Print Page Print Page  |  E-mail Page E-mail Page  |  RSS RSS  |  E-mail Alerts E-mail Alerts

Press Releases

<< Back
Printer Friendly Version View printer-friendly version
Weibo Reports Second Quarter 2016 Financial Results

BEIJING, Aug. 8, 2016 /PRNewswire/ -- Weibo Corporation ("Weibo" or the "Company") (NASDAQ: WB), a leading social media in China, today announced its unaudited financial results for the second quarter ended June 30, 2016.

Second Quarter 2016 Highlights

  • Net revenues increased 36% year over year to $146.9 million, exceeding the Company's guidance between $138 million and $143 million.
  • Advertising and marketing revenue increased 45% year over year to $127.2 million.
  • Weibo Value-Added Services ("VAS") revenue was $19.7 million, compared to $20.0 million for the same period last year.
  • Net income attributable to Weibo increased 516% year over year to $25.9 million, and diluted net income per share was $0.12, compared to $0.02 for the same period last year.
  • Non-GAAP net income attributable to Weibo increased 225% year over year to $35.5 million, and non-GAAP diluted net income per share was $0.16, compared to $0.05 for the same period last year.
  • Adjusted EBITDA increased 152% year over year to $38.8 million, or 26% of net revenues.
  • Monthly active users ("MAUs") in June 2016 grew 33% year over year to 282 million, 89% of which were mobile users. Average daily active users ("DAUs") in June 2016 grew 36% year over year to 126 million.  

"Weibo is benefiting from the strong adoption of social marketing with key account and SME revenues growing 73% and 107% year over year, respectively, in the second quarter." said Gaofei Wang, Weibo's CEO. "User growth continues to be robust, especially coming from mobile, where we are seeing short video and live video taking off. Additionally, we are seeing strong operating leverage from Weibo's financial model, resulting from strong revenue growth, coupled with the platform nature of our business model."  

Second Quarter 2016 Financial Results

For the second quarter of 2016, Weibo reported net revenues of $146.9 million, compared to $107.8 million for the same period last year. Advertising and marketing revenue totaled $127.2 million, compared to $87.9 million for the same period last year. Advertising and marketing revenue from key accounts and small & medium-sized enterprises (SME) was $114.3 million, compared to $59.4 million for the same period last year. Revenue from Alibaba was $12.8 million, compared to $28.4 million for the same period last year. Weibo VAS revenue totaled $19.7 million, compared to $20.0 million for the same period last year.

Costs and expenses for the second quarter of 2016 totaled $119.6 million, compared to $105.5 million for the same period last year. Non-GAAP costs and expenses were $112.2 million, compared to $98.1 million for the same period last year. The increase in non-GAAP costs and expenses was primarily due to an increase in bandwidth costs resulting from strong video consumption and overall growth in traffic, increase in marketing expenses and value added taxes associated with higher revenues, and higher personnel-related costs.  

Income from operations for the second quarter of 2016 was $27.3 million, compared to $2.3 million for the same period last year. Non-GAAP income from operations was $34.7 million, compared to $9.7 million for the same period last year.

Non-operating loss for the second quarter of 2016 was $1.0 million, compared to a non-operating income of $2.2 million for the same period last year.  

Net income attributable to Weibo for the second quarter of 2016 was $25.9 million, or diluted net income per share of $0.12, compared to $4.2 million for the same period last year, or diluted net income per share of $0.02. Non-GAAP net income attributable to Weibo for the second quarter of 2016 was $35.5 million, or diluted net income per share of $0.16, compared to $10.9 million for the same period last year, or diluted net income per share of $0.05.  

As of June 30, 2016, Weibo's cash, cash equivalents and short-term investments totaled $396.5 million. For the second quarter of 2016, cash provided by operating activities was $24.1 million, capital expenditures totaled $1.5 million, and depreciation and amortization expenses amounted to $3.5 million.

Business Outlook

For the third quarter of 2016, Weibo estimates that its net revenues to be between $168 million and $173 million. This forecast reflects Weibo's current and preliminary view, which is subject to change.  

Non-GAAP Measures

This release contains the following non-GAAP financial measures: non-GAAP costs and expenses, non-GAAP income (loss) from operations, non-GAAP net income, non-GAAP diluted net income per share attributable to Weibo and adjusted EBITDA. These non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of the Company's financial performance prepared in accordance with U.S. GAAP.  

