405	5,594	5,580
Income taxes payable	115,241	89,100	102,844
Deferred revenues	132,468	146,085	143,684
Total current liabilities	1,162,280	1,092,666	958,370
Long-term liabilities
Convertible debt	895,505	894,470	892,399
Unsecured senior notes	1,537,840	1,537,264	1,536,112
Deferred tax liability	54,453	56,048	58,299
Operating lease liability, long-term	5,831	6,154	1,505
Other non-current liabilities	11,714	8,505	2,102
Total long-term liabilities	2,505,343	2,502,441	2,490,417
Total liabilities	3,667,623	3,595,107	3,448,787
Commitments and contingencies (Note 17)
Redeemable non-controlling interests (Note 18)	74,170	69,359	57,714
Shareholders' equity:
Ordinary shares: $0.00025 par value; 2,400,000 and 2,400,000 shares (including 1,800,000 Class A ordinary shares, 200,000 Class B ordinary shares and 400,000 shares to be designated) authorized; 227,688 shares (including 125,909 Class A ordinary shares and 101,779 Class B ordinary shares) and 229,092 shares (including 127,313 Class A ordinary shares and 101,779 Class B ordinary shares) issued and outstanding as of December 31, 2020 and September 30, 2021, respectively.	57	57	57
Additional paid-in capital	1,269,014	1,239,461	1,201,622
Accumulated other comprehensive income	114,066	108,452	79,526
Retained earnings	1,843,806	1,662,068	1,531,220
Total Weibo shareholders' equity	3,226,943	3,010,038	2,812,425
Non-controlling interests	29,300	28,221	16,191
Total shareholders' equity	3,256,243	3,038,259	2,828,616
Total liabilities, redeemable non-controlling interests and shareholders' equity	6,998,036	6,702,725	6,335,117
Alibaba (Note 10)
Current assets:
Accounts receivable due from related parties	98,262	122,991	135,321
Other related parties (Note 10)
Current assets:
Accounts receivable due from related parties	$ 41,165	$ 40,972	$ 42,530

UNAUDITED INTERIM CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Net of allowances	$ 35,283,000	$ 35,880,000	$ 35,156,000
Loans to and interest receivable	283,904,000	336,558,000	158,622,000
Current liabilities	$ 1,162,280,000	$ 1,092,666,000	$ 958,370,000
Ordinary shares, par value (in dollars per share)	$ 0.00025	$ 0.00025	$ 0.00025
Ordinary shares, shares authorized	2,400,000	2,400,000	2,400,000
Ordinary shares, shares issued	229,092	228,281	227,688
Ordinary shares, shares outstanding	229,092	228,281	227,688
Class A ordinary shares
Ordinary shares, shares authorized	1,800,000	1,800,000	1,800,000
Ordinary shares, shares issued	127,313	126,502	125,909
Class B ordinary shares
Ordinary shares, shares authorized	200,000	200,000	200,000
Ordinary shares, shares issued	101,779	101,779	101,779
Ordinary shares to be designated
Ordinary shares, shares authorized	400,000	400,000	400,000
Consolidated VIEs \| Without recourse
Current liabilities	$ 710,781,000	$ 655,757,000	$ 538,269,000
Alibaba (Note 10)
Net of allowances	0	0	0
Other related parties (Note 10)
Net of allowances	64	0	6,095,000
Loans to and interest receivable	37,518,000	32,058,000	15,884,000
Third parties
Net of allowances	$ 35,219,000	$ 35,880,000	$ 29,061,000

UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues:
Revenues	$ 1,033,362	$ 710,782	$ 1,640,796	$ 1,176,521
Costs and Expenses
Cost of revenues	172,318	137,694	275,296	214,892
Sales and marketing	298,368	211,220	439,207	316,483
Product development	197,985	150,370	316,806	233,881
General and administrative	62,850	47,298	94,597	86,111
Total costs and expenses	731,521	546,582	1,125,906	851,367
Income from operations	301,841	164,200	514,890	325,154
Income from equity method investments	13,605	3,388	17,688	4,422
Realized gain from investments	1,106	844	1,299	848
Fair value changes through earnings on investments, net	(69,495)	117,517	(33,073)	127,641
Investment related impairment	(66,625)	(3,920)	(102,594)	(117,835)
Interest income	40,068	45,609	56,909	65,667
Interest expense	(35,503)	(22,363)	(53,255)	(39,677)
Other income, net	6,808	1,356	3,147	3,889
Income before income tax expenses	191,805	306,631	405,011	370,109
Less: Provision of income taxes	61,855	56,627	93,260	86,630
Net income	129,950	250,004	311,751	283,479
Less: Net loss attributable to non-controlling interests	(898)	(520)	(835)	(843)
Net income attributable to Weibo's shareholders	130,848	250,524	312,586	284,322
Other comprehensive income
Currency translation adjustments (for which there were no taxes)	29,222	(31,347)	34,888	57,670
Available-for-Sale securities
Total comprehensive income	159,172	218,657	346,639	341,149
Less: Comprehensive loss attributable to non-controlling interests	(602)	(528)	(487)	(810)
Comprehensive income attributable to Weibo's shareholders	$ 159,774	$ 219,185	$ 347,126	$ 341,959
Shares used in computing net income per share attributable to Weibo's shareholders:
Basic	227,936	226,535	228,185	226,728
Diluted	229,429	227,129	229,765	227,352
Income per share:
Basic	$ 0.57	$ 1.11	$ 1.37	$ 1.25
Diluted	$ 0.57	$ 1.10	$ 1.36	$ 1.25
Advertising and marketing revenues
Revenues:
Revenues	$ 892,349	$ 616,006	$ 1,429,969	$ 1,032,678
Value-added services revenues
Revenues:
Revenues	141,013	94,776	210,827	143,843
SINA (Note 10) \| Advertising and marketing revenues
Revenues:
Revenues	30,931	27,624	58,178	34,149
Alibaba (Note 10) \| Advertising and marketing revenues
Revenues:
Revenues	109,918	72,542	134,892	112,906
Other related parties (Note 10) \| Advertising and marketing revenues
Revenues:
Revenues	22,682	17,985	38,731	33,360
Third parties \| Advertising and marketing revenues
Revenues:
Revenues	$ 728,818	$ 497,855	$ 1,198,168	$ 852,263

UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($)	6 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Currency translation adjustments, tax	$ 0	$ 0	$ 0	$ 0

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Ordinary Shares	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Non-controlling Interests	Total
Balance at Dec. 31, 2019	$ 57	$ 1,133,913	$ (68,559)	$ 1,217,856	$ (1,448)	$ 2,281,819
Balance (in shares) at Dec. 31, 2019	226,310
Increase (Decrease) in Shareholders' Equity
Issuance of ordinary shares pursuant to stock plan		57				57
Issuance of ordinary shares pursuant to stock plan (in shares)	606
Non-cash stock-based compensation		30,188				30,188
Net income (loss)				250,524	(520)	250,004
Sale of a subsidiary's shares to non-controlling shareholders		539			978	1,517
Currency translation adjustments			(31,339)		(8)	(31,347)
Balance at Jun. 30, 2020	$ 57	1,164,697	(99,898)	1,468,380	(998)	2,532,238
Balance (in shares) at Jun. 30, 2020	226,916
Balance at Dec. 31, 2019	$ 57	1,133,913	(68,559)	1,217,856	(1,448)	2,281,819
Balance (in shares) at Dec. 31, 2019	226,310
Increase (Decrease) in Shareholders' Equity
Issuance of ordinary shares pursuant to stock plan		57				57
Issuance of ordinary shares pursuant to stock plan (in shares)	1,002
Non-cash stock-based compensation		47,785				47,785
Conversion of convertible debt		8				8
Net income (loss)				284,322	(843)	283,479
Sale of a subsidiary's shares to non-controlling shareholders		539			978	1,517
Currency translation adjustments			57,637		33	57,670
Balance at Sep. 30, 2020	$ 57	1,182,302	(10,922)	1,502,178	(1,280)	2,672,335
Balance (in shares) at Sep. 30, 2020	227,312
Balance at Dec. 31, 2020	$ 57	1,201,622	79,526	1,531,220	16,191	$ 2,828,616
Balance (in shares) at Dec. 31, 2020	227,688					227,688
Increase (Decrease) in Shareholders' Equity
Issuance of ordinary shares pursuant to stock plan		226				$ 226
Issuance of ordinary shares pursuant to stock plan (in shares)	593
Non-cash stock-based compensation		37,840				37,840
Net income (loss)				130,848	(898)	129,950
Compensation cost to non-controlling interest shareholders					2,341	2,341
Disposal of a subsidiary with non-controlling interests		(227)			(520)	(747)
Acquisition of a subsidiary with non-controlling interests					10,811	10,811
Currency translation adjustments			28,926		296	29,222
Balance at Jun. 30, 2021	$ 57	1,239,461	108,452	1,662,068	28,221	$ 3,038,259
Balance (in shares) at Jun. 30, 2021	228,281					228,281
Balance at Dec. 31, 2020	$ 57	1,201,622	79,526	1,531,220	16,191	$ 2,828,616
Balance (in shares) at Dec. 31, 2020	227,688					227,688
Increase (Decrease) in Shareholders' Equity
Issuance of ordinary shares pursuant to stock plan		1,214				$ 1,214
Issuance of ordinary shares pursuant to stock plan (in shares)	1,404
Non-cash stock-based compensation		66,437				66,437
Net income (loss)				312,586	(835)	311,751
Compensation cost to non-controlling interest shareholders					2,792	2,792
Disposal of a subsidiary with non-controlling interests		(259)			(7)	(266)
Acquisition of a subsidiary with non-controlling interests					10,811	10,811
Currency translation adjustments			34,540		348	34,888
Balance at Sep. 30, 2021	$ 57	$ 1,269,014	$ 114,066	$ 1,843,806	$ 29,300	$ 3,256,243
Balance (in shares) at Sep. 30, 2021	229,092					229,092

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net income	$ 129,950	$ 250,004	$ 311,751	$ 283,479
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	26,034	13,692	40,172	21,422
Stock-based compensation	36,221	30,188	61,258	47,785
Amortization of operating lease assets	2,508	1,872	4,211	2,958
Non-cash compensation cost to non-controlling interest shareholders	13,280		18,420
Provision of allowance for credit losses	10,444	25,233	13,160	52,900
Deferred income taxes	(5,061)	12,745	(11,546)	11,682
Income from equity method investments	(13,605)	(3,388)	(17,688)	(4,422)
Dividend received from equity method investments	2,880		11,695
Gain on sale of investments	(1,106)	(844)	(1,299)	(848)
Fair value changes through earnings on investments, net	69,495	(117,517)	33,073	(127,641)
Investment related impairment	66,625	3,920	102,594	117,835
Gain on disposal of property and equipment	(65)	(27)	(63)	(27)
Amortization of convertible debt and unsecured senior notes issuance cost	3,223	2,738	4,834	4,333
Changes in assets and liabilities:
Accounts receivable due from third parties	(162,548)	(13,265)	(241,309)	(61,633)
Prepaid expenses and other current assets	1,978	(23,858)	7,849	(36,769)
Other non-current assets	(3,760)	(1,189)	(4,194)	(159)
Accounts payable	9,050	(20,321)	24,290	(14,256)
Accrued and other liabilities	164,593	(21,044)	190,348	6,081
Deferred revenues	600	51,054	(13,235)	40,956
Operating lease liabilities	(2,930)	(2,100)	(4,550)	(3,100)
Income taxes payable	(14,748)	(22,531)	11,195	8,071
Net cash provided by operating activities	338,357	185,264	564,352	420,495
Cash flows from investing activities:
Purchases of bank time deposits and wealth management products	(501,944)	(793,810)	(560,246)	(2,048,210)
Maturities of bank time deposits and wealth management products	1,253,803	891,610	1,371,867	1,241,610
Investment in and prepayment on long-term investments	(960,446)	(257,500)	(1,471,280)	(287,449)
Proceeds from disposal of/refund of prepayment on long-term investments	168,283	62,129	242,558	178,886
Proceeds from disposal of property and equipment	260	38	273	38
Purchases of property and equipment	(15,491)	(15,752)	(23,786)	(26,404)
Prepayment for purchase of SINA Plaza	(132,531)		(132,531)
Payment for acquisitions, net of cash acquired	(51,873)		(61,160)	(2,386)
Net cash used in investing activities	(162,508)	(154,782)	(567,860)	(1,240,855)
Cash flows from financing activities:
Proceeds from employee options exercised	226	108	1,214	122
Proceeds from unsecured senior notes, net of issuance costs				740,324
Proceeds from sale of a subsidiary's equity interest to a non-controlling shareholder		1,517		1,517
Net cash provided by financing activities	226	1,625	1,214	741,963
Effect of exchange rate changes on cash and cash equivalents	14,187	(12,841)	16,141	37,341
Net increase (decrease) in cash and cash equivalents	190,262	19,266	13,847	(41,056)
Cash and cash equivalents at the beginning of the period	1,814,844	1,452,985	1,814,844	1,452,985
Cash and cash equivalents at the end of the period	2,005,106	1,472,251	1,828,691	1,411,929
Supplemental disclosure of cash flow information
Cash paid for income taxes	(82,265)	(66,199)	(94,189)	(66,305)
Cash paid for interest expenses on convertible debt/unsecured senior notes	(5,625)	(33,625)	(32,281)	(33,625)
Supplemental schedule of non-cash investing and financing activities
Property and equipment in accounts payable	3,048	7,767	5,657	4,492
Unpaid consideration for acquisition			6,205
SINA (Note 10)
Changes in assets and liabilities:
Amount due from SINA	(16,739)	2,487	(23,357)	70,807
Cash flows from investing activities:
Loan to SINA	(310,923)	(188,194)	(481,215)	(443,637)
Repayment of loan by SINA	388,354	146,697	547,660	146,697
Alibaba (Note 10)
Changes in assets and liabilities:
Accounts receivable due from other related parties	13,846	(16,250)	38,743	(35,618)
Other related parties (Note 10)
Changes in assets and liabilities:
Accounts receivable due from other related parties	$ 8,192	$ 33,665	$ 8,000	$ 36,659

Operations

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Operations

Operations

1. Operations

Weibo Corporation (“Weibo” or the “Company”) is a leading social media for people to create, share and discover content. It provides an unprecedented and simple way for people and organizations to publicly express themselves in real time, interact with others on a massive global platform and stay connected with the world. As a microcosm of the Chinese society and a cultural phenomenon in China, Weibo allows people to be heard publicly and exposed to the rich ideas, cultures and experiences of the broader world. Media outlets use Weibo as a source of news and a distribution channel for their headline news. Government agencies and officials use Weibo as an official communication channel for disseminating information timely and gauging public opinion to improve public services. Weibo provides charities a platform to launch charitable projects, seek donations and volunteers, and leverage celebrities and organizations on Weibo to amplify their impact to society. Weibo generates its revenues mostly from advertising and marketing services, as well as from value-added services, including VIP membership, live streaming, and game-related services.

Incorporated in the Cayman Islands, Weibo Corporation is a controlled subsidiary of Sina Corporation (the “Parent” or “SINA”). In April 2014, the Company completed an initial public offering (the “IPO”) and received $306.5 million in net proceeds. Immediately prior to the completion of the IPO, all the ordinary shares held by SINA was converted into an equal number of the Class B ordinary shares, all the ordinary shares held by other shareholders was converted into an equal number of the Class A ordinary shares, and all of its outstanding preferred shares was automatically converted into Class A ordinary shares. The call option held by a subsidiary of Alibaba Group was exercised to purchase Class A ordinary shares from SINA and the Company. Each Class A ordinary share is entitled to one vote per share and each Class B ordinary share is entitled to three votes per share. Each Class B ordinary share can be converted into one Class A ordinary share at any time, while Class A ordinary shares cannot be converted into Class B ordinary shares.

Weibo Corporation, an exempted company with limited liability under the laws of the Cayman Islands, is the holding company for the Weibo business. WB Online and Weibo HK are wholly owned subsidiaries of Weibo, and Weibo Technology, a wholly foreign-owned enterprise, (“the WFOE”), is a subsidiary of Weibo HK. The operation of Weibo business is carried out by various subsidiaries and variable interest entities (“VIE”) of the Company. The Company’s VIEs and VIEs’ subsidiaries are controlled by the WFOE through a series of contractual agreements. Weibo Corporation, its subsidiaries, VIEs and VIEs’ subsidiaries together are referred to as “the Group”.

The following sets forth the Company’s major subsidiaries, major VIEs and major VIEs’ subsidiary:


			Percentage of
			Direct/
			Indirect
	Date of	Place of	Economic
Company	Incorporation	Incorporation	Interest
Major Subsidiaries
Weibo Hong Kong Limited (“Weibo HK”)	July 19, 2010	Hong Kong	100	%

Weibo Internet Technology (China) Co., Ltd. (“Weibo Technology” or “the WFOE”)	October 11, 2010	PRC	100	%

WB Online Investment Limited (“WB Online”)	June 5, 2014	Cayman Islands	100	%

Hangzhou Weishichangmeng Advertising Co., Ltd. (“Weishichangmeng”)	September 25, 2018	PRC	100	%

Major VIEs
Beijing Weimeng Technology Co., Ltd (“Weimeng”)	August 9, 2010	PRC	99	%

Beijing Weimeng Chuangke Investment Management Co., Ltd. (“Weimeng Chuangke”)	April 9, 2014	PRC	100	%

Major VIEs' subsidiary
Beijing Weibo Interactive Internet Technology Co., Ltd. (“Weibo Interactive”)	Acquired in May 2013	PRC	100	%

Intellectual Property License Agreement.

The intellectual property license agreement was entered into by and between SINA and the Company in April 2013. Under this agreement, SINA granted the Company and its subsidiaries a perpetual, worldwide, royalty-free, fully paid-up, non-sub licensable, non-transferable, limited, exclusive license of certain trademarks and a non-exclusive license of certain other intellectual property owned by SINA to make, sell, offer to sell and distribute products, services and applications on a microblogging and social networking platform. The Company granted SINA and its affiliates a non-exclusive, perpetual, worldwide, non-sub licensable, non-transferable limited license of certain of the Company’s intellectual property to use, reproduce, modify, prepare derivative works of, perform, display or otherwise exploit such intellectual property. This agreement commenced on April 29, 2013 and will continue to be in effect unless terminated by SINA should the Company breach the terms as provided in the agreement.

Transactions between SINA and Weibo

Accounts receivable directly related to Weibo but for which SINA will receive payments and remit payments to the Group, as well as accounts receivable directly from SINA, are included in the amount due from SINA. Liabilities directly related to Weibo but for which SINA will make payments and receive reimbursements from the Group, as well as liabilities directly to SINA, are included in the amount due to SINA. The amount due from/to SINA is presented as an offsetting balance on the Group’s consolidated balance sheets. Loans from SINA are presented under cash flow from financing activities, whereas loans to SINA are presented under investing activities in the consolidated statements of cash flows. Cash payment for billings from SINA for costs and expenses allocated to the Group is presented under operating activities in the consolidated statements of cash flows. The Group’s consolidated statements of comprehensive income contain all the related costs and expenses of the Weibo business, including allocation to the cost of revenues, sales and marketing expenses, product development expenses, and general and administrative expenses, which are incurred by SINA but related to the Weibo business. These allocations were based on proportional cost allocation by considering proportion of the revenues, infrastructure usage metrics and labor usage metrics, among other things, attributable to the Group and are made on a basis considered reasonable by mutual managements.

Total cost and expenses allocated from SINA were as follows:


	Six Months Ended June 30,
	2020		2021
	(Unaudited)
	(In thousands)
Cost of revenues	$	11,112	$	7,691
Sales and marketing		3,555		2,350
Product development		5,528		5,225
General and administrative		2,934		3,337
	$	23,129	$	18,603

While the costs and expenses allocated to the Group for these items are not necessarily indicative of the costs and expenses that would have been incurred if the Group had transactions with independent third party suppliers directly or hired more employees, the Company does not believe that there is any significant difference between the nature and amounts of these allocated costs and expenses and the ones that would have been incurred if the Group had transactions with independent third party suppliers directly or hired more employees.

Consolidation

The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, VIEs, of which the Company is the primary beneficiary, and VIEs’ subsidiaries. All significant intercompany balances and transactions have been eliminated.

To comply with PRC laws and regulations, the Group provides a substantial amount of its services in China via the VIEs, which hold critical operating licenses that enable the Group to do business in China. Most of the Group’s revenues, costs and expense, and net income in China were generated directly or indirectly through the VIEs. The Company, through the WFOE, has signed various agreements with the VIEs to allow the transfer of economic benefits from the VIEs to the Company. The Group has determined that it is the primary beneficiary of the VIEs through Weibo Technology’s contractual arrangements with the VIEs. Accordingly, the Company has consolidated the VIEs’ results of operations and assets and liabilities in the Group’s financial statements pursuant to the United States Generally Accepted Accounting Principles (“US GAAP”) for all the periods presented.

Shareholders of the VIEs are certain nominee shareholders from the Company or SINA. The capital for their investments in the VIEs is funded by the Company and recorded as interest-free loans to these individuals. These loans were eliminated with the capital of the VIEs during consolidation. Each shareholder of the VIEs has agreed to transfer their equity interest in the VIEs to Weibo Technology when permitted by PRC laws and regulations or to designees of the Company at any time for the amount of loans outstanding. All voting rights of the VIEs, including without limitation the right to appoint all directors of the VIEs, has been assigned to Weibo Technology. Weibo Technology has also entered into exclusive technical service agreements with the VIEs under which Weibo Technology provides technical and other services to the VIEs in exchange for substantially all net income of the VIEs. In addition, the shareholders of the VIEs have pledged their shares in the VIEs as collateral for the non-payment of loans or for the technical and other services fees due to Weibo Technology. As of December 31, 2020 and June 30, 2021, the total amounts of interest-free loans to the VIEs’ shareholders were $89.5 million and $90.6 million, respectively. The VIEs and VIEs’ subsidiaries had accumulated deficit of $96.1 million and $158.8 million as of December 31, 2020 and June 30, 2021, respectively, which were included in the Group’s consolidated financial statements.

The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and VIEs’ subsidiaries taken as a whole, which are included in the Group’s consolidated balance sheets and consolidated statements of comprehensive income:


	As of
	December 31, 2020		June 30, 2021

	(In thousands)
Cash, cash equivalents and short-term investments	$	445,210	$	340,157
Accounts receivable		431,022		532,243
Prepaid expenses and other current assets		55,653		178,561
Amount due from SINA		31,142		26,032
Property and equipment, net		692		1,499
Operating lease assets		1,783		5,054
Intangible assets		146,976		157,177
Goodwill		61,712		113,604
Long-term investments		394,745		369,686
Deferred tax assets		15,392		15,516
Others		223		250,268
Total assets	$	1,584,550	$	1,989,797

Accounts payable	$	83,336	$	97,710
Accrued and other liabilities		341,552		399,549
Deferred revenues		85,846		89,098
Income taxes payable		26,417		67,347
Amount due to the subsidiaries of the Group		968,138		1,285,039
Operating lease liability		1,704		5,060
Deferred tax liability		32,418		34,008
Other non-current liabilities		2,102		8,506
Total liabilities	$	1,541,513	$	1,986,317


	Six Months Ended June 30,
	2020		2021
	(Unaudited)
	(In thousands)
Net revenues	$	570,963	$	794,981
Net loss after intercompany service fee charge	$	(37,727)	$	(62,726)


	Six Months Ended June 30,
	2020		2021
	(Unaudited)
	(In thousands)
Net cash provided by (used in) operating activities	$	(55,363)	$	317,989
Net cash used in investing activities		(40,927)		(468,791)
Net cash provided by financing activities		36,837		31,406
Net decrease in cash and cash equivalents	$	(59,453)	$	(119,396)

Under the contractual arrangements with the VIEs, the Company has the power to direct activities of the VIEs through Weibo Technology and can have assets transferred freely out of the VIEs without restrictions. Therefore, the Company considers that there is no asset of the VIEs that can only be used to settle obligations of the VIEs and VIEs’ subsidiaries, except for the registered capital and non-distributable reserve funds of the VIEs and VIEs’ subsidiaries, amounting to $196.6 million and $228.5 million as of December 31, 2020 and June 30, 2021, respectively. Since the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of the Company. There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs. As the Company is conducting certain businesses mainly through the VIEs, the Company may provide such support on a discretionary basis in the future, which could expose the Company to a loss. The total amount of costs and expenses allocated from SINA to the VIEs was $7.2 million and $1.9 million for the six months ended June 30, 2020 and 2021, respectively.

Unrecognized revenue-producing assets held by the VIEs include the Internet Content Provision License, the Online Culture Operating Permit, the domain names of Weibo.com, Weibo.cn and Weibo.com.cn and so on. Recognized revenue-producing assets held by the VIEs include game technology, live streaming platform technology, supplier-relationship contracts, and trademark and domain names, which were acquired through the previous acquisitions. Unrecognized revenue-producing assets, including customer lists relating to advertising and marketing services, VIP membership, and game-related services, as well as trademarks, are also held by Weibo Technology.

The following is a summary of the VIE agreements with Weimeng. The VIE agreements with Weimeng Chuangke are substantially the same as those described below:

Loan Agreements. Weibo Technology has granted interest-free loans to the shareholders of Weimeng, who are senior officers of the Group or SINA, but not the controlling shareholders of SINA, with the sole purpose of providing funds necessary for those shareholders to make capital injections to Weimeng. The term of the loans is 10 years and Weibo Technology has the right, at its own discretion, to shorten or extend the term of the loans if necessary. In the consolidated financial statements, these loans are eliminated with the capital of Weimeng during consolidation.

Share Transfer Agreements. Each shareholder of Weimeng has granted Weibo Technology an option to purchase his shares in Weimeng at a purchase price equal to the amount of capital injection. Weibo Technology may exercise such option at any time until it has acquired all shares of Weimeng, subject to applicable PRC laws. The options will be effective until the earlier of (i) Weibo Technology and the shareholders of Weimeng have fully performed their obligations under these agreements, and (ii) Weibo Technology and the shareholders of Weimeng agree in writing to terminate these agreements.

Loan Repayment Agreements. Each shareholder of Weimeng has agreed with Weibo Technology that the interest-free loans under the loan agreements shall only be repaid through share transfers. Once the share transfers are completed, the purchase price for the share transfer will be set off against the loan repayment. These agreements will be effective until the earlier of (i) Weibo Technology and the shareholders of Weimeng have fully performed their obligations under these agreements, and (ii) Weibo Technology and the shareholders of Weimeng agree in writing to terminate these agreements.

Agreement on Authorization to Exercise Shareholder’s Voting Power. Each shareholder of Weimeng has authorized Weibo Technology to exercise all his voting power as a shareholder of the applicable VIE on all matters requiring shareholders’ approval under PRC laws and regulations and the articles of association of Weimeng, including without limitation to the appointment of directors, transfer, mortgage or dispose of Weimeng’s assets, transfer of any equity interest in Weimeng, and merger, split, dissolution and liquidation of Weimeng. The authorizations are irrevocable and will not expire until Weimeng dissolves.

Share Pledge Agreements. Each shareholder of Weimeng has pledged all of his shares in Weimeng and all other rights relevant to his rights in those shares to Weibo Technology as security for his obligations to pay off all debts to Weibo Technology under the loan agreement. In the event of default of such obligations, Weibo Technology will be entitled to certain rights, including transferring the pledged shares to itself and disposing of the pledged shares through sale or auction. During the term of the agreements, Weibo Technology is entitled to receive all dividends and distributions paid on the pledged shares. The pledges will be effective until the earlier of (i) the third anniversary of the due date of the last guaranteed debt, (ii) Weimeng and its shareholders have fully performed their obligations under these agreements, and (iii) Weibo Technology consents to terminate these agreements.

Exclusive Technical Services Agreement, Exclusive Sales Agency Agreement and Trademark License Agreement. Weimeng has entered into an exclusive technical services agreement, an exclusive sales agency agreement and a trademark license agreement with Weibo Technology. Under the exclusive technical services agreement, Weibo Technology is engaged to provide technical services for Weimeng’s online advertising and other related businesses. Under the exclusive sales agency agreement, Weimeng has granted Weibo Technology the exclusive right to distribute, sell and provide agency services for all the products and services provided by Weimeng. Due to its control over Weimeng, Weibo Technology has the right to determine the service fee to be charged to Weimeng under these agreements by considering, among other things, the technical complexity of the services, the actual cost that may be incurred for providing such services, the operations of Weimeng, applicable tax rates, planned capital expenditure and business strategies. These agreements can only be prematurely terminated by Weibo Technology, and will not expire until Weimeng dissolves. Under the trademark license agreement, Weibo Technology has granted Weimeng trademark licenses to use the trademarks held by or licensed to Weibo Technology in specific areas, and Weimeng is obligated to pay license fees to Weibo Technology. The term of this agreement is one year and is automatically renewed provided there is no objection from Weibo Technology.

These VIE agreements provide Weibo Technology with the power to direct the activities that most significantly affect the economic performance of the Group’s consolidated VIEs and enable the Group to receive substantially all of the economic benefits generated by them. For the six months ended June 30, 2020 and 2021, the total amount of service fees that Weibo Technology charge to Weimeng under these service agreements and trademark license agreement was $312.7 million and $438.5 million, respectively, which were based on the actual cost incurred from providing the services and the cash position and operations of Weimeng.

Weibo Technology, Weimeng Chuangke and Weimeng Chuangke’s shareholders have entered into contractual arrangements which contain agreements and terms substantially similar to Weibo Technology’s contractual arrangements with Weimeng and Weimeng’s shareholders described above.

Minority Investment in Weimeng

In April 2020, WangTouTongDa (Beijing) Technology Co., Ltd., an entity affiliated with ZhongWangTou (Beijing) Technology Co., Ltd., made an investment of approximately RMB10.7 million in Weimeng for 1% of Weimeng’s enlarged registered capital. Such third party minority stake holder is entitled to customary economic rights in proportion to its equity ownership, and certain minority shareholder rights such as the right to appoint a director to Weimeng’s three-member board of directors, and veto rights over certain matters related to content decision, and certain future financings of Weimeng.

The third party minority stake holder is not a party to the contractual arrangements mentioned above that are currently in effect among Weimeng, Weibo Technology and Weimeng’s other shareholders. As such, despite the fact that the Company is still able to enjoy economic benefits and exercise effective control over Weimeng and its subsidiaries, the Company is not able to purchase or have the third party minority stake holder pledge its 1% equity interests in Weimeng in the same manner as agreed under existing contractual arrangements, nor is it granted the authorization of voting rights over these 1% equity interests. The Company believes Weibo Technology, the wholly-owned PRC subsidiary, still controls and is the primary beneficiary of Weimeng as it continues to have a controlling financial interest in Weimeng pursuant to ASC 810-10-25-38A after the issuance of such 1% equity interests.

The Company believes that the contractual arrangements among the WFOE, VIEs and VIEs’ shareholders are in compliance with the current PRC laws and legally enforceable. However, uncertainties in the interpretation and enforcement of the PRC laws, regulations and policies could limit the Company’s ability to enforce these contractual arrangements. As a result, the Company may be unable to consolidate the VIEs and VIEs’ subsidiaries in the consolidated financial statements. The Company’s ability to control the VIEs also depends on the authorization by the shareholders of the VIEs to exercise voting rights on all matters requiring shareholder approval in the VIEs. The Company believes that the agreements on authorization to exercise shareholder’s voting power are legally enforceable. In addition, if the legal structure and contractual arrangements with the VIEs were found to be in violation of any future PRC laws and regulations, the Company may be subject to fines or other actions. The Company believes the possibility that it will no longer be able to control and consolidate the VIEs as a result of the aforementioned risks and uncertainties is remote.

1. Operations

The following sets forth the Company’s major subsidiaries, major VIEs and major VIEs’ subsidiary:


			Percentage of
			Direct/
			Indirect
	Date of	Place of	Economic
Company	Incorporation	Incorporation	Interest
Major Subsidiaries
Weibo Hong Kong Limited (“Weibo HK”)	July 19, 2010	Hong Kong	100	%

Weibo Internet Technology (China) Co., Ltd. (“Weibo Technology” or “the WFOE”)	October 11, 2010	PRC	100	%

WB Online Investment Limited (“WB Online”)	June 5, 2014	Cayman Islands	100	%

Hangzhou Weishichangmeng Advertising Co., Ltd. (“Weishichangmeng”)	September 25, 2018	PRC	100	%

Major VIEs
Beijing Weimeng Technology Co., Ltd (“Weimeng”)	August 9, 2010	PRC	99	%

Beijing Weimeng Chuangke Investment Management Co., Ltd. (“Weimeng Chuangke”)	April 9, 2014	PRC	100	%

Major VIEs’ subsidiary
Beijing Weibo Interactive Internet Technology Co., Ltd. (“Weibo Interactive”)	Acquired in May 2013	PRC	100	%

Intellectual Property License Agreement.

Transactions between SINA and Weibo

Accounts receivable directly related to Weibo but for which SINA will receive payments and remit payments to the Group, as well as accounts receivable directly from SINA, are included in the amount due from SINA. Liabilities directly related to Weibo but for which SINA will make payments and receive reimbursements from the Group, as well as liabilities directly to SINA, are included in the amount due to SINA. The amount due from/to SINA is presented as an offsetting balance on the Group’s unaudited interim condensed consolidated balance sheets. Loans from SINA are presented under cash flow from financing activities, whereas loans to SINA are presented under investing activities in the unaudited interim condensed consolidated statements of cash flows. Cash payment for billings from SINA for costs and expenses allocated to the Group is presented under operating activities in the unaudited interim condensed consolidated statements of cash flows. The Group’s unaudited interim condensed consolidated statements of comprehensive income contain all the related costs and expenses of the Weibo business, including allocation to the cost of revenues, sales and marketing expenses, product development expenses, and general and administrative expenses, which are incurred by SINA but related to the Weibo business. These allocations were based on proportional cost allocation by considering proportion of the revenues, infrastructure usage metrics and labor usage metrics, among other things, attributable to the Group and are made on a basis considered reasonable by mutual managements.

