BEIJING, June 1, 2022
/PRNewswire/ -- Weibo Corporation ("Weibo" or the "Company")
(NASDAQ: WB and HKEX: 9898), a leading social media in China, today announced its unaudited financial
results for first quarter ended March 31,
2022.
"We delivered a solid start to 2022," said Gaofei Wang, CEO of
Weibo. "In the first quarter, our user base and traffic continued
to grow nicely with disciplined marketing spending, which
demonstrated our core value in public conversation and enriched
content ecosystem. On monetization, Weibo has delivered a
relatively resilient performance of advertising business in the
first quarter, despite disruptions from COVID-19 resurgence in
China."
First Quarter 2022 Highlights
- Net revenues were $484.6 million,
an increase of 6% year-over-year or an increase of 3%
year-over-year on a constant currency basis[1].
- Advertising and marketing revenues were $427.1 million, an increase of 10%
year-over-year.
- Value-added service ("VAS") revenues were $57.5 million, a decrease of 17%
year-over-year.
- Income from operations was $102.8
million, representing an operating margin of 21%.
- Net loss attributable to Weibo was $67.5
million and diluted net loss per share was $0.29.
- Non-GAAP income from operations was $141.7 million, representing a non-GAAP operating
margin of 29%.
- Non-GAAP net income attributable to Weibo was $132.9 million and non-GAAP diluted net income
per share was $0.56.
- Monthly active users ("MAUs") were 582 million in March 2022, a net addition of approximately 51
million users on a year-over-year basis. Mobile MAUs represented
95% of MAUs.
- Average daily active users ("DAUs") were 252 million in
March 2022, a net addition of
approximately 22 million users on a year-over-year basis.
[1] On
a constant currency (non-GAAP) basis, we assume that the exchange
rate in the first quarter of 2022 had been the same as it was in
the first quarter of 2021, or RMB 6.48=US$1.00.
|
First Quarter 2022 Financial Results
For the first quarter of 2022, Weibo's total net revenues were
$484.6 million, an increase of 6%
compared to $458.9 million for the
same period last year.
Advertising and marketing revenues for the first quarter of 2022
were $427.1 million, an increase of
10% compared to $390.0 million for
the same period last year. Advertising and marketing revenues
excluding ad revenues from Alibaba were $401.2 million, an increase of 12% compared to
$356.7 million for the same period
last year, which represented a relatively resilient performance of
our advertising business this quarter, despite macro uncertainties,
and disruption from COVID-19 resurgence and subsequent restrictions
and lockdowns in major areas of China since mid-March.
VAS revenues for the first quarter of 2022 were $57.5 million, a decrease of 17% year-over-year
compared to $68.9 million for the
same period last year. The decrease of VAS revenues was mainly due
to less revenue contribution from membership service and decrease
of live streaming revenues.
Costs and expenses for the first quarter of 2022 totaled
$381.8 million, an increase of 9%
compared to $350.3 million for the
same period last year. The increase was primarily attributable to
(i) higher personnel related costs; (ii) increases in content costs
primarily associated with the Winter Olympic Games; and (iii)
recognition of cultural business construction fee with the lapse of
exemption policy in 2022. The increase was primarily offset by a
decrease of sales and marketing expenses, with disciplined channel
investments and reduced offline events.
Income from operations for the first quarter of 2022 was
$102.8 million, compared to
$108.6 million for the same period
last year. Operating margin was 21%, compared to 24% last year.
Non-GAAP income from operations was $141.7
million, compared to $137.5
million for the same period last year. Non-GAAP operating
margin was 29%, compared to 30% last year.
Non-operating loss for the first quarter of 2022 was
$163.5 million, compared to a loss of
$44.7 million for the same period
last year. Non-operating loss for the first quarter of 2022 mainly
included (i) a $163.7 million net
loss from fair value change of investments, primarily resulted from
net loss from fair value change of investments in Didi Global Inc.
(NYSE: DIDI) and INMYSHOW Digital Technology (Group) Co., Ltd.
(SHH: 600556), which was excluded under non-GAAP measures; (ii) a
$14.2 million investment related
impairment, which was excluded under non-GAAP measures; and (iii) a
$14.4 million net interest and other
income.
Income tax expense were $11.7
million, compared to $14.9
million for the same period last year.
Net loss attributable to Weibo for the first quarter of 2022 was
$67.5 million, compared to an income
of $49.8 million for the same period
last year. Diluted net loss per share attributable to Weibo for the
first quarter of 2022 was $0.29,
compared to a diluted net income per share attributable to Weibo of
$0.22 for the same period last year.
Non-GAAP net income attributable to Weibo for the first quarter of
2022 was $132.9 million, compared to
$130.7 million for the same period
last year. Non-GAAP diluted net income per share attributable to
Weibo for the first quarter of 2022 was $0.56, compared to $0.57 for the same period last year.