The Company's non-GAAP financial measures exclude stock-based compensation, amortization of intangible assets and related tax provision, gain on the sale of investments and impairment on investments, net, and dividend income. In addition, adjusted EBITDA excludes depreciation expenses, interest income, net, and income tax expenses. The Company's management uses these non-GAAP financial measures in their financial and operating decision-making, because management believes these measures reflect the Company's ongoing operating performance in a manner that allows more meaningful period-to-period comparisons. The Company believes that these non-GAAP financial measures provide useful information to investors and others in the following ways: (i) in comparing the Company's current financial results with the Company's past financial results in a consistent manner, and (ii) in understanding and evaluating the Company's current operating performance and future prospects in the same manner as management does, if they so choose. The Company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gains (losses) and other items (i) that are not expected to result in future cash payments or (ii) that are non-recurring in nature or may not be indicative of the Company's core operating results and business outlook.

Use of non-GAAP financial measures has limitations. The Company's non-GAAP financial measures do not include all income and expense items that affect the Company's operations.  They may not be comparable to non-GAAP financial measures used by other companies.  Accordingly, care should be exercised in understanding how the Company defines its non-GAAP financial measures. Reconciliations of the Company's non-GAAP measures to the nearest comparable GAAP measures are set forth in the section below titled "Unaudited Reconciliation of Non-GAAP to GAAP Results."  

Conference Call

Weibo will host a conference call at 9 PM - 10 PM Eastern Time on August 8, 2016 (or 9 AM - 10 AM Beijing Time on August 9, 2016) to present an overview of the Company's financial performance and business operations. A live webcast of the call will be available through the Company's corporate website at http://ir.weibo.com. The conference call can be accessed as follows:

US Toll Free:  +1 (888) 346-8982
Hong Kong Toll Free:  +852 800-905-945
China Toll Free:  +86 400-120-1203
International:  +1 (412) 902-4272
Passcode for all regions:  Weibo

A replay of the conference call will be available through midnight Eastern Time, August 15, 2016. The dial-in number is +1 (412) 317-0088. The passcode for the replay is 10089309.

About Weibo Corporation

Weibo is a leading social media for people to create, share and discover Chinese-language content. Weibo combines the means of public self-expression in real time with a powerful platform for social interaction, as well as content aggregation and distribution. Any user can create and post a feed of up to 140 Chinese characters and attach multi-media or long-form content. User relationships on Weibo may be asymmetric; any user can follow any other user and add comments to a feed while reposting. This simple, asymmetric and distributed nature of Weibo allows an original feed to become a live viral conversation stream.

Weibo enables its advertising and marketing customers to promote their brands, products and services to users. Weibo offers a wide variety of advertising and marketing solutions to its customers, ranging from large brand advertisers to Alibaba/e-commerce merchants to small and medium sized enterprises to individuals. The Company generates a substantial majority of revenues from the sale of advertising and marketing services, including the sale of social display ads, promoted feeds and event-based ad solutions. Weibo has developed and is continuously refining its social interest graph recommendation engine, which enables its customers to perform people marketing and target audiences based on user demographics, social relationships, interests and behaviors, to achieve greater relevance, engagement and marketing effectiveness.

Safe Harbor Statement

This press release contains forward-looking statements that relate to, among other things, Weibo's expected financial performance and strategic and operational plans (as described, without limitation, in the "Business Outlook" section and in quotations from management in this press release. Weibo may also make forward-looking statements in the Company's periodic reports to the U.S. Securities and Exchange Commission ("SEC"), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. These forward-looking statements can be identified by terminology, such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "confidence," "estimates" and similar statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, Weibo's limited operating history in certain new businesses; failure to grow active user base and the level of user engagement; the uncertain regulatory landscape in China; fluctuations in the Company's quarterly operating results; the Company's reliance on advertising and marketing sales for a majority of its revenues; failure to successfully develop, introduce, drive adoption of or monetize new features and products; failure to compete effectively for advertising and marketing spending; failure to develop the small and medium enterprise market by the Company or through cooperation with other parties, including Alibaba; failure to successfully integrate acquired businesses; risks associated with the Company's investments, including equity pick-up and impairment; failure to compete successfully against new entrants and established industry competitors; changes in the macro-economic environment, including the depreciation of the Renminbi; and adverse changes in economic and political policies of the PRC government and its impact on the Chinese economy. Further information regarding these and other risks is included in Weibo's annual report on Form 20-F for the fiscal year ended December 31, 2015 filed with the SEC on April 28, 2016 and other filings with the SEC. All information provided in this press release is current as of the date hereof, and Weibo assumes no obligation to update such information, except as required under applicable law. 