Total cost and expenses allocated from SINA were as follows:


	Nine Months Ended September 30,
	2020		2021

	(In thousands)
Cost of revenues	$	14,210	$	11,544
Sales and marketing		1,079		2,832
Product development		7,112		7,692
General and administrative		6,725		6,728
	$	29,126	$	28,796

Consolidation

The unaudited interim condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, VIEs, of which the Company is the primary beneficiary, and VIEs’ subsidiaries. All significant intercompany balances and transactions have been eliminated.

Shareholders of the VIEs are certain nominee shareholders from the Company or SINA. The capital for their investments in the VIEs is funded by the Company and recorded as interest-free loans to these individuals. These loans were eliminated with the capital of the VIEs during consolidation. Each shareholder of the VIEs has agreed to transfer their equity interest in the VIEs to Weibo Technology when permitted by PRC laws and regulations or to designees of the Company at any time for the amount of loans outstanding. All voting rights of the VIEs, including without limitation the right to appoint all directors of the VIEs, has been assigned to Weibo Technology. Weibo Technology has also entered into exclusive technical service agreements with the VIEs under which Weibo Technology provides technical and other services to the VIEs in exchange for substantially all net income of the VIEs. In addition, the shareholders of the VIEs have pledged their shares in the VIEs as collateral for the non-payment of loans or for the technical and other services fees due to Weibo Technology. As of December 31, 2020 and September 30, 2021, the total amounts of interest-free loans to the VIEs’ shareholders were $89.5 million and $90.7 million, respectively. The VIEs and VIEs’ subsidiaries had accumulated deficit of $96.1 million and $186.1 million as of December 31, 2020 and September 30, 2021, respectively, which were included in the Group’s unaudited interim condensed consolidated financial statements.

The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and VIEs’ subsidiaries taken as a whole, which are included in the Group’s unaudited interim condensed consolidated balance sheets and unaudited interim condensed consolidated statements of comprehensive income:


	As of
	December 31, 2020		September 30, 2021

	(In thousands)
Cash, cash equivalents and short-term investments	$	445,210	$	359,508
Accounts receivable		431,022		599,831
Prepaid expenses and other current assets		55,653		445,338
Amount due from SINA		31,142		28,175
Property and equipment, net		692		1,872
Operating lease assets		1,783		4,602
Intangible assets		146,976		170,756
Goodwill		61,712		128,576
Long-term investments		394,745		412,122
Deferred tax assets		15,392		15,542
Others		223		245,006
Total assets	$	1,584,550	$	2,411,328

Accounts payable	$	83,336	$	114,551
Accrued and other liabilities		341,552		414,080
Deferred revenues		85,846		79,001
Income taxes payable		26,417		101,337
Amount due to the subsidiaries of the Group		968,138		1,666,777
Operating lease liability		1,704		4,587
Deferred tax liability		32,418		37,520
Other non-current liabilities		2,102		11,715
Total liabilities	$	1,541,513	$	2,429,568


	Nine Months Ended September 30,
	2020		2021

	(In thousands)
Net revenues	$	925,789	$	1,286,641
Net loss after intercompany service fee charge	$	(138,779)	$	(90,069)


	Nine Months Ended September 30,
	2020		2021

	(In thousands)
Net cash provided by (used in) operating activities	$	(20,553)	$	363,351
Net cash used in investing activities		(30,331)		(816,742)
Net cash provided by financing activities		46,236		326,392
Net decrease in cash and cash equivalents	$	(4,648)	$	(126,999)

Under the contractual arrangements with the VIEs, the Company has the power to direct activities of the VIEs through Weibo Technology and can have assets transferred freely out of the VIEs without restrictions. Therefore, the Company considers that there is no asset of the VIEs that can only be used to settle obligations of the VIEs and VIEs’ subsidiaries, except for the registered capital and non-distributable reserve funds of the VIEs and VIEs’ subsidiaries, amounting to $196.6 million and $228.8 million as of December 31, 2020 and September 30, 2021, respectively. Since the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of the Company. There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs. As the Company is conducting certain businesses mainly through the VIEs, the Company may provide such support on a discretionary basis in the future, which could expose the Company to a loss. The total amount of costs and expenses allocated from SINA to the VIEs was $7.0 million and $2.6 million for the nine months ended September 30, 2020 and 2021, respectively.

The following is a summary of the VIE agreements with Weimeng. The VIE agreements with Weimeng Chuangke are substantially the same as those described below:

These VIE agreements provide Weibo Technology with the power to direct the activities that most significantly affect the economic performance of the Group’s consolidated VIEs and enable the Group to receive substantially all of the economic benefits generated by them. For the nine months ended September 30, 2020 and 2021, the total amount of service fees that Weibo Technology charged to Weimeng under these service agreements and trademark license agreement was $528.6 million and $744.1 million, respectively, which were based on the actual cost incurred from providing the services and the cash position and operations of Weimeng.

Minority Investment in Weimeng

Significant Accounting Policies

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Significant Accounting Policies

Significant Accounting Policies

2. Significant Accounting Policies

Basis of presentation

The preparation of the Group’s consolidated financial statements is in conformity with U.S. GAAP. The consolidated financial statements include the accounts of Weibo, its wholly owned subsidiaries, VIEs, and VIEs’ subsidiaries. All significant intercompany balances and transactions have been eliminated. The comparative financial statements for the six months ended June 30, 2020 are unaudited.

Use of estimates

Conformity with U.S. GAAP requires the use of estimates and judgments that affect the reported amounts in the consolidated financial statements and accompanying notes. These estimates form the basis for judgments the management makes about the carrying values of the assets and liabilities, which are not readily apparent from other sources. U.S. GAAP requires making estimates and judgments in several areas, including, but not limited to, the basis of consolidation, revenue recognition, fair value accounting, income taxes, long-term investments, goodwill and other long-lived assets, allowances for credit losses, stock-based compensation, the estimated useful lives of assets, convertible debt, business combination, and foreign currency. The management bases the estimates and judgments on historical information and on various other assumptions that management believes are reasonable under the circumstances. Actual results could differ materially from such estimates.

Revenue recognition

Under ASC 606, revenues are recognized when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. The Group identifies its contracts with customers and all performance obligations within those contracts. The Group then determines the transaction price and allocates the transaction price to the performance obligations within the Group’s contracts with customers, recognizing revenue when, or as, the Group satisfies its performance obligations.

The Group does not believe that significant management judgments are involved in revenue recognition, but the amount and timing of the Group's revenues could be different for any period if management made different judgments. Certain customers may receive sales rebates, which are accounted for as variable consideration. The Group estimates annual expected revenue volume of each individual agent with reference to their historical results. The Group recognizes revenue for the amount of fees it receives from its advertisers, after deducting estimated sales rebates and net of value-added tax (“VAT”) under ASC 606. The Group believes that there will not be significant changes to its estimates of variable consideration.

Revenue disaggregated by revenue source for the six months ended June 30, 2020 and 2021 consists of the following:


	Six Months Ended June 30,
	2020		2021
	(Unaudited)
	(In thousands)
Advertising and marketing revenues	$	616,006	$	892,349
Value-added services revenues		94,776		141,013
Total revenues	$	710,782	$	1,033,362

The Group enters into contracts with its customers, which may give rise to contract assets (unbilled revenue) or contract liabilities (deferred revenue). The payment terms and conditions within the Group’s contracts vary by the type and location of its customers and products or services purchased, the substantial majority of which are due in less than one year. Deferred revenues related to unsatisfied performance obligations at the end of the period are mainly from the customer advance of the advertising and marketing services and the sales of the fee-based services, such as VIP membership,live streaming, and virtual currency or in-game virtual items sold for game related services. The deferred revenues are recognized based on customers' consumption or amortized on a straight-line basis through the service period for different products/services. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following reporting period. The amount of revenue recognized that was included in the deferred revenue balance at the beginning of the period was $104.5 million for the six months ended June 30, 2021.

Practical Expedients and Exemptions

The Group generally expenses sales commissions when incurred because the amortization period is generally one year or less. These costs are recorded within sales and marketing expenses.

Advertising and marketing revenues

Advertising and marketing revenues are derived principally from online advertising, including social display ads and promoted marketing. Social display ad arrangements allow customers to place advertisements on particular areas of the Group’s platform or website in particular formats and over particular periods of time, which is typically no more than three months. The Group enters into cost per mille (“CPM”), or cost per thousand impressions, advertising arrangements with the customers, under which the Group recognizes revenues based on the number of times that the advertisement has been displayed. The Group also enters into cost per day (“CPD”) advertising arrangements with customers, under which the Group recognizes revenues ratably over the contract periods. Promoted marketing arrangements are primarily priced based on CPM. Under the CPM model, customers are obligated to pay when the advertisement is displayed.

The Group’s majority revenue transactions are based on standard business terms and conditions, which are recognized net of agency rebates. The agency rebates are accounted for as variable consideration and are estimated during interim periods based on estimated annual revenue volume of each individual agent with reference to their historical results, which involves accounting judgment. The Group believes its estimation approach in variable consideration results in revenue recognition in a manner consistent with the underlying economics of the transaction.

The Group’s contracts with customers may include multiple performance obligations, which primarily consist of combinations of service to allow customers to place advertisements on different areas of its platform or website. For such arrangements, advertising arrangements involving multiple deliverables are broken down into single-element arrangements based on their stand-alone selling price for revenue recognition purposes. The estimation of stand-alone selling price involves significant judgment, especially for the deliverables that have not been sold separately. For those deliverables, the Group determines best estimate of the stand-alone selling price by taking into consideration of the pricing of advertising areas of the Group’s platform or website with similar popularities and advertisements with similar formats and quoted prices from competitors and other market conditions. The Group believes the estimation approach in stand-alone selling price and allocation of the transaction price on a relative stand-alone selling price to each performance obligation results in revenue recognition in a manner consistent with the underlying economics of the transaction and the allocation principle included in ASC 606. Revenues recognized with reference to best estimation of selling price were immaterial for all periods presented. Most of such contracts have all performance obligations completed within one year. Changes in judgments on these assumptions and estimates could materially impact the timing or amount of revenue recognition. Contracts with customers of online advertising may require cooperation from third parties. The Group pays a predetermined portion of revenues earned from advertising contracts to the third parties such as key opinion leaders who participate in advertising and promotion activities by monetizing their social assets. The Group has determined that it is the principal in these transactions, as it has primary responsibility for fulfilling all the obligations related to advertising contracts. The Group has discretion in establishing pricing of the contracts and controls the advertising inventory before the delivery to customers. The Group records revenues derived from such contracts on a gross basis and the portion paid to the third parties is recognized as cost of revenues.

Revenues from barter transactions are recognized during the period in which the advertisements are displayed on the Group’s properties. Barter transactions in which physical goods or services are received in exchange for advertising services are recorded based on the fair values of the goods or services received.

Value-added services revenues

The Group generates value-added services revenues principally from fee-based services, mainly including VIP membership, live streaming, and game-related services. Other value-added services revenues mainly include the revenues from the provision of traffic acquisition services to various customers. Revenues from these services are recognized when control of the promised services is transferred to customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those services.

VIP membership. VIP membership mainly includes a service package consisting of one performance obligation of providing user certification and preferential benefits, such as daily priority listings and higher quota for following user accounts. Prepaid VIP membership fees are recorded as deferred revenue and recognized as revenue ratably over the contract period of the membership service.

Live streaming. Live streaming generates revenue from sales of virtual items on the live-streaming platform (“Yizhibo”). Users can access the platform and view the live streaming content and interact with the broadcasters for free.

The Group designs, creates and offers various virtual items for sales to users with pre-determined selling prices. Each virtual item is considered as a distinctive performance obligation. Sales proceeds are recorded as deferred revenue and recognized as revenue based on the consumption of the virtual items. Users can purchase and present virtual items to broadcasters to show support for their favorite ones. Under the arrangements with broadcasters or broadcaster agencies, the Group shares with them a portion of the revenues derived from the consumption of virtual items. Revenues derived from the sale of virtual items are recorded on a gross basis as the Group has determined that it acts as the principal to fulfill all obligations related to the live streaming services. The portion paid to broadcasters and/or broadcaster agencies is recognized as cost of revenues. The Group does not have further obligations to the user after the virtual items are consumed.

Game-related services. Game-related service revenues are mostly generated from the purchase of virtual items by game players through the Group’s platform, including items, avatars, skills, privileges or other in game consumables, features or functionality, within the games. The Group’s performance obligation is to provide on-going game services to players who purchased virtual items to gain an enhanced game-playing experience. Each virtual item is considered as a distinctive performance obligation. The Group collects payments from the game players in connection with the sale of virtual currency, which can be used to purchase virtual items in online games. For games co-operated with third party developers, revenue is recorded on a gross basis for games that the Group is acting as the principal in fulfilling all obligations related to the games and revenue is recorded net of predetermined revenue sharing with the game developers for games in which the Group is not acting as the principal in fulfilling all obligations. Sales of virtual currencies are recognized as revenues over the estimated lifespans of in-game virtual items. The estimated lifespans of different virtual items are determined by the management based on either the expected user relationship periods or the stipulated period of validity of the relevant virtual items depending on the respective term of virtual items. Virtual currency sold for game-related services in excess of recognized revenues is recorded as deferred revenues.

Cost of revenues

Cost of revenues consists mainly of costs associated with the maintenance of platform, which primarily include bandwidth and other infrastructure costs, revenue-share cost, advertisement production cost, labor cost and turnover taxes levied on the revenues, part of which were allocated from SINA. The Group is subject to 3% cultural business construction fees for its advertising and marketing revenues, which is included in cost of revenues. Starting from July 1, 2019, the 3% cultural business construction fees was reduced to 1.5%. Moreover, as part of the measures taken by the government to ease the negative impact from Covid-19 pandemic, the cultural business construction fees were exempted for the fiscal years of 2020 and 2021.An aggregate of $10.3 million and $11.5 million cultural business construction fees was exempted for the six months ended June 30, 2020 and 2021, respectively.

Sales and marketing expenses

Sales and marketing expenses consist mainly of online and offline advertising and promotional expenses, salary, benefits and commission expenses, and facility expenses. Advertising and promotional expenses generally represent the expenses of promotions of corporate image and product marketing. The Group expenses all advertising and promotional expenses as incurred and classifies these expenses under sales and marketing expenses. Pursuant to the adoption of ASC 606, the recognition of revenues and expenses at fair value for advertising barter transactions has resulted in an increase of revenue and advertising expenses. For the six months ended June 30, 2020 and 2021, the advertising and promotional expenses were $156.9 million and $219.9 million, respectively.

Product development expenses

Product development expenses consist mainly of payroll-related expenses and infrastructure costs incurred for enhancement to and maintenance of the Group’s platform, as well as costs associated with new product development and product enhancements, part of which were allocated from SINA. The Group expenses all costs incurred for the planning, post implementation phases of development and costs associated with repair or maintenance of the existing site or the development of platform content. Since inception, the amount of costs qualifying for capitalization has been immaterial and, as a result, all product development costs have been expensed as incurred.

Stock-based compensation

All stock-based awards to employees and directors, such as stock options and restricted share units (“RSUs”), are measured at the grant date based on the fair value of the awards. Stock-based compensation, net of forfeitures, is recognized as expense on a straight-line basis over the requisite service period, which is the vesting period.

The Group uses the Black-Scholes option pricing model to estimate the fair value of stock options. The determination of estimated fair value of stock-based payment awards on the grant date using an option pricing model is affected by the fair value of the Company’s ordinary shares as well as assumptions regarding a number of complex and subjective variables. These variables include the expected value volatility of the Company over the expected term of the awards, actual and projected employee stock option exercise behaviors, a risk-free interest rate and expected dividends, if any. Options granted generally vest over four years.

The Group recognizes the estimated compensation cost of restricted share units based on the fair value of its ordinary shares on the date of the grant. The Group recognizes the compensation cost, net of estimated forfeitures, over a vesting term of generally four years for service-based restricted share units. The Group also recognizes the compensation cost of performance-based restricted share units, net of estimated forfeitures, if it is probable that the performance condition will be achieved at the end of each reporting period.

Forfeitures are estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. The Group uses historical data to estimate pre-vesting option and records stock-based compensation expense only for those awards that are expected to vest. See Note 7 Stock-based Compensation for further discussion on stock-based compensation.

Taxation

Income taxes. Income taxes are accounted for using the asset and liability approach. Under this approach, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carry forwards. The Group records a valuation allowance to reduce deferred tax assets to an amount for which realization is more likely than not.

Uncertain tax positions. To assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step approach for the tax position measurement and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement.

Short-term investments

Short-term investments represent bank time deposits and wealth management products which are certain deposits with variable interest rates or principal not-guaranteed with certain financial institutions. Their original maturities are of greater than three months but less than one year. In accordance with ASC 825, Financial Instruments, for wealth management products with the interest rate indexed to performance of underlying assets, the Group elected the fair value method at the date of initial recognition and carried these investments at fair value. Changes in the fair value are reflected in the consolidated statements of comprehensive income as interest income.

Credit losses

In 2016, the FASB issued ASC Topic 326, which amends previously issued guidance regarding the impairment of financial instruments by creating an impairment model that is based on expected losses. The guidance is applicable to accounts receivable and the Group adopted ASC Topic 326 on January 1, 2020. Accounts receivable are recorded at the original amounts less an allowance for any potential uncollectible amounts. The Group makes estimates of expected credit and collectability trends for the allowance for credit losses based upon assessment of various factors, including historical experience, the age of the accounts receivable balances, credit-worthiness of the customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from the customers. The Group also provides specific provisions for allowance when facts and circumstances indicate that the receivable is unlikely to be collected. Expected credit losses for accounts receivable are recorded as general and administrative expenses on the consolidated statements of comprehensive income. The initial impact of applying ASC Topic 326 on the consolidated financial statements is immaterial to the Group's retained earnings as of January 1, 2020.

ASC Topic 326 is also applicable to the loans to and interest receivable from other related parties included in the prepaid expenses and other current assets on the consolidated balance sheets. Management estimates the allowance for credit losses on loans and interest receivable not sharing similar risk characteristic on an individual basis, based on lifetime expected credit losses of these loans and interest receivable by estimating loan collection schedule, then discounting these cash flows to their present values. The key factors considered when determining the above allowances for credit losses include estimated loan collection schedule, discount rate, financial condition and performance data of the borrowers and reasonable and supportable performance forecasts.

Fair value measurements

Financial instruments

All financial assets and liabilities are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

The Group measures the equity method investments at fair value on a non-recurring basis only if an impairment charge were to be recognized. For those investments without readily determinable fair value, the Group measures them at fair value when observable price changes are identified or impairment charge was recognized. The fair values of the Group’s privately held investments as disclosed are determined based on the discounted cash flow model using the discount curve of market interest rates or based on the similar transaction price in the market directly. The fair values of the Group’s long-term investments in the equity securities of publicly listed companies are measured using quoted market prices. The Group’s non-financial assets, such as intangible assets, goodwill, fixed assets and operating lease assets, are measured at fair value only if they are determined to be impaired.

Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value:

●

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

●

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

●

Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The carrying amount of cash and cash equivalents, short-term investments, accounts receivable due from third parties, accounts receivable due from Alibaba, accounts receivable due from other related parties, amount due from SINA, accounts payable, accrued and other liabilities approximates fair value because of their short-term nature. See Note 15 Fair Value Measurement for additional information.

Long-term investments

Long-term investments are comprised of investments in publicly traded companies, privately held companies, and limited partnerships. The Group uses the equity method to account for ordinary-share-equivalent equity investments on which it has significant influence but does not own a majority equity interest or otherwise control.

The Group measures investments in equity securities, other than equity method investments, at fair value through earnings. For those investments without readily determinable fair values, the Group elects to record these investments at cost, less impairment, plus or minus subsequent adjustments for observable price changes. Under this measurement alternative, changes in the carrying value of the investments will be recognized in consolidated statement of comprehensive income, whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer.

Pursuant to ASC 321, for equity investments measured at fair value with changes in fair value recorded in earnings, the Group does not assess whether those securities are impaired. For equity investments without readily determinable fair value for which the Group has elected to use the measurement alternative, the Group makes a qualitative assessment of whether the investment is impaired at each reporting date, applying significant judgement in considering various factors and events including a) adverse performance of investees; b) adverse industry developments affecting investees; and c) adverse regulatory, social, economic or other developments affecting investees. If a qualitative assessment indicates that the investment is impaired, the Group estimates the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss in net income equal to the difference between the carrying value and fair value. Significant judgement is applied by the Group in estimating the fair value to determine if an impairment exists, and if so, to measure the impairment losses for these equity security investments. These judgements include the selection of valuation methods in estimating fair value and the determination of key valuation assumptions used,including cash flow forecasts and critical assumptions used in cash flow forecasts, such as the investees’ revenue growth rate, terminal growth rate, discount rate, selection of comparable companies and multiples, estimated volatility rate and discount for lack of marketability.

Investments in entities which the Group can exercise significant influence and holds an investment in voting common shares or in-substance common shares (or both) of the investee but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC topic 323 (“ASC 323”), Investment - Equity Method and Joint Ventures. Under the equity method, the Group initially records its investments at cost and the difference between the cost of the equity investee and the fair value of the underlying equity in the net assets of the equity investee is recognized as equity method goodwill, which is included in the equity method investment on the consolidated balance sheets. The Group subsequently adjusts the carrying amount of the investments to recognize the Group’s proportionate share of each equity investee’s net income or loss into earnings after the date of investment. The Group evaluates the equity method investments for impairment under ASC 323. An impairment loss on the equity method investments is recognized in earnings when the decline in value is determined to be other-than-temporary.

In January 2020, the FASB issued ASU No. 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)—Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the Emerging Issues Task Force). The amendments in this update clarify the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted. The Group adopted the ASU on January 1, 2021, which did not have a material impact on the consolidated financial statements.

Business combination

Business combinations are recorded using the purchase method of accounting, and the cost of an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of the (i) the total of consideration paid, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the subsidiary acquired over (ii) the fair value of the identifiable net assets of the subsidiary acquired is recorded as goodwill. If the consideration of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive income.

Leases

In February 2016, the FASB issued a new standard on leases, ASU 2016-02, “Leases (Topic 842)”, which requires a lessee to recognize assets and liabilities arising from operating leases. A lessee should recognize a liability to make lease payments (the Lease Liability) and a right-of-use asset (the Operating Lease Assets) representing its right to use the underlying asset for the lease term. For leases with a term of twelve months or less, a lessee is permitted to make an accounting policy choice not to recognize lease assets and lease liabilities. In July 2018, the FASB issued an amendment, ASU 2018-11, which provides another transition method in addition to the existing transition methods by allowing entities to initially apply the new leases standard at the effective date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption and to not retrospectively adjust prior periods financial statements.

On January 1, 2019, the Group adopted the new lease standard using the transition method by applying the standard to all leases existing at the date of initial application. The Group chose to not recognize lease assets and lease liabilities for leases with a term of twelve months or less, to not separate non-lease components from lease components, and to not reassess lease classification, treatment of initial direct costs or whether an existing or expired contract contains a lease according to the practical expedients permitted under the transition method.

The Group did not retrospectively adjust the prior comparative periods. Under the new lease standard, the Group determines if an arrangement is or contains a lease at inception. Right-of-use assets and liabilities are recognized at lease commencement date based on the present value of remaining lease payments over the lease terms. The Group considers only payments that are fixed and determinable at the time of lease commencement.

Long-lived assets

Property and equipment

Property and equipment are stated at cost less accumulated depreciation, amortization and impairment, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally from three to four years for computers and equipment and five years for furniture and fixtures. Leasehold improvements are amortized over the shorter of the estimated useful lives of the assets or the remaining lease term. Depreciation expenses were $12.0 million and $16.1 million for the six months ended June 30, 2020 and 2021, respectively.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Group’s acquisitions of interests in its subsidiaries, consolidated VIEs and VIEs’ subsidiaries. The Group assesses goodwill for impairment in accordance with ASC Subtopic 350-20 (“ASC 350-20”), Intangibles - Goodwill and Other: Goodwill, which requires that goodwill be tested for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events, as defined by ASC 350-20. The guidance provides option that the Group may first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test, by taking into consideration of macroeconomics, overall financial performance, industry and market conditions and the share price of the Group. If determined to be necessary, the quantitative impairment test shall be used to identify goodwill impairment and measure the amount of a goodwill impairment loss to be recognized (if any). Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. Judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. For the six months ended June 30, 2020 and 2021, no impairment indicator was noted by performing qualitative analysis, therefore, no provision was recorded.

Intangible assets other than goodwill

Intangible assets arising from acquisitions are recognized at fair value upon acquisition and amortized on a straight-line basis over their estimated useful lives, generally from three to ten years. Long-lived assets and certain identifiable intangible assets other than goodwill to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of any impairment loss for long-lived assets and certain identifiable intangible assets that management expects to hold or use is based on the amount by which the carrying value exceeds the fair value of the asset. Judgment is used in estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of the asset’s fair value.

Convertible debt and unsecured senior notes

The Group determines the appropriate accounting treatment of its convertible debt in accordance with the terms in relation to the conversion feature. After considering the impact of such features, the Group may account for such instrument as a liability in its entirety, or separate the instrument into debt and equity components following the respective guidance described under ASC 815 Derivatives and Hedging and ASC 470 Debt.

The debt discount, if any, together with related issuance cost are subsequently amortized as interest expense over the contractual life. The Group presented the issuance costs of debt as a direct deduction from the related debt during the periods presented.

The unsecured senior notes are recognized initially at fair value, net of debt discounts or premiums, if any, issuance costs and other incidental fees, all of which are recorded as a direct deduction of the proceeds received from issuing the unsecured senior notes and the related accretion is recorded as interest expense in the consolidated statement of comprehensive income over the estimated term using the effective interest method.

Deferred revenues

Deferred revenues consist of contractual billings in excess of recognized revenue and payments received in advance of revenue recognition, which are mainly from the customer advance of the advertising and marketing services and the sales of the fee-based services, such as VIP membership, live streaming, and virtual currency or in-game virtual items sold for game related services.

Non-controlling interests

For the Company’s majority-owned subsidiaries and VIE, non-controlling interests are recognized to reflect the portion of their equity that is not attributable, directly or indirectly, to the Company as the controlling shareholder. To reflect the economic interest held by non-controlling shareholders, net income/loss attributable to the non-controlling ordinary shareholders is recorded as non-controlling interests in the Company’s consolidated statements of comprehensive income. Non-controlling interests are classified as a separate line item in the equity section of the Company’s consolidated balance sheets and have been separately disclosed in the Company’s consolidated financial statements to distinguish the interests from that of the Company.

Foreign currency

The Company’s reporting currency and functional currency is the U.S. dollar. The Group’s operations in China and in international regions use their respective currencies as their functional currencies. The financial statements of these subsidiaries are translated into U.S. dollars using period-end rates of exchange for assets and liabilities and average rates of exchange in the period for revenues, costs and expenses. Translation gains and losses are recorded in accumulated other comprehensive income (loss) as a component of shareholders’ equity. Translation gains or losses are not released to net income unless the associated net investment has been sold, liquidated, or substantially liquidated.

Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rate prevailing on the transactions dates. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. Net gains and losses resulting from foreign exchange transactions are included in other income, net.

Foreign currency translation adjustments included in the Group’s consolidated statements of comprehensive income for the six months ended June 30, 2020 and 2021 were a loss of $31.3 million and a gain of $29.2 million respectively. Net foreign currency transaction gains or losses arise from transacting in a currency other than the functional currency of the entity and the amounts recorded were immaterial for each of the periods presented.

Net income per share

Basic net income per share is computed using the weighted average number of ordinary shares outstanding during the period. Options and RSUs are not considered outstanding in the computation of basic earnings per share. Diluted net income per share is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period, which include options to purchase ordinary shares, restricted share units and conversion of the convertible debt. The computation of diluted net income per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect (i.e. an increase in earnings per share amounts or a decrease in loss per share amounts) on net income per share. The Group uses the two-class method to calculate net income per share though both classes share the same rights in dividends. Therefore, basic and diluted earnings per share are the same for both classes of ordinary shares.

Segment reporting

In accordance with ASC 280, Segment Reporting, the Group’s chief operating decision maker (“CODM”), the Chief Executive Officer, reviews the consolidated results when making decisions about allocating resources and assessing performance of the Group as a whole. The Group currently operates and manages its business in two principal business segments globally—advertising and marketing services and value-added services. Information regarding the business segments provided to the Group’s CODM is at the revenue level and the Group currently does not allocate operating costs or assets to its segments, as its CODM does not use such information to allocate resources or evaluate the performance of the operating segments. As the Group’s long-lived assets are substantially all located in the PRC and substantially the Group’s revenues are derived from within the PRC, no geographical information is presented.

Concentration of risks

Concentration of credit risk. Financial instruments that potentially subject the Group to a concentration of credit risk consist primarily of cash and cash equivalents, short-term investments and accounts receivable. In addition, with the majority of its operations in China, the Group is subject to RMB currency risk and offshore remittance risk, both of which have been difficult to hedge and the Group has not done so. The Group limits its exposure to credit loss by depositing its cash and cash equivalents with financial institutions in the US, PRC and Hong Kong, which are among the largest and most respected financial institution with high ratings from internationally-recognized rating agencies, that management believes are of high credit quality. The Group periodically reviews these institutions’ reputations, track records and reported reserves.

As of December 31, 2020 and June 30, 2021, the Group had $3.0 billion and $2.4 billion, respectively, in cash and bank time deposits (with terms generally up to twelve months) with large domestic banks in China. China promulgated a Bankruptcy Law that came into effect on June 1, 2007, which contains a separate article expressly stating that the State Council may promulgate implementation measures for the bankruptcy of Chinese banks based on the Bankruptcy Law. Under the Bankruptcy Law, a Chinese bank may go bankrupt. In addition, since China’s concession to WTO, foreign banks have been gradually permitted to operate in China and have become significant competitors to Chinese banks in many aspects, especially since the opening of RMB business to foreign banks in late 2006. Therefore, the risk of bankruptcy on Chinese banks in which the Group holds cash and bank deposits has increased. In the event that a Chinese bank that holds the Group’s deposits goes bankrupt, the Group is unlikely to claim its deposits back in full, since it is unlikely to be classified as a secured creditor to the bank under the PRC laws.

Alibaba, as an advertiser, accounted for 9% and 7% of the Group’s total revenues for the six months ended June 30, 2020 and 2021, respectively. No customer nor advertising agency accounted for 10% or more of the Group’s revenues. The Group’s top 10 advertising agencies contributed to 33% and 38% of the Group’s revenues for the six months ended June 30, 2020 and 2021, respectively.

As of December 31, 2020 and June 30, 2021, substantially all accounts receivable were derived from the Group’s China operations. Excluding accounts receivable due from Alibaba and other related parties, accounts receivable primarily consist of amounts due from advertising agencies and direct customers. Alibaba accounted for 28% and 19% of the Group's net accounts receivable as of December 31, 2020 and June 30, 2021, respectively.

Concentration of foreign currency risks. The majority of the Group’s operations were in RMB. As of December 31, 2020 and June 30, 2021, the Group’s cash, cash equivalents and short-term investments balance denominated in RMB was $1,651.3 million and $1,451.6 million, accounting for 47% and 49% of the Group’s total cash, cash equivalents and short-term investments balance at the respective dates. As of December 31, 2020 and June 30, 2021, the Group’s aggregate net accounts receivable balance (including accounts receivable due from third parties, Alibaba and other related parties) denominated in RMB was $492.0 million and $631.2 million, respectively, accounting for almost all of its net accounts receivable balance. As of December 31, 2020 and June 30, 2021, the Group’s current liabilities balance denominated in RMB was $947.6 million and $1,064.1 million, accounting for 99% and 97% of its total current liabilities balance. Accordingly, the Group may experience economic losses and negative impacts on earnings and equity as a result of exchange rate fluctuations of the RMB against the U.S. dollars. Moreover, the Chinese government imposes controls on the convertibility of the RMB into foreign currencies and, in certain cases, the remittance of currency out of the PRC. The Group may experience difficulties in completing the administrative procedures necessary to remit its RMB out of the PRC and convert it into foreign currency.

Recent accounting pronouncements

In May 2021, the FASB issued ASU No. 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the amendments prospectively to modifications or exchanges occurring on or after the effective date of the amendments. The ASU is currently not expected to have a material impact on the consolidated financial statements.

2. Significant Accounting Policies

Basis of presentation

The interim unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements. In the opinion of the Company, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of September 30, 2021, its results of operations and cash flows for the nine months ended September 30, 2020 and 2021. The unaudited interim condensed consolidated balance sheet as of December 31, 2020, was derived from audited annual financial statements included in the Company’s Annual Report on Form 20-F filed on April 22, 2021, but does not contain all of the footnote disclosures from the annual financial statements.

The preparation of the Group’s unaudited interim condensed consolidated financial statements is in conformity with U.S. GAAP. The unaudited interim condensed consolidated financial statements include the accounts of Weibo, its wholly owned subsidiaries, VIEs, and VIEs’ subsidiaries. All significant intercompany balances and transactions have been eliminated.

Use of estimates

Conformity with U.S. GAAP requires the use of estimates and judgments that affect the reported amounts in the unaudited interim condensed consolidated financial statements and accompanying notes. These estimates form the basis for judgments the management makes about the carrying values of the assets and liabilities, which are not readily apparent from other sources. U.S. GAAP requires making estimates and judgments in several areas, including, but not limited to, the basis of consolidation, revenue recognition, fair value accounting, income taxes, long-term investments, goodwill and other long-lived assets, allowances for credit losses, stock-based compensation, the estimated useful lives of assets, convertible debt, business combination, and foreign currency. The management bases the estimates and judgments on historical information and on various other assumptions that management believes are reasonable under the circumstances. Actual results could differ materially from such estimates.

Revenue recognition

The Group does not believe that significant management judgments are involved in revenue recognition, but the amount and timing of the Group’s revenues could be different for any period if management made different judgments. Certain customers may receive sales rebates, which are accounted for as variable consideration. The Group estimates annual expected revenue volume of each individual agent with reference to their historical results. The Group recognizes revenue for the amount of fees it receives from its advertisers, after deducting estimated sales rebates and net of value-added tax (“VAT”) under ASC 606. The Group believes that there will not be significant changes to its estimates of variable consideration.