As of March 31, 2022, Weibo's
cash, cash equivalents and short-term investments totaled
$3.3 billion. For the first quarter
of 2022, cash provided by operating activities was $248.6 million, capital expenditures totaled
$8.5 million, and depreciation and
amortization expenses amounted to $15.0
million.
Conference Call
Weibo's management team will host a conference call from
7:00 AM to 8:00 AM Eastern Time on
June 1, 2022 (or 7:00 PM – 8:00 PM
Beijing Time on June 1, 2022) to
present an overview of the Company's financial performance and
business operations.
Please register in advance of the conference call using the link
provided below. Upon registering, you will be provided with dial-in
numbers, passcode and unique registrant ID by email. To join the
conference, please use the conference access information provided
in the email received at the point of registering.
PRE-REGISTER LINK:
http://apac.directeventreg.com/registration/event/3399110
Additionally, a live webcast of the call will be available
through the Company's corporate website at http://ir.weibo.com.
A telephone replay will be available from 22:00 China Standard
Time on June 1, 2022 to 21:59 China
Standard Time on June 9,
2022. To access the recording, please use the following
dial-in information listed below:
United States: +1 855 452 5696
Hong Kong: 800 963 117
Mainland China: 400 820 9035
International: +61 2 8199 0299
Replay PIN: 3399110
Non-GAAP Financial Measures
This release contains the following non-GAAP financial measures:
non-GAAP income from operations, non-GAAP net income attributable
to Weibo's shareholders, non-GAAP diluted net income per share
attributable to Weibo's shareholders 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 resulting from business acquisitions, non-cash
compensation cost to non-controlling interest
shareholders, net results of impairment on, gain/loss on sale
of and fair value change of investments, non-GAAP to GAAP
reconciling items on the share of equity method investments,
non-GAAP to GAAP reconciling items for the income/loss attributable
to non-controlling interests, income tax expense related to the
amortization of intangible assets resulting from business
acquisitions and fair value change of investments (other non-GAAP
to GAAP reconciling items have no tax effect), and amortization of
convertible debt and senior notes issuance cost. Adjusted EBITDA
excludes interest income, net, income tax expenses, and
depreciation 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 financial measures to the nearest comparable
GAAP measures are set forth in the section below titled "Unaudited
Reconciliation of Non-GAAP to GAAP Results."
About Weibo
Weibo is a leading social media for people to create, share
and discover content online. Weibo combines the means of public
self-expression in real time with a powerful platform for social
interaction, content aggregation and content distribution. Any user
can create and post a feed and attach multi-media and 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 range of advertising and
marketing solutions to companies of all sizes. The Company
generates a substantial majority of its revenues from the sale of
advertising and marketing services, including the sale of social
display advertisement and promoted marketing
offerings. Designed with a "mobile first" philosophy, Weibo
displays content in a simple information feed format and offers
native advertisement that conform to the information feed on our
platform. To support the mobile format, we have developed and
continuously refining our social interest graph recommendation
engine, which enables our 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
announcements, circulars or other publications made on the website
of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock
Exchange"), 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 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-Fs and other
filings with the SEC and the Hong Kong Stock Exchange. 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 5898-3336
Email: ir@staff.weibo.com
WEIBO
CORPORATION
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands of
U.S. dollars, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