Contact:

Investor Relations
Weibo Corporation
Phone: +86 10 5898-3017
Email: ir@staff.weibo.com

 

WEIBO CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)












Three months ended


Six months ended


June 30,


March 31,


June 30,


2016


2015


2016


2016


2015

Net revenues:










     Advertising and marketing

$   127,173


$     87,867


$     99,246


$   226,419


$   167,027

     Weibo VAS

19,712


19,975


20,044


39,756


37,105

          Total net revenues

146,885


107,842


119,290


266,175


204,132











Costs and expenses:










     Cost of revenues (a)

40,657


33,689


36,626


77,283


62,614

     Sales and marketing (a)

32,166


28,514


30,041


62,207


59,700

     Product development (a)

37,611


35,009


36,934


74,545


69,337

     General and administrative (a)

9,200


8,292


8,538


17,738


14,664

          Total costs and expenses

119,634


105,504


112,139


231,773


206,315

Income (loss) from operations

27,251


2,338


7,151


34,402


(2,183)











Non-operating income (loss):










    Gain on sale of and impairment on investments, net

(3,440)


608


(868)


(4,308)


608

    Interest and other income , net

2,411


1,621


1,420


3,831


3,077


(1,029)


2,229


552


(477)


3,685











Income before income tax expenses

26,222


4,567


7,703


33,925


1,502

     Income tax expenses

(1,796)


(414)


(548)


(2,344)


(409)

Net income

24,426


4,153


7,155


31,581


1,093

    Less: Net income (loss) attributable to
    noncontrolling interest

(1,431)


(43)


57


(1,374)


(53)











Net income attributable to Weibo

$     25,857


$       4,196


$       7,098


$     32,955


$       1,146





















Basic net income per share attributable to Weibo

$          0.12


$          0.02


$          0.03


$          0.15


$          0.01

Diluted net income per share attributable to Weibo

$          0.12


$          0.02


$          0.03


$          0.15


$          0.01











Shares used in computing basic










   net income per share attributable to Weibo

213,537


207,512


212,269


212,903


206,267

Shares used in computing diluted










   net income per share attributable to Weibo

221,611


218,125


219,626


220,780


217,351











(a) Stock-based compensation in each category:










          Cost of revenues

$           543


$           289


$           508


$       1,051


$           541

          Sales and marketing

900


735


1,018


1,918


1,429

          Product development

2,501


2,401


3,555


6,056


4,709

          General and administrative

3,364


3,568


3,406


6,770


5,861

 

 

WEIBO CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)












June 30,


December 31,




2016


2015









Assets

Current assets:








Cash and cash equivalents

$

129,942


$

237,440



Short-term investments


266,575



98,439



Accounts receivable, net


114,585



120,230



Prepaid expenses and other current assets


48,191



42,295



      Current assets subtotal


559,293



498,404









Property and equipment, net


20,312



22,850

Goodwill and intangible assets, net


12,199



13,083

Investments


293,713



294,679

Other assets


5,242



10,173

Total assets

$

890,759


$

839,189









Liabilities and Shareholders' Equity 

Liabilities:






Current liabilities:








Accounts payable *

$

30,461


$

40,456



Accrued liabilities *


134,429



117,040



Deferred revenues


35,743



39,091



Amount due to SINA


17,617



12,188



     Current liabilities subtotal


218,250



208,775










Long-term liability


2,065



2,385



Total liabilities


220,315



211,160









Shareholders' equity :







Weibo shareholders' equity 


664,589



620,672


Non-controlling interest


5,855



7,357



Total shareholders' equity 


670,444



628,029









Total liabilities and shareholders' equity 

$

890,759


$

839,189









* Commencing on January 1, 2016, in order to enhance comparability with industry peers, payables that have been invoiced or formally agreed with the suppliers were recorded in accounts payable. To conform to current period presentations, the relevant amounts in prior periods have been reclassified from accrued liabilities accordingly. Such reclassification amounted to $37.9 million as of December 31, 2015.