Revenue disaggregated by revenue source for the nine months ended September 30, 2020 and 2021 consists of the following:


	Nine Months Ended September 30,
	2020		2021

	(In thousands)
Advertising and marketing revenues	$	1,032,678	$	1,429,969
Value-added services revenues		143,843		210,827
Total revenues	$	1,176,521	$	1,640,796

The Group enters into contracts with its customers, which may give rise to contract assets (unbilled revenue) or contract liabilities (deferred revenue). The payment terms and conditions within the Group’s contracts vary by the type and location of its customers and products or services purchased, the substantial majority of which are due in less than one year. Deferred revenues related to unsatisfied performance obligations at the end of the period are mainly from the customer advance of the advertising and marketing services and the sales of the fee-based services, such as VIP membership, live streaming, and virtual currency or in-game virtual items sold for game related services. The deferred revenues are recognized based on customers’ consumption or amortized on a straight-line basis through the service period for different products/services. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following reporting period. The amount of revenue recognized that was included in the deferred revenue balance at the beginning of the period was $120.1 million for the nine months ended September 30, 2021.

Practical Expedients and Exemptions

The Group generally expenses sales commissions when incurred because the amortization period is generally one year or less. These costs are recorded within sales and marketing expenses.

Advertising and marketing revenues

Value-added services revenues

Cost of revenues

Cost of revenues consists mainly of costs associated with the maintenance of platform, which primarily include bandwidth and other infrastructure costs, revenue-share cost, advertisement production cost, labor cost and turnover taxes levied on the revenues, part of which were allocated from SINA. The Group is subject to 3% cultural business construction fees for its advertising and marketing revenues, which is included in cost of revenues. Starting from July 1 2019, the 3% cultural business construction fees was reduced to 1.5%. Moreover, as part of the measures taken by the government to ease the negative impact from Covid-19 pandemic, the cultural business construction fees were exempted for the fiscal years of 2020 and 2021.An aggregate of $15.7 million and $18.8 million cultural business construction fees was exempted for the nine months ended September 30, 2020 and 2021, respectively.

Sales and marketing expenses

Sales and marketing expenses consist mainly of online and offline advertising and promotional expenses, salary, benefits and commission expenses, and facility expenses. Advertising and promotional expenses generally represent the expenses of promotions of corporate image and product marketing. The Group expenses all advertising and promotional expenses as incurred and classifies these expenses under sales and marketing expenses. Pursuant to the adoption of ASC 606, the recognition of revenues and expenses at fair value for advertising barter transactions has resulted in an increase of revenue and advertising expenses. For the nine months ended September 30, 2020 and 2021, the advertising and promotional expenses were $230.3 million and $312.9 million, respectively.

Product development expenses

Stock-based compensation

Taxation

Short-term investments

Short-term investments represent bank time deposits and wealth management products which are certain deposits with variable interest rates or principal not-guaranteed with certain financial institutions. Their original maturities are of greater than three months but less than one year. In accordance with ASC 825, Financial Instruments, for wealth management products with the interest rate indexed to performance of underlying assets, the Group elected the fair value method at the date of initial recognition and carried these investments at fair value. Changes in the fair value are reflected in the unaudited interim condensed consolidated statements of comprehensive income as interest income.

Credit losses

In 2016, the FASB issued ASC Topic 326, which amends previously issued guidance regarding the impairment of financial instruments by creating an impairment model that is based on expected losses. The guidance is applicable to accounts receivable and the Group adopted ASC Topic 326 on January 1, 2020. Accounts receivable are recorded at the original amounts less an allowance for any potential uncollectible amounts. The Group makes estimates of expected credit and collectability trends for the allowance for credit losses based upon assessment of various factors, including historical experience, the age of the accounts receivable balances, credit-worthiness of the customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from the customers. The Group also provides specific provisions for allowance when facts and circumstances indicate that the receivable is unlikely to be collected. Expected credit losses for accounts receivable are recorded as general and administrative expenses on the unaudited interim condensed consolidated statements of comprehensive income. The initial impact of applying ASC Topic 326 on the consolidated financial statements is immaterial to the Group’s retained earnings as of January 1, 2020.

ASC Topic 326 is also applicable to the loans to and interest receivable from other related parties included in the prepaid expenses and other current assets on the unaudited interim condensed consolidated balance sheets. Management estimates the allowance for credit losses on loans and interest receivable not sharing similar risk characteristic on an individual basis, based on lifetime expected credit losses of these loans and interest receivable by estimating loan collection schedule, then discounting these cash flows to their present values. The key factors considered when determining the above allowances for credit losses include estimated loan collection schedule, discount rate, financial condition and performance data of the borrowers and reasonable and supportable performance forecasts.

Fair value measurements

Financial instruments

All financial assets and liabilities are recognized or disclosed at fair value in the unaudited interim condensed consolidated financial statements on a recurring basis. Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

●

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

●

Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Long-term investments

The Group measures investments in equity securities, other than equity method investments, at fair value through earnings. For those investments without readily determinable fair values, the Group elects to record these investments at cost, less impairment, plus or minus subsequent adjustments for observable price changes. Under this measurement alternative, changes in the carrying value of the investments will be recognized in unaudited interim condensed consolidated statement of comprehensive income, whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer.

Investments in entities which the Group can exercise significant influence and holds an investment in voting common shares or in-substance common shares (or both) of the investee but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC topic 323 (“ASC 323”), Investment - Equity Method and Joint Ventures. Under the equity method, the Group initially records its investments at cost and the difference between the cost of the equity investee and the fair value of the underlying equity in the net assets of the equity investee is recognized as equity method goodwill, which is included in the equity method investment on the unaudited interim condensed consolidated balance sheets. The Group subsequently adjusts the carrying amount of the investments to recognize the Group’s proportionate share of each equity investee’s net income or loss into earnings after the date of investment. The Group evaluates the equity method investments for impairment under ASC 323. An impairment loss on the equity method investments is recognized in earnings when the decline in value is determined to be other-than-temporary.

Business combination

Leases

Long-lived assets

Property and equipment

Property and equipment are stated at cost less accumulated depreciation, amortization and impairment, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally from three to four years for computers and equipment and five years for furniture and fixtures. Leasehold improvements are amortized over the shorter of the estimated useful lives of the assets or the remaining lease term. Depreciation expenses were $18.9 million and $24.3 million for the nine months ended September 30, 2020 and 2021, respectively.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Group’s acquisitions of interests in its subsidiaries, consolidated VIEs and VIEs’ subsidiaries. The Group assesses goodwill for impairment in accordance with ASC Subtopic 350-20 (“ASC 350-20”), Intangibles - Goodwill and Other: Goodwill, which requires that goodwill be tested for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events, as defined by ASC 350-20. The guidance provides option that the Group may first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test, by taking into consideration of macroeconomics, overall financial performance, industry and market conditions and the share price of the Group. If determined to be necessary, the quantitative impairment test shall be used to identify goodwill impairment and measure the amount of a goodwill impairment loss to be recognized (if any). Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. Judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. For nine months ended September 30, 2020 and 2021, no impairment indicator was noted by performing qualitative analysis, therefore, no provision was recorded.

Intangible assets other than goodwill

Convertible debt and unsecured senior notes

The unsecured senior notes are recognized initially at fair value, net of debt discounts or premiums, if any, issuance costs and other incidental fees, all of which are recorded as a direct deduction of the proceeds received from issuing the unsecured senior notes and the related accretion is recorded as interest expense in the unaudited interim condensed consolidated statement of comprehensive income over the estimated term using the effective interest method.

Deferred revenues

Non-controlling interests

For the Company’s majority-owned subsidiaries and VIE, non-controlling interests are recognized to reflect the portion of their equity that is not attributable, directly or indirectly, to the Company as the controlling shareholder. To reflect the economic interest held by non-controlling shareholders, net income/loss attributable to the non-controlling ordinary shareholders is recorded as non-controlling interests in the Company’s unaudited interim condensed consolidated statements of comprehensive income. Non-controlling interests are classified as a separate line item in the equity section of the Company’s unaudited interim condensed consolidated balance sheets and have been separately disclosed in the Company’s unaudited interim condensed consolidated financial statements to distinguish the interests from that of the Company.

Foreign currency

Foreign currency translation adjustments included in the Group’s unaudited interim condensed consolidated statements of comprehensive income for the nine months ended September 30, 2020 and 2021 were gains of $57.7 million and $34.9 million respectively. Net foreign currency transaction gains or losses arise from transacting in a currency other than the functional currency of the entity and the amounts recorded were immaterial for each of the periods presented.

Net income per share

Segment reporting

Concentration of risks

Concentration of credit risk. Financial instruments that potentially subject the Group to a concentration of credit risk consist primarily of cash and cash equivalents, short-term investments and accounts receivable. In addition, with the majority of its operations in China, the Group is subject to RMB currency risk and offshore remittance risk, both of which have been difficult to hedge and the Group has not done so. The Group limits its exposure to credit loss by depositing its cash and cash equivalents with financial institutions in the US, PRC and Hong Kong, which are among the largest and most respected financial institutions with high ratings from internationally-recognized rating agencies, that management believes are of high credit quality. The Group periodically reviews these institutions’ reputations, track records and reported reserves.

As of December 31, 2020 and September 30, 2021, the Group had $3.0 billion and $2.2 billion, respectively, in cash and bank time deposits (with terms generally up to twelve months) with large domestic banks in China. China promulgated a Bankruptcy Law that came into effect on June 1, 2007, which contains a separate article expressly stating that the State Council may promulgate implementation measures for the bankruptcy of Chinese banks based on the Bankruptcy Law. Under the Bankruptcy Law, a Chinese bank may go bankrupt. In addition, since China’s concession to WTO, foreign banks have been gradually permitted to operate in China and have become significant competitors to Chinese banks in many aspects, especially since the opening of RMB business to foreign banks in late 2006. Therefore, the risk of bankruptcy on Chinese banks in which the Group holds cash and bank deposits has increased. In the event that a Chinese bank that holds the Group’s deposits goes bankrupt, the Group is unlikely to claim its deposits back in full, since it is unlikely to be classified as a secured creditor to the bank under the PRC laws.

Alibaba, as an advertiser, accounted for 8% and 6% of the Group’s total revenues for the nine months ended September 30, 2020 and 2021, respectively. No customer nor advertising agency accounted for 10% or more of the Group’s revenues. The Group’s top 10 advertising agencies contributed to 32% and 40% of the Group’s revenues for the nine months ended September 30, 2020 and 2021, respectively.

As of December 31, 2020 and September 30, 2021, substantially all accounts receivable were derived from the Group’s China operations. Excluding accounts receivable due from Alibaba and other related parties, accounts receivable primarily consist of amounts due from advertising agencies and direct customers. Alibaba accounted for 28% and 14% of the Group’s net accounts receivable as of December 31, 2020 and September 30, 2021, respectively.

Concentration of foreign currency risks. The majority of the Group’s operations were in RMB. As of December 31, 2020 and September 30, 2021, the Group’s cash, cash equivalents and short-term investments balance denominated in RMB was $1,651.3 million and $1,228.0 million, accounting for 47% and 45% of the Group’s total cash, cash equivalents and short-term investments balance at the respective dates. As of December 31, 2020 and September 30, 2021, the Group’s aggregate net accounts receivable balance (including accounts receivable due from third parties, Alibaba and other related parties) denominated in RMB was $492.0 million and $683.7 million, respectively, accounting for almost all of its net accounts receivable balance. As of December 31, 2020 and September 30, 2021, the Group’s current liabilities balance denominated in RMB was $947.6 million and $1,139.0 million, accounting for 99% and 98% of its total current liabilities balance. Accordingly, the Group may experience economic losses and negative impacts on earnings and equity as a result of exchange rate fluctuations of the RMB against the U.S. dollars. Moreover, the Chinese government imposes controls on the convertibility of the RMB into foreign currencies and, in certain cases, the remittance of currency out of the PRC. The Group may experience difficulties in completing the administrative procedures necessary to remit its RMB out of the PRC and convert it into foreign currency.

Recent accounting pronouncements

Cash, Cash Equivalents and Short-term Investments

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Cash, Cash Equivalents and Short-term Investments

Cash, Cash Equivalents and Short-term Investments

3. Cash, Cash Equivalents and Short-term Investments

Cash, cash equivalents and short-term investments consist of the following:


	As of
	December 31,		June 30,
	2020		2021

	(In thousands)
Cash and cash equivalents:
Cash	$	1,814,844	$	2,005,106

Short-term investments:
Bank time deposits		1,515,880		750,467
Wealth management products		166,168		180,355
Subtotal		1,682,048		930,822

Total cash, cash equivalents and short-term investments	$	3,496,892	$	2,935,928

The carrying amounts of cash, cash equivalents and short-term investments approximate fair value. Interest income was $45.6 million and $40.1 million for the six months ended June 30, 2020 and 2021, respectively. The maturity dates for the time deposits and wealth management products were within one year.

3. Cash, Cash Equivalents and Short-term Investments

Cash, cash equivalents and short-term investments consist of the following:


	As of
	December 31,		September 30,
	2020		2021

	(In thousands)
Cash and cash equivalents:
Cash	$	1,814,844	$	1,828,691

Short-term investments:
Bank time deposits		1,515,880		665,983
Wealth management products		166,168		212,504
Subtotal		1,682,048		878,487

Total cash, cash equivalents and short-term investments	$	3,496,892	$	2,707,178

The carrying amounts of cash, cash equivalents and short-term investments approximate fair value. Interest income was $65.7 million and $56.9 million for the nine months ended September 30, 2020 and 2021, respectively. The maturity dates for the time deposits and wealth management products were within one year.

Long-term Investments

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Long-term Investments

Long-term Investments

4. Long-term Investments

Long-term investments comprised of investments in publicly traded companies, privately held companies, and limited partnerships. The following sets forth the changes in the Group’s long-term investments:


	Equity Securities				Equity Securities With
	Without Readily				Readily Determinable Fair
	Determinable Fair Values		Equity Method		Values		Total

	(In thousands)
Balance at December 31, 2020	$	579,084	$	311,161	$	289,221	$	1,179,466
Investments made/transfers from prepayments		47,957		103,932		—		151,889
Income from equity method investment, net		—		13,605		—		13,605
Dividend received from equity method investments		—		(2,880)		—		(2,880)
Disposal of investments		(16,883)		—		(4,946)		(21,829)
Changes from measurement alternative to consolidation (Note 6)		(66,415)		—		—		(66,415)
Impairment of investments		(66,625)		—		—		(66,625)
Fair value change through earnings		(26,810)		—		(42,685)		(69,495)
Currency translation adjustment		3,150		2,392		—		5,542
Balance at June 30, 2021	$	453,458	$	428,210	$	241,590	$	1,123,258

In the second quarter of 2021, the Group obtained control of its investment in an investee operating a leading mobile photo and video application in China, Wuta Application, through a step acquisition of consideration of $39.5 million. The Group recorded $27.6 million fair value change loss for the equity interest previously held by the Group immediately prior to the step acquisition. The impact of the transaction was reflected in the changes from measurement alternative to consolidation.

For the six months ended June 30, 2021, the Group invested in private high-tech companies totaling $48.0 million, which were accounted for under investments without readily determinable fair values. These investments were to further expand and strengthen the Group’s ecosystem and mainly included a further investment of $39.5 million in a leading mobile photo and video application in China during the six months ended June 30, 2021. The Group also invested $103.9 million in companies, which were accounted for under equity method for the six months ended June 30, 2021. These investments mainly included several investment funds for the six months ended June 30, 2021.

The Group used measurement alternative for recording equity investments without readily determinable fair values at cost, less impairment, adjusted for subsequent observable price changes. Based on ASU 2016-01, entities that elect the measurement alternative will report changes in the carrying value of the equity investments in current earnings. If measurement alternative is used, changes in the carrying value of the equity investment will be recognized whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer, and impairment charges will be recorded when any impairment indicators are noted and the fair value is lower than the carrying value. The Group classifies the valuation techniques on investments that use similar identifiable transaction prices as Level 2 of fair value measurements.

The following table summarizes the total carrying value of the equity investments accounted for under the measurement alternative as of June 30, 2021, including cumulative upward and downward adjustments made to the initial cost basis of the securities. The Group recorded $94.2 million downward adjustment for the six months ended June 30, 2021, which included $66.6 million impairment for equity investments accounted for under the measurement alternative in the period. The Group recorded a $59.4 million partial impairment for investment in Yixia Tech Co., Ltd. for the six months ended June 30, 2021 due to its unsatisfied financial performance with no obvious upturn or potential financing solutions in the foreseeable future.


	Cumulative Results
		(In thousands)
Initial cost basis	$	835,552
Upward adjustments		82,217
Downward adjustments		(477,891)
Foreign currency translation		13,580
Total carrying value at June 30, 2021	$	453,458

As of June 30, 2021, investment in Didi Global Inc. (“Didi”) amounting to $142.0 million was accounted for under measurement alternative. Didi completed its initial public offering and its shares started trading on July 1, 2021, China time. Therefore, investment in Didi was transferred from measurement alternative to equity securities with readily determinable fair value from July 1, 2021, with the fair value determined based on the quoted prices in active market.

Investments in marketable equity securities are valued using the market approach based on the quoted prices in active markets at the reporting dates. The Group classified the valuation techniques that use these inputs as Level 1 of fair value measurements. The Group recorded $42.7 million fair value loss, which was unrealized in the first half year of 2021, and the fair value of the marketable securities was $241.6 million as of June 30, 2021.

The following table shows the carrying amount and fair value of the marketable securities:


			Gross		Gross
	Cost		Unrealized		Unrealized		Fair
	Basis		Gains		Losses		Value

	(In thousands)
Showworld	$	81,385	$	204,675	$	—	$	286,060
Other marketable securities		15,274		—		(12,113)		3,161
December 31, 2020	$	96,659	$	204,675	$	(12,113)	$	289,221

Showworld	$	81,385	$	160,205	$	—	$	241,590
June 30, 2021	$	81,385	$	160,205	$	—	$	241,590

4. Long-term Investments


	Equity Securities				Equity Securities With
	Without Readily				Readily Determinable Fair
	Determinable Fair Values		Equity Method		Values		Total

	(In thousands)
Balance at December 31, 2020	$	579,084	$	311,161	$	289,221	$	1,179,466
Investments made/transfers from prepayments		67,957		159,584		—		227,541
Income from equity method investment, net		—		17,688		—		17,688
Dividend received from equity method investments		—		(11,695)		—		(11,695)
Disposal of investments		(16,883)		—		(4,946)		(21,829)
Changes from measurement alternative to consolidation (Note 6)		(66,415)		—		—		(66,415)
Reclassification of equity investment without readily determinable fair values to those with readily determinable fair values		(142,000)		—		142,000		—
Impairment on investments		(102,594)		—		—		(102,594)
Fair value change through earnings		(26,810)		—		(6,263)		(33,073)
Currency translation adjustment		3,565		2,895		—		6,460
Balance at September 30, 2021	$	295,904	$	479,633	$	420,012	$	1,195,549

For the nine months ended September 30, 2021, the Group invested in private high-tech companies totaling $68.0 million, which were accounted for under investments without readily determinable fair values. These investments were to further expand and strengthen the Group’s ecosystem and mainly included a further investment of $39.5 million in a leading mobile photo and video application in China during the nine months ended September 30, 2021. The Group obtained control of the company operating the mobile photo and video application through the step acquisition and recorded $27.6 million fair value change loss for the equity interest previously held by the Group immediately prior to the step acquisition. The impact of the transaction was reflected in the changes from measurement alternative to consolidation. The Group also invested $159.6 million in companies, which mainly included several investment funds and were accounted for under equity method, for the nine months ended September 30, 2021.

The following table summarizes the total carrying value of the equity investments accounted for under the measurement alternative as of September 30, 2021, including cumulative upward and downward adjustments made to the initial cost basis of the securities. The Group recorded $130.2 million downward adjustment for the nine months ended September 30, 2021, which included $102.6 million impairment for equity investments accounted for under the measurement alternative in the period. The Group recorded a $75.3 million full impairment for investment in Yixia Tech Co., Ltd. for the nine months ended September 30, 2021 due to its unsatisfied financial performance with no obvious upturn or potential financing solutions in the foreseeable future.


	Cumulative Results
		(In thousands)
Initial cost basis	$	713,552
Upward adjustments		82,217
Downward adjustments		(513,861)
Foreign currency translation		13,996
Total carrying value at September 30, 2021	$	295,904

Investments in marketable equity securities are valued using the market approach based on the quoted prices in active markets at the reporting dates. The Group classified the valuation techniques that use these inputs as Level 1 of fair value measurements. The Group recorded $6.3 million fair value loss, which was unrealized in the nine months ended September 30, 2021, and the fair value of the marketable securities was $420.0 million as of September 30, 2021.

The following table shows the carrying amount and fair value of the marketable securities:


			Gross		Gross
	Cost		Unrealized		Unrealized		Fair
	Basis		Gains		Losses		Value

	(In thousands)
Showworld	$	81,385	$	204,675	$	—	$	286,060
Other marketable securities		15,274		—		(12,113)		3,161
December 31, 2020	$	96,659	$	204,675	$	(12,113)	$	289,221

Showworld	$	81,385	$	105,384	$	—	$	186,769
Didi	$	142,000	$	91,243	$	—	$	233,243
September 30, 2021	$	223,385	$	196,627	$	—	$	420,012

One of the Group’s investees, Didi Global Inc. (“Didi”), a company operating a mobility technology platform, completed its initial public offering and started trading on July 1, 2021, China time. Therefore, investment in Didi amounting to $142.0 million was transferred from measurement alternative to equity securities with readily determinable fair value, and a fair value change gain of $91.2 million was recorded for the nine months ended September 30, 2021. The Group recorded a fair value change loss of $99.3 million in Showworld for the nine months ended September 30, 2021.

Leases

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Leases

Leases

5. Leases

The Group has operating leases primarily for office spaces in China. The determination of whether an arrangement is or contains a lease is made at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether the Group obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. Operating lease assets and liabilities are included in operating lease right-of-use assets, operating lease liabilities, short-term, and operating lease liabilities, long-term on the Group’s consolidated balance sheets. The Group has chosen to not recognize lease assets and lease liabilities for leases with a term of twelve months or less on the consolidated balance sheets.

Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of lease payments over the lease terms at the lease commencement dates. The Group uses its incremental borrowing rate in determining the present value of lease payments. The incremental borrowing rate is a hypothetical rate based on the Group’s understanding of what interest the Group would pay in order to obtain a borrowing with an amount equivalent to the lease payments in a similar economic environment over the lease term on a collateralized basis from banks in China.

Certain lease agreements contain an option for the Group to renew a lease for a term agreed by the Group and the lessor or an option to terminate a lease earlier than the maturity dates. The Group considers these options, which may be elected at the Group’s sole discretion, in determining the lease term on a lease-by-lease basis. The Group’s lease agreements generally do not contain any residual value guarantees or material restrictive covenants. Certain of the Group’s leases contain free or escalating rent payment terms. The Group’s lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. The Group has chosen to combine payments for non-lease components with lease payments and accounted them together as a single lease component. Payments under the lease arrangements are primarily fixed. However, for arrangements accounted for as a single lease component, there may be variability in future lease payments as the amount of the non-lease components is typically revised from one period to the next. Additionally, certain lease agreements with SINA contain variable payments, which are determined based on actual SINA headquarters spaces occupied by the Group and are expensed as incurred and not included in the operating lease assets and liabilities.

The components of lease cost for the six months ended June 30, 2020 and 2021 were as follows:


	Six Months Ended June 30,
	2020		2021
	(Unaudited)
	(In thousands)
Operating lease cost	$	2,246	$	3,339
Short-term lease cost		1,611		1,921
Variable lease cost		2,131		2,598
Total lease cost	$	5,988	$	7,858

Other information related to leases was as follows:


	Six Months Ended June 30,
	2020		2021
	(Unaudited)
		(In thousands)
Supplemental Cash Flows Information:
Cash paid for amounts included in the measurement of lease liabilities:
Cash paid for operating leases	$	(2,589)	$	(3,938)
Operating lease assets obtained in exchange for operating lease liabilities	$	—	$	8,287

Maturities of lease liabilities under operating leases as of June 30, 2021 were as follows:


Twelve Months Ended June 30,	(In thousands)
2022	$	6,020
2023		2,020
2024		1,612
2025		1,434
2026 and thereafter		1,714
Total future payments for recognized leasing assets	$	12,800
Less: imputed interest		1,052
Total lease liabilities	$	11,748

As of June 30, 2021, operating leases recognized in lease liabilities have average remaining lease terms of 3.6 years and weighted-average discount rate of 5%. As of June 30, 2021, the Group had no lease contract that has been entered into but not yet commenced.

5. Leases

The Group has operating leases primarily for office spaces in China. The determination of whether an arrangement is or contains a lease is made at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether the Group obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. Operating lease assets and liabilities are included in operating lease right-of-use assets, operating lease liabilities, short-term, and operating lease liabilities, long-term on the Group’s unaudited interim condensed consolidated balance sheets. The Group has chosen to not recognize lease assets and lease liabilities for leases with a term of twelve months or less on the unaudited interim condensed consolidated balance sheets.

The components of lease cost for the nine months ended September 30, 2020 and 2021 were as follows:


	Nine Months Ended September 30,
	2020		2021

	(In thousands)
Operating lease cost	$	3,515	$	5,206
Short-term lease cost		2,336		2,940
Variable lease cost		3,349		4,041
Total lease cost	$	9,200	$	12,187

Other information related to leases was as follows:


	Nine Months Ended September 30,
	2020		2021

		(In thousands)
Supplemental Cash Flows Information:
Cash paid for amounts included in the measurement of lease liabilities:
Cash paid for operating leases	$	(3,922)	$	(5,824)
Operating lease assets obtained in exchange for operating lease liabilities	$	1,183	$	8,301

Maturities of lease liabilities under operating leases as of September 30, 2021 were as follows:


Twelve Months Ended September 30,	(In thousands)
2022	$	5,001
2023		1,979
2024		1,617
2025		1,436
2026 and thereafter		1,358
Total future payments for recognized leasing assets	$	11,391
Less: imputed interest		1,155
Total lease liabilities	$	10,236

As of September 30, 2021, operating leases recognized in lease liabilities have average remaining lease terms of 3.6 years and weighted-average discount rate of 5%. As of September 30, 2021, the Group had no lease contract that has been entered into but not yet commenced.

Goodwill, Intangible Assets and Acquisitions

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Goodwill, Intangible Assets and Acquisitions

Goodwill, Intangible Assets and Acquisitions

6. Goodwill, Intangible Assets and Acquisitions

In the second quarter of 2021, the Group acquired another 51.2% equity interest of an investee operating a leading mobile photo and video application in China, Wuta application, in which the Group previously held 34.8% equity interest, with a cash consideration of $39.5 million. The Group obtained the control and held 86% equity interest in the investee upon completion of the transaction on May 1, 2021. An independent valuation firm was engaged by the Group to help the management determine the fair value of assets and liabilities obtained from the transaction. The identifiable intangible assets acquired on the acquisition date included user base, domain names and operating system of $16.5 million with estimated lives ranging from three to ten years. The intangible assets were measured at fair value upon acquisition primarily using royalty savings method, multi-periods excess earning model and cost approach. Key assumptions used in determining the fair value of these intangible assets include cash flow forecasts, the revenue growth rates, the discount rate, the customer attrition rate and replacements costs.

The consideration of acquisition of the mobile app company was allocated based on the fair value of the assets acquired and the liabilities assumed as follows:


	As of May 1, 2021
	(In thousands)
Consideration	$	39,540
Fair value of previously held equity interest		26,875
Non-controlling interest		10,811
Total		77,226

Cash and short-term investments acquired		5,786
Other assets acquired		6,801
Identifiable intangible assets acquired		16,495
Goodwill		51,034
Liabilities assumed		(2,890)
Total	$	77,226

The acquisition mentioned above resulted an immaterial impact to revenues and net income for the six months end 2021. Since it did not have a material impact on the Group’s consolidated financial statements, pro forma disclosures have not been presented. Apart from what have been mentioned above, there was no acquisition during the six months ended June 30, 2021.

The following sets forth the changes in the Group’s goodwill by segment:


	Advertising &		Value-added
	Marketing		services		Total

	(In thousands)
Balance as of December 31, 2020	$	30,899	$	30,813	$	61,712
Acquisition of the company operating Wuta application		51,034		—		51,034
Currency translation adjustment		499		359		858
Balance as of June 30, 2021	$	82,432	$	31,172	$	113,604

The increase of the balance in the six months ended June 30, 2021 was mainly due to the goodwill arising from the acquisition of the company operating Wuta application completed in the second quarter of 2021.

The following table summarizes the Group’s intangible assets arising from acquisitions:


	As of December 31, 2020						As of June 30, 2021
			Accumulated						Accumulated
	Cost		Amortization		Net		Cost		Amortization		Net

	(In thousands)						(In thousands)
Game related	$	127,238	$	(2,199)	$	125,039	$	128,725	$	(8,905)	$	119,820
Technology		9,544		(4,417)		5,127		10,012		(4,918)		5,094
Trademark and Domain name		12,788		(1,542)		11,246		19,763		(2,792)		16,971
Supplier-relationship		10,253		(4,689)		5,564		10,373		(5,798)		4,575
Others		2,449		(2,449)		—		13,706		(2,989)		10,717
Total	$	162,272	$	(15,296)	$	146,976	$	182,579	$	(25,402)	$	157,177

The amortization expense for the six months ended June 30, 2020 and 2021 was $1.6 million and $9.9 million, respectively. As of June 30, 2021, estimated amortization expenses for future periods are expected as follows:


Year Ended December 31,	(In thousands)
The remainder of 2021	$	11,348
2022		22,347
2023		20,858
2024		19,191
2025 and thereafter		83,433
Total expected amortization expense	$	157,177

6. Goodwill, Intangible Assets and Acquisitions

The consideration of acquisition of the mobile app company was allocated based on the fair value of the assets acquired and the liabilities assumed as follows:


	As of May 1, 2021
	(In thousands)
Consideration	$	39,540
Fair value of previously held equity interest		26,875
Non-controlling interest		10,811
Total		77,226

Cash and short-term investments acquired		5,786
Other assets acquired		6,801
Identifiable intangible assets acquired		16,495
Goodwill		51,034
Liabilities assumed		(2,890)
Total	$	77,226

In August, 2021, the Group acquired an E-sports team and related assets. An independent valuation firm was engaged by the Group to help the management determine the fair value of assets and liabilities obtained from the transaction. The identifiable intangible assets acquired on acquisition date included game related assets of $19.3 million with estimated lives of ten years. The intangible assets were measured at fair value upon acquisition primarily using royalty savings method and multi-periods excess earning method. Key assumptions used in determining the fair value of these intangible assets include discount rate, terminal growth rate and royalty rate.

The consideration of acquisition of the E-sports team and related assets was allocated based on the fair value of the assets acquired and the liabilities assumed as follows:


	As of August 1, 2021
	(In thousands)
Consideration	$	30,953

Identifiable intangible assets acquired		19,274
Goodwill		14,745
Liabilities assumed		(3,066)
Total	$	30,953

The acquisition mentioned above resulted an immaterial impact to revenues and net income for the nine months ended September 30, 2021. Since it did not have a material impact on the Group’s unaudited interim condensed consolidated financial statements, pro forma disclosures have not been presented. Apart from what have been mentioned above, there was no acquisition during the nine months ended September 30, 2021.

The following sets forth the changes in the Group’s goodwill by segment:


	Advertising &		Value-added
	Marketing		services		Total

	(In thousands)
Balance as of December 31, 2020	$	30,899	$	30,813	$	61,712
Acquisition of the company operating Wuta application		51,034		—		51,034
Acquisition of an E-sports team		—		14,745		14,745
Currency translation adjustment		638		447		1,085
Balance as of September 30, 2021	$	82,571	$	46,005	$	128,576

The increase of the balance in the nine months ended September 30, 2021 was mainly due to the goodwill arising from the acquisition of the company operating Wuta application and the acquisition of the E-sports team and related assets.

The following table summarizes the Group’s intangible assets arising from acquisitions:


	As of December 31, 2020						As of September 30, 2021
			Accumulated						Accumulated
	Cost		Amortization		Net		Cost		Amortization		Net

	(In thousands)						(In thousands)
Game related	$	127,238	$	(2,199)	$	125,039	$	148,262	$	(12,588)	$	135,674
Technology		9,544		(4,417)		5,127		10,029		(5,172)		4,857
Trademark and Domain name		12,788		(1,542)		11,246		19,796		(3,595)		16,201
Supplier-relationship		10,253		(4,689)		5,564		10,391		(6,336)		4,055
Others		2,449		(2,449)		—		13,729		(3,760)		9,969
Total	$	162,272	$	(15,296)	$	146,976	$	202,207	$	(31,451)	$	170,756

The amortization expense for the nine months ended September 30, 2020 and 2021 was $2.5 million and $15.9 million, respectively. As of September 30, 2021, estimated amortization expenses for future periods are expected as follows:


Year Ended December 31,	(In thousands)
The remainder of 2021	$	6,166
2022		24,317
2023		22,825
2024		21,156
2025 and thereafter		96,292
Total expected amortization expense	$	170,756

Stock-Based Compensation

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Stock-Based Compensation

Stock-Based Compensation

7. Stock-Based Compensation

In March 2014, the Company adopted the 2014 Share Incentive Plan (the “2014 Plan”), which included the remaining 4.6 million shares from the terminated 2010 Share Incentive Plan, plus an additional 1.0 million shares. On January 1, 2015, shares in the 2014 Plan, which has a term life of ten years, were allowed a one-time increase in the amount equal to 10% of the total number of Weibo shares issued and outstanding on a fully-diluted basis as of December 31, 2014. Each share in the 2014 Plan pool allows for a grant of a restricted share unit or option share. The Company intends to use such share incentive plan to attract and retain employee talents. Stock-based compensation related to the grants is amortized generally over four years on a straight-line basis (generally one year for performance-based restricted shares).