December
31,
|
|
|
2022
|
|
2021
|
|
2021
|
Net
revenues:
|
|
|
|
|
|
Advertising and
marketing
|
$ 427,121
|
|
$ 390,011
|
|
$ 550,826
|
Value-added
service
|
57,501
|
|
68,885
|
|
65,461
|
|
Net revenues
|
484,622
|
|
458,896
|
|
616,287
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
Cost of revenues
(1)
|
104,801
|
|
79,770
|
|
128,545
|
Sales and marketing
(1)
|
125,311
|
|
143,975
|
|
152,475
|
Product development
(1)
|
112,434
|
|
96,566
|
|
113,867
|
General and
administrative (1)
|
39,227
|
|
29,981
|
|
38,878
|
|
Total costs and expenses
|
381,773
|
|
350,292
|
|
433,765
|
Income from
operations
|
102,849
|
|
108,604
|
|
182,522
|
|
|
|
|
|
|
|
Non-operating
loss:
|
|
|
|
|
|
Impairment on, gain/loss on sale of and fair value
change of investments,
net
|
(177,950)
|
|
(58,200)
|
|
(41,976)
|
Interest and other income, net
|
14,416
|
|
13,504
|
|
5,161
|
|
|
(163,534)
|
|
(44,696)
|
|
(36,815)
|
|
|
|
|
|
|
|
Income (loss) before
income tax expenses
|
(60,685)
|
|
63,908
|
|
145,707
|
Income
tax expenses
|
(11,716)
|
|
(14,945)
|
|
(45,581)
|
|
|
|
|
|
|
|
Net income
(loss)
|
(72,401)
|
|
48,963
|
|
100,126
|
Less: Net loss attributable to non-controlling
interests
|
(4,877)
|
|
(857)
|
|
(15,607)
|
Net income (loss)
attributable to Weibo's shareholders
|
$
(67,524)
|
|
$
49,820
|
|
$ 115,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share attributable to Weibo's
shareholders
|
$
(0.29)
|
|
$
0.22
|
|
$
0.50
|
Diluted net income
(loss) per share attributable to Weibo's
shareholders
|
$
(0.29)
|
|
$
0.22
|
|
$
0.50
|
|
|
|
|
|
|
|
Shares used in
computing basic net income (loss) per share
|
|
|
|
|
|
attributable to Weibo's shareholders
|
235,206
|
|
227,771
|
|
230,679
|
Shares used in
computing diluted net income (loss) per share
|
|
|
|
|
|
attributable to Weibo's shareholders
|
235,206
|
|
229,302
|
|
231,506
|
|
|
|
|
|
|
|
(1) Stock-based
compensation in each category:
|
|
|
|
|
|
|
Cost of revenues
|
$
2,337
|
|
$
1,413
|
|
$
2,422
|
|
Sales and marketing
|
4,615
|
|
2,251
|
|
5,043
|
|
Product development
|
13,336
|
|
8,076
|
|
14,362
|
|
General and administrative
|
6,763
|
|
4,013
|
|
4,911
|
WEIBO
CORPORATION
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands of
U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
Assets
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
2,501,799
|
|
$
2,423,703
|
|
|
|
Short-term investments
|
|
792,725
|
|
711,062
|
|
|
|
Accounts receivable, net
|
|
604,469
|
|
723,089
|
|
|
|
Prepaid expenses and other current assets
|
|
466,018
|
|
450,726
|
|
|
|
Amount due from SINA(1)
|
|
494,120
|
|
494,200
|
|
|
|
Current assets subtotal
|
|
4,859,131
|
|
4,802,780
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
65,850
|
|
68,396
|
|
Goodwill and
intangible assets, net
|
|
291,811
|
|
297,335
|
|
Long-term
investments
|
|
1,112,439
|
|
1,207,651
|
|
Other non-current
assets
|
|
1,139,677
|
|
1,143,360
|
|
Total
assets
|
|
$
7,468,908
|
|
$
7,519,522
|
|
|
|
|
|
|
|
|
Liabilities,
Redeemable Non-controlling Interests and Shareholders'
Equity
|
|
Liabilities:
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
197,324
|
|
$
197,643
|
|
|
|
Accrued expenses and other current liabilities
|
|
799,877
|
|
828,952
|
|
|
|
Deferred revenues
|
|
94,739
|
|
91,136
|
|
|
|
Income tax payable
|
|
155,104
|
|
144,747
|
|
|
|
Convertible debt
|
|
897,576
|
|
896,541
|
|
|
|
Current liabilities subtotal
|
|
2,144,620
|
|
2,159,019
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
Unsecured senior notes
|
|
1,538,991
|
|
1,538,415
|
|
|
|
Other long-term liabilities
|
|
125,175
|
|
134,068
|
|
|
|
Total liabilities
|
|
3,808,786
|
|
3,831,502
|
|
|
|
|
|
|
|
|
|
Redeemable
non-controlling interests
|
|
68,796
|
|
66,622
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
Weibo
shareholders' equity
|
|
3,564,488
|
|
3,593,821
|
|
|
Non-controlling interests
|
|
26,838
|
|
27,577
|
|
|
|
Total shareholders' equity
|
|
3,591,326
|
|
3,621,398
|
|
Total liabilities,
redeemable non-controlling interests and
shareholders' equity
|
|
$
7,468,908
|
|
$
7,519,522
|
|
|
|
|
|
|
|
|
|
(1) Included short-term
loans to and interest receivable from SINA of $474.3 million as
of March 31, 2022
and $479.6 million as of December 31, 2021.
