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Weibo Reports Third Quarter 2015 Results

BEIJING, Nov. 18, 2015 (GLOBE NEWSWIRE) -- Weibo Corporation ("Weibo" or the "Company") (WB), a leading social media in China, today announced its unaudited financial results for the quarter ended September 30, 2015.

Third Quarter 2015 Highlights

  • Net revenues increased 48% year over year to $124.7 million, exceeding the Company's guidance between $120 million and $123 million.
  • Advertising and marketing revenue increased 62% year over year.
  • Weibo Value Added Services ("Weibo VAS") revenue increased 1% year over year, despite a 72% year-over-year decline in revenue from data licensing, a deemphasized business.
  • Net income attributable to Weibo's ordinary shareholders was $14.5 million, or diluted net income per share of $0.07, compared to a net loss of $6.7 million for the same period last year, or diluted net loss per share of $0.03.
  • Non-GAAP net income attributable to Weibo's ordinary shareholders was $22.1 million, or non-GAAP diluted net income per share of $0.10, compared to a non-GAAP net loss of $1.5 million for the same period last year, or non-GAAP diluted net loss per share of $0.01.
  • Non-GAAP adjusted EBITDA was $26.5 million, compared to a non-GAAP adjusted EBITDA of $1.9 million for the same period last year.
  • Monthly active users ("MAUs") reached 222 million in September 2015, up 33% year over year. Mobile MAUs represented 85% of total MAUs in September 2015. Daily active users ("DAUs") reached 100 million on average for September 2015, up 30% year over year.

"We continue to see strong momentum in Weibo's advertising and marketing business, with non-Alibaba ad revenues growing 100% year over year in RMB and ad customers in the quarter reaching close to half a million," said Gaofei Wang, Weibo's CEO. "On the user side, strong consumption of video, photo and key opinion leader content are contributing to the robust growth of Weibo traffic. For example, daily video views on Weibo in September 2015 grew 9.7 times from the same period last year."

Third Quarter 2015 Financial Results

For the third quarter of 2015, Weibo reported net revenues of $124.7 million, compared to $84.1 million for the same period last year. Advertising and marketing revenue for the third quarter of 2015 totaled $105.9 million, compared to $65.4 million for the same period last year. Weibo VAS revenue for the third quarter of 2015 totaled $18.9 million, compared to $18.8 million for the same period last year.

Costs and expenses for the third quarter of 2015 totaled $110.8 million, compared to $92.0 million for the same period last year. Non-GAAP costs and expenses for the third quarter of 2015 was $103.2 million, compared to $88.1 million for the same period last year. The increase in non-GAAP costs and expenses was primarily due to an increase in infrastructure costs resulting from traffic growth and strong multi-media consumption, higher game and other revenue share and value added taxes associated with higher revenues, and an increase in personnel-related costs.

Income from operations for the third quarter of 2015 was $13.9 million, compared to a loss from operations of $7.8 million for the same period last year. Non-GAAP income from operations for the third quarter of 2015 was $21.5 million, compared to a non-GAAP loss from operations of $3.9 million for the same period last year.

Non-operating income for the third quarter of 2015 was $1.4 million, compared to a non-operating loss of $0.3 million for the same period last year.

Net income attributable to Weibo's ordinary shareholders for the third quarter of 2015 was $14.5 million, or net income per share of $0.07, compared to a net loss of $6.7 million for the same period last year, or net loss per share of $0.03. Non-GAAP net income attributable to Weibo's ordinary shareholders for the third quarter of 2015 was $22.1 million, or diluted net income per share of $0.10, compared to a non-GAAP net loss of $1.5 million for the same period last year, or net loss per share of $0.01.

As of September 30, 2015, Weibo's cash, cash equivalents and short-term investments totaled $353.3 million. For the three months ending September 30, 2015, cash, cash equivalents and short-term investments increased $16.2 million. For the third quarter of 2015, cash provided by operating activities was $71.0 million, capital expenditures totaled $0.6 million, and depreciation and amortization expenses amounted to $5.1 million.

Recent Development

On November 5, 2015, the Company held its annual general meeting of shareholders, where the shareholders re-elected Mr. Charles Chao and Mr. Yichen Zhang as directors of the Company.

Business Outlook

For the fourth quarter of 2015, Weibo estimates that its net revenues to be between $146 million and $149 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 (loss), non-GAAP diluted net income (loss) per share attributable to Weibo's ordinary shareholders and non-GAAP adjusted EBITDA. These non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of the Company's financial performance prepared in accordance with U.S. GAAP.

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


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