The following table sets forth the stock-based compensation included in each of the relevant accounts:


	Six Months Ended June 30,
	2020		2021*
	(Unaudited)
	(In thousands)
Cost of revenues	$	2,502	$	3,240
Sales and marketing		4,263		5,549
Product development		14,452		18,213
General and administrative		8,971		9,219
	$	30,188	$	36,221

*	Excluded non-cash stock-based compensation of $1.6 million to SINA employees charged through Amount due from SINA for the six months end June 30, 2021.

The following table sets forth a summary of the number of shares available for issuance:


		Shares Available
		(In thousands)
December 31, 2020		12,495
Addition		—
Granted*		(1,098)
Cancelled/expired/forfeited		277
June 30, 2021		11,674

*	During the six months ended June 30, 2021, 1.1 million restricted share units were granted under the 2014 Plan. No options were granted for the six months ended June 30, 2021.

Stock Options

The following table sets forth a summary of option activities under the Company’s stock option program:


				Weighted Average
	Options	Weighted Average		Remaining	Aggregate
	Outstanding	Exercise Price		Contractual Life	Intrinsic Value
	(In thousands)			(In years)	(In thousands)
December 31, 2020	551	$	28.85	5.8	$	6,683
Granted	—		—
Exercised	(72)	$	3.50
Cancelled/expired/forfeited	(10)		32.68
June 30, 2021	469	$	32.68	6.1	$	9,342

Vested and expected to vest as of June 30, 2021	423	$	32.68	6.1	$	8,428
Exercisable as of June 30, 2021	—	$	—	—	$	—

The total intrinsic value of options exercised for the six months ended June 30, 2021 was $3.4 million. The intrinsic value is calculated as the difference between the market value on the date of exercise and the exercise price of the shares. As reported by the NASDAQ Global Selected Market, the Company’s ending stock price as of December 31, 2020 and June 30, 2021 was $40.99 and $52.62, respectively. Cash received from the exercise of stock options during the six months ended June 30, 2020 and 2021 was $0.1 million and $0.2 million, respectively. As of June 30, 2021, unrecognized compensation cost (adjusted for estimated forfeitures) was $4.5 million, which was related to non-vested stock options granted to the Company’s employees and directors. This cost is expected to be recognized over a weighted-average period of 3.1 years.

Information regarding stock options outstanding at June 30, 2021 is summarized below:

Weighted

Weighted Average

Options

Average

Options

Average

Remaining

Range of Exercise Prices

Outstanding

Exercise Price

Exercisable

Exercise Price

Contractual Life

(In thousands)

(In years)

$32.68

469

32.68

—

Restricted Share Units

Summary of Performance-Based Restricted Share Units

The following table sets forth a summary of performance-based restricted share unit activities:


		Weighted-Average
		Grant Date
	Shares Granted	Fair Value
	(In thousands)
December 31, 2020	17	$	36.49
Awarded	1	$	47.09
Vested	(2)	$	36.49
Cancelled	(15)	$	36.49
June 30, 2021	1	$	47.09

As of June 30, 2021, there was no material unrecognized compensation cost (adjusted for estimated forfeitures), which was related to performance-based restricted share units granted to the Company’s employees.

Summary of Service-Based Restricted Share Units

The following table sets forth a summary of service-based restricted share unit activities:


		Weighted-
		Average
	Shares	Grant Date
	Granted	Fair Value
	(In thousands)
December 31, 2020	4,324	$	41.86
Awarded	1,097	$	46.06
Vested	(520)	$	52.65
Cancelled	(252)	$	38.98

June 30, 2021	4,649	$	41.81

As of June 30, 2021, unrecognized compensation cost (adjusted for estimated forfeitures) was $134.4 million,which was related to non-vested service-based restricted share units granted to the Company’s employees and directors. This cost is expected to be recognized over a weighted-average period of 2.7 years. The total fair value based on the vesting date of the restricted share units vested was $27.4 million for the six months ended June 30, 2021.

7. Stock-Based Compensation

The following table sets forth the stock-based compensation included in each of the relevant accounts:


	Nine Months Ended September 30,
	2020		2021*

	(In thousands)
Cost of revenues	$	3,909	$	5,690
Sales and marketing		6,886		10,249
Product development		22,890		29,260
General and administrative		14,100		16,059
	$	47,785	$	61,258

*	Excluded non-cash stock-based compensation of $5.2 million to SINA employees charged through Amount due from SINA for the nine months end September 30, 2021.

The following table sets forth a summary of the number of shares available for issuance:


		Shares Available
		(In thousands)
December 31, 2020		12,495
Addition		—
Granted*		(4,407)
Cancelled/expired/forfeited		613
September 30, 2021		8,701

*	During the nine months ended September 30, 2021, 4.4 million restricted share units were granted under the 2014 Plan. No options were granted for the nine months ended September 30, 2021.

Stock Options

The following table sets forth a summary of option activities under the Company’s stock option program:


				Weighted Average
	Options	Weighted Average		Remaining	Aggregate
	Outstanding	Exercise Price		Contractual Life	Intrinsic Value
	(In thousands)			(In years)	(In thousands)
December 31, 2020	551	$	28.85	5.8	$	6,683
Granted	—		—
Exercised	(102)	$	12.11
Cancelled/expired/forfeited	(54)	$	32.68
September 30, 2021	395	$	32.68	5.9	$	5,847

Vested and expected to vest as of September 30, 2021	359	$	32.68	5.9	$	5,316
Exercisable as of September 30,2021	85	$	32.68	5.9	$	1,263

The total intrinsic value of options exercised for the nine months ended September 30, 2021 was $4.0 million. The intrinsic value is calculated as the difference between the market value on the date of exercise and the exercise price of the shares. As reported by the NASDAQ Global Selected Market, the Company’s ending stock price as of December 31, 2020 and September 30, 2021 was $40.99 and $47.49, respectively. Cash received from the exercise of stock options during the nine months ended September 30, 2020 and 2021 was $0.1 million and $1.2 million, respectively. As of September 30, 2021, unrecognized compensation cost (adjusted for estimated forfeitures) was $3.6 million, which was related to non-vested stock options granted to the Company’s employees and directors. This cost is expected to be recognized over a weighted-average period of 2.9 years.

Information regarding stock options outstanding at September 30, 2021 is summarized below:

Weighted

Weighted Average

Options

Average

Options

Average

Remaining

Range of Exercise Prices

Outstanding

Exercise Price

Exercisable

Exercise Price

Contractual Life

(In thousands)

(In years)

$32.68

395

32.68

5.9

Restricted Share Units

Summary of Performance-Based Restricted Share Units

The following table sets forth a summary of performance-based restricted share unit activities:


		Weighted-Average
		Grant Date
	Shares Granted	Fair Value
	(In thousands)
December 31, 2020	17	$	36.49
Awarded	15	$	54.08
Vested	(2)	$	38.78
Cancelled	(19)	$	40.63
September 30, 2021	11	$	54.17

As of September 30, 2021, there was no material unrecognized compensation cost (adjusted for estimated forfeitures), which was related to performance-based restricted share units granted to the Company’s employees.

Summary of Service-Based Restricted Share Units

The following table sets forth a summary of service-based restricted share unit activities:


		Weighted-
		Average
	Shares	Grant Date
	Granted	Fair Value
	(In thousands)
December 31, 2020	4,324	$	41.86
Awarded	4,392	$	50.44
Vested	(1,299)	$	44.28
Cancelled	(540)	$	44.01

September 30, 2021	6,877	$	46.72

As of September 30, 2021, unrecognized compensation cost (adjusted for estimated forfeitures) was $232.9 million, which was related to non-vested service-based restricted share units granted to the Company’s employees and directors. This cost is expected to be recognized over a weighted-average period of 3.3 years. The total fair value based on the vesting date of the restricted share units vested was $66.9 million for the nine months ended September 30, 2021.

Other Balance Sheet Components

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Other Balance Sheet Components

Other Balance Sheet Components

8. Other Balance Sheet Components


	As of
	June 30,		December 31,		June 30,
	2020		2020		2021
	(Unaudited)
		(In thousands)
Accounts receivable, net:
Due from third parties			$	343,220	$	503,126
Due from Alibaba				135,321		122,991
Due from other related parties				48,625		40,972
Total gross amount			$	527,166	$	667,089
Allowance for credit losses:
Balance at the beginning of the year/period		(36,594)		(36,594)		(35,156)
Additional provision charged to expenses, net		(25,233)		(53,124)		(10,444)
Write-off		22,587		54,562		9,720
Balance at the end of the year/period		(39,240)		(35,156)		(35,880)
			$	492,010	$	631,209

Prepaid expenses and other current assets:
Rental and other deposits			$	1,186	$	1,169
Deductible value-added taxes				598		4,960
Investment prepayment⁽¹⁾				15,308		15,487
Loans to and interest receivable from other related parties ⁽²⁾ (Note 10)				158,622		336,558
Loans to and interest receivable from third parties ⁽²⁾				41,784		148,891
Advertising prepayment				18,888		11,907
Prepayment to outsourced service providers				3,719		3,727
Amounts deposited by users⁽³⁾				45,745		49,849
Content fees				3,080		352
Others				7,827		14,393
			$	296,757	$	587,293

Property and equipment, net:
Computers and equipment			$	165,880	$	173,498
Leasehold improvements				6,429		6,924
Furniture and fixtures				2,159		2,437
Others				5,077		6,431
Property and equipment, gross				179,545		189,290
Accumulated depreciation				(118,913)		(128,257)
			$	60,632	$	61,033

Other non-current assets
Investment related deposits⁽⁴⁾			$	15,450	$	408,432
Prepayment for purchase of SINA Plaza ⁽⁵⁾				—		131,636
Deferred tax assets				27,020		27,279
Others				2,126		14,998
			$	44,596	$	582,345

Accrued and other liabilities⁽⁶⁾:
Payroll and welfare			$	126,023	$	138,603
Marketing expenses				59,410		79,173
Sales rebates				222,064		312,418
Professional fees				3,880		7,431
VAT and other tax payable				49,971		54,744
Amounts due to users⁽³⁾				45,745		49,849
Unpaid consideration for acquisition				10,280		—
Unpaid consideration for investment				19,257		434
Interest payable for convertible debt and unsecured senior notes				923		27,579
Others				19,200		22,159
			$	556,753	$	692,390

(1)

For the year ended December 31,2020 and six months ended June 30, 2021, the Group recognized $1.5 million and nil of impairment charges on investment prepayment (all fully impaired), respectively, due to the deterioration of investees’ operations resulting in their inability to refund the prepayments.

(2)	Loans to related parties and third parties incurred for the six months ended June 30, 2021 were non-trade in nature.

(3)

Weibo wallet enables users to conduct interest-generation activities on Weibo, such as handing out “red envelopes” and coupons to users and purchase different types of products and services on Weibo, including those offered by the Group, such as marketing services and VIP membership, and those offered by Weibo’s platform partners, such as e-commerce merchandises, financial products and virtual gifts. Amounts deposited by users primarily represent the receivable temporarily held in Weibo’s account on a third party online payment platform for Weibo wallet users. Amounts due to users represent the balances that are payable on demand to Weibo wallet users and therefore are reflected as current liability on the consolidated balance sheets.

(4)	As of June 30, 2021, investment related deposits primarily included $76.7 million in a micro loan company, $79.0 million in an insurance company and $221.9 million in a game company. These non-current assets will be transferred to long-term investment when the legal procedures are completed.

(5)	Weibo entered into a letter of intent to purchase the office building (SINA Plaza) from SINA. As of June 30, 2021, the balance of prepayment for SINA Plaza was $131.6 million.

(6)	Include amounts due to third parties, employees, related parties (Note 10) and Weibo wallet users.

8. Other Balance Sheet Components


	As of
	September 30,		December 31,		September 30,
	2020		2020		2021

		(In thousands)
Accounts receivable, net:
Due from third parties			$	343,220	$	579,502
Due from Alibaba				135,321		98,262
Due from other related parties				48,625		41,229
Total gross amount			$	527,166	$	718,993
Allowance for credit losses:
Balance at the beginning of the year/period		(36,594)		(36,594)		(35,156)
Additional provision charged to expenses, net		(52,900)		(53,124)		(13,160)
Write-off		32,670		54,562		13,033
Balance at the end of the year/period		(56,824)		(35,156)		(35,283)
			$	492,010	$	683,710

Prepaid expenses and other current assets:
Rental and other deposits			$	1,186	$	876
Deductible value-added taxes				598		4,545
Investment prepayment⁽¹⁾				15,308		310
Loans to and interest receivable from other related parties ⁽²⁾ (Note 10)				158,622		283,904
Loans to and interest receivable from third parties ⁽²⁾				41,784		575,323
Advertising prepayment				18,888		9,471
Prepayment to outsourced service providers				3,719		3,809
Amounts deposited by users⁽³⁾				45,745		51,412
Content fees				3,080		199
Others				7,827		14,195
			$	296,757	$	944,044

Property and equipment, net:
Computers and equipment			$	165,880	$	183,829
Leasehold improvements				6,429		6,923
Furniture and fixtures				2,159		2,310
Others				5,077		7,150
Property and equipment, gross				179,545		200,212
Accumulated depreciation				(118,913)		(135,816)
			$	60,632	$	64,396

Other non-current assets
Investment related deposits ⁽⁴⁾			$	15,450	$	410,741
Prepayment for purchase of SINA Plaza ⁽⁵⁾				—		131,859
Deferred tax assets				27,020		27,325
Others				2,126		7,702
			$	44,596	$	577,627

Accrued and other liabilities⁽⁶⁾:
Payroll and welfare			$	126,023	$	177,235
Marketing expenses				59,410		77,339
Sales rebates				222,064		296,560
Professional fees				3,880		7,482
VAT and other tax payable				49,971		57,339
Amounts due to users⁽³⁾				45,745		51,412
Unpaid consideration for acquisition				10,280		6,205
Unpaid consideration for investment				19,257		434
Prepayment received for sale of an investee				—		12,410
Interest payable for convertible debt and unsecured senior notes				923		17,063
Others				19,200		29,040
			$	556,753	$	732,519

(1)

For the year ended December 31, 2020 and nine months ended September 30, 2021, the Group recognized $1.5 million and nil of impairment charges on investment prepayment (all fully impaired), respectively, due to the deterioration of investees’ operations resulting in their inability to refund the prepayments.

(2)	Loans to related parties and third parties incurred for the nine months ended September 30, 2021 were non-trade in nature.

(3)

(4)	As of September 30, 2021, investment related deposits primarily included $76.8 million in a micro loan company, $79.1 million in an insurance company and $223.9 million in a game company. These non-current assets will be transferred to long-term investment when the legal procedures are completed.

(5)	Weibo entered into a letter of intent to purchase the office building (SINA Plaza) from SINA. As of September 30, 2021, the balance of prepayment for SINA Plaza was $131.9 million.

(6)	Include amounts due to third parties, employees, related parties (Note 10) and Weibo wallet users.

Income Taxes

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Income Taxes

Income Taxes

9. Income Taxes

The Company is registered in the Cayman Islands and mainly operates in two taxable jurisdictions—the PRC and Hong Kong.

The Group’s income before income taxes is as follows:


	Six Months Ended June 30,
	2020			2021
	(Unaudited)
	(In thousands, except percentage)
Income before income tax expenses	$	306,631		$	191,805
Less: Income (Loss) from non-China operations		79,717			(163,411)
Income from China operations	$	226,914		$	355,216
Income tax expense (benefits) applicable to non-China operations	$	13,296		$	(4,275)
Income tax expense applicable to China operations		43,331			66,130
Total income tax expenses	$	56,627		$	61,855
Effective tax rate for China operations		19.1	%		18.6	%

The Company generated the majority of its operating income from PRC operations and has recorded income tax provision for the periods presented. The Group’s income (loss) from non-China operations mainly included stock-based compensation, fair value changes through earnings on investments and investment related impairment recorded by the Group’s non-China subsidiaries. The Group’s non-China operations have recognized $13.3 million deferred tax charges from fair value change of investments during the six months ended June 30, 2020, as well as a $4.3 million reversal of previously recognized deferred tax charges during the six months ended June 30, 2021.

Cayman Islands

Under the current tax laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. In addition, upon payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax is required.

Hong Kong

Weibo HK is subject to 16.5% Hong Kong profit tax on its taxable income generated from operations in Hong Kong. Commencing from the year of assessment 2018/2019, the first HK$2 million of profits earned by entities incorporated in Hong Kong will be taxed at half the current tax rate (i.e., 8.25%) while the remaining profits will continue to be taxed at the existing 16.5% tax rate.

China

Effective January 1, 2008, the Enterprise Income Tax Law (the “EIT Law”) in China unifies the enterprise income tax rate for the entities incorporated in China at 25%, unless they are eligible for preferential tax treatment. Preferential tax treatments will be granted to companies conducting businesses in certain encouraged sectors and to entities qualified as “software enterprise”, “key software enterprise” (“KSE”) and/or “high and new technology enterprise” (“HNTE”). Weibo Technology, the Group’s WFOE, was qualified as a “software enterprise” in 2020, it will not enjoy a reduced tax rate for its “software enterprise” status as it has been five years since its first profitable year of 2015 and it has already benefited from the preferential tax treatment of "software enterprise" status from 2015 to 2019. Weibo Technology was also granted the HNTE status for the fiscal years from 2017 to 2022, which entitled the qualified entity a preferential tax rate of 15% in 2020 and 2021. Its qualification as a HNTE is subject to annual evaluation and a three-year review by the relevant authorities in China. In addition, certain of the Group’s other PRC entities are also qualified as a “software enterprise”, and/or HNTE, and currently enjoy the respective preferential tax treatments.

The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The Implementing Rules of the EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company is located.” Based on a review of surrounding facts and circumstances, the Group does not believe that it is likely that its operations outside of the PRC be considered a resident enterprise for PRC tax purposes. However, due to limited guidance and implementation history of the EIT Law, should Weibo be treated as a resident enterprise for PRC tax purposes, the Company will be subject to PRC tax on worldwide income at a uniform tax rate of 25% retroactive to January 1, 2008.

The EIT Law also imposes a withholding income tax rate of 10% on dividends distributed by a WFOE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. The Cayman Islands, where the Company incorporated, does not have such tax treaty with China. According to the arrangement between Mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by a WFOE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5% (if the foreign investor owns directly at least 25% of the shares of the WFOE). The State Administration of Taxation further promulgated Circular 601 on October 27, 2009, which provides that tax treaty benefits will be denied to “conduit” or shell companies without business substance and that a beneficial ownership analysis will be used based on a “substance-over-form” principle to determine whether or not to grant the tax treaty benefits.

The operations of the Group’s WFOE in China are invested and held by Weibo HK. If the Company is regarded as a non-resident enterprise and Weibo HK is regarded as a resident enterprise, then Weibo HK may be required to pay a 10% withholding tax on any dividends payable to the Company. If Weibo HK is regarded as a non-resident enterprise, then Weibo Technology may be required to pay a 5% withholding tax for any dividends payable to Weibo HK. However, it is still unclear at this stage whether Circular 601 applies to dividends from Weibo Technology paid to Weibo HK. If Weibo HK were not considered as “beneficial owners” of any dividends from Weibo Technology, the dividends payable to Weibo HK would be subject to a withholding tax of 10%. The current policy approved by the Company’s board of directors allows the Group to distribute PRC earnings offshore only if the Group does not have to pay a dividend tax. As of June 30, 2021, the Group did not record any withholding tax for its PRC subsidiaries.

According to the relevant laws and regulations in the PRC, enterprises engaging in research and development activities were entitled to claim 150% of their research and development expenses incurred as tax deductible expenses when determining their assessable profits for that year (the “R&D Deduction”). The State Taxation Administration of the PRC announced in September 2018 that enterprises engaging in research and development activities would be entitled to claim 175% of their research and development expenses as R&D Deduction from January 1, 2018 to December 31, 2020.

Composition of income tax expenses

The following table sets forth current and deferred portion of income tax expenses of the Group:


	Six Months Ended June 30,
	2020		2021
	(Unaudited)
	(In thousands)
Deferred tax provisions (benefits)	$	12,745	$	(5,061)
Current income tax expenses		43,882		66,916

Income tax expenses	$	56,627	$	61,855

Deferred tax assets and liabilities

The following table sets forth the significant components of deferred tax assets and liabilities for the Group:


	As of
	December 31, 2020		June 30, 2021

	(In thousands)
Deferred tax assets:

Net operating loss carry forwards	$	8,872	$	8,976
Valuation allowance		(8,872)		(8,976)
Depreciation, investment-related impairment, accounts receivable, accrued and other liabilities		107,892		109,154
Valuation allowance		(80,872)		(81,875)

Net deferred tax assets (included in other non-current assets)	$	27,020	$	27,279

Deferred tax liabilities:
Acquired intangible assets	$	30,999	$	32,652
Depreciation		1,435		1,452
Investment gain		25,496		21,571
Others		369		373

Total deferred tax liabilities	$	58,299	$	56,048

Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including (i) future reversals of existing taxable temporary differences; (ii) future taxable income exclusive of reversing temporary differences and carry forwards; and (iii) tax planning strategies. The valuation allowance on deferred tax assets as of December 31, 2020 and June 30, 2021 was $89.7 million and $90.9 million, respectively. The valuation allowance primarily consists of bad debt expenses and investment impairment charges/fair value change of investments. Historically, deferred tax assets were valued using the statutory rate of 25% for China operations. Net operating loss carry forwards for China operations as of December 31, 2020 will expire, if unused, in the years ending December 31, 2021 through December 31, 2025.

Uncertain tax position

Except for the lag recognition of preferential tax treatment of KSE status, research and development super deduction and stock based related deduction, the Group did not record any liability or decrease in deferred tax asset related to uncertain tax positions as of December 31, 2020 and June 30, 2021, and thus, no interest and penalties related to uncertain tax positions were recorded.

For the six months ended June 30, 2021, based on interactions with the tax authorities, the Group received additional guidance regarding certain areas with heightened requirements, and updated its estimate of related tax benefit amount that is expected to be sustained upon settlement with tax authorities. Additional $27.9 million tax liability related to uncertain tax positions was recognized for the six months ended June 30, 2021, which is based on the updated estimate of the largest amount of tax benefit that is greater than 50% likely to be realized upon settlement with the tax authorities. It is possible that the estimate and ultimate resolution of these uncertain tax positions may further change based on further interactions with the tax authorities.

In general, the PRC tax authorities have up to five years to review a company’s tax filings. Accordingly, tax filings of the Company’s PRC subsidiaries and VIEs for tax years 2016 through 2020 remain subject to the review by the relevant PRC tax authorities.

9. Income Taxes

The Company is registered in the Cayman Islands and mainly operates in two taxable jurisdictions—the PRC and Hong Kong.

The Group’s income before income taxes is as follows:


	Nine Months Ended September 30,
	2020			2021

	(In thousands, except percentage)
Income before income tax expenses	$	370,109		$	405,011
Less: Income (Loss) from non-China operations		64,479			(198,398)
Income from China operations	$	305,630		$	603,409
Income tax expense (benefits) applicable to non-China operations	$	12,358		$	(9,757)
Income tax expense applicable to China operations		74,272			103,017
Total income tax expenses	$	86,630		$	93,260
Effective tax rate for China operations		24.3	%		17.1	%

The Company generated the majority of its operating income from PRC operations and has recorded income tax provision for the periods presented. The Group’s income (loss) from non-China operations mainly included stock-based compensation, fair value changes through earnings on investments and investment related impairment recorded by the Group’s non-China subsidiaries. The Group’s non-China operations have recognized $12.4 million deferred tax charges from fair value change of investments during the nine months ended September 30, 2020, as well as a $9.8 million reversal of previously recognized deferred tax charges during the nine months ended September 30, 2021.

Cayman Islands

Hong Kong

China

Effective January 1, 2008, the Enterprise Income Tax Law (the “EIT Law”) in China unifies the enterprise income tax rate for the entities incorporated in China at 25%, unless they are eligible for preferential tax treatment. Preferential tax treatments will be granted to companies conducting businesses in certain encouraged sectors and to entities qualified as “software enterprise”, “key software enterprise” (“KSE”) and/or “high and new technology enterprise” (“HNTE”). Weibo Technology, the Group’s WFOE, was qualified as a “software enterprise” in 2020, it will not enjoy a reduced tax rate for its “software enterprise” status as it has been five years since its first profitable year of 2015 and it has already benefited from the preferential tax treatment of “software enterprise” status from 2015 to 2019. Weibo Technology was also granted the HNTE status for the fiscal years from 2017 to 2022, which entitled the qualified entity a preferential tax rate of 15% in 2020 and 2021. Its qualification as a HNTE is subject to annual evaluation and a three-year review by the relevant authorities in China. In addition, certain of the Group’s other PRC entities are also qualified as a “software enterprise”, and/or HNTE, and currently enjoy the respective preferential tax treatments.

The operations of the Group’s WFOE in China are invested and held by Weibo HK. If the Company is regarded as a non-resident enterprise and Weibo HK is regarded as a resident enterprise, then Weibo HK may be required to pay a 10% withholding tax on any dividends payable to the Company. If Weibo HK is regarded as a non-resident enterprise, then Weibo Technology may be required to pay a 5% withholding tax for any dividends payable to Weibo HK. However, it is still unclear at this stage whether Circular 601 applies to dividends from Weibo Technology paid to Weibo HK. If Weibo HK were not considered as “beneficial owners” of any dividends from Weibo Technology, the dividends payable to Weibo HK would be subject to a withholding tax of 10%. The current policy approved by the Company’s board of directors allows the Group to distribute PRC earnings offshore only if the Group does not have to pay a dividend tax. As of September 30, 2021, the Group did not record any withholding tax for its PRC subsidiaries.

Composition of income tax expenses

The following table sets forth current and deferred portion of income tax expenses of the Group:


	Nine Months Ended September 30,
	2020		2021

	(In thousands)
Deferred tax provisions (benefits)	$	11,682	$	(11,546)
Current income tax expenses		74,948		104,806

Income tax expenses	$	86,630	$	93,260

Deferred tax assets and liabilities

The following table sets forth the significant components of deferred tax assets and liabilities for the Group:


	As of
	December 31, 2020		September 30, 2021

	(In thousands)
Deferred tax assets:
Net operating loss carry forwards	$	8,872	$	8,991
Valuation allowance		(8,872)		(8,991)
Depreciation, investment-related impairment, accounts receivable, accrued and other liabilities		107,892		109,338
Valuation allowance		(80,872)		(82,013)

Net deferred tax assets (included in other non-current assets)	$	27,020	$	27,325

Deferred tax liabilities:
Acquired intangible assets	$	30,999	$	36,768
Depreciation		1,435		1,454
Investment gain		25,496		15,857
Others		369		374

Total deferred tax liabilities	$	58,299	$	54,453

Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including (i) future reversals of existing taxable temporary differences; (ii) future taxable income exclusive of reversing temporary differences and carry forwards; and (iii) tax planning strategies. The valuation allowance on deferred tax assets as of December 31, 2020 and September 30, 2021 was $89.7 million and $91.0 million, respectively. The valuation allowance primarily consists of bad debt expenses and investment impairment charges/fair value change of investments. Historically, deferred tax assets were valued using the statutory rate of 25% for China operations. Net operating loss carry forwards for China operations as of December 31, 2020 will expire, if unused, in the years ending December 31, 2021 through December 31, 2025.

Uncertain tax position

Except for the lag recognition of preferential tax treatment of KSE status, research and development super deduction and stock based related deduction, the Group did not record any liability or decrease in deferred tax asset related to uncertain tax positions as of December 31, 2020 and September 30, 2021, and thus, no interest and penalties related to uncertain tax positions were recorded.

For the nine months ended September 30, 2021, based on interactions with the tax authorities, the Group received additional guidance regarding certain areas with heightened requirements, and updated its estimate of related tax benefit amount that is expected to be sustained upon settlement with tax authorities. Additional $27.9 million tax liability related to uncertain tax positions was recognized for the nine months ended September 30, 2021, which is based on the updated estimate of the largest amount of tax benefit that is greater than 50% likely to be realized upon settlement with the tax authorities. It is possible that the estimate and ultimate resolution of these uncertain tax positions may further change based on further interactions with the tax authorities.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Related Party Transactions

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Related Party Transactions

Related Party Transactions

10. Related Party Transactions

The following sets forth significant related parties and their relationships with the Company:


Company Name		Relationship with the Company
SINA		Parent and affiliates under common control.

Alibaba		Strategic partner and significant shareholder of the Company.

During the six months ended June 30, 2020 and 2021, the Group entered in to a series of one-year loan agreements with SINA pursuant to which SINA is entitled to borrow from the Group to facilitate SINA’s business operations. SINA has withdrawn a total of $188.2 million and $310.9 million from the Group and repaid $146.7 million and $388.4 million to the Group during the six months ended June 30, 2020 and 2021, respectively. As of December 31, 2020 and June 30, 2021, the loans to and interest receivable from SINA were $547.9 million and $480.7 million, respectively.

The following sets forth significant related party transactions with the Group:


	Six Months Ended June 30,
	2020		2021
	(Unaudited)
	(In thousands)
Transactions with SINA
Revenue billed through SINA	$	23,712	$	24,586
Revenue from services provided to SINA		11,534		11,707
Total	$	35,246	$	36,293

Costs and expenses allocated from SINA⁽¹⁾	$	23,129	$	18,603
Interest income on loans to SINA	$	4,936	$	9,995

Transactions with Alibaba
Advertising and marketing revenues from Alibaba – as an advertiser	$	63,313	$	73,266
Advertising and marketing revenues from Alibaba – as an agent	$	9,229	$	36,652
Services provided by Alibaba	$	26,400	$	21,504

(1)

Costs and expenses allocated from SINA represented the charges for certain services provided by SINA’s affiliates and charged to the Group using actual cost allocation based on proportional utilization (Note 1). In addition to the allocated costs and expenses, SINA also billed $20.1 million and $21.9 million for other costs and expenses incurred by Weibo but paid by SINA for the six months ended June 30, 2020 and 2021, respectively. During the six months ended June 30, 2020 and 2021, Weibo allocated $3.0 million and $1.5 million to SINA for costs and expenses related to certain of SINA’s activities for which Weibo made the payments, respectively.

The following table sets forth the details of the revenues from SINA by advertising and marketing revenues and value-added services revenues for the periods specified.


	Six Months Ended June 30,
	2020		2021
	(Unaudited)
	(In thousands)
Transactions with SINA
Advertising and marketing revenues	$	27,624	$	30,931
Value-added services revenues		7,622		5,362
Total	$	35,246	$	36,293

The following sets forth related party outstanding balance:


	As of
	December 31,		June 30,
	2020		2021

		(In thousands)
Amount due from SINA⁽²⁾	$	548,900	$	498,618
Accounts receivable due from Alibaba	$	135,321	$	122,991

Loans to and interest receivable⁽³⁾⁽⁴⁾
- Company A (an investee in e-commerce business)	$	79,762	$	18,546
- Company B (an investee providing social and new media marketing services)		21,771		15,056
- Company C (an investee providing online brokerage services)		41,205		270,898
- Others		15,884		32,058
Total	$	158,622	$	336,558

(2)

The Group uses amount due from/to SINA to settle balances arising from cost and expenses allocated from SINA based on proportional utilization, other expenditures incurred by Weibo business but paid by SINA, transactions with third-party customers and suppliers settled through SINA, as well as business transactions between Weibo and SINA. These balances are trade in nature. As of December 31, 2020, and June 30, 2021, the amount due from SINA also included loans to and interest receivable from SINA of $547.9 million and $480.7 million at an annual interest rate ranging from 1.0% to 4.5% of maturity within one year, respectively, which are non-trade in nature.

(3)

The annual interest rates of the loans were ranging from 3.5% to 10% (interest free for Company B) and the maturities of all loans were within one year at both dates. These balances are non-trade in nature.

(4)

The Group assessed the collectability of outstanding loans at least on annual basis or whenever impairment indicators noted. For the year ended December 31, 2020, the Group recognized $82.2 million impairment charges on loans to and interest receivable from other related parties due to their unsatisfied financial performance and decline in forecasted revenues. For the six months ended June 30, 2021, the Group didn’t recognize any impairment charges on Loans to and interest receivable from other related parties.

Other related parties mainly include investee companies on which SINA or Weibo has significant influence. These investees are generally high-tech companies operating in different internet-related business. For the six months ended June 30, 2020 and 2021, advertising and marketing revenues generated from other related parties were $18.0 million and $22.7 million, value-added services revenues generated from other related parties were $0.9 million and $0.9 million, and cost and expenses were $16.7 million and $20.2 million respectively. As of December 31, 2020 and June 30, 2021, other related parties accounted for outstanding balances of net accounts receivable of $42.5 million and $41.0 million, accounts payable of $30.8 million and $28.7 million, and accrued and other liabilities of $4.8 million and $5.4 million, respectively.

10. Related Party Transactions

The following sets forth significant related parties and their relationships with the Company:


Company Name		Relationship with the Company
SINA		Parent and affiliates under common control.

Alibaba		Strategic partner and significant shareholder of the Company.

During the nine months ended September 30, 2020 and 2021, the Group entered in to a series of one-year loan agreements with SINA pursuant to which SINA is entitled to borrow from the Group to facilitate SINA’s business operations. SINA has withdrawn a total of $443.6 million and $481.2 million from the Group and repaid $146.7 million and $547.7 million to the Group during the nine months ended September 30, 2020 and 2021, respectively. As of December 31, 2020 and September 30, 2021, the loans to and interest receivable from SINA were $547.9 million and $487.9 million, respectively.