|
WEIBO
CORPORATION
|
|
UNAUDITED
RECONCILIATION OF NON-GAAP TO GAAP RESULTS
|
|
(In thousands of
U.S. dollars, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
|
|
2022
|
|
2021
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
$
|
102,849
|
|
$
|
108,604
|
|
$
|
182,522
|
|
Add:
|
Stock-based
compensation
|
|
27,051
|
|
|
15,753
|
|
|
26,738
|
|
|
Amortization of
intangible assets resulting from business
acquisitions
|
|
5,751
|
|
|
4,519
|
|
|
5,716
|
|
|
Non-cash compensation
cost to non-controlling interest
shareholders
|
|
6,074
|
|
|
8,631
|
|
|
4,826
|
|
Non-GAAP income from
operations
|
$
|
141,725
|
|
$
|
137,507
|
|
$
|
219,802
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Weibo's shareholders
|
$
|
(67,524)
|
|
$
|
49,820
|
|
$
|
115,733
|
|
Add:
|
Stock-based
compensation
|
|
27,051
|
|
|
15,753
|
|
|
26,738
|
|
|
Amortization of
intangible assets resulting from business
acquisitions
|
|
5,751
|
|
|
4,519
|
|
|
5,716
|
|
|
Non-cash compensation
cost to non-controlling interest
shareholders
|
|
6,074
|
|
|
8,631
|
|
|
4,826
|
|
|
Net results of
impairment on, gain/loss on sale of and fair value
change of investments
|
|
177,950
|
|
|
58,200
|
|
|
41,976
|
|
|
Non-GAAP to GAAP
reconciling items on the share of equity
method investments
|
|
(2,654)
|
|
|
(1,075)
|
|
|
4,343
|
|
|
Non-GAAP to GAAP
reconciling items for the income/loss
attributable to non-controlling interests
|
|
(4,631)
|
|
|
359
|
|
|
(16,844)
|
|
|
Tax effects on non-GAAP
adjustments(1)
|
|
(10,771)
|
|
|
(7,148)
|
|
|
11,405
|
|
|
Amortization of
convertible debt and unsecured senior notes
issuance cost
|
|
1,611
|
|
|
1,612
|
|
|
1,611
|
|
Non-GAAP net income
attributable to Weibo's shareholders
|
$
|
132,857
|
|
$
|
130,671
|
|
$
|
195,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted net
income per share attributable to Weibo's
shareholders
|
$
|
0.56
|
*
|
$
|
0.57
|
*
|
$
|
0.83
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing GAAP diluted net income (loss) per share
attributable to Weibo's shareholders
|
|
235,206
|
|
|
229,302
|
|
|
231,506
|
|
Add:
|
The number of shares
for dilution resulted from convertible
debt(2)
|
|
6,753
|
|
|
6,753
|
|
|
6,753
|
|
|
The number of shares
for dilution resulted from unvested
restricted share units(2)
|
|
447
|
|
|
-
|
|
|
-
|
|
Shares used in
computing non-GAAP diluted net income per share
attributable to Weibo's shareholders
|
|
242,406
|
|
|
236,055
|
|
|
238,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Weibo's shareholders
|
$
|
(67,524)
|
|
$
|
49,820
|
|
$
|
115,733
|
|
|
Non-GAAP
adjustments
|
|
200,381
|
|
|
80,851
|
|
|
79,771
|
|
|
Non-GAAP net income
attributable to Weibo's shareholders
|
|
132,857
|
|
|
130,671
|
|
|
195,504
|
|
|
|
Interest
income,net
|
|
(10,986)
|
|
|
(3,939)
|
|
|
(4,231)
|
|
|
|
Income tax
expenses
|
|
22,487
|
|
|
22,093
|
|
|
34,176
|
|
|
|
Depreciation
expenses
|
|
8,730
|
|
|
7,909
|
|
|
8,593
|
|
|
Adjusted
EBITDA
|
$
|
153,088
|
|
$
|
156,734
|
|
$
|
234,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
To exclude the income
tax expenses primarily related to amortization of intangible assets
resulting from business
acquisitions and fair value change of investments. The Company
considered the tax implication arising from the
reconciliation items. Part of these items were recorded in entities
established in tax free jurisdictions and there were no
relevant tax implications. For impairment on investments, valuation
allowances were made for those differences as the
Company does not expect they can be realized in the foreseeable
future.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
To adjust the number of
shares for dilution resulted from convertible debt and unvested
restricted share units which were
anti-dilutive under GAAP measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Net income attributable
to Weibo's shareholders is adjusted for interest expense of
convertible debt for calculating diluted EPS.
|
WEIBO
CORPORATION
|
UNAUDITED ADDITIONAL
INFORMATION
|
(In thousands of
U.S. dollars)
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
December
31,
|
|
|
2022
|
|
2021
|
|
2021
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
Advertising and
marketing
|
|
|
|
|
|
|
Non-Ali
advertisers
|
$
401,196
|
|
$
356,711
|
|
$
505,333
|
|
Alibaba - as an
advertiser
|
25,925
|
|
33,300
|
|
45,493
|
|
Subtotal
|
427,121
|
|
390,011
|
|
550,826
|
|
|
|
|
|
|
|
|
Value-added
service
|
57,501
|
|
68,885
|
|
65,461
|
|
|
$
484,622
|
|
$
458,896
|
|
$
616,287
|
View original
content:https://www.prnewswire.com/news-releases/weibo-reports-first-quarter-2022-unaudited-financial-results-301558699.html
SOURCE Weibo Corporation