 

 

WEIBO CORPORATION

UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS

(In thousands, except per share data)
























Three months ended




June 30, 2016


June 30, 2015


March 31, 2016
























Non-GAAP






Non-GAAP






Non-GAAP




Actual


Adjustments


Results


Actual


Adjustments


Results


Actual


Adjustments


Results





















Advertising and marketing

$ 127,173




$ 127,173


$    87,867




$    87,867


$    99,246




$    99,246

Weibo VAS

19,712




19,712


19,975




19,975


20,044




20,044


Net revenues

$ 146,885




$ 146,885


$ 107,842




$ 107,842


$ 119,290




$ 119,290


























(7,308)

 (a)





(6,993)

 (a)





(8,487)

 (a)







(161)

 (b)





(373)

 (b)





(241)

 (b)


Total costs and expenses

$ 119,634


$    (7,469)


$ 112,165


$ 105,504


$    (7,366)


$    98,138


$ 112,139


$    (8,728)


$ 103,411


























7,308

 (a)





6,993

 (a)





8,487

 (a)







161

 (b)





373

 (b)





241

 (b)


Income from operations

$    27,251


$      7,469


$    34,720


$      2,338


$      7,366


$      9,704


$      7,151


$      8,728


$    15,879


























7,308

 (a)





6,993

 (a)





8,487

 (a)







161

 (b)





373

 (b)





241

 (b)







(40)

 (c)





(93)

 (c)





(60)

 (c)







3,440

 (d)





(608)

 (d)





868

 (d)







(1,177)

 (e)





80

 (e)





(280)

 (e)


Net income attributable to Weibo

$    25,857


$      9,692


$    35,549


$      4,196


$      6,745


$    10,941


$      7,098


$      9,256


$    16,354





















Diluted net income per share
    attributable to Weibo

$        0.12




$        0.16


$        0.02




$        0.05


$        0.03




$        0.07





















Shares used in computing  diluted


















    net income per share attributable to Weibo

221,611




221,611


218,125




218,125


219,626




219,626





















Adjusted EBITDA:







































Non-GAAP net income





$    35,549






$    10,941






$    16,354



Interest income, net





(1,893)






(1,562)






(1,300)



Income tax expenses





1,836






507






608



Depreciation expenses





3,316






5,521






3,300


Adjusted EBITDA





$    38,808






$    15,407






$    18,962

















































































WEIBO CORPORATION

UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS

(In thousands, except per share data)
























Six months ended










June 30, 2016


June 30, 2015














Non-GAAP






Non-GAAP










Actual


Adjustments


Results


Actual


Adjustments


Results



























Advertising and marketing

$ 226,419




$ 226,419


$ 167,027




$ 167,027







Weibo VAS

39,756




39,756


37,105




37,105








Net revenues

$ 266,175




$ 266,175


$ 204,132




$ 204,132
































(15,795)

 (a)





(12,540)

 (a)













(402)

 (b)





(744)

 (b)








Total costs and expenses

$ 231,773


$  (16,197)


$ 215,576


$ 206,315


$  (13,284)


$ 193,031
































15,795

 (a)





12,540

 (a)













402

 (b)





744

 (b)








Income (loss) from operations

$    34,402


$    16,197


$    50,599


$    (2,183)


$    13,284


$    11,101
































15,795

 (a)





12,540

 (a)













402

 (b)





744

 (b)













(100)

 (c)





(185)

 (c)













4,308

 (d)





(608)

 (d)













(1,457)

 (e)





70

 (e)




























Net income attributable to Weibo

$    32,955


$    18,948


$    51,903


$      1,146


$    12,561


$    13,707



























Diluted net income per share
    attributable to Weibo

$        0.15




$        0.24


$        0.01




$        0.06



























Shares used in computing  diluted


















    net income per share attributable to Weibo

220,780




220,780


217,351




217,351



























Adjusted EBITDA:







































Non-GAAP net income





$    51,903






$    13,707









Interest income, net





(3,193)






(2,943)









Income tax expenses





2,444






595









Depreciation expenses





6,616






10,780








Adjusted EBITDA





$    57,770






$    22,139



























(a)  To adjust stock-based compensation.

(b)  To adjust amortization of intangible assets.

(c)  To adjust tax provision on amortization of intangible assets.

(d)  To adjust net gain on the sale of investments and impairment on investments and dividend income.

(e)  To adjust income (loss) attributable to non-controlling interests.

 

 

 

WEIBO CORPORATION

UNAUDITED ADDITIONAL INFORMATION

(In thousands)














Three months ended


Six months ended



June 30,


March 31,


June 30,



2016


2015


2016


2016


2015












Net revenues











Advertising and marketing











     Key accounts and small & medium-sized enterprises

$   114,324


$     59,444


$     88,126


$   202,450


$   104,111


     Alibaba

12,849


28,423


11,120


23,969


62,916


         Subtotal

127,173


87,867


99,246


226,419


167,027













Weibo VAS

19,712


19,975


20,044


39,756


37,105



$   146,885


$   107,842


$   119,290


$   266,175


$   204,132

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/weibo-reports-second-quarter-2016-financial-results-300310504.html

SOURCE Weibo

Copyright © Weibo Corp. All Rights Reserved.