The following sets forth significant related party transactions with the Group:


	Nine Months Ended September 30,
	2020		2021

	(In thousands)
Transactions with SINA
Revenue billed through SINA	$	29,233	$	46,374
Revenue from services provided to SINA		15,541		21,199
Total	$	44,774	$	67,573

Costs and expenses allocated from SINA⁽¹⁾	$	29,126	$	28,796
Interest income on loans to SINA	$	8,647	$	13,985

Transactions with Alibaba
Advertising and marketing revenues from Alibaba – as an advertiser	$	92,468	$	94,068
Advertising and marketing revenues from Alibaba – as an agent	$	20,438	$	40,824
Services provided by Alibaba	$	39,634	$	33,462

(1)

Costs and expenses allocated from SINA represented the charges for certain services provided by SINA’s affiliates and charged to the Group using actual cost allocation based on proportional utilization (Note 1). In addition to the allocated costs and expenses, SINA also billed $32.9 million and $35.5 million for other costs and expenses incurred by Weibo but paid by SINA for the nine months ended September 30, 2020 and 2021, respectively. During the nine months ended September 30, 2020 and 2021, Weibo allocated $5.7 million and $2.2 million to SINA for costs and expenses related to certain of SINA’s activities for which Weibo made the payments, respectively.

The following table sets forth the details of the revenues from SINA by advertising and marketing revenues and value-added services revenues for the periods specified.


	Nine Months Ended September 30,
	2020		2021

	(In thousands)
Transactions with SINA
Advertising and marketing revenues	$	34,149	$	58,178
Value-added services revenues		10,625		9,395
Total	$	44,774	$	67,573

The following sets forth related party outstanding balance:


	As of
	December 31,		September 30,
	2020		2021

		(In thousands)
Amount due from SINA⁽²⁾	$	548,900	$	515,534
Accounts receivable due from Alibaba	$	135,321	$	98,262

Loans to and interest receivable⁽³⁾⁽⁴⁾
- Company A (an investee in e-commerce business)	$	79,762	$	—
- Company B (an investee providing social and new media marketing services)		21,771		15,082
- Company C (an investee providing online brokerage services)		41,205		231,304
- Others		15,884		37,518
Total	$	158,622	$	283,904

(2)

The Group uses amount due from/to SINA to settle balances arising from cost and expenses allocated from SINA based on proportional utilization, other expenditures incurred by Weibo business but paid by SINA, transactions with third-party customers and suppliers settled through SINA, as well as business transactions between Weibo and SINA. As of December 31, 2020 and September 30, 2021, the amount due from SINA also included loans to and interest receivable from SINA of $547.9 million and $487.9 million at an annual interest rate ranging from 1.0% to 4.5% of maturity within one year, respectively.

(3)	The annual interest rates of the loans were ranging from 3.5% to 10.0% (interest free for Company B) and the maturities of all loans were within one year at both dates.

(4)

The Group assessed the collectability of outstanding loans at least on annual basis or whenever impairment indicators noted. For the nine months ended September 30, 2020 and 2021, the Group recognized $50.2 million and nil impairment charges on loans to and interest receivable from other related parties, respectively.

Other related parties mainly include investee companies on which SINA or Weibo has significant influence. These investees are generally high-tech companies operating in different internet-related business. For the nine months ended September 30, 2020 and 2021, advertising and marketing revenues generated from other related parties were $33.4 million and $38.7 million, value-added services revenues generated from other related parties were $1.8 million and $1.7 million, and cost and expenses were $30.1 million and $29.1 million respectively. As of December 31, 2020 and September 30, 2021, other related parties accounted for outstanding balances of net accounts receivable of $42.5 million and $41.2 million, accounts payable of $30.8 million and $19.7 million, and accrued and other liabilities of $4.8million and $6.3 million, respectively.

Employee Benefit Plans

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Employee Benefit Plans

Employee Benefit Plans

11. Employee Benefit Plans

China Contribution Plan

a stated contribution rate based on the monthly basic compensation of qualified employees. The local labor bureau is responsible for meeting all retirement benefit obligations. The Group has no further commitments beyond its monthly contribution. For the six months ended June 30, 2020 and 2021, the Group’s total contribution was $21.4 million and $37.8 million respectively.

11. Employee Benefit Plans

China Contribution Plan

The Company’s subsidiaries, VIEs and VIEs’ subsidiaries in China participate in a government-mandated, multi-employer, defined contribution plan, pursuant to which certain retirement, medical, housing and other welfare benefits are provided to employees. Chinese labor laws require the entities incorporated in China to pay to the local labor and welfare authorities a monthly contribution at a stated contribution rate based on the monthly basic compensation of qualified employees. The local labor bureau is responsible for meeting all retirement benefit obligations. The Group has no further commitments beyond its monthly contribution. For the nine months ended September 30, 2020 and 2021, the Group’s total contribution was $34.3 million and $58.4 million, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 55
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=118257860&loc=d3e4179-114921

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section S99
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=21916913&loc=d3e273930-122802

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (o)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (p)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 70
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 60
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6414203&loc=d3e39689-114964

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(iv)(03)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (q)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (r)(1)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(iii)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (l)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (r)(2)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

+ Details

Net Income per Share

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Net Income per Share

Net Income per Share

12. Net Income per Share

Basic net income per share is computed using the weighted average number of the ordinary shares outstanding during the period. Options and RSUs are not considered outstanding in the computation of basic earnings per share (“EPS”). Diluted EPS is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period under the treasury stock method. For the six months ended June 30, 2020 and 2021, options to purchase ordinary shares and RSUs of 0.6 million and 1.5 million were recognized as dilutive factors and included in the calculation of diluted net income per share, respectively. For the six months ended June 30, 2020 and 2021, options and RSUs which were anti-dilutive and excluded from the calculation of diluted net income per share were 1.0 million and 0.1 million, respectively. For the six months ended June 30, 2020 and 2021, 6.8 million shares convertible from the convertible debt were anti-dilutive and excluded from the calculation of diluted net income per share for both of the periods.

The following table sets forth the computation of basic and diluted net income per share for the periods presented:


	Six Months Ended June 30,
	2020		2021
	(Unaudited)
	(In thousands, except per share data)
Basic net income per share calculation:
Numerator:
Net income attributable to Weibo's shareholders	$	250,524	$	130,848
Denominator:
Weighted average ordinary shares outstanding		226,535		227,936
Basic net income per share attributable to Weibo's shareholders	$	1.11	$	0.57

Diluted net income per share calculation:
Numerator:
Net income attributable to Weibo's shareholders for calculating diluted net income per share	$	250,524	$	130,848
Denominator:
Weighted average ordinary shares outstanding		226,535		227,936
Effects of dilutive securities
Stock options		76		82
Unvested restricted share units		518		1,411
Shares used in computing diluted net income per share attributable to Weibo's shareholders		227,129		229,429
Diluted net income per share attributable to Weibo's shareholders	$	1.10	$	0.57

12. Net Income per Share

Basic net income per share is computed using the weighted average number of the ordinary shares outstanding during the period. Options and RSUs are not considered outstanding in the computation of basic earnings per share (“EPS”). Diluted EPS is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period under the treasury stock method. For the nine months ended September 30, 2020 and 2021, options to purchase ordinary shares and RSUs of 0.6 million and 1.6 million were recognized as dilutive factors and included in the calculation of diluted net income per share, respectively. For the nine months ended September 30, 2020 and 2021, options and RSUs which were anti-dilutive and excluded from the calculation of diluted net income per share were 1.0 million and 0.1 million, respectively. For the nine months ended September 30, 2020 and 2021, 6.8 million shares convertible from the convertible debt were anti-dilutive and excluded from the calculation of diluted net income per share for both of the periods.

The following table sets forth the computation of basic and diluted net income per share for the periods presented:


	Nine Months Ended September 30,
	2020		2021

	(In thousands, except per share data)
Basic net income per share calculation:
Numerator:
Net income attributable to Weibo’s shareholders	$	284,322	$	312,586
Denominator:
Weighted average ordinary shares outstanding		226,728		228,185
Basic net income per share attributable to Weibo’s shareholders	$	1.25	$	1.37

Diluted net income per share calculation:
Numerator:
Net income attributable to Weibo’s shareholders for calculating diluted net income per share	$	284,322	$	312,586
Denominator:
Weighted average ordinary shares outstanding		226,728		228,185
Effects of dilutive securities
Stock options		73		85
Unvested restricted share units		551		1,495
Shares used in computing diluted net income per share attributable to Weibo’s shareholders		227,352		229,765
Diluted net income per share attributable to Weibo’s shareholders	$	1.25	$	1.36

Segment Information

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Segment Information

Segment Information

13. Segment Information

The Group currently operates and manages its business in two principal business segments globally—advertising and marketing services and value-added services. Information regarding the business segments provided to the Group’s chief operating decision makers (“CODM”), its Chief Executive Officer, is at the revenue level and the Group currently does not allocate operating costs and expenses or assets to its segments, as its CODM does not use such information to allocate resources or evaluate the performance of the operating segments. As substantially all of the Group’s revenues are derived from the PRC and substantially all of the Group’s long-lived assets are located within the PRC, no geographical information is presented.

The following is a summary of the Group’s revenues:


Revenues	Advertising & Marketing		Value-added services		Total

	(In thousands)
Six months ended June 30, 2020 (Unaudited)	$	616,006	$	94,776	$	710,782

Six months ended June 30, 2021	$	892,349	$	141,013	$	1,033,362

13. Segment Information

The following is a summary of the Group’s revenues:


Revenues	Advertising & Marketing		Value-added services		Total

	(In thousands)
Nine months ended September 30, 2020	$	1,032,678	$	143,843	$	1,176,521

Nine months ended September 30, 2021	$	1,429,969	$	210,827	$	1,640,796

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Profit Appropriation and Restricted Net Assets

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Profit Appropriation and Restricted Net Assets

Profit Appropriation and Restricted Net Assets

14. Profit Appropriation and Restricted Net Assets

The Company’s subsidiaries, VIEs and VIEs’ subsidiaries in China are required to make appropriations to certain non-distributable reserve funds. In accordance with the laws applicable to WFOEs in China, its subsidiaries have to make appropriations from their after-tax profit (as determined under Generally Accepted Accounting Principles in the PRC (“PRC GAAP”)) to non-distributable reserve funds including (i) general reserve fund, (ii) enterprise expansion fund and (iii) staff bonus and welfare fund. General reserve fund is at least 10% of the after-tax profits calculated in accordance with the PRC GAAP. Appropriation is not required if the reserve fund has reached 50% of the registered capital of the respective company. The appropriation of the other two reserve funds is at the Group’s discretion. At the same time, the Company’s VIEs, in accordance with the China Company Laws, must make appropriations from their after-tax profit (as determined under the PRC GAAP) to non-distributable reserve funds including (i) statutory surplus fund, and (ii) discretionary surplus fund. Statutory surplus fund is at least 10% of the after-tax profits calculated in accordance with the PRC GAAP. Appropriation is not required if the reserve fund has reached 50% of the registered capital of the respective company.

General reserve fund and statutory surplus fund are restricted for set off against losses, expansion of production and operation or increase in registered capital of the respective companies. These reserves are not transferable to the Company in the form of cash dividends, loans or advances. These reserves are therefore not available for distribution except in liquidation.

As of December 31, 2020 and June 30, 2021 the Group’s PRC subsidiaries accrued approximately $127.2 million and $127.0 million in the general reserve/statutory surplus funds, respectively.

Under the PRC laws and regulations, the subsidiaries, VIEs and VIEs’ subsidiaries incorporated in the PRC are restricted in their ability to transfer a portion of their net assets to the Group either in the form of dividends, loans or advances of the consolidated net assets. Even though the Group currently does not require any such dividends, loans or advances from the PRC subsidiaries, VIEs and VIEs’ subsidiaries for working capital and other funding purposes, the Group may in the future require additional cash resources from the PRC subsidiaries, VIEs and VIEs’ subsidiaries due to changes in business conditions, to fund future acquisitions and development, or merely declare and pay dividends to or distribution to its shareholders. Net assets subject to restriction for the Group amounted to $450.3 million, or 14.5% of the Group’s total consolidated net assets as of June 30, 2021.

14. Profit Appropriation and Restricted Net Assets

As of December 31, 2020 and September 30, 2021 the Group’s PRC subsidiaries accrued approximately $127.2 million and $127.0 million in the general reserve/statutory surplus funds, respectively.

Under the PRC laws and regulations, the subsidiaries, VIEs and VIEs’ subsidiaries incorporated in the PRC are restricted in their ability to transfer a portion of their net assets to the Group either in the form of dividends, loans or advances of the consolidated net assets. Even though the Group currently does not require any such dividends, loans or advances from the PRC subsidiaries, VIEs and VIEs’ subsidiaries for working capital and other funding purposes, the Group may in the future require additional cash resources from the PRC subsidiaries, VIEs and VIEs’ subsidiaries due to changes in business conditions, to fund future acquisitions and development, or merely declare and pay dividends to or distribution to its shareholders. Net assets subject to restriction for the Group amounted to $449.9 million, or 13.5% of the Group’s total consolidated net assets as of September 30, 2021.

Fair Value Measurement

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Fair Value Measurement

Fair Value Measurement

15. Fair Value Measurement

The following table summarizes, for assets measured at fair value on a recurring basis, the respective fair value and the classification by level of input within the fair value hierarchy as of December 31, 2020 and June 30, 2021:


	Fair Value Measurements
			Quoted Prices in
			Active Market		Significant Other		Significant
			for Identical Assets		Observable Inputs		Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)

	(In thousands)
As of December 31, 2020:
Bank time deposits *	$	1,515,880	$	—	$	1,515,880	$	—
Wealth management products *		166,168		—		166,168		—
Equity securities with readily determinable market value **		289,221		289,221		—		—
Total	$	1,971,269	$	289,221	$	1,682,048	$	—

As of June 30, 2021:
Bank time deposits *	$	750,467	$	—	$	750,467	$	—
Wealth management products *		180,355		—		180,355		—
Equity securities with readily determinable market value **		241,590		241,590		—		—
Total	$	1,172,412	$	241,590	$	930,822	$	—

* Included in short-term investments on the Group’s consolidated balance sheets.

** Included in long-term investments on the Group’s consolidated balance sheets.

Recurring

The Group measures short-term investments and equity securities with readily determinable fair values on a recurring basis. The fair value of the Group’s equity securities with readily determinable fair values are determined based on the quoted market price (Level 1). The fair value of the Group’s short-term investments are determined based on the quoted market price for similar products (Level 2).

Non-recurring

For those equity investments without readily determinable fair value, the Group measures them at market value when observable price changes are identified or impairment charges are recognized. The market values of the Group’s privately held investments as disclosed are determined based on the discounted cash flow model using the discount curve of market interest rates or based on the similar transaction price in the market directly. The Group classifies the valuation techniques on those investments that use similar identifiable transaction prices as Level 2 of fair value measurements. The Group measures equity method investments at fair value on a non-recurring basis only if an impairment charge is recognized.

The Group measures equity method investments at fair value on a non-recurring basis only if an impairment charge is recognized. Certain privately held investments were measured using significant unobservable inputs (Level 3) and written down from their respective carrying values to fair values, considering the investees’ financial performance, assumptions about future growth, and future financing plan, with impairment charges incurred and recorded in earnings for the period then ended. For the six months ended June 30, 2020 and 2021, $2.5 million and $66.6 million impairment charges were recorded for those equity investments without readily determinable fair values.

The Group’s non-financial assets, such as intangible assets, goodwill, fixed assets and operating lease assets, are measured at fair value only if they were determined to be impaired. In accordance with the Group’s policy to perform an impairment assessment of its goodwill on an annual basis as of the balance sheet date or when facts and circumstances warrant a review, the Group performed an impairment assessment on its goodwill by reporting unit annually. The Group recognized no impairment charge of goodwill arising from previous acquisitions for the six months ended June 30, 2020 and 2021, respectively.

15. Fair Value Measurement


	Fair Value Measurements
			Quoted Prices in
			Active Market		Significant Other		Significant
			for Identical Assets		Observable Inputs		Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)

	(In thousands)
As of December 31, 2020:
Bank time deposits*	$	1,515,880	$	—	$	1,515,880	$	—
Wealth management products*		166,168		—		166,168		—
Equity securities with readily determinable market value **		289,221		289,221		—		—
Total	$	1,971,269	$	289,221	$	1,682,048	$	—

As of September 30, 2021:
Bank time deposits*	$	665,983	$	—	$	665,983	$	—
Wealth management products*		212,504		—		212,504		—
Equity securities with readily determinable market value **		420,012		420,012		—		—
Total	$	1,298,499	$	420,012	$	878,487	$	—

* Included in short-term investments on the Group’s unaudited interim condensed consolidated balance sheets.

** Included in long-term investments on the Group’s unaudited interim condensed consolidated balance sheets.

Recurring

Non-recurring

The Group measures equity method investments at fair value on a non-recurring basis only if an impairment charge is recognized. Certain privately held investments were measured using significant unobservable inputs (Level 3) and written down from their respective carrying values to fair values, considering the investees’ financial performance, assumptions about future growth, and future financing plan, with impairment charges incurred and recorded in earnings for the period then ended. For the nine months ended September 30, 2020 and 2021, $64.7 million and $102.6 million impairment charges were recorded for those equity investments without readily determinable fair values.

The Group’s non-financial assets, such as intangible assets, goodwill, fixed assets and operating lease assets, are measured at fair value only if they were determined to be impaired. In accordance with the Group’s policy to perform an impairment assessment of its goodwill on an annual basis as of the balance sheet date or when facts and circumstances warrant a review, the Group performed an impairment assessment on its goodwill by reporting unit annually. The Group recognized no impairment charge of goodwill arising from previous acquisitions for the nine months ended September 30, 2020 and 2021, respectively.

Convertible Debt and Unsecured Senior Notes

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Convertible Debt and Unsecured Senior Notes

Convertible Debt and Unsecured Senior Notes

16. Convertible Debt and Unsecured Senior Notes

In October 2017, the Company issued $900 million in aggregate principal amount of 1.25% coupon interest convertible senior notes due on November 15, 2022 (“2022 Notes”) at par. The Notes may be converted into Weibo’s American depositary shares (“ADSs”), each representing one Class A ordinary share of the Company, at the option of the holders, which is equivalent to an initial conversion price of approximately $133.27 per ADS, subject to adjustment. The conversion rate may be adjusted under certain circumstances, such as distribution of dividends and stock splits. In addition, upon a make-whole fundamental change prior to the maturity date of the notes, the Company will, under certain circumstances, increase the applicable conversion rate for a holder that elects to convert his/her notes in connection with such make-whole fundamental change.

The net proceeds received by the Company from the issuance of the 2022 Notes were $879.3 million, net of issuance cost of $20.7 million. The Company will pay cash interest at an annual rate of 1.25%, payable semiannually in arrears on May 15 and November 15 of each year, beginning May 15, 2018. The issuance costs of the 2022 Notes are being amortized to interest expenses over the contractual life. The 2022 Notes related interest expenses were $7.7 million for both of the six months ended June 30, 2020 and 2021.

In July 2019, the Company issued $800 million in aggregate principal amount of unsecured senior notes due on July 5, 2024 (“2024 Notes”), unless previously repurchased or redeemed in accordance with the terms prior to maturity. The 2024 Notes were issued at par value and bear an annual interest rate of 3.50%, payable semiannually in arrears on January 5 and July 5 of each year, beginning on January 5, 2020. The net proceeds to the Company from the issuance of the 2024 Notes were $793.3 million, net of issuance cost of $6.7 million. The issuance costs of the 2024 Notes are being amortized to interest expenses over the contractual life. The 2024 Notes related interest expenses were $14.7 million for both of the six months ended June 30, 2020 and 2021.

In July 2020, the Company issued $750 million in aggregate principal amount of unsecured senior notes due on July 8, 2030 (“2030 Notes”), unless previously repurchased or redeemed in accordance with the terms prior to maturity. The 2030 Notes bear an annual interest rate of 3.375%, payable semiannually in arrears on January 8 and July 8 of each year, beginning on January 8, 2021. The net proceeds to the Company from the issuance of the 2030 Notes were $740.3 million, net of issuance cost of $9.7 million. The issuance costs of the 2030 Notes are being amortized to interest expenses over the contractual life. For the six months ended June 30, 2021, the Group recognized $13.1 million interest expenses from the 2030 Notes.

16. Convertible Debt and Unsecured Senior Notes

The net proceeds received by the Company from the issuance of the 2022 Notes were $879.3 million, net of issuance cost of $20.7 million. The Company pays cash interest at an annual rate of 1.25%, payable semiannually in arrears on May 15 and November 15 of each year, beginning May 15, 2018. The issuance costs of the 2022 Notes are being amortized to interest expenses over the contractual life. The 2022 Notes related interest expenses were $11.5 million for both of the nine months ended September 30, 2020 and 2021.

In July 2019, the Company issued $800 million in aggregate principal amount of unsecured senior notes due on July 5, 2024 (“2024 Notes”), unless previously repurchased or redeemed in accordance with the terms prior to maturity. The 2024 Notes were issued at par value and bear an annual interest rate of 3.50%, payable semiannually in arrears on January 5 and July 5 of each year, beginning on January 5, 2020. The net proceeds to the Company from the issuance of the 2024 Notes were $793.3 million, net of issuance cost of $6.7 million. The issuance costs of the 2024 Notes are being amortized to interest expenses over the contractual life. The 2024 Notes related interest expenses were $22.0 million for both of the nine months ended September 30, 2020 and 2021.

In July 2020, the Company issued $750 million in aggregate principal amount of unsecured senior notes due on July 8, 2030 (“2030 Notes”), unless previously repurchased or redeemed in accordance with the terms prior to maturity. The 2030 Notes bear an annual interest rate of 3.375%, payable semiannually in arrears on January 8 and July 8 of each year, beginning on January 8, 2021. The net proceeds to the Company from the issuance of the 2030 Notes were $740.3 million, net of issuance cost of $9.7 million. The issuance costs of the 2030 Notes are being amortized to interest expenses over the contractual life. For the nine months ended September 30, 2020 and 2021, the Group recognized $6.1 million and $19.7 million interest expenses from the 2030 Notes.

Commitments and Contingencies

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Commitments and Contingencies

Commitments and Contingencies

17. Commitments and Contingencies

Operating lease commitments include the commitments under the lease agreements for the Group’s office premises. The Group leases its office facilities under non-cancelable operating leases with various expiration dates. For the six months ended June 30, 2020 and 2021, the Group recorded $6.0 million and $7.9 million lease expense, respectively. Based on the current rental lease agreements, future minimum lease payments commitments as of June 30, 2021 were as follows:


			Less than One		One to		Three to		More than
Operating lease commitments	Total		Year		Three Years		Five Years		Five Years

	(In thousands)
As of June 30, 2021	$	12,800	$	6,020	$	3,632	$	2,855	$	293

Purchase commitments mainly include minimum commitments for marketing activities and internet connection. Purchase commitments as of June 30, 2021 were as follows:


			Less than One		One to		Three to		More than
Purchase commitments	Total		Year		Three Years		Five Years		Five Years

	(In thousands)
As of June 30, 2021	$	591,545	$	561,167	$	28,263	$	2,093	$	22

2022 Notes represent the future maximum commitments relating to the principal amount and interests in connection with the issuance of $900 million in aggregate principal amount of 1.25% coupon interest convertible senior notes, which will mature on November 15, 2022. 2024 Notes represent future maximum commitment relating to the principal amount and interests in connection with the issuance of $800 million in aggregate principal amount of unsecured senior notes bearing an annual interest rate of 3.50%, which will mature on July 5, 2024. 2030 Notes represent future maximum commitment relating to the principal amount and interests in connection with the issuance of $750 million in aggregate principal amount of unsecured senior notes bearing an annual interest rate of 3.375%, which will mature on July 8, 2030.


			Less than One		One to		Three to		More than
Other commitments	Total		Year		Three Years		Five Years		Five Years

	(In thousands)
2022 Notes	$	916,867	$	11,250	$	905,617	$	—	$	—
2024 Notes		898,000		28,000		56,000		814,000		—
2030 Notes		990,469		25,313		50,625		50,625		863,906
Total	$	2,805,336	$	64,563	$	1,012,242	$	864,625	$	863,906

There are uncertainties regarding the legal basis of the Group’s ability to operate an Internet business in China. Although China has implemented a wide range of market-oriented economic reforms, the telecommunication, information and media industries remain highly regulated. Not only are such restrictions currently in place, the existing regulations are unclear as to which specific segments of these industries companies with foreign investors, including the Company, may operate. Therefore, the Group may be required to limit the scope of its operations in China, and this could have a material adverse effect on its financial position, results of operations and cash flows.

There are no claims, lawsuits, investigations or proceedings, including unasserted claims that are probable to be assessed, that have in the recent past had, or to the Group’s knowledge, are reasonably possible to have, a material impact on the Group’s financial statements.

17. Commitments and Contingencies

Operating lease commitments include the commitments under the lease agreements for the Group’s office premises. The Group leases its office facilities under non-cancelable operating leases with various expiration dates. For the nine months ended September 30, 2020 and 2021, the Group recorded $9.2 million and $12.2 million lease expense, respectively. Based on the current rental lease agreements, future minimum lease payments commitments as of September 30, 2021 were as follows:


			Less than One		One to		Three to		More than
Operating lease commitments	Total		Year		Three Years		Five Years		Five Years

	(In thousands)
As of September 30, 2021	$	11,391	$	5,001	$	3,596	$	2,661	$	133

Purchase commitments mainly include minimum commitments for marketing activities and internet connection. Purchase commitments as of September 30, 2021 were as follows:


			Less than One		One to		Three to		More than
Purchase commitments	Total		Year		Three Years		Five Years		Five Years

	(In thousands)
As of September 30, 2021	$	620,620	$	588,994	$	29,613	$	2,006	$	7


			Less than One		One to		Three to		More than
Other commitments	Total		Year		Three Years		Five Years		Five Years

	(In thousands)
2022 Notes	$	916,867	$	11,250	$	905,617	$	—	$	—
2024 Notes		884,000		28,000		856,000		—		—
2030 Notes		977,812		25,312		50,625		50,625		851,250
Total	$	2,778,679	$	64,562	$	1,812,242	$	50,625	$	851,250

Redeemable Non-controlling Interests

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Redeemable Non-controlling Interests

Redeemable Non-controlling Interests

18. Redeemable Non-controlling Interests

In the fourth quarter of 2020, the Group entered into a series of share purchase agreements with then existing shareholders of Shanghai Jiamian Information Technology Co., Ltd. (“JM Tech”) to acquire the majority of the company’s equity interest. The Group agreed to redeem the non-controlling interests held by founders and CEO of the company under certain circumstances during the following years subsequent to the acquisition. The Group determined that the non-controlling interest with redemption rights should be classified as redeemable non-controlling interest since they are contingently redeemable upon the occurrence of certain conditional events, which are not solely within the control of the Group.

The redeemable non-controlling interests is recognized at fair value on the acquisition date. The Group records accretion on the redeemable non-controlling interest to the redemption value over the period from the date of the acquisition to the date of earliest redemption. The accretion using the effective interest method, is recorded as deemed dividends to preferred shareholders, which reduce retained earnings and equity classified non-controlling interests, and earnings available to common shareholders in calculating basic and diluted earnings per share.

The process of adjusting redeemable non-controlling interests to its redemption value (the “Mezzanine Adjustment”) should be performed after attribution of the subsidiary's net income or loss pursuant to ASC 810, Consolidation. The carrying amount of redeemable non-controlling interests will equal the higher of the amount resulting from application of ASC 810 or the amount resulting from the Mezzanine Adjustment. As the expected redemption value is less than the carrying value of redeemable non-controlling interests, there is nil mezzanine adjustment recognized for the six months ended June 30, 2021.

Pursuant to the agreements between the Group and the founders who are also employees of JM Tech, the founders are required to be in employment during the following two years till December 31, 2022 to be entitled to their proportionate share in JM Tech’s existing and future retained earnings during the period. Such entitlement will automatically be forfeited upon the termination of their employment during the period. The Company considered this arrangement as certain economic interests associated with the founders’ non-controlling interest in JM Tech till December 31, 2022. Therefore, the Company recognized compensation costs for the founders’ share of JM Tech’s retained earnings with the credit increasing non-controlling interest and redeemable non-controlling interest. During the six months ended June 30, 2021, $13.3 million compensation costs were recognized, of which $10.9 million was recorded to increase redeemable non-controlling interest.

18. Redeemable Non-controlling Interests

The process of adjusting redeemable non-controlling interests to its redemption value (the “Mezzanine Adjustment”) should be performed after attribution of the subsidiary’s net income or loss pursuant to ASC 810, Consolidation. The carrying amount of redeemable non-controlling interests will equal the higher of the amount resulting from application of ASC 810 or the amount resulting from the Mezzanine Adjustment. As the expected redemption value is less than the carrying value of redeemable non-controlling interests, there is nil mezzanine adjustment recognized for the nine months ended September 30, 2021.

Pursuant to the agreements between the Group and the founders who are also employees of JM Tech, the founders are required to be in employment during the following two years till December 31, 2022 to be entitled to their proportionate share in JM Tech’s existing and future retained earnings during the period. Such entitlement will automatically be forfeited upon the termination of their employment during the period. The Company considered this arrangement as certain economic interests associated with the founders’ non-controlling interest in JM Tech till December 31, 2022. Therefore, the Company recognized compensation costs for the founders’ share of JM Tech’s retained earnings with the credit increasing non-controlling interest and redeemable non-controlling interest. During the nine months ended September 30, 2021, $18.4 million compensation costs were recognized, of which $15.6 million was recorded to increase redeemable non-controlling interest.

Subsequent events

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Subsequent events

Subsequent events

19. Subsequent events

From June 30, 2021 to the date of publication of this report, there was no subsequent event which had a material impact on the Group.

19. Subsequent events

From September 30, 2021 to the date of publication of this report, there was no subsequent event which had a material impact on the Group.

Significant Accounting Policies (Policies)

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Significant Accounting Policies

Basis of presentation

Use of estimates

Revenue recognition

Revenue disaggregated by revenue source for the six months ended June 30, 2020 and 2021 consists of the following:


	Six Months Ended June 30,
	2020		2021
	(Unaudited)
	(In thousands)
Advertising and marketing revenues	$	616,006	$	892,349
Value-added services revenues		94,776		141,013
Total revenues	$	710,782	$	1,033,362

Practical Expedients and Exemptions

The Group generally expenses sales commissions when incurred because the amortization period is generally one year or less. These costs are recorded within sales and marketing expenses.

Advertising and marketing revenues

Value-added services revenues

Revenue recognition

Revenue disaggregated by revenue source for the nine months ended September 30, 2020 and 2021 consists of the following:


	Nine Months Ended September 30,
	2020		2021

	(In thousands)
Advertising and marketing revenues	$	1,032,678	$	1,429,969
Value-added services revenues		143,843		210,827
Total revenues	$	1,176,521	$	1,640,796

The Group enters into contracts with its customers, which may give rise to contract assets (unbilled revenue) or contract liabilities (deferred revenue). The payment terms and conditions within the Group’s contracts vary by the type and location of its customers and products or services purchased, the substantial majority of which are due in less than one year. Deferred revenues related to unsatisfied performance obligations at the end of the period are mainly from the customer advance of the advertising and marketing services and the sales of the fee-based services, such as VIP membership, live streaming, and virtual currency or in-game virtual items sold for game related services. The deferred revenues are recognized based on customers’ consumption or amortized on a straight-line basis through the service period for different products/services. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following reporting period. The amount of revenue recognized that was included in the deferred revenue balance at the beginning of the period was $120.1 million for the nine months ended September 30, 2021.

Practical Expedients and Exemptions

The Group generally expenses sales commissions when incurred because the amortization period is generally one year or less. These costs are recorded within sales and marketing expenses.

Advertising and marketing revenues

Value-added services revenues

Cost of revenues

Cost of revenues consists mainly of costs associated with the maintenance of platform, which primarily include bandwidth and other infrastructure costs, revenue-share cost, advertisement production cost, labor cost and turnover taxes levied on the revenues, part of which were allocated from SINA. The Group is subject to 3% cultural business construction fees for its advertising and marketing revenues, which is included in cost of revenues. Starting from July 1 2019, the 3% cultural business construction fees was reduced to 1.5%. Moreover, as part of the measures taken by the government to ease the negative impact from Covid-19 pandemic, the cultural business construction fees were exempted for the fiscal years of 2020 and 2021.An aggregate of $15.7 million and $18.8 million cultural business construction fees was exempted for the nine months ended September 30, 2020 and 2021, respectively.

Sales and marketing expenses

Sales and marketing expenses consist mainly of online and offline advertising and promotional expenses, salary, benefits and commission expenses, and facility expenses. Advertising and promotional expenses generally represent the expenses of promotions of corporate image and product marketing. The Group expenses all advertising and promotional expenses as incurred and classifies these expenses under sales and marketing expenses. Pursuant to the adoption of ASC 606, the recognition of revenues and expenses at fair value for advertising barter transactions has resulted in an increase of revenue and advertising expenses. For the nine months ended September 30, 2020 and 2021, the advertising and promotional expenses were $230.3 million and $312.9 million, respectively.

Product development expenses

Stock-based compensation

Taxation

Short-term investments

Short-term investments represent bank time deposits and wealth management products which are certain deposits with variable interest rates or principal not-guaranteed with certain financial institutions. Their original maturities are of greater than three months but less than one year. In accordance with ASC 825, Financial Instruments, for wealth management products with the interest rate indexed to performance of underlying assets, the Group elected the fair value method at the date of initial recognition and carried these investments at fair value. Changes in the fair value are reflected in the unaudited interim condensed consolidated statements of comprehensive income as interest income.

Credit losses

In 2016, the FASB issued ASC Topic 326, which amends previously issued guidance regarding the impairment of financial instruments by creating an impairment model that is based on expected losses. The guidance is applicable to accounts receivable and the Group adopted ASC Topic 326 on January 1, 2020. Accounts receivable are recorded at the original amounts less an allowance for any potential uncollectible amounts. The Group makes estimates of expected credit and collectability trends for the allowance for credit losses based upon assessment of various factors, including historical experience, the age of the accounts receivable balances, credit-worthiness of the customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from the customers. The Group also provides specific provisions for allowance when facts and circumstances indicate that the receivable is unlikely to be collected. Expected credit losses for accounts receivable are recorded as general and administrative expenses on the unaudited interim condensed consolidated statements of comprehensive income. The initial impact of applying ASC Topic 326 on the consolidated financial statements is immaterial to the Group’s retained earnings as of January 1, 2020.

Fair value measurements

Financial instruments

●

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

●

Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Fair value measurements

Financial instruments

●

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

●

Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Long-term investments

The Group measures investments in equity securities, other than equity method investments, at fair value through earnings. For those investments without readily determinable fair values, the Group elects to record these investments at cost, less impairment, plus or minus subsequent adjustments for observable price changes. Under this measurement alternative, changes in the carrying value of the investments will be recognized in unaudited interim condensed consolidated statement of comprehensive income, whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer.

Investments in entities which the Group can exercise significant influence and holds an investment in voting common shares or in-substance common shares (or both) of the investee but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC topic 323 (“ASC 323”), Investment - Equity Method and Joint Ventures. Under the equity method, the Group initially records its investments at cost and the difference between the cost of the equity investee and the fair value of the underlying equity in the net assets of the equity investee is recognized as equity method goodwill, which is included in the equity method investment on the unaudited interim condensed consolidated balance sheets. The Group subsequently adjusts the carrying amount of the investments to recognize the Group’s proportionate share of each equity investee’s net income or loss into earnings after the date of investment. The Group evaluates the equity method investments for impairment under ASC 323. An impairment loss on the equity method investments is recognized in earnings when the decline in value is determined to be other-than-temporary.

Business combination

Leases

Long-lived assets

Property and equipment

Property and equipment are stated at cost less accumulated depreciation, amortization and impairment, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally from three to four years for computers and equipment and five years for furniture and fixtures. Leasehold improvements are amortized over the shorter of the estimated useful lives of the assets or the remaining lease term. Depreciation expenses were $18.9 million and $24.3 million for the nine months ended September 30, 2020 and 2021, respectively.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Group’s acquisitions of interests in its subsidiaries, consolidated VIEs and VIEs’ subsidiaries. The Group assesses goodwill for impairment in accordance with ASC Subtopic 350-20 (“ASC 350-20”), Intangibles - Goodwill and Other: Goodwill, which requires that goodwill be tested for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events, as defined by ASC 350-20. The guidance provides option that the Group may first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test, by taking into consideration of macroeconomics, overall financial performance, industry and market conditions and the share price of the Group. If determined to be necessary, the quantitative impairment test shall be used to identify goodwill impairment and measure the amount of a goodwill impairment loss to be recognized (if any). Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. Judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. For nine months ended September 30, 2020 and 2021, no impairment indicator was noted by performing qualitative analysis, therefore, no provision was recorded.

Intangible assets other than goodwill

Long-lived assets

Property and equipment

Goodwill

Intangible assets other than goodwill

Convertible debt and unsecured senior notes

The unsecured senior notes are recognized initially at fair value, net of debt discounts or premiums, if any, issuance costs and other incidental fees, all of which are recorded as a direct deduction of the proceeds received from issuing the unsecured senior notes and the related accretion is recorded as interest expense in the unaudited interim condensed consolidated statement of comprehensive income over the estimated term using the effective interest method.

Deferred revenues

Non-controlling interests

For the Company’s majority-owned subsidiaries and VIE, non-controlling interests are recognized to reflect the portion of their equity that is not attributable, directly or indirectly, to the Company as the controlling shareholder. To reflect the economic interest held by non-controlling shareholders, net income/loss attributable to the non-controlling ordinary shareholders is recorded as non-controlling interests in the Company’s unaudited interim condensed consolidated statements of comprehensive income. Non-controlling interests are classified as a separate line item in the equity section of the Company’s unaudited interim condensed consolidated balance sheets and have been separately disclosed in the Company’s unaudited interim condensed consolidated financial statements to distinguish the interests from that of the Company.

Foreign currency

Net Income per share

Net income per share

Segment reporting

Concentration of risks

Concentration of credit risk. Financial instruments that potentially subject the Group to a concentration of credit risk consist primarily of cash and cash equivalents, short-term investments and accounts receivable. In addition, with the majority of its operations in China, the Group is subject to RMB currency risk and offshore remittance risk, both of which have been difficult to hedge and the Group has not done so. The Group limits its exposure to credit loss by depositing its cash and cash equivalents with financial institutions in the US, PRC and Hong Kong, which are among the largest and most respected financial institutions with high ratings from internationally-recognized rating agencies, that management believes are of high credit quality. The Group periodically reviews these institutions’ reputations, track records and reported reserves.

Recent accounting pronouncements

Operations (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Operations

Schedule of the Company's major subsidiaries, major VIE and major VIE's subsidiary


			Percentage of
			Direct/
			Indirect
	Date of	Place of	Economic
Company	Incorporation	Incorporation	Interest
Major Subsidiaries
Weibo Hong Kong Limited (“Weibo HK”)	July 19, 2010	Hong Kong	100	%

Weibo Internet Technology (China) Co., Ltd. (“Weibo Technology” or “the WFOE”)	October 11, 2010	PRC	100	%

WB Online Investment Limited (“WB Online”)	June 5, 2014	Cayman Islands	100	%

Hangzhou Weishichangmeng Advertising Co., Ltd. (“Weishichangmeng”)	September 25, 2018	PRC	100	%

Major VIEs
Beijing Weimeng Technology Co., Ltd (“Weimeng”)	August 9, 2010	PRC	99	%

Beijing Weimeng Chuangke Investment Management Co., Ltd. (“Weimeng Chuangke”)	April 9, 2014	PRC	100	%

Major VIEs' subsidiary
Beijing Weibo Interactive Internet Technology Co., Ltd. (“Weibo Interactive”)	Acquired in May 2013	PRC	100	%


			Percentage of
			Direct/
			Indirect
	Date of	Place of	Economic
Company	Incorporation	Incorporation	Interest
Major Subsidiaries
Weibo Hong Kong Limited (“Weibo HK”)	July 19, 2010	Hong Kong	100	%

Weibo Internet Technology (China) Co., Ltd. (“Weibo Technology” or “the WFOE”)	October 11, 2010	PRC	100	%

WB Online Investment Limited (“WB Online”)	June 5, 2014	Cayman Islands	100	%

Hangzhou Weishichangmeng Advertising Co., Ltd. (“Weishichangmeng”)	September 25, 2018	PRC	100	%

Major VIEs
Beijing Weimeng Technology Co., Ltd (“Weimeng”)	August 9, 2010	PRC	99	%

Beijing Weimeng Chuangke Investment Management Co., Ltd. (“Weimeng Chuangke”)	April 9, 2014	PRC	100	%

Major VIEs’ subsidiary
Beijing Weibo Interactive Internet Technology Co., Ltd. (“Weibo Interactive”)	Acquired in May 2013	PRC	100	%

Schedule of total cost and expenses allocated from SINA


	Six Months Ended June 30,
	2020		2021
	(Unaudited)
	(In thousands)
Cost of revenues	$	11,112	$	7,691
Sales and marketing		3,555		2,350
Product development		5,528		5,225
General and administrative		2,934		3,337
	$	23,129	$	18,603


	Nine Months Ended September 30,
	2020		2021

	(In thousands)
Cost of revenues	$	14,210	$	11,544
Sales and marketing		1,079		2,832
Product development		7,112		7,692
General and administrative		6,725		6,728
	$	29,126	$	28,796

Schedule of assets, liabilities, results of operations and cash flows of the VIE and the VIE's subsidiaries taken as a whole.


	As of
	December 31, 2020		June 30, 2021

	(In thousands)
Cash, cash equivalents and short-term investments	$	445,210	$	340,157
Accounts receivable		431,022		532,243
Prepaid expenses and other current assets		55,653		178,561
Amount due from SINA		31,142		26,032
Property and equipment, net		692		1,499
Operating lease assets		1,783		5,054
Intangible assets		146,976		157,177
Goodwill		61,712		113,604
Long-term investments		394,745		369,686
Deferred tax assets		15,392		15,516
Others		223		250,268
Total assets	$	1,584,550	$	1,989,797

Accounts payable	$	83,336	$	97,710
Accrued and other liabilities		341,552		399,549
Deferred revenues		85,846		89,098
Income taxes payable		26,417		67,347
Amount due to the subsidiaries of the Group		968,138		1,285,039
Operating lease liability		1,704		5,060
Deferred tax liability		32,418		34,008
Other non-current liabilities		2,102		8,506
Total liabilities	$	1,541,513	$	1,986,317


	Six Months Ended June 30,
	2020		2021
	(Unaudited)
	(In thousands)
Net revenues	$	570,963	$	794,981
Net loss after intercompany service fee charge	$	(37,727)	$	(62,726)


	Six Months Ended June 30,
	2020		2021
	(Unaudited)
	(In thousands)
Net cash provided by (used in) operating activities	$	(55,363)	$	317,989
Net cash used in investing activities		(40,927)		(468,791)
Net cash provided by financing activities		36,837		31,406
Net decrease in cash and cash equivalents	$	(59,453)	$	(119,396)


	As of
	December 31, 2020		September 30, 2021

	(In thousands)
Cash, cash equivalents and short-term investments	$	445,210	$	359,508
Accounts receivable		431,022		599,831
Prepaid expenses and other current assets		55,653		445,338
Amount due from SINA		31,142		28,175
Property and equipment, net		692		1,872
Operating lease assets		1,783		4,602
Intangible assets		146,976		170,756
Goodwill		61,712		128,576
Long-term investments		394,745		412,122
Deferred tax assets		15,392		15,542
Others		223		245,006
Total assets	$	1,584,550	$	2,411,328

Accounts payable	$	83,336	$	114,551
Accrued and other liabilities		341,552		414,080
Deferred revenues		85,846		79,001
Income taxes payable		26,417		101,337
Amount due to the subsidiaries of the Group		968,138		1,666,777
Operating lease liability		1,704		4,587
Deferred tax liability		32,418		37,520
Other non-current liabilities		2,102		11,715
Total liabilities	$	1,541,513	$	2,429,568


	Nine Months Ended September 30,
	2020		2021

	(In thousands)
Net revenues	$	925,789	$	1,286,641
Net loss after intercompany service fee charge	$	(138,779)	$	(90,069)


	Nine Months Ended September 30,
	2020		2021

	(In thousands)
Net cash provided by (used in) operating activities	$	(20,553)	$	363,351
Net cash used in investing activities		(30,331)		(816,742)
Net cash provided by financing activities		46,236		326,392
Net decrease in cash and cash equivalents	$	(4,648)	$	(126,999)

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Significant Accounting Policies (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Significant Accounting Policies

Schedule of revenue disaggregated by revenue source


	Six Months Ended June 30,
	2020		2021
	(Unaudited)
	(In thousands)
Advertising and marketing revenues	$	616,006	$	892,349
Value-added services revenues		94,776		141,013
Total revenues	$	710,782	$	1,033,362


	Nine Months Ended September 30,
	2020		2021

	(In thousands)
Advertising and marketing revenues	$	1,032,678	$	1,429,969
Value-added services revenues		143,843		210,827
Total revenues	$	1,176,521	$	1,640,796

Cash, Cash Equivalents and Short-term Investments (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Cash, Cash Equivalents and Short-term Investments

Schedule of cash, cash equivalents and short-term investments


	As of
	December 31,		June 30,
	2020		2021

	(In thousands)
Cash and cash equivalents:
Cash	$	1,814,844	$	2,005,106

Short-term investments:
Bank time deposits		1,515,880		750,467
Wealth management products		166,168		180,355
Subtotal		1,682,048		930,822

Total cash, cash equivalents and short-term investments	$	3,496,892	$	2,935,928


	As of
	December 31,		September 30,
	2020		2021

	(In thousands)
Cash and cash equivalents:
Cash	$	1,814,844	$	1,828,691

Short-term investments:
Bank time deposits		1,515,880		665,983
Wealth management products		166,168		212,504
Subtotal		1,682,048		878,487

Total cash, cash equivalents and short-term investments	$	3,496,892	$	2,707,178

Long-term Investments (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Long-term Investments

Schedule of changes in the Group's long-term investments


	Equity Securities				Equity Securities With
	Without Readily				Readily Determinable Fair
	Determinable Fair Values		Equity Method		Values		Total

	(In thousands)
Balance at December 31, 2020	$	579,084	$	311,161	$	289,221	$	1,179,466
Investments made/transfers from prepayments		47,957		103,932		—		151,889
Income from equity method investment, net		—		13,605		—		13,605
Dividend received from equity method investments		—		(2,880)		—		(2,880)
Disposal of investments		(16,883)		—		(4,946)		(21,829)
Changes from measurement alternative to consolidation (Note 6)		(66,415)		—		—		(66,415)
Impairment of investments		(66,625)		—		—		(66,625)
Fair value change through earnings		(26,810)		—		(42,685)		(69,495)
Currency translation adjustment		3,150		2,392		—		5,542
Balance at June 30, 2021	$	453,458	$	428,210	$	241,590	$	1,123,258


	Equity Securities				Equity Securities With
	Without Readily				Readily Determinable Fair
	Determinable Fair Values		Equity Method		Values		Total

	(In thousands)
Balance at December 31, 2020	$	579,084	$	311,161	$	289,221	$	1,179,466
Investments made/transfers from prepayments		67,957		159,584		—		227,541
Income from equity method investment, net		—		17,688		—		17,688
Dividend received from equity method investments		—		(11,695)		—		(11,695)
Disposal of investments		(16,883)		—		(4,946)		(21,829)
Changes from measurement alternative to consolidation (Note 6)		(66,415)		—		—		(66,415)
Reclassification of equity investment without readily determinable fair values to those with readily determinable fair values		(142,000)		—		142,000		—
Impairment on investments		(102,594)		—		—		(102,594)
Fair value change through earnings		(26,810)		—		(6,263)		(33,073)
Currency translation adjustment		3,565		2,895		—		6,460
Balance at September 30, 2021	$	295,904	$	479,633	$	420,012	$	1,195,549

Schedule of the total carrying value of the equity securities accounted for measurement alternative


	Cumulative Results
		(In thousands)
Initial cost basis	$	835,552
Upward adjustments		82,217
Downward adjustments		(477,891)
Foreign currency translation		13,580
Total carrying value at June 30, 2021	$	453,458


	Cumulative Results
		(In thousands)
Initial cost basis	$	713,552
Upward adjustments		82,217
Downward adjustments		(513,861)
Foreign currency translation		13,996
Total carrying value at September 30, 2021	$	295,904

Schedule of the carrying amount and fair value of the marketable security


			Gross		Gross
	Cost		Unrealized		Unrealized		Fair
	Basis		Gains		Losses		Value

	(In thousands)
Showworld	$	81,385	$	204,675	$	—	$	286,060
Other marketable securities		15,274		—		(12,113)		3,161
December 31, 2020	$	96,659	$	204,675	$	(12,113)	$	289,221

Showworld	$	81,385	$	160,205	$	—	$	241,590
June 30, 2021	$	81,385	$	160,205	$	—	$	241,590


			Gross		Gross
	Cost		Unrealized		Unrealized		Fair
	Basis		Gains		Losses		Value

	(In thousands)
Showworld	$	81,385	$	204,675	$	—	$	286,060
Other marketable securities		15,274		—		(12,113)		3,161
December 31, 2020	$	96,659	$	204,675	$	(12,113)	$	289,221

Showworld	$	81,385	$	105,384	$	—	$	186,769
Didi	$	142,000	$	91,243	$	—	$	233,243
September 30, 2021	$	223,385	$	196,627	$	—	$	420,012

Leases (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Leases

Schedule of components of lease cost


	Six Months Ended June 30,
	2020		2021
	(Unaudited)
	(In thousands)
Operating lease cost	$	2,246	$	3,339
Short-term lease cost		1,611		1,921
Variable lease cost		2,131		2,598
Total lease cost	$	5,988	$	7,858


	Nine Months Ended September 30,
	2020		2021

	(In thousands)
Operating lease cost	$	3,515	$	5,206
Short-term lease cost		2,336		2,940
Variable lease cost		3,349		4,041
Total lease cost	$	9,200	$	12,187

Schedule of other information related to leases


	Six Months Ended June 30,
	2020		2021
	(Unaudited)
		(In thousands)
Supplemental Cash Flows Information:
Cash paid for amounts included in the measurement of lease liabilities:
Cash paid for operating leases	$	(2,589)	$	(3,938)
Operating lease assets obtained in exchange for operating lease liabilities	$	—	$	8,287


	Nine Months Ended September 30,
	2020		2021

		(In thousands)
Supplemental Cash Flows Information:
Cash paid for amounts included in the measurement of lease liabilities:
Cash paid for operating leases	$	(3,922)	$	(5,824)
Operating lease assets obtained in exchange for operating lease liabilities	$	1,183	$	8,301

Schedule of maturities of lease liabilities under operating leases

Maturities of lease liabilities under operating leases as of June 30, 2021 were as follows:


Twelve Months Ended June 30,	(In thousands)
2022	$	6,020
2023		2,020
2024		1,612
2025		1,434
2026 and thereafter		1,714
Total future payments for recognized leasing assets	$	12,800
Less: imputed interest		1,052
Total lease liabilities	$	11,748

Maturities of lease liabilities under operating leases as of September 30, 2021 were as follows:


Twelve Months Ended September 30,	(In thousands)
2022	$	5,001
2023		1,979
2024		1,617
2025		1,436
2026 and thereafter		1,358
Total future payments for recognized leasing assets	$	11,391
Less: imputed interest		1,155
Total lease liabilities	$	10,236

Goodwill, Intangible Assets and Acquisitions (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Acquisitions, Goodwill and Intangible Assets

Schedule of the changes in the Group's goodwill by segment


	Advertising &		Value-added
	Marketing		services		Total

	(In thousands)
Balance as of December 31, 2020	$	30,899	$	30,813	$	61,712
Acquisition of the company operating Wuta application		51,034		—		51,034
Currency translation adjustment		499		359		858
Balance as of June 30, 2021	$	82,432	$	31,172	$	113,604


	Advertising &		Value-added
	Marketing		services		Total

	(In thousands)
Balance as of December 31, 2020	$	30,899	$	30,813	$	61,712
Acquisition of the company operating Wuta application		51,034		—		51,034
Acquisition of an E-sports team		—		14,745		14,745
Currency translation adjustment		638		447		1,085
Balance as of September 30, 2021	$	82,571	$	46,005	$	128,576

Table summarizes the Group's intangible assets arising from acquisitions


	As of December 31, 2020						As of June 30, 2021
			Accumulated						Accumulated
	Cost		Amortization		Net		Cost		Amortization		Net

	(In thousands)						(In thousands)
Game related	$	127,238	$	(2,199)	$	125,039	$	128,725	$	(8,905)	$	119,820
Technology		9,544		(4,417)		5,127		10,012		(4,918)		5,094
Trademark and Domain name		12,788		(1,542)		11,246		19,763		(2,792)		16,971
Supplier-relationship		10,253		(4,689)		5,564		10,373		(5,798)		4,575
Others		2,449		(2,449)		—		13,706		(2,989)		10,717
Total	$	162,272	$	(15,296)	$	146,976	$	182,579	$	(25,402)	$	157,177


	As of December 31, 2020						As of September 30, 2021
			Accumulated						Accumulated
	Cost		Amortization		Net		Cost		Amortization		Net

	(In thousands)						(In thousands)
Game related	$	127,238	$	(2,199)	$	125,039	$	148,262	$	(12,588)	$	135,674
Technology		9,544		(4,417)		5,127		10,029		(5,172)		4,857
Trademark and Domain name		12,788		(1,542)		11,246		19,796		(3,595)		16,201
Supplier-relationship		10,253		(4,689)		5,564		10,391		(6,336)		4,055
Others		2,449		(2,449)		—		13,729		(3,760)		9,969
Total	$	162,272	$	(15,296)	$	146,976	$	202,207	$	(31,451)	$	170,756

Schedule of estimated amortization expenses


Year Ended December 31,	(In thousands)
The remainder of 2021	$	11,348
2022		22,347
2023		20,858
2024		19,191
2025 and thereafter		83,433
Total expected amortization expense	$	157,177


Year Ended December 31,	(In thousands)
The remainder of 2021	$	6,166
2022		24,317
2023		22,825
2024		21,156
2025 and thereafter		96,292
Total expected amortization expense	$	170,756

A mobile app company

Acquisitions, Goodwill and Intangible Assets

Schedule of consideration of acquisition was allocated based on their fair value of the assets acquired and the liabilities assumed


	As of May 1, 2021
	(In thousands)
Consideration	$	39,540
Fair value of previously held equity interest		26,875
Non-controlling interest		10,811
Total		77,226

Cash and short-term investments acquired		5,786
Other assets acquired		6,801
Identifiable intangible assets acquired		16,495
Goodwill		51,034
Liabilities assumed		(2,890)
Total	$	77,226


	As of May 1, 2021
	(In thousands)
Consideration	$	39,540
Fair value of previously held equity interest		26,875
Non-controlling interest		10,811
Total		77,226

Cash and short-term investments acquired		5,786
Other assets acquired		6,801
Identifiable intangible assets acquired		16,495
Goodwill		51,034
Liabilities assumed		(2,890)
Total	$	77,226

An E-sports team

Acquisitions, Goodwill and Intangible Assets

Schedule of consideration of acquisition was allocated based on their fair value of the assets acquired and the liabilities assumed


	As of August 1, 2021
	(In thousands)
Consideration	$	30,953

Identifiable intangible assets acquired		19,274
Goodwill		14,745
Liabilities assumed		(3,066)
Total	$	30,953

Stock-Based Compensation (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Stock-Based Compensation

Schedule of the stock-based compensation


	Six Months Ended June 30,
	2020		2021*
	(Unaudited)
	(In thousands)
Cost of revenues	$	2,502	$	3,240
Sales and marketing		4,263		5,549
Product development		14,452		18,213
General and administrative		8,971		9,219
	$	30,188	$	36,221

*	Excluded non-cash stock-based compensation of $1.6 million to SINA employees charged through Amount due from SINA for the six months end June 30, 2021.


	Nine Months Ended September 30,
	2020		2021*

	(In thousands)
Cost of revenues	$	3,909	$	5,690
Sales and marketing		6,886		10,249
Product development		22,890		29,260
General and administrative		14,100		16,059
	$	47,785	$	61,258

*	Excluded non-cash stock-based compensation of $5.2 million to SINA employees charged through Amount due from SINA for the nine months end September 30, 2021.

Summary of the number of shares available for issuance


		Shares Available
		(In thousands)
December 31, 2020		12,495
Addition		—
Granted*		(1,098)
Cancelled/expired/forfeited		277
June 30, 2021		11,674

*	During the six months ended June 30, 2021, 1.1 million restricted share units were granted under the 2014 Plan. No options were granted for the six months ended June 30, 2021.


		Shares Available
		(In thousands)
December 31, 2020		12,495
Addition		—
Granted*		(4,407)
Cancelled/expired/forfeited		613
September 30, 2021		8,701

*	During the nine months ended September 30, 2021, 4.4 million restricted share units were granted under the 2014 Plan. No options were granted for the nine months ended September 30, 2021.

Summary of option activities under the Company's stock option program


				Weighted Average
	Options	Weighted Average		Remaining	Aggregate
	Outstanding	Exercise Price		Contractual Life	Intrinsic Value
	(In thousands)			(In years)	(In thousands)
December 31, 2020	551	$	28.85	5.8	$	6,683
Granted	—		—
Exercised	(72)	$	3.50
Cancelled/expired/forfeited	(10)		32.68
June 30, 2021	469	$	32.68	6.1	$	9,342

Vested and expected to vest as of June 30, 2021	423	$	32.68	6.1	$	8,428
Exercisable as of June 30, 2021	—	$	—	—	$	—


				Weighted Average
	Options	Weighted Average		Remaining	Aggregate
	Outstanding	Exercise Price		Contractual Life	Intrinsic Value
	(In thousands)			(In years)	(In thousands)
December 31, 2020	551	$	28.85	5.8	$	6,683
Granted	—		—
Exercised	(102)	$	12.11
Cancelled/expired/forfeited	(54)	$	32.68
September 30, 2021	395	$	32.68	5.9	$	5,847

Vested and expected to vest as of September 30, 2021	359	$	32.68	5.9	$	5,316
Exercisable as of September 30,2021	85	$	32.68	5.9	$	1,263

Schedule of stock options outstanding

Weighted

Weighted Average

Options

Average

Options

Average

Remaining

Range of Exercise Prices

Outstanding

Exercise Price

Exercisable

Exercise Price

Contractual Life

(In thousands)

(In years)

$32.68

469

32.68

—

Information regarding stock options outstanding at September 30, 2021 is summarized below:

Weighted

Weighted Average

Options

Average

Options

Average

Remaining

Range of Exercise Prices

Outstanding

Exercise Price

Exercisable

Exercise Price

Contractual Life

(In thousands)

(In years)

$32.68

395

32.68

5.9

Performance-Based Restricted Share Units

Stock-Based Compensation

Summary of restricted share unit activities


		Weighted-Average
		Grant Date
	Shares Granted	Fair Value
	(In thousands)
December 31, 2020	17	$	36.49
Awarded	1	$	47.09
Vested	(2)	$	36.49
Cancelled	(15)	$	36.49
June 30, 2021	1	$	47.09


		Weighted-Average
		Grant Date
	Shares Granted	Fair Value
	(In thousands)
December 31, 2020	17	$	36.49
Awarded	15	$	54.08
Vested	(2)	$	38.78
Cancelled	(19)	$	40.63
September 30, 2021	11	$	54.17

Service-based restricted share units

Stock-Based Compensation

Summary of restricted share unit activities


		Weighted-
		Average
	Shares	Grant Date
	Granted	Fair Value
	(In thousands)
December 31, 2020	4,324	$	41.86
Awarded	1,097	$	46.06
Vested	(520)	$	52.65
Cancelled	(252)	$	38.98

June 30, 2021	4,649	$	41.81


		Weighted-
		Average
	Shares	Grant Date
	Granted	Fair Value
	(In thousands)
December 31, 2020	4,324	$	41.86
Awarded	4,392	$	50.44
Vested	(1,299)	$	44.28
Cancelled	(540)	$	44.01

September 30, 2021	6,877	$	46.72

Other Balance Sheet Components (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Other Balance Sheet Components

Schedule of other balance sheet components


	As of
	June 30,		December 31,		June 30,
	2020		2020		2021
	(Unaudited)
		(In thousands)
Accounts receivable, net:
Due from third parties			$	343,220	$	503,126
Due from Alibaba				135,321		122,991
Due from other related parties				48,625		40,972
Total gross amount			$	527,166	$	667,089
Allowance for credit losses:
Balance at the beginning of the year/period		(36,594)		(36,594)		(35,156)
Additional provision charged to expenses, net		(25,233)		(53,124)		(10,444)
Write-off		22,587		54,562		9,720
Balance at the end of the year/period		(39,240)		(35,156)		(35,880)
			$	492,010	$	631,209

Prepaid expenses and other current assets:
Rental and other deposits			$	1,186	$	1,169
Deductible value-added taxes				598		4,960
Investment prepayment⁽¹⁾				15,308		15,487
Loans to and interest receivable from other related parties ⁽²⁾ (Note 10)				158,622		336,558
Loans to and interest receivable from third parties ⁽²⁾				41,784		148,891
Advertising prepayment				18,888		11,907
Prepayment to outsourced service providers				3,719		3,727
Amounts deposited by users⁽³⁾				45,745		49,849
Content fees				3,080		352
Others				7,827		14,393
			$	296,757	$	587,293

Property and equipment, net:
Computers and equipment			$	165,880	$	173,498
Leasehold improvements				6,429		6,924
Furniture and fixtures				2,159		2,437
Others				5,077		6,431
Property and equipment, gross				179,545		189,290
Accumulated depreciation				(118,913)		(128,257)
			$	60,632	$	61,033

Other non-current assets
Investment related deposits⁽⁴⁾			$	15,450	$	408,432
Prepayment for purchase of SINA Plaza ⁽⁵⁾				—		131,636
Deferred tax assets				27,020		27,279
Others				2,126		14,998
			$	44,596	$	582,345

Accrued and other liabilities⁽⁶⁾:
Payroll and welfare			$	126,023	$	138,603
Marketing expenses				59,410		79,173
Sales rebates				222,064		312,418
Professional fees				3,880		7,431
VAT and other tax payable				49,971		54,744
Amounts due to users⁽³⁾				45,745		49,849
Unpaid consideration for acquisition				10,280		—
Unpaid consideration for investment				19,257		434
Interest payable for convertible debt and unsecured senior notes				923		27,579
Others				19,200		22,159
			$	556,753	$	692,390

(1)

(2)	Loans to related parties and third parties incurred for the six months ended June 30, 2021 were non-trade in nature.

(3)

(4)	As of June 30, 2021, investment related deposits primarily included $76.7 million in a micro loan company, $79.0 million in an insurance company and $221.9 million in a game company. These non-current assets will be transferred to long-term investment when the legal procedures are completed.

(5)	Weibo entered into a letter of intent to purchase the office building (SINA Plaza) from SINA. As of June 30, 2021, the balance of prepayment for SINA Plaza was $131.6 million.

(6)	Include amounts due to third parties, employees, related parties (Note 10) and Weibo wallet users.


	As of
	September 30,		December 31,		September 30,
	2020		2020		2021

		(In thousands)
Accounts receivable, net:
Due from third parties			$	343,220	$	579,502
Due from Alibaba				135,321		98,262
Due from other related parties				48,625		41,229
Total gross amount			$	527,166	$	718,993
Allowance for credit losses:
Balance at the beginning of the year/period		(36,594)		(36,594)		(35,156)
Additional provision charged to expenses, net		(52,900)		(53,124)		(13,160)
Write-off		32,670		54,562		13,033
Balance at the end of the year/period		(56,824)		(35,156)		(35,283)
			$	492,010	$	683,710

Prepaid expenses and other current assets:
Rental and other deposits			$	1,186	$	876
Deductible value-added taxes				598		4,545
Investment prepayment⁽¹⁾				15,308		310
Loans to and interest receivable from other related parties ⁽²⁾ (Note 10)				158,622		283,904
Loans to and interest receivable from third parties ⁽²⁾				41,784		575,323
Advertising prepayment				18,888		9,471
Prepayment to outsourced service providers				3,719		3,809
Amounts deposited by users⁽³⁾				45,745		51,412
Content fees				3,080		199
Others				7,827		14,195
			$	296,757	$	944,044

Property and equipment, net:
Computers and equipment			$	165,880	$	183,829
Leasehold improvements				6,429		6,923
Furniture and fixtures				2,159		2,310
Others				5,077		7,150
Property and equipment, gross				179,545		200,212
Accumulated depreciation				(118,913)		(135,816)
			$	60,632	$	64,396

Other non-current assets
Investment related deposits ⁽⁴⁾			$	15,450	$	410,741
Prepayment for purchase of SINA Plaza ⁽⁵⁾				—		131,859
Deferred tax assets				27,020		27,325
Others				2,126		7,702
			$	44,596	$	577,627

Accrued and other liabilities⁽⁶⁾:
Payroll and welfare			$	126,023	$	177,235
Marketing expenses				59,410		77,339
Sales rebates				222,064		296,560
Professional fees				3,880		7,482
VAT and other tax payable				49,971		57,339
Amounts due to users⁽³⁾				45,745		51,412
Unpaid consideration for acquisition				10,280		6,205
Unpaid consideration for investment				19,257		434
Prepayment received for sale of an investee				—		12,410
Interest payable for convertible debt and unsecured senior notes				923		17,063
Others				19,200		29,040
			$	556,753	$	732,519

(1)

(2)	Loans to related parties and third parties incurred for the nine months ended September 30, 2021 were non-trade in nature.

(3)

(4)	As of September 30, 2021, investment related deposits primarily included $76.8 million in a micro loan company, $79.1 million in an insurance company and $223.9 million in a game company. These non-current assets will be transferred to long-term investment when the legal procedures are completed.

(5)	Weibo entered into a letter of intent to purchase the office building (SINA Plaza) from SINA. As of September 30, 2021, the balance of prepayment for SINA Plaza was $131.9 million.

(6)	Include amounts due to third parties, employees, related parties (Note 10) and Weibo wallet users.

Income Taxes (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Income Taxes

Schedule of income before income taxes


	Six Months Ended June 30,
	2020			2021
	(Unaudited)
	(In thousands, except percentage)
Income before income tax expenses	$	306,631		$	191,805
Less: Income (Loss) from non-China operations		79,717			(163,411)
Income from China operations	$	226,914		$	355,216
Income tax expense (benefits) applicable to non-China operations	$	13,296		$	(4,275)
Income tax expense applicable to China operations		43,331			66,130
Total income tax expenses	$	56,627		$	61,855
Effective tax rate for China operations		19.1	%		18.6	%


	Nine Months Ended September 30,
	2020			2021

	(In thousands, except percentage)
Income before income tax expenses	$	370,109		$	405,011
Less: Income (Loss) from non-China operations		64,479			(198,398)
Income from China operations	$	305,630		$	603,409
Income tax expense (benefits) applicable to non-China operations	$	12,358		$	(9,757)
Income tax expense applicable to China operations		74,272			103,017
Total income tax expenses	$	86,630		$	93,260
Effective tax rate for China operations		24.3	%		17.1	%

Schedule of current and deferred portion of income tax expenses


	Six Months Ended June 30,
	2020		2021
	(Unaudited)
	(In thousands)
Deferred tax provisions (benefits)	$	12,745	$	(5,061)
Current income tax expenses		43,882		66,916

Income tax expenses	$	56,627	$	61,855


	Nine Months Ended September 30,
	2020		2021

	(In thousands)
Deferred tax provisions (benefits)	$	11,682	$	(11,546)
Current income tax expenses		74,948		104,806

Income tax expenses	$	86,630	$	93,260

Schedule of significant components of deferred tax assets and liabilities for China operations


	As of
	December 31, 2020		June 30, 2021

	(In thousands)
Deferred tax assets:

Net operating loss carry forwards	$	8,872	$	8,976
Valuation allowance		(8,872)		(8,976)
Depreciation, investment-related impairment, accounts receivable, accrued and other liabilities		107,892		109,154
Valuation allowance		(80,872)		(81,875)

Net deferred tax assets (included in other non-current assets)	$	27,020	$	27,279

Deferred tax liabilities:
Acquired intangible assets	$	30,999	$	32,652
Depreciation		1,435		1,452
Investment gain		25,496		21,571
Others		369		373

Total deferred tax liabilities	$	58,299	$	56,048


	As of
	December 31, 2020		September 30, 2021

	(In thousands)
Deferred tax assets:
Net operating loss carry forwards	$	8,872	$	8,991
Valuation allowance		(8,872)		(8,991)
Depreciation, investment-related impairment, accounts receivable, accrued and other liabilities		107,892		109,338
Valuation allowance		(80,872)		(82,013)

Net deferred tax assets (included in other non-current assets)	$	27,020	$	27,325

Deferred tax liabilities:
Acquired intangible assets	$	30,999	$	36,768
Depreciation		1,435		1,454
Investment gain		25,496		15,857
Others		369		374

Total deferred tax liabilities	$	58,299	$	54,453

Related Party Transactions (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Related party transactions

Schedule of significant related parties and their relationships with the Company


Company Name		Relationship with the Company
SINA		Parent and affiliates under common control.

Alibaba		Strategic partner and significant shareholder of the Company.


Company Name		Relationship with the Company
SINA		Parent and affiliates under common control.

Alibaba		Strategic partner and significant shareholder of the Company.

Schedule of significant related party transactions with the Group


	Six Months Ended June 30,
	2020		2021
	(Unaudited)
	(In thousands)
Transactions with SINA
Revenue billed through SINA	$	23,712	$	24,586
Revenue from services provided to SINA		11,534		11,707
Total	$	35,246	$	36,293

Costs and expenses allocated from SINA⁽¹⁾	$	23,129	$	18,603
Interest income on loans to SINA	$	4,936	$	9,995

Transactions with Alibaba
Advertising and marketing revenues from Alibaba – as an advertiser	$	63,313	$	73,266
Advertising and marketing revenues from Alibaba – as an agent	$	9,229	$	36,652
Services provided by Alibaba	$	26,400	$	21,504

(1)


	Nine Months Ended September 30,
	2020		2021

	(In thousands)
Transactions with SINA
Revenue billed through SINA	$	29,233	$	46,374
Revenue from services provided to SINA		15,541		21,199
Total	$	44,774	$	67,573

Costs and expenses allocated from SINA⁽¹⁾	$	29,126	$	28,796
Interest income on loans to SINA	$	8,647	$	13,985

Transactions with Alibaba
Advertising and marketing revenues from Alibaba – as an advertiser	$	92,468	$	94,068
Advertising and marketing revenues from Alibaba – as an agent	$	20,438	$	40,824
Services provided by Alibaba	$	39,634	$	33,462

(1)

Costs and expenses allocated from SINA represented the charges for certain services provided by SINA’s affiliates and charged to the Group using actual cost allocation based on proportional utilization (Note 1). In addition to the allocated costs and expenses, SINA also billed $32.9 million and $35.5 million for other costs and expenses incurred by Weibo but paid by SINA for the nine months ended September 30, 2020 and 2021, respectively. During the nine months ended September 30, 2020 and 2021, Weibo allocated $5.7 million and $2.2 million to SINA for costs and expenses related to certain of SINA’s activities for which Weibo made the payments, respectively.


	As of
	December 31,		June 30,
	2020		2021

		(In thousands)
Amount due from SINA⁽²⁾	$	548,900	$	498,618
Accounts receivable due from Alibaba	$	135,321	$	122,991

Loans to and interest receivable⁽³⁾⁽⁴⁾
- Company A (an investee in e-commerce business)	$	79,762	$	18,546
- Company B (an investee providing social and new media marketing services)		21,771		15,056
- Company C (an investee providing online brokerage services)		41,205		270,898
- Others		15,884		32,058
Total	$	158,622	$	336,558

(2)

(3)

(4)


	As of
	December 31,		September 30,
	2020		2021

		(In thousands)
Amount due from SINA⁽²⁾	$	548,900	$	515,534
Accounts receivable due from Alibaba	$	135,321	$	98,262

Loans to and interest receivable⁽³⁾⁽⁴⁾
- Company A (an investee in e-commerce business)	$	79,762	$	—
- Company B (an investee providing social and new media marketing services)		21,771		15,082
- Company C (an investee providing online brokerage services)		41,205		231,304
- Others		15,884		37,518
Total	$	158,622	$	283,904

(2)

The Group uses amount due from/to SINA to settle balances arising from cost and expenses allocated from SINA based on proportional utilization, other expenditures incurred by Weibo business but paid by SINA, transactions with third-party customers and suppliers settled through SINA, as well as business transactions between Weibo and SINA. As of December 31, 2020 and September 30, 2021, the amount due from SINA also included loans to and interest receivable from SINA of $547.9 million and $487.9 million at an annual interest rate ranging from 1.0% to 4.5% of maturity within one year, respectively.

(3)	The annual interest rates of the loans were ranging from 3.5% to 10.0% (interest free for Company B) and the maturities of all loans were within one year at both dates.

(4)

SINA (Note 10)

Related party transactions

Schedule of significant related party transactions with the Group


	Six Months Ended June 30,
	2020		2021
	(Unaudited)
	(In thousands)
Transactions with SINA
Advertising and marketing revenues	$	27,624	$	30,931
Value-added services revenues		7,622		5,362
Total	$	35,246	$	36,293


	Nine Months Ended September 30,
	2020		2021

	(In thousands)
Transactions with SINA
Advertising and marketing revenues	$	34,149	$	58,178
Value-added services revenues		10,625		9,395
Total	$	44,774	$	67,573

Net Income per Share (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Net Income per Share

Schedule of basic and diluted net income per share


	Six Months Ended June 30,
	2020		2021
	(Unaudited)
	(In thousands, except per share data)
Basic net income per share calculation:
Numerator:
Net income attributable to Weibo's shareholders	$	250,524	$	130,848
Denominator:
Weighted average ordinary shares outstanding		226,535		227,936
Basic net income per share attributable to Weibo's shareholders	$	1.11	$	0.57

Diluted net income per share calculation:
Numerator:
Net income attributable to Weibo's shareholders for calculating diluted net income per share	$	250,524	$	130,848
Denominator:
Weighted average ordinary shares outstanding		226,535		227,936
Effects of dilutive securities
Stock options		76		82
Unvested restricted share units		518		1,411
Shares used in computing diluted net income per share attributable to Weibo's shareholders		227,129		229,429
Diluted net income per share attributable to Weibo's shareholders	$	1.10	$	0.57


	Nine Months Ended September 30,
	2020		2021

	(In thousands, except per share data)
Basic net income per share calculation:
Numerator:
Net income attributable to Weibo’s shareholders	$	284,322	$	312,586
Denominator:
Weighted average ordinary shares outstanding		226,728		228,185
Basic net income per share attributable to Weibo’s shareholders	$	1.25	$	1.37

Diluted net income per share calculation:
Numerator:
Net income attributable to Weibo’s shareholders for calculating diluted net income per share	$	284,322	$	312,586
Denominator:
Weighted average ordinary shares outstanding		226,728		228,185
Effects of dilutive securities
Stock options		73		85
Unvested restricted share units		551		1,495
Shares used in computing diluted net income per share attributable to Weibo’s shareholders		227,352		229,765
Diluted net income per share attributable to Weibo’s shareholders	$	1.25	$	1.36

Segment Information (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Segment Information

Schedule of the Group's revenues


Revenues	Advertising & Marketing		Value-added services		Total

	(In thousands)
Six months ended June 30, 2020 (Unaudited)	$	616,006	$	94,776	$	710,782

Six months ended June 30, 2021	$	892,349	$	141,013	$	1,033,362


Revenues	Advertising & Marketing		Value-added services		Total

	(In thousands)
Nine months ended September 30, 2020	$	1,032,678	$	143,843	$	1,176,521

Nine months ended September 30, 2021	$	1,429,969	$	210,827	$	1,640,796

Fair Value Measurement (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Fair Value Measurement

Schedule of assets measured at fair value on a recurring basis, the respective fair value and the classification by level of input within the fair value hierarchy


	Fair Value Measurements
			Quoted Prices in
			Active Market		Significant Other		Significant
			for Identical Assets		Observable Inputs		Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)

	(In thousands)
As of December 31, 2020:
Bank time deposits *	$	1,515,880	$	—	$	1,515,880	$	—
Wealth management products *		166,168		—		166,168		—
Equity securities with readily determinable market value **		289,221		289,221		—		—
Total	$	1,971,269	$	289,221	$	1,682,048	$	—

As of June 30, 2021:
Bank time deposits *	$	750,467	$	—	$	750,467	$	—
Wealth management products *		180,355		—		180,355		—
Equity securities with readily determinable market value **		241,590		241,590		—		—
Total	$	1,172,412	$	241,590	$	930,822	$	—

* Included in short-term investments on the Group’s consolidated balance sheets.

** Included in long-term investments on the Group’s consolidated balance sheets.


	Fair Value Measurements
			Quoted Prices in
			Active Market		Significant Other		Significant
			for Identical Assets		Observable Inputs		Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)

	(In thousands)
As of December 31, 2020:
Bank time deposits*	$	1,515,880	$	—	$	1,515,880	$	—
Wealth management products*		166,168		—		166,168		—
Equity securities with readily determinable market value **		289,221		289,221		—		—
Total	$	1,971,269	$	289,221	$	1,682,048	$	—

As of September 30, 2021:
Bank time deposits*	$	665,983	$	—	$	665,983	$	—
Wealth management products*		212,504		—		212,504		—
Equity securities with readily determinable market value **		420,012		420,012		—		—
Total	$	1,298,499	$	420,012	$	878,487	$	—

* Included in short-term investments on the Group’s unaudited interim condensed consolidated balance sheets.

** Included in long-term investments on the Group’s unaudited interim condensed consolidated balance sheets.

Commitments and Contingencies (Tables)

6 Months Ended

9 Months Ended

Jun. 30, 2021

Sep. 30, 2021

Commitments and Contingencies

Schedule of future minimum lease payments commitments


			Less than One		One to		Three to		More than
Operating lease commitments	Total		Year		Three Years		Five Years		Five Years

	(In thousands)
As of June 30, 2021	$	12,800	$	6,020	$	3,632	$	2,855	$	293


			Less than One		One to		Three to		More than
Operating lease commitments	Total		Year		Three Years		Five Years		Five Years

	(In thousands)
As of September 30, 2021	$	11,391	$	5,001	$	3,596	$	2,661	$	133

Schedule of purchase commitments


			Less than One		One to		Three to		More than
Purchase commitments	Total		Year		Three Years		Five Years		Five Years

	(In thousands)
As of June 30, 2021	$	591,545	$	561,167	$	28,263	$	2,093	$	22


			Less than One		One to		Three to		More than
Purchase commitments	Total		Year		Three Years		Five Years		Five Years

	(In thousands)
As of September 30, 2021	$	620,620	$	588,994	$	29,613	$	2,006	$	7

Schedule of other commitments


			Less than One		One to		Three to		More than
Other commitments	Total		Year		Three Years		Five Years		Five Years

	(In thousands)
2022 Notes	$	916,867	$	11,250	$	905,617	$	—	$	—
2024 Notes		898,000		28,000		56,000		814,000		—
2030 Notes		990,469		25,313		50,625		50,625		863,906
Total	$	2,805,336	$	64,563	$	1,012,242	$	864,625	$	863,906


			Less than One		One to		Three to		More than
Other commitments	Total		Year		Three Years		Five Years		Five Years

	(In thousands)
2022 Notes	$	916,867	$	11,250	$	905,617	$	—	$	—
2024 Notes		884,000		28,000		856,000		—		—
2030 Notes		977,812		25,312		50,625		50,625		851,250
Total	$	2,778,679	$	64,562	$	1,812,242	$	50,625	$	851,250

Operations (Details) $ in Millions	1 Months Ended	6 Months Ended	9 Months Ended
Operations (Details) $ in Millions	Apr. 30, 2014 USD ($)	Jun. 30, 2021 Vote	Sep. 30, 2021 Vote
Class A ordinary shares
Operations
Number of votes each share is entitled to		1	1
Number of Class A shares converted from Class B shares		1	1
Class B ordinary shares
Operations
Number of votes each share is entitled to		3	3
IPO \| Class A ordinary shares
Operations
Proceeds from IPO \| $	$ 306.5
Weimeng
Operations
Percentage of Direct/Indirect Economic Interest in VIEs		99.00%	99.00%
Weimeng Chuangke
Operations
Percentage of Direct/Indirect Economic Interest in VIEs		100.00%	100.00%
Weibo Interactive
Operations
Percentage of Direct/Indirect Economic Interest in VIEs		100.00%	100.00%
Weibo HK
Operations
Percentage of Direct/Indirect Economic Interest		100.00%	100.00%
Weibo Technology
Operations
Percentage of Direct/Indirect Economic Interest		100.00%	100.00%
WB Online
Operations
Percentage of Direct/Indirect Economic Interest		100.00%	100.00%
Weishichangmeng
Operations
Percentage of Direct/Indirect Economic Interest		100.00%	100.00%

Operations - Assets, Liabilities, Statement of Operations and Cash Flows (Details) ¥ in Millions	1 Months Ended	6 Months Ended		9 Months Ended
	Apr. 30, 2020 CNY (¥) director	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)
Operations
Costs and allocated expenses from SINA		$ 18,603,000	$ 23,129,000	$ 28,796,000	$ 29,126,000
Interest-free loans to the VIE's shareholders		90,600,000		90,700,000		$ 89,500,000
VIEs and VIEs' subsidiaries accumulated deficit		158,800,000		186,100,000		96,100,000
Assets and liabilities of the VIEs and their subsidiaries
Cash, cash equivalents and short-term investments		2,935,928,000		2,707,178,000		3,496,892,000
Accounts receivable		631,209,000		683,710,000		492,010,000
Prepaid expenses and other current assets		587,293,000		944,044,000		296,757,000
Property and equipment, net		61,033,000		64,396,000		60,632,000
Operating lease assets		12,260,000		10,666,000		7,176,000
Intangible assets		157,177,000		170,756,000		146,976,000
Goodwill		113,604,000		128,576,000		61,712,000
Long-term investments		1,123,258,000		1,195,549,000		1,179,466,000
Deferred tax assets		27,279,000		27,325,000		27,020,000
Others		14,998,000		7,702,000		2,126,000
Total assets		6,702,725,000		6,998,036,000		6,335,117,000
Accounts payable		159,497,000		177,647,000		149,509,000
Accrued and other liabilities		692,390,000		732,519,000		556,753,000
Deferred revenues		146,085,000		132,468,000		143,684,000
Income taxes payable		89,100,000		115,241,000		102,844,000
Operating lease liability		11,748,000		10,236,000
Deferred tax liability		56,048,000		54,453,000		58,299,000
Other non-current liabilities		8,505,000		11,714,000		2,102,000
Total liabilities		3,595,107,000		3,667,623,000		3,448,787,000
Results of operations of the VIEs and their subsidiaries
Net revenues		1,033,362,000	710,782,000	1,640,796,000	1,176,521,000
Net loss after intercompany service fee charge		130,848,000	250,524,000	312,586,000	284,322,000
Cash flows of the VIE and its subsidiary
Net cash provided by (used in) operating activities		338,357,000	185,264,000	564,352,000	420,495,000
Net cash used in investing activities		(162,508,000)	(154,782,000)	(567,860,000)	(1,240,855,000)
Net cash provided by financing activities		226,000	1,625,000	1,214,000	741,963,000
Contractual Arrangements with the VIE
Assets, except for registered capital of VIEs, that can only be used to settle obligations of the respective VIEs		0		0		0
Registered capital and non-distributable reserve funds of VIE and its subsidiaries		$ 228,500,000		$ 228,800,000		196,600,000
Term of loan agreements		10 years		10 years
Term of trademark license agreements		1 year		1 year
Service fees revenue charged to VIE		$ 438,500,000	312,700,000	$ 744,100,000	528,600,000
SINA (Note 10)
Operations
Costs and allocated expenses from SINA		18,603,000	23,129,000	28,796,000	29,126,000
WangTouTongDa (Beijing) Technology Co., Ltd.
Minority Investment In Weimeng
Sale of subsidiaries' shares to non-controlling interests \| ¥	¥ 10.7
Percentage of enlarged registered capital invested	1.00%
Number of member of board of directors the entity has right to appoint \| director	3
Consolidated VIEs
Operations
Costs and allocated expenses from SINA		1,900,000	7,200,000	2,600,000	7,000,000.0
Assets and liabilities of the VIEs and their subsidiaries
Cash, cash equivalents and short-term investments		340,157,000		359,508,000		445,210,000
Accounts receivable		532,243,000		599,831,000		431,022,000
Prepaid expenses and other current assets		178,561,000		445,338,000		55,653,000
Amount due from SINA		26,032,000				31,142,000
Property and equipment, net		1,499,000		1,872,000		692,000
Operating lease assets		5,054,000		4,602,000		1,783,000
Intangible assets		157,177,000		170,756,000		146,976,000
Goodwill		113,604,000		128,576,000		61,712,000
Long-term investments		369,686,000		412,122,000		394,745,000
Deferred tax assets		15,516,000		15,542,000		15,392,000
Others		250,268,000		245,006,000		223,000
Total assets		1,989,797,000		2,411,328,000		1,584,550,000
Accounts payable		97,710,000		114,551,000		83,336,000
Accrued and other liabilities		399,549,000		414,080,000		341,552,000
Deferred revenues		89,098,000		79,001,000		85,846,000
Income taxes payable		67,347,000		101,337,000		26,417,000
Amount due to the subsidiaries of the Group		1,285,039,000		1,666,777,000		968,138,000
Operating lease liability		5,060,000		4,587,000		1,704,000
Deferred tax liability		34,008,000		37,520,000		32,418,000
Other non-current liabilities		8,506,000		11,715,000		2,102,000
Total liabilities		1,986,317,000		2,429,568,000		1,541,513,000
Results of operations of the VIEs and their subsidiaries
Net revenues		794,981,000	570,963,000	1,286,641,000	925,789,000
Net loss after intercompany service fee charge		(62,726,000)	(37,727,000)	(90,069,000)	(138,779,000)
Cash flows of the VIE and its subsidiary
Net cash provided by (used in) operating activities		317,989,000	(55,363,000)	363,351,000	(20,553,000)
Net cash used in investing activities		(468,791,000)	(40,927,000)	(816,742,000)	(30,331,000)
Net cash provided by financing activities		31,406,000	36,837,000	326,392,000	46,236,000
Net decrease in cash and cash equivalents		$ (119,396,000)	(59,453,000)	(126,999,000)	(4,648,000)
Consolidated VIEs \| SINA (Note 10)
Assets and liabilities of the VIEs and their subsidiaries
Amount due from SINA				$ 28,175,000		$ 31,142,000
Weimeng
Minority Investment In Weimeng
Percentage of equity interests the entity will not be able to purchase or have the New Weimeng Shareholder pledge		1.00%		1.00%
Percentage of equity interests for which the authorization of voting rights will not be granted to entity		1.00%		1.00%
Percentage of equity interests issued		1.00%		1.00%
Costs of revenues
Operations
Costs and allocated expenses from SINA		$ 7,691,000	11,112,000	$ 11,544,000	14,210,000
Sales and marketing
Operations
Costs and allocated expenses from SINA		2,350,000	3,555,000	2,832,000	1,079,000
Product development
Operations
Costs and allocated expenses from SINA		5,225,000	5,528,000	7,692,000	7,112,000
General and administrative
Operations
Costs and allocated expenses from SINA		$ 3,337,000	$ 2,934,000	$ 6,728,000	$ 6,725,000

Significant Accounting Policies (Details) - USD ($) $ in Thousands		6 Months Ended			9 Months Ended
	Jun. 30, 2019	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2021	Sep. 30, 2020
Revenues:
Revenues		$ 1,033,362	$ 710,782		$ 1,640,796	$ 1,176,521
Revenue recognized that was included in the deferred revenue		104,500			120,100
Sales and Marketing Expenses
Advertising and promotional expenses		$ 219,900	156,900		$ 312,900	230,300
Options
Stock-based compensation
Vesting period		4 years			4 years
Service-based restricted share units
Stock-based compensation
Vesting period		4 years			4 years
Advertising and marketing revenues
Revenues:
Revenues		$ 892,349	616,006		$ 1,429,969	1,032,678
Costs and Expenses
Cultural business construction fees (as a percent)	3.00%	3.00%		1.50%	3.00%
Cultural business construction fees exempted		$ 11,500	10,300		$ 18,800	15,700
Advertising and marketing revenues \| Maximum
Revenues:
Period over social display ad arrangements allow customers to place advertisements on particular areas of the Group's platform in particular formats		3 months			3 months
Value-added services revenues
Revenues:
Revenues		$ 141,013	$ 94,776		$ 210,827	$ 143,843

Significant Accounting Policies - Lease (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease asset	$ 10,666	$ 12,260	$ 7,176
Operating lease liability	$ 10,236	$ 11,748

Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Millions	6 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Property and equipment
Depreciation expenses	$ 16.1	$ 12.0	$ 24.3	$ 18.9
Computers and equipment \| Minimum
Property and equipment
Estimated useful lives of assets	3 years		3 years
Computers and equipment \| Maximum
Property and equipment
Estimated useful lives of assets	4 years		4 years
Furniture and fixtures
Property and equipment
Estimated useful lives of assets	5 years		5 years

Significant Accounting Policies - Goodwill and Intangible Assets Other Than Goodwill, Foreign Currency and Segment Reporting (Details)	6 Months Ended		9 Months Ended
	Jun. 30, 2021 USD ($) segment	Jun. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) segment	Sep. 30, 2020 USD ($)
Goodwill impairment
Provision of goodwill impairment			$ 0	$ 0
Foreign currency
Gains from foreign currency translation adjustments	$ 29,222,000	$ (31,347,000)	$ 34,888,000	$ 57,670,000
Segment reporting
Number of principal business segments \| segment	2		2
Minimum
Intangible assets other than goodwill
Estimated useful lives of intangible assets	3 years		3 years
Maximum
Intangible assets other than goodwill
Estimated useful lives of intangible assets	10 years		10 years

Significant Accounting Policies - Concentration of Risks (Details) $ in Thousands	6 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2021 USD ($) customer Agency	Jun. 30, 2020 customer Agency	Sep. 30, 2021 USD ($) customer Agency	Sep. 30, 2020 customer Agency	Dec. 31, 2020 USD ($)
Concentration of risks
Cash, cash equivalents and short-term investments	$ 2,935,928		$ 2,707,178		$ 3,496,892
Accounts receivable denominated in RMB	631,209		683,710		492,010
Current liabilities denominated in RMB	1,092,666		1,162,280		958,370
Cash, cash equivalents and short-term investments \| Concentration of credit risk \| China Contribution Plan
Concentration of risks
Cash, cash equivalents and short-term investments	$ 2,400,000		$ 2,200,000		3,000,000
Maximum term of original maturity of time deposits	12 months		12 months
Cash, cash equivalents and short-term investments \| Concentration of foreign currency risks \| RMB
Concentration of risks
Cash, cash equivalents and short-term investments	$ 1,451,600		$ 1,228,000		$ 1,651,300
Percentage of benchmark derived from specified source	49.00%		45.00%		47.00%
Consolidated net revenues benchmark \| Customer concentration risk
Concentration of risks
Other customers or advertising agencies accounting for 10% or more of the Group's revenues \| customer	0	0	0	0
Consolidated net revenues benchmark \| Customer concentration risk \| Alibaba (Note 10)
Concentration of risks
Percentage of benchmark derived from specified source	7.00%	9.00%	6.00%	8.00%
Consolidated net accounts receivables benchmark \| Concentration of credit risk \| Alibaba (Note 10)
Concentration of risks
Percentage of benchmark derived from specified source	19.00%		14.00%		28.00%
Consolidated net accounts receivables benchmark \| Concentration of foreign currency risks \| RMB
Concentration of risks
Accounts receivable denominated in RMB	$ 631,200		$ 683,700		$ 492,000
Current liabilities \| Concentration of foreign currency risks \| RMB
Concentration of risks
Current liabilities denominated in RMB	$ 1,064,100		$ 1,139,000		$ 947,600
Percentage of benchmark derived from specified source	97.00%		98.00%		99.00%
Advertising and marketing revenues \| Consolidated net revenues benchmark \| Customer concentration risk \| Top 10 advertising agencies \| China Contribution Plan
Concentration of risks
Number of advertising agencies \| Agency	10	10	10	10
Percentage of benchmark derived from specified source	38.00%	33.00%	40.00%	32.00%

Cash, Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Cash and cash equivalents:
Cash	$ 2,005,106	$ 1,472,251	$ 1,828,691	$ 1,411,929	$ 1,814,844	$ 1,452,985
Short-term investments:
Bank time deposits	750,467		665,983		1,515,880
Wealth management products	180,355		212,504		166,168
Subtotal	930,822		878,487		1,682,048
Total cash, cash equivalents and short-term investments	2,935,928		2,707,178		$ 3,496,892
Interest income	$ 40,068	$ 45,609	$ 56,909	$ 65,667
Maximum maturity period of time deposits and wealth management products	1 year		1 year

Long-term Investments - Changes in Long-term Investments (Details) - USD ($) $ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Long-term investments
Balance at the beginning of the year	$ 1,179,466		$ 1,179,466
Investments made/transfers from prepayments	151,889		227,541
Income from equity method investments, net	13,605	$ 3,388	17,688	$ 4,422
Dividend received from equity method investments	(2,880)		(11,695)
Disposal of investments	(21,829)		(21,829)
Changes from measurement alternative to consolidation (Note 6)	(66,415)		(66,415)
Reclassification of equity investment without readily determinable fair values to those with readily determinable fair values			0
Impairment on investments	(66,625)		(102,594)
Fair value change through earnings	(69,495)	$ 117,517	(33,073)	$ 127,641
Currency translation adjustment	5,542		6,460
Balance at the end of year	1,123,258		1,195,549
Cost Method
Long-term investments
Balance at the beginning of the year	579,084		579,084
Investments made/transfers from prepayments	47,957		67,957
Income from equity method investments, net	0		0
Dividend received from equity method investments	0		0
Disposal of investments	(16,883)		(16,883)
Changes from measurement alternative to consolidation (Note 6)	(66,415)		(66,415)
Reclassification of equity investment without readily determinable fair values to those with readily determinable fair values			(142,000)
Impairment on investments	(66,625)		(102,594)
Fair value change through earnings	(26,810)		(26,810)
Currency translation adjustment	3,150		3,565
Balance at the end of year	453,458		295,904
Equity Method
Long-term investments
Balance at the beginning of the year	311,161		311,161
Investments made/transfers from prepayments	103,932		159,584
Income from equity method investments, net	13,605		17,688
Dividend received from equity method investments	(2,880)		(11,695)
Disposal of investments	0		0
Changes from measurement alternative to consolidation (Note 6)	0		0
Reclassification of equity investment without readily determinable fair values to those with readily determinable fair values			0
Impairment on investments	0		0
Fair value change through earnings	0		0
Currency translation adjustment	2,392		2,895
Balance at the end of year	428,210		479,633
Equity Securities With Readily Determinable Fair Values
Long-term investments
Balance at the beginning of the year	289,221		289,221
Investments made/transfers from prepayments	0		0
Income from equity method investments, net	0		0
Dividend received from equity method investments	0		0
Disposal of investments	(4,946)		(4,946)
Changes from measurement alternative to consolidation (Note 6)	0		0
Reclassification of equity investment without readily determinable fair values to those with readily determinable fair values			142,000
Impairment on investments	0		0
Fair value change through earnings	(42,685)		(6,263)
Currency translation adjustment	0		0
Balance at the end of year	$ 241,590		$ 420,012

Long-term Investments (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	9 Months Ended	12 Months Ended
Long-term Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Jun. 30, 2021	Sep. 30, 2021	Dec. 31, 2020
Long-term Investments
Investments made/transferred from prepayments		$ 151,889	$ 227,541
Cost Method
Long-term Investments
Investments made/transferred from prepayments		47,957	67,957
Cost Method \| Private high tech companies
Long-term Investments
Investments made/transferred from prepayments		48,000	68,000
Equity Method
Long-term Investments
Investments made/transferred from prepayments		$ 103,932	159,584
A mobile app company
Long-term Investments
Cash consideration	$ 39,500
Fair value change loss for equity interest previously held by Group immediately before step acquisition	$ 27,600
A mobile app company \| Cost Method
Long-term Investments
Investments made/transferred from prepayments			39,500	$ 39,500
A mobile app company \| Equity Method \| A commercial search business
Long-term Investments
Fair value change loss for equity interest previously held by Group immediately before step acquisition			$ 27,600

Long-term Investments - Carrying Value of Equity Investments (Details) - USD ($) $ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Total carrying value of the equity securities
Downward adjustment	$ 94,200		$ 130,200
Impairment for equity investments accounted for under the measurement alternative	66,600		102,600
Investment related impairment	66,625	$ 3,920	102,594	$ 117,835
Initial cost basis	835,552		713,552
Upward adjustments	82,217		82,217
Downward adjustments	(477,891)		(513,861)
Foreign currency translation	13,580		13,996
Total carrying value at the end of the period	453,458		295,904
Yixia Tech
Total carrying value of the equity securities
Investment related impairment	$ 59,400		$ 75,300

Long-term Investments - Additional Information (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Long-term Investments
Investment	$ 295,904	$ 453,458
Equity securities with readily determinable market value	420,012	241,590	$ 289,221
Unrealized loss on investments	0	0	$ 12,113
Didi
Long-term Investments
Equity securities with readily determinable market value	233,243
Unrealized loss on investments	0
Equity Method
Long-term Investments
Equity securities with readily determinable market value	420,000	241,600
Unrealized loss on investments	$ 6,300	42,700
Cost Method \| Didi
Long-term Investments
Investment		$ 142,000

Long-term Investments - Carrying Amount and Fair Value (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Jul. 01, 2021	Jun. 30, 2021	Dec. 31, 2020
Carrying amount and fair value of the marketable security
Cost Basis	$ 223,385		$ 81,385	$ 96,659
Gross Unrealized Gains	196,627		160,205	204,675
Gross Unrealized Losses	0		0	(12,113)
Fair Value	420,012		241,590	289,221
Showworld
Carrying amount and fair value of the marketable security
Cost Basis	81,385		81,385	81,385
Gross Unrealized Gains	105,384		160,205	204,675
Gross Unrealized Losses	0		0	0
Fair Value	186,769		$ 241,590	286,060
Fair value change gain (loss)	(99,300)
Didi
Carrying amount and fair value of the marketable security
Cost Basis	142,000	$ 142,000
Gross Unrealized Gains	91,243
Gross Unrealized Losses	0
Fair Value	233,243
Fair value change gain (loss)	$ 91,200
Other marketable securities
Carrying amount and fair value of the marketable security
Cost Basis				15,274
Gross Unrealized Gains				0
Gross Unrealized Losses				(12,113)
Fair Value				$ 3,161

Leases (Details) - USD ($)	6 Months Ended		9 Months Ended
Leases (Details) - USD ($)	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Components of lease cost
Operating lease cost	$ 3,339,000	$ 2,246,000	$ 5,206,000	$ 3,515,000
Short-term lease cost	1,921,000	1,611,000	2,940,000	2,336,000
Variable lease cost	2,598,000	2,131,000	4,041,000	3,349,000
Total lease cost	7,858,000	5,988,000	12,187,000	9,200,000
Cash paid for amounts included in the measurement of lease liabilities:
Cash paid for operating leases	(3,938,000)	(2,589,000)	(5,824,000)	(3,922,000)
Operating lease assets obtained in exchange for operating lease liabilities	8,287,000	$ 0	8,301,000	$ 1,183,000
Maturities of lease liabilities under operating leases, Twelve Months Ended June 30,
2022	6,020,000		5,001,000
2023	2,020,000		1,979,000
2024	1,612,000		1,617,000
2025	1,434,000		1,436,000
2026 and thereafter	1,714,000		1,358,000
Total future payments for recognized leasing assets	12,800,000		11,391,000
Less: imputed interest	1,052,000		1,155,000
Total lease liabilities	$ 11,748,000		$ 10,236,000
Average remaining lease term	3 years 7 months 6 days		3 years 7 months 6 days
Weighted-average discount rate (as a percent)	5.00%		5.00%
Lease contracts that has been entered into but not yet commenced	$ 0		$ 0

Goodwill, Intangible Assets and Acquisitions - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Aug. 31, 2021	Jun. 30, 2021	Aug. 01, 2021	May 01, 2021	Mar. 31, 2021
A mobile app company
Business Acquisition
Total equity interest				86.00%
A mobile app company
Business Acquisition
Equity interest acquired		51.20%
Equity interest held					34.80%
Cash consideration		$ 39,500
Identifiable intangible assets acquired on acquisition date		$ 16,500		$ 16,495
A mobile app company \| Minimum
Business Acquisition
Identifiable intangible assets acquired, estimated lives		3 years
A mobile app company \| Maximum
Business Acquisition
Identifiable intangible assets acquired, estimated lives		10 years
An E-sports team
Business Acquisition
Identifiable intangible assets acquired on acquisition date	$ 19,300		$ 19,274
Identifiable intangible assets acquired, estimated lives	10 years

Goodwill, Intangible Assets and Acquisitions - Allocation of Consideration (Details) - USD ($) $ in Thousands			3 Months Ended
	Aug. 01, 2021	May 01, 2021	Jun. 30, 2021	Sep. 30, 2021	Aug. 31, 2021	Dec. 31, 2020
Business combination allocated based on fair value of the assets and the liabilities
Goodwill			$ 113,604	$ 128,576		$ 61,712
A mobile app company
Acquisitions, Goodwill and Intangible Assets
Cash consideration			39,500
Business combination allocated based on fair value of the assets and the liabilities
Consideration		$ 39,540
Fair value of previously held equity interest		26,875
Non-controlling interest		10,811
Cash and short-term investments acquired		5,786
Other assets acquired		6,801
Identifiable intangible assets acquired		16,495	$ 16,500
Goodwill		51,034
Liabilities assumed		(2,890)
Total		$ 77,226
An E-sports team
Business combination allocated based on fair value of the assets and the liabilities
Consideration	$ 30,953
Identifiable intangible assets acquired	19,274				$ 19,300
Goodwill	14,745
Liabilities assumed	(3,066)
Total	$ 30,953

Goodwill, Intangible Assets and Acquisitions - Changes in the Group's Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended	9 Months Ended
	Jun. 30, 2021	Sep. 30, 2021
Changes in the Group's goodwill by segment
Balance at the beginning of the year	$ 61,712	$ 61,712
Acquisition	51,034
Currency translation adjustment	858	1,085
Balance at the end of the year	113,604	128,576
Advertising and marketing revenues
Changes in the Group's goodwill by segment
Balance at the beginning of the year	30,899	30,899
Acquisition	51,034
Currency translation adjustment	499	638
Balance at the end of the year	82,432	82,571
Value-added services revenues
Changes in the Group's goodwill by segment
Balance at the beginning of the year	30,813	30,813
Acquisition	0
Currency translation adjustment	359	447
Balance at the end of the year	$ 31,172	46,005
A mobile app company
Changes in the Group's goodwill by segment
Acquisition		51,034
A mobile app company \| Advertising and marketing revenues
Changes in the Group's goodwill by segment
Acquisition		51,034
A mobile app company \| Value-added services revenues
Changes in the Group's goodwill by segment
Acquisition		0
An E-sports team
Changes in the Group's goodwill by segment
Acquisition		14,745
An E-sports team \| Value-added services revenues
Changes in the Group's goodwill by segment
Acquisition		$ 14,745

Goodwill, Intangible Assets and Acquisitions - Intangible assets arising from acquisitions (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Acquired finite-lived intangible assets
Cost	$ 202,207	$ 182,579	$ 162,272
Accumulated Amortization	(31,451)	(25,402)	(15,296)
Intangible assets, net	170,756	157,177	146,976
Game related
Acquired finite-lived intangible assets
Cost	148,262	128,725	127,238
Accumulated Amortization	(12,588)	(8,905)	(2,199)
Intangible assets, net	135,674	119,820	125,039
Technology
Acquired finite-lived intangible assets
Cost	10,029	10,012	9,544
Accumulated Amortization	(5,172)	(4,918)	(4,417)
Intangible assets, net	4,857	5,094	5,127
Trademark and Domain name
Acquired finite-lived intangible assets
Cost	19,796	19,763	12,788
Accumulated Amortization	(3,595)	(2,792)	(1,542)
Intangible assets, net	16,201	16,971	11,246
Supplier-relationship
Acquired finite-lived intangible assets
Cost	10,391	10,373	10,253
Accumulated Amortization	(6,336)	(5,798)	(4,689)
Intangible assets, net	4,055	4,575	5,564
Others
Acquired finite-lived intangible assets
Cost	13,729	13,706	2,449
Accumulated Amortization	(3,760)	(2,989)	(2,449)
Intangible assets, net	$ 9,969	$ 10,717	$ 0

Goodwill, Intangible Assets and Acquisitions - Future Amortization Expenses (Details) - USD ($) $ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Goodwill, Intangible Assets and Acquisitions
Amortization expense	$ 9,900	$ 1,600	$ 15,900	$ 2,500
Future estimated amortization expenses
The remainder of 2021	11,348		6,166
2022	22,347		24,317
2023	20,858		22,825
2024	19,191		21,156
2025 and thereafter	83,433		96,292
Intangible assets, net	$ 157,177		$ 170,756		$ 146,976

Stock-Based Compensation - Incentive Plan Details (Details) - shares shares in Thousands		1 Months Ended	6 Months Ended	9 Months Ended
	Jan. 01, 2015	Mar. 31, 2014	Jun. 30, 2021	Sep. 30, 2021
Stock-Based Compensation
Number of additional shares for the plan			0	0
Stock based compensation, amortization period			4 years	4 years
Performance-based restricted shares
Stock-Based Compensation
Stock based compensation, amortization period			1 year	1 year
2014 Plan
Stock-Based Compensation
Ordinary shares reserved for issuance		4,600
Number of additional shares for the plan		1,000
Term of share incentive plan	10 years
One-time percentage increase on January 1, 2015 for maximum aggregate number of shares which may be issued (as a percent)	10.00%

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Stock-based compensation
Total	$ 36,221	$ 30,188	$ 61,258	$ 47,785
SINA (Note 10)
Stock-based compensation
Non-cash stock-based compensation charged through Amount due from SINA	1,600		5,200
Costs of revenues
Stock-based compensation
Total	3,240	2,502	5,690	3,909
Sales and marketing
Stock-based compensation
Total	5,549	4,263	10,249	6,886
Product development
Stock-based compensation
Total	18,213	14,452	29,260	22,890
General and administrative
Stock-based compensation
Total	$ 9,219	$ 8,971	$ 16,059	$ 14,100

Stock-Based Compensation - Number of Shares Available for Issuance (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	6 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2014	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Number of shares available for issuance
Number of shares available for issuance, beginning		12,495,000		12,495,000
Addition (in shares)		0		0
Granted (in shares)		(1,098,000)		(4,407,000)
Cancelled/expired/forfeited (in shares)		277,000		613,000
Number of shares available for issuance, ending		11,674,000		8,701,000		12,495,000
Aggregate Intrinsic Value
Fair value per ordinary share (in dollars per share)		$ 52.62		$ 47.49		$ 40.99
Cash received from the exercise of stock option		$ 226	$ 108	$ 1,214	$ 122
2014 Plan
Number of shares available for issuance
Addition (in shares)	1,000,000.0
Options
Number of shares available for issuance
Granted (in shares)		0		0
Options Outstanding
Outstanding at the beginning of the year (in shares)		551,000		551,000
Granted (in shares)		0		0
Exercised (in shares)		(72,000)		(102,000)
Cancelled/expired/forfeited (in shares)		(10,000)		(54,000)
Outstanding at the end of the year (in shares)		469,000		395,000		551,000
Vested and expected to vest at the end of the year (in shares)		423,000		359,000
Exercisable at the end of the year (in shares)		0		85,000
Weighted Average Exercise Price
Outstanding at the beginning of the year (in dollars per share)		$ 28.85		$ 28.85
Granted (in dollars per share)		0		0
Exercised (in dollars per share)		3.50		12.11
Cancelled/expired/forfeited (in dollars per share)		32.68		32.68
Outstanding at the end of the year (in dollars per share)		32.68		32.68		$ 28.85
Vested and expected to vest at the end of the year (in dollars per share)		32.68		32.68
Exercisable at the end of the year (in dollars per share)		$ 0		$ 32.68
Weighted Average Remaining Contractual Life (In years)
Outstanding at the end of the year		6 years 1 month 6 days		5 years 10 months 24 days		5 years 9 months 18 days
Vested and expected to vest at the end of the year		6 years 1 month 6 days		5 years 10 months 24 days
Exercisable at the end of the year		0 years		5 years 10 months 24 days
Aggregate Intrinsic Value
Outstanding at the end of the year		$ 9,342		$ 5,847		$ 6,683
Vested and expected to vest at the end of the year		8,428		5,316
Exercisable at the end of the year		0		1,263
Total intrinsic value of options exercised		3,400		4,000
Cash received from the exercise of stock option		200	$ 100	1,200	$ 100
Unrecognized compensation cost		$ 4,500		$ 3,600
Expected weighted-average recognition period for unrecognized compensation cost		3 years 1 month 6 days		2 years 10 months 24 days
Options \| 2014 Plan
Number of shares available for issuance
Granted (in shares)		0		0
Options Outstanding
Granted (in shares)		0		0
Restricted share units \| 2014 Plan
Number of shares available for issuance
Restricted shares units granted (in shares)		1,100,000		4,400,000

Stock-Based Compensation - Summary of Option Activities (Details) - Options - $ / shares shares in Thousands	6 Months Ended	9 Months Ended
	Jun. 30, 2021	Sep. 30, 2021
Range of Exercise Prices
Exercise prices, outstanding stock option awards (in dollars per share)		$ 32.68
Options Outstanding (in shares)		395
Weighted Average Exercise Price (in dollars per share)		$ 32.68
Options Exercisable (in shares)		85
Weighted Average Exercise Price (in dollars per share)		$ 32.68
Weighted Average Remaining Contractual Life (In years)		5 years 10 months 24 days
$0.96 - 1.80
Range of Exercise Prices
Exercise prices, outstanding stock option awards, low end of range (in dollars per share)	$ 32.68
Options Outstanding (in shares)	469
Weighted Average Exercise Price (in dollars per share)	$ 32.68
Options Exercisable (in shares)	0
Weighted Average Exercise Price (in dollars per share)	$ 0
Weighted Average Remaining Contractual Life (In years)	0 years

Stock-Based Compensation - Restricted Share Units (Details) - USD ($) $ / shares in Units, shares in Thousands	6 Months Ended	9 Months Ended
	Jun. 30, 2021	Sep. 30, 2021
Performance-Based Restricted Share Units
Shares Granted
Outstanding at the beginning of the period (in shares)	17	17
Awarded (in shares)	1	15
Vested (in shares)	(2)	(2)
Cancelled (in shares)	(15)	(19)
Outstanding at the end of the period (in shares)	1	11
Weighted-Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share)	$ 36.49	$ 36.49
Awarded (in dollars per share)	47.09	54.08
Vested (in dollars per share)	36.49	38.78
Cancelled (in dollars per share)	36.49	40.63
Outstanding at the end of the period (in dollars per share)	$ 47.09	$ 54.17
Unrecognized compensation cost	$ 0	$ 0
Service-based restricted share units
Shares Granted
Outstanding at the beginning of the period (in shares)	4,324	4,324
Awarded (in shares)	1,097	4,392
Vested (in shares)	(520)	(1,299)
Cancelled (in shares)	(252)	(540)
Outstanding at the end of the period (in shares)	4,649	6,877
Weighted-Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share)	$ 41.86	$ 41.86
Awarded (in dollars per share)	46.06	50.44
Vested (in dollars per share)	52.65	44.28
Cancelled (in dollars per share)	38.98	44.01
Outstanding at the end of the period (in dollars per share)	$ 41.81	$ 46.72
Unrecognized compensation cost	$ 134,400,000	$ 232,900,000
Expected weighted-average recognition period for unrecognized compensation cost	2 years 8 months 12 days	3 years 3 months 18 days
Total fair value vested	$ 27,400,000	$ 66,900,000

Other Balance Sheet Components - Accounts Receivable (Details) - USD ($)	6 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Accounts receivable, net:
Accounts receivable due from third parties, gross	$ 503,126,000		$ 579,502,000		$ 343,220,000
Total gross amount	667,089,000		718,993,000		527,166,000
Allowance for credit losses:
Balance at the beginning of the year/period	(35,156,000)	$ (36,594,000)	(35,156,000)	$ (36,594,000)	(36,594,000)
Additional provision charged to expenses, net	(10,444,000)	(25,233,000)	(13,160,000)	(52,900,000)	(53,124,000)
Write-off	9,720,000	22,587,000	13,033,000	32,670,000	54,562,000
Balance at the end of the year/period	(35,880,000)	$ (39,240,000)	(35,283,000)	$ (56,824,000)	(35,156,000)
Accounts receivable, net	631,209,000		683,710,000		492,010,000
Alibaba (Note 10)
Accounts receivable, net:
Accounts receivable due from related parties, gross	122,991,000		98,262,000		135,321,000
Allowance for credit losses:
Balance at the beginning of the year/period	0		0
Balance at the end of the year/period	0		0		0
Other related parties (Note 10)
Accounts receivable, net:
Accounts receivable due from related parties, gross	40,972,000		41,229,000		48,625,000
Allowance for credit losses:
Balance at the beginning of the year/period	(6,095,000)		(6,095,000)
Balance at the end of the year/period	0		(64)		(6,095,000)
Third parties
Allowance for credit losses:
Balance at the beginning of the year/period	(29,061,000)		(29,061,000)
Balance at the end of the year/period	$ (35,880,000)		$ (35,219,000)		$ (29,061,000)

Other Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Prepaid expenses and other current assets:
Rental and other deposits	$ 876	$ 1,169	$ 1,186
Deductible value-added taxes	4,545	4,960	598
Investment prepayments	310	15,487	15,308
Loans to and interest receivable from other related parties (Note 10)	283,904	336,558	158,622
Loans to and interest receivable from third parties	575,323	148,891	41,784
Advertising prepayment	9,471	11,907	18,888
Prepayment to outsourced service providers	3,809	3,727	3,719
Amounts deposited by users	51,412	49,849	45,745
Content fees	199	352	3,080
Others	14,195	14,393	7,827
Prepaid expenses and other current assets	$ 944,044	$ 587,293	$ 296,757

Other Balance Sheet Components - Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Property and equipment, net:
Property and equipment, gross	$ 200,212	$ 189,290	$ 179,545
Accumulated depreciation	(135,816)	(128,257)	(118,913)
Property and equipment, net	64,396	61,033	60,632
Computers and equipment
Property and equipment, net:
Property and equipment, gross	183,829	173,498	165,880
Leasehold improvements
Property and equipment, net:
Property and equipment, gross	6,923	6,924	6,429
Furniture and fixtures
Property and equipment, net:
Property and equipment, gross	2,310	2,437	2,159
Other
Property and equipment, net:
Property and equipment, gross	$ 7,150	$ 6,431	$ 5,077

Other Balance Sheet Components - Other non-current assets (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Other non-current assets
Investment related deposits	$ 410,741	$ 408,432	$ 15,450
Prepayment for purchase of SINA Plaza(2)	131,859	131,636	0
Deferred tax assets	27,325	27,279	27,020
Others	7,702	14,998	2,126
Other non-current assets	577,627	582,345	$ 44,596
A micro loan company
Other non-current assets
Investment related deposits	76,800	76,700
An insurance company
Other non-current assets
Investment related deposits	79,100	79,000
A game company
Other non-current assets
Investment related deposits	$ 223,900	$ 221,900

Other Balance Sheet Components - Accrued and other Liabilities (Details) - USD ($)	6 Months Ended	9 Months Ended	12 Months Ended
	Jun. 30, 2021	Sep. 30, 2021	Dec. 31, 2020
Accrued and other liabilities:
Payroll and welfare	$ 138,603,000	$ 177,235,000	$ 126,023,000
Marketing expenses	79,173,000	77,339,000	59,410,000
Sales rebates	312,418,000	296,560,000	222,064,000
Professional fees	7,431,000	7,482,000	3,880,000
VAT and other tax payable	54,744,000	57,339,000	49,971,000
Amounts due to users	49,849,000	51,412,000	45,745,000
Unpaid consideration for acquisition	0	6,205,000	10,280,000
Unpaid consideration for investment	434,000	434,000	19,257,000
Prepayment received for sale of an investee		12,410,000	0
Interest payable for convertible debt and unsecured senior notes	27,579,000	17,063,000	923,000
Others	22,159,000	29,040,000	19,200,000
Total accrued and other liabilities	692,390,000	732,519,000	556,753,000
Prepayment for purchase of SINA Plaza	131,636,000	131,859,000	0
Impairment charges on investment prepayments	$ 0	$ 0	$ 1,500,000

Income Taxes (Details) $ in Millions		6 Months Ended		9 Months Ended		12 Months Ended
Income Taxes (Details) $ in Millions	Jan. 01, 2015	Jun. 30, 2021 USD ($) jurisdiction	Jun. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) jurisdiction	Sep. 30, 2020 USD ($)	Dec. 31, 2021	Dec. 31, 2020 USD ($)	Dec. 31, 2019 HKD ($)	Dec. 31, 2018
Income taxes
Number of taxable jurisdictions \| jurisdiction		2		2
Components of income before income taxes
Income before income tax expenses		$ 191,805,000	$ 306,631,000	$ 405,011,000	$ 370,109,000
Less: Income (Loss) from non-China operations		(163,411,000)	79,717,000	(198,398,000)	64,479,000
Income from China operations		355,216,000	226,914,000	603,409,000	305,630,000
Income tax expense (benefits)		$ 61,855,000	$ 56,627,000	$ 93,260,000	$ 86,630,000
Effective tax rate for China operations (as a percent)		18.60%	19.10%	17.10%	24.30%
Period of income tax exemption	5 years
HNTE status review period		3 years		3 years
Composition of income tax expenses for China operations
Deferred tax provisions (benefits)		$ (5,061,000)	$ 12,745,000	$ (11,546,000)	$ 11,682,000
Current income tax expenses		66,916,000	43,882,000	104,806,000	74,948,000
Income tax expenses		61,855,000	56,627,000	93,260,000	86,630,000
Deferred tax assets:
Net operating loss carry forwards		8,976,000		8,991,000			$ 8,872,000
Valuation allowance		(8,976,000)		(8,991,000)			(8,872,000)
Depreciation, investment-related impairment, accounts receivable, accrued and other liabilities		109,154,000		109,338,000			107,892,000
Valuation allowance		(81,875,000)		(82,013,000)			(80,872,000)
Net deferred tax assets (included in other non-current assets)		27,279,000		27,325,000			27,020,000
Deferred tax liabilities:
Acquired intangible assets		32,652,000		36,768,000			30,999,000
Depreciation		1,452,000		1,454,000			1,435,000
Investment gain		21,571,000		15,857,000			25,496,000
Others		373,000		374,000			369,000
Total deferred tax liabilities		56,048,000		54,453,000			58,299,000
Valuation allowance on deferred tax assets		90,900,000		91,000,000.0			89,700,000
Interest and penalties related to uncertain tax positions		0		0			$ 0
Liability related to uncertain tax positions expected to be recognized		27,900,000		27,900,000
Non-China
Components of income before income taxes
Income tax expense (benefits)		(4,275,000)	13,296,000	(9,757,000)	12,358,000
Deferred tax charge (reverse) from fair value change of investments		(4,300,000)	13,300,000	(9,800,000)	12,400,000
Composition of income tax expenses for China operations
Income tax expenses		$ (4,275,000)	13,296,000	$ (9,757,000)	12,358,000
Cayman Islands
Components of income before income taxes
Withholding income tax on dividends distributed by subsidiaries to its immediate holding entity outside China (as a percent)		0.00%
Hong Kong
Components of income before income taxes
Withholding profits earned								$ 2
Income tax rate (as a percent)		16.50%		16.50%			16.50%	16.50%	16.50%
Withholding income tax rate for dividend paid to foreign tax resident investors (as a percentage)								8.25%
China Contribution Plan
Components of income before income taxes
Income tax expense (benefits)		$ 66,130,000	43,331,000	$ 103,017,000	74,272,000
Withholding income tax on dividends distributed by subsidiaries to its immediate holding entity outside China (as a percent)		10.00%		10.00%
Income tax rate (as a percent)		25.00%		25.00%
Maximum percentage of withholding income tax on dividends distributed by subsidiaries to its immediate holding entity in Hong Kong		5.00%		5.00%
Percentage of ownership interests held by foreign investors		25.00%		25.00%
Percentage of withholding income tax on dividends distributed by PRC subsidiaries to its immediate holding company in Hong Kong		5.00%		5.00%
Composition of income tax expenses for China operations
Income tax expenses		$ 66,130,000	$ 43,331,000	$ 103,017,000	$ 74,272,000
Deferred tax liabilities:
Historical rate for valuing deferred tax assets (as a percent)		25.00%		25.00%
China Contribution Plan \| High and New Technology Enterprises
Components of income before income taxes
Preferential statutory rate (as a percent)		15.00%				15.00%	15.00%

Related Party Transactions (Details) - USD ($)	6 Months Ended		9 Months Ended		12 Months Ended
Related Party Transactions (Details) - USD ($)	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Related party transactions
Costs and expenses allocated from SINA(2)	$ 18,603,000	$ 23,129,000	$ 28,796,000	$ 29,126,000
Related party outstanding balance:
Amount due from SINA (Note 10)	498,618,000		515,534,000		$ 548,900,000
Loans to and interest receivable	336,558,000		283,904,000		158,622,000
Impairment charges on loans to and interest receivable from other related parties			$ 0	$ 50,200,000
Accounts receivable due from other related parties	41,000,000.0				42,500,000
Accounts payable due to other related parties	28,700,000				30,800,000
Accrued and other liabilities due to other related parties	$ 5,400,000				4,800,000
impairment charges on loans to and interest receivable from other related parties					82,200,000
SINA (Note 10)
Related party transactions
Loan agreement term	1 year	1 year	1 year	1 year
Loan to SINA	$ 310,923,000	$ 188,194,000	$ 481,215,000	$ 443,637,000
Loan repaid by SINA	388,354,000	146,697,000	547,660,000	146,697,000
Revenue billed through SINA	24,586,000	23,712,000	46,374,000	29,233,000
Revenue from services provided to SINA	11,707,000	11,534,000	21,199,000	15,541,000
Total revenues	36,293,000	35,246,000	67,573,000	44,774,000
Costs and expenses allocated from SINA(2)	18,603,000	23,129,000	28,796,000	29,126,000
Interest income on loans to SINA	9,995,000	4,936,000	13,985,000	8,647,000
Other costs and expenses billed by SINA	21,900,000	20,100,000	35,500,000	32,900,000
Costs and expenses paid by Weibo on behalf of SINA and allocated	1,500,000	3,000,000.0	2,200,000	5,700,000
Related party outstanding balance:
Amount due from SINA (Note 10)	498,618,000		515,534,000		548,900,000
Loans to and interest receivable	480,700,000		487,900,000		547,900,000
Alibaba (Note 10)
Related party transactions
Services provided by Alibaba	21,504,000	26,400,000	33,462,000	39,634,000
Related party outstanding balance:
Accounts receivable due from related parties	122,991,000		98,262,000		135,321,000
Alibaba (Note 10) \| Advertiser
Related party transactions
Total revenues	73,266,000	63,313,000
Related party outstanding balance:
Accounts receivable due from related parties	122,991,000				135,321,000
Alibaba (Note 10) \| Agent
Related party transactions
Total revenues	36,652,000	9,229,000
Company A
Related party outstanding balance:
Loans to and interest receivable	18,546,000				79,762,000
Company B
Related party outstanding balance:
Loans to and interest receivable	15,056,000		15,082,000		21,771,000
Company C
Related party outstanding balance:
Loans to and interest receivable	270,898,000		231,304,000		41,205,000
Other related parties (Note 10)
Related party transactions
Total revenues	22,700,000	18,000,000.0
Related party outstanding balance:
Accounts receivable due from related parties	40,972,000		41,165,000		42,530,000
Loans to and interest receivable	32,058,000		37,518,000		15,884,000
Other revenues generated from related parties	900,000	900,000	1,700,000	1,800,000
Cost and expenses recognized from transactions with other related parties	$ 20,200,000	16,700,000	29,100,000	30,100,000
Accounts payable due to other related parties			19,700,000		30,800,000
Accrued and other liabilities due to other related parties			$ 6,300,000		$ 4,800,000
Minimum \| SINA (Note 10)
Related party outstanding balance:
Annual interest rate	1.00%				1.00%
Minimum \| Company B
Related party outstanding balance:
Annual interest rate	3.50%		3.50%
Maximum \| SINA (Note 10)
Related party outstanding balance:
Annual interest rate	4.50%		4.50%
Maximum \| Company B
Related party outstanding balance:
Annual interest rate	10.00%		10.00%
Advertising and marketing revenues \| SINA (Note 10)
Related party transactions
Total revenues	$ 30,931,000	27,624,000	$ 58,178,000	34,149,000
Advertising and marketing revenues \| Alibaba (Note 10) \| Advertiser
Related party transactions
Total revenues			94,068,000	92,468,000
Advertising and marketing revenues \| Alibaba (Note 10) \| Agent
Related party transactions
Total revenues			40,824,000	20,438,000
Advertising and marketing revenues \| Other related parties (Note 10)
Related party transactions
Total revenues			38,700,000	33,400,000
Value-added services revenues \| SINA (Note 10)
Related party transactions
Total revenues			$ 9,395,000	$ 10,625,000
Other revenues \| SINA (Note 10)
Related party transactions
Total revenues	$ 5,362,000	$ 7,622,000

Employee Benefit Plans (Details) - USD ($) $ in Millions	6 Months Ended		9 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
China Contribution Plan
Employee Benefit Plans
Employer contribution under China Contribution Plan	$ 37.8	$ 21.4	$ 58.4	$ 34.3

Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Numerator:
Net income attributable to Weibo's shareholders	$ 130,848	$ 250,524	$ 312,586	$ 284,322
Denominator:
Weighted average ordinary shares outstanding (in shares)	227,936	226,535	228,185	226,728
Basic net income per share attributable to Weibo's shareholders (in dollars per share)	$ 0.57	$ 1.11	$ 1.37	$ 1.25
Numerator:
Net income attributable to Weibo's shareholders for calculating diluted net income per share	$ 130,848	$ 250,524	$ 312,586	$ 284,322
Denominator:
Weighted average ordinary shares outstanding (in shares)	227,936	226,535	228,185	226,728
Shares used in computing diluted net income per share attributable to Weibo's shareholders	229,429	227,129	229,765	227,352
Diluted net income per share attributable to Weibo's shareholders	$ 0.57	$ 1.10	$ 1.36	$ 1.25
Options and RSUs
Anti-dilutive share
Anti-dilutive share excluded from the calculation of diluted net income per share	100	1,000	100	1,000
Denominator:
Effects of dilutive securities (in shares)	1,500	600	1,600	600
Options
Denominator:
Effects of dilutive securities (in shares)	82	76	85	73
Restricted share units
Denominator:
Effects of dilutive securities (in shares)	1,411	518	1,495	551
Convertible notes
Anti-dilutive share
Anti-dilutive share excluded from the calculation of diluted net income per share	6,800	6,800	6,800	6,800

Segment Information (Details) $ in Thousands	6 Months Ended		9 Months Ended
Segment Information (Details) $ in Thousands	Jun. 30, 2021 USD ($) segment	Jun. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) segment	Sep. 30, 2020 USD ($)
Summary information by segment
Number of principal business segments \| segment	2		2
Revenues	$ 1,033,362	$ 710,782	$ 1,640,796	$ 1,176,521
Advertising and marketing revenues
Summary information by segment
Revenues	892,349	616,006	1,429,969	1,032,678
Value-added services revenues
Summary information by segment
Revenues	$ 141,013	$ 94,776	$ 210,827	$ 143,843

- Definition

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Profit Appropriation and Restricted Net Assets (Details) $ in Millions	6 Months Ended	9 Months Ended
	Jun. 30, 2021 USD ($) fund	Sep. 30, 2021 USD ($) fund	Dec. 31, 2020 USD ($)
Minimum percentage of after-tax profit transferred by Chinese subsidiaries to general reserve fund	10.00%	10.00%
Maximum percentage criteria for appropriation of after-tax profit of Chinese subsidiaries to general reserve fund	50.00%	50.00%
Number of reserve funds except general reserve fund, appropriation at the entity's discretion \| fund	2	2
Minimum percentage of after-tax profit transferred by VIEs to statutory reserve fund	10.00%	10.00%
Maximum percentage criteria for in appropriation of after-tax profit by VIEs to certain statutory reserve funds	50.00%	50.00%
Reserves made to non-distributable general reserve/statutory surplus funds (in dollars)	$ 127.0	$ 127.0	$ 127.2
Net assets subject to restriction for the Group (in dollars)	$ 450.3	$ 449.9
Percent of restricted net assets of total consolidated net assets	14.50%	13.50%

Fair Value Measurement - Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Fair Value of Financial Instruments
Bank time deposits	$ 665,983	$ 750,467	$ 1,515,880
Wealth management products	212,504	180,355	166,168
Equity securities with readily determinable market value	420,012	241,590	289,221
Financial instruments measured on a recurring basis
Fair Value of Financial Instruments
Bank time deposits	665,983	750,467	1,515,880
Wealth management products	212,504	180,355	166,168
Equity securities with readily determinable market value	420,012	241,590	289,221
Total	1,298,499	1,172,412	1,971,269
Financial instruments measured on a recurring basis \| Quoted Prices in Active Market for Identical Assets (Level 1)
Fair Value of Financial Instruments
Bank time deposits	0	0	0
Wealth management products	0	0	0
Equity securities with readily determinable market value	420,012	241,590	289,221
Total	420,012	241,590	289,221
Financial instruments measured on a recurring basis \| Significant Other Observable Inputs (Level 2)
Fair Value of Financial Instruments
Bank time deposits	665,983	750,467	1,515,880
Wealth management products	212,504	180,355	166,168
Equity securities with readily determinable market value	0	0	0
Total	878,487	930,822	1,682,048
Financial instruments measured on a recurring basis \| Significant Unobservable Inputs (Level 3)
Fair Value of Financial Instruments
Bank time deposits	0	0	0
Wealth management products	0	0	0
Equity securities with readily determinable market value	0	0	0
Total	$ 0	$ 0	$ 0

Fair Value Measurement - Non-recurring Basis (Details) - USD ($)	6 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Reconciliation of the fair value measurements using significant unobservable inputs
Impairment charge	$ 66,600,000		$ 102,600,000
Impairment charge of goodwill recognized			0	$ 0
Non-recurring
Reconciliation of the fair value measurements using significant unobservable inputs
Impairment charge of goodwill recognized	0	$ 0	0	0
Significant Unobservable Inputs (Level 3) \| Non-recurring
Reconciliation of the fair value measurements using significant unobservable inputs
Impairment charge	$ 66,600,000	$ 2,500,000	$ 102,600,000	$ 64,700,000

Convertible Debt and Unsecured Senior Notes (Details) $ / shares in Units, $ in Thousands	1 Months Ended			6 Months Ended		9 Months Ended
	Jul. 31, 2020 USD ($)	Jul. 31, 2019 USD ($)	Oct. 31, 2017 USD ($) $ / shares	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)
Convertible Debt
Proceeds from unsecured senior notes, net of issuance costs							$ 740,324
2030 Notes
Convertible Debt
Interest expense						$ 19,700
Convertible notes \| 2022 Notes
Convertible Debt
Aggregate principal amount			$ 900,000	$ 900,000		$ 900,000
Coupon interest (as a percent)			1.25%	1.25%		1.25%
Due date of the Notes			Nov. 15, 2022
Proceeds from unsecured senior notes, net of issuance costs			$ 879,300
Issuance costs			$ 20,700
Interest expense				$ 7,700	$ 7,700	$ 11,500	11,500
Convertible notes \| 2022 Notes \| Class A ordinary shares
Convertible Debt
Conversion ratio per ADS			1
Initial conversion price (in dollars per ADS) \| $ / shares			$ 133.27
Unsecured senior notes \| 2024 Notes
Convertible Debt
Aggregate principal amount		$ 800,000		$ 800,000		$ 800,000
Coupon interest (as a percent)		3.50%		3.50%		3.50%
Proceeds from unsecured senior notes, net of issuance costs		$ 793,300
Issuance costs		$ 6,700
Interest expense				$ 14,700	$ 14,700	$ 22,000	22,000
Unsecured senior notes \| 2030 Notes
Convertible Debt
Aggregate principal amount	$ 750,000			$ 750,000		$ 750,000
Coupon interest (as a percent)	3.375%			3.375%		3.375%
Proceeds from unsecured senior notes, net of issuance costs	$ 740,300
Issuance costs	$ 9,700
Interest expense				$ 13,100			$ 6,100

Commitments and Contingencies (Details) - USD ($) $ in Thousands	6 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Jul. 31, 2020	Jul. 31, 2019	Oct. 31, 2017
Commitments and Contingencies
Lease expense	$ 7,900	$ 6,000	$ 12,200	$ 9,200
Operating lease commitments as of June 30, 2021
Total future payments for recognized leasing assets	12,800		11,391
Less than One Year	6,020		5,001
One to Three Years	3,632		3,596
Three to Five Years	2,855		2,661
More than Five Years	293		133
Purchase commitments as of June 30, 2021
Total	591,545		620,620
Less than One Year	561,167		588,994
One to Three Years	28,263		29,613
Three to Five Years	2,093		2,006
More than Five Years	22		7
Convertible notes
Other commitments as of June 30, 2021
Total	2,805,336		2,778,679
Less than One Year	64,563		64,562
One to Three Years	1,012,242		1,812,242
Three to Five Years	864,625		50,625
More than Five Years	863,906		851,250
Convertible notes \| 2022 Notes
2022, 2024 and 2030 Notes
Aggregate principal amount	$ 900,000		$ 900,000				$ 900,000
Interest rate (as a percent)	1.25%		1.25%				1.25%
Other commitments as of June 30, 2021
Total	$ 916,867		$ 916,867
Less than One Year	11,250		11,250
One to Three Years	905,617		905,617
Three to Five Years	0		0
More than Five Years	0		0
Convertible notes \| 2024 Notes
Other commitments as of June 30, 2021
Total	898,000		884,000
Less than One Year	28,000		28,000
One to Three Years	56,000		856,000
Three to Five Years	814,000		0
More than Five Years	0		0
Convertible notes \| 2030 Notes
Other commitments as of June 30, 2021
Total	990,469		977,812
Less than One Year	25,313		25,312
One to Three Years	50,625		50,625
Three to Five Years	50,625		50,625
More than Five Years	863,906		851,250
Unsecured senior notes \| 2024 Notes
2022, 2024 and 2030 Notes
Aggregate principal amount	$ 800,000		$ 800,000			$ 800,000
Interest rate (as a percent)	3.50%		3.50%			3.50%
Unsecured senior notes \| 2030 Notes
2022, 2024 and 2030 Notes
Aggregate principal amount	$ 750,000		$ 750,000		$ 750,000
Interest rate (as a percent)	3.375%		3.375%		3.375%

Redeemable Non-controlling Interests (Details) - USD ($)	6 Months Ended			9 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Mezzanine adjustment recognized		$ 0		$ 0
Compensation costs recognized	$ 36,221,000		$ 30,188,000	61,258,000	$ 47,785,000
Redeemable non-controlling interest increased	$ 2,341,000			$ 2,792,000
JM Tech
Term for employment required by founders to be entitled to their proportionate share in existing and future retained earnings	2 years			2 years
Compensation costs recognized	$ 13,300,000			$ 18,400,000
Redeemable non-controlling interest increased	$ 10,900,000			$ 15,600,000