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Weibo's 3rd quarter earnings: Revenue below claims, net profit exceeded expectations, rising by 4% before the market – Wall Street



Weibo adjusted earnings per share in the third quarter were 75 cents, the market forecast is 71 cents, net revenues are expected to be 480 to 490 million dollars in the fourth quarter and the market forecast is 499.1 million US dollars.

Weibo unveils third quarterly report on Beijing evening of November 28th. Key data are as follows:

  • Net revenue is $ 460.2 million44% compared to the corresponding period of the previous yearno

    Past earnings orders ranged from $ 465 to $ 465 million.

  • Advertising and marketing revenue amounted to $ 409.3 million, an increase of 48% over the previous year; value added services revenue was $ 50.9 million, an increase of 18% over the previous year.
  • Net profit from Weibo is $ 165.3 million.63% compared to the corresponding period of the previous yearno

    The diluted net profit per share was 73 cents, compared to 45 cents in the same period last year.

  • According to non-GAAP net profit attributable to Weibo, net profit was $ 171.8 million, an increase of 49% over the prior year, and diluted net profit per share was 75 cents, compared with 51 cents in the same last year.
  • The adjusted EBITDA was US $ 192.8 million, an increase of 42% over the previous year and a net profit of 42%. The profit margin for the same period last year was also 42%.
  • From September 2018, Weibo Monthly Active Users (MAUs) were compared with the same period last year.The net increase of about 70 millionno

    , reaching 446 million, 93% per month active users are mobile users;

  • From September 2018, Weibo's average daily active users (DAUs) increased by approximately 30 million compared to the corresponding period of the previous year to 195 million.

Following the release of the financial statement, Weibo's stock price increased sharply and the price increased by more than 4%.

Weibo CEO Wang Gaoei said:

In the third quarter, the number of Weibo users and user activity continued to increase, and advertising revenue continued to increase sharply. We will continue to work hard to strengthen the product experience and communication system, further emphasizing Microblogging's unique strengths in information acquisition, consumption and interactions, and improving the efficiency of Weibo user access, which in turn increases Weibo's commercialization potential.

Revenue growth is not as good as the performance guidelines

Net income in the 3rd quarter of 2018 was $ 460.2 million compared to net income of $ 320 million in the same period last year.It increased by 44% year-on-year.

Advertising and marketing revenue reached $ 409.3 million in the third quarter of 2018 compared to $ 276.8 million in the same period last year, with value added services revenue of $ 50.9 million, an increase of 18% than in the previous year. .

Among them, advertising and marketing revenue from small and medium-sized enterprises (SMEs) and major customers reached $ 380.7 million compared to $ 251.5 million in the same period last year, an increase of 51% over the previous year. Value added services revenue in the third quarter of 2018 was $ 50.9 million compared to $ 43.2 million in the same period last year.

Weibo was previously discovered in the third quarterRevenue management ranges from $ 465 million to $ 475 millionno

Weibo Q3 earnings are not as good as expected.

Cost growth is higher than revenue growth

Costs and expenses in the third quarter were $ 298.2 million compared to $ 201.6 million in the same period last year.The growth compared to the corresponding period of the previous year was 48%, which was higher than the growth rate of revenue.no

Non-GAAP costs and expenses amounted to $ 272.2 million compared to $ 188 million in the same period last year.

As stated in the financial statement, the increase in costs and expenses in comparison with the corresponding period of the previous year was mainly due to the increase in expenditure on channels and promotion of products, the increase in labor costs and research and development costs, as well as the net value of intangible assets and the decrease in the value of intangible assets .

Operating profit margin remained unchanged

Operating profit in the 3rd quarter of 2018 was $ 162 million, compared with $ 118.5 million in the same period last year, an increase of 37% over the previous year.

The non-GAAP operating profit was $ 188 million, up from $ 132 million in the same period last year, up 42% year-on-year.

The non-typical profit margin in the third quarter of 2018 was US $ 42.9 million compared to US $ 4.3 million over the same period last year. The increase in net profit was mainly due to a correction in the fair value of the investment of USD 41.9 million.

Income tax expense amounted to $ 37.9 million compared to $ 22 million during the same period last year. The increase in income tax expense was mainly due to deferred tax liabilities arising from the adjustment of the fair value of the investment and the increase in the profitability of the domestic operations of the company in a relatively stable tax environment.

Net profit exceeds expectations

Weibo's net profit in the third quarter of 2018 was $ 165.3 million, while earnings per share were reduced by 73 cents. Net profit for the same period last year was 101.1 million US dollars, or reduced net profit per share by 45 cents.

According to Non-GAAP, Net Profit for Weibo is $ 171.8 million.The diluted net profit per share is 75 cents, the market value is estimated at 71 cents;no

In the same period last year net profit was 115.2 million lats. USD or diluted net profit per share 51 cent.

From September 30, 2018, Weibo cash, cash equivalents and short-term investments amounted to USD 1.6 billion.

In addition, cash operations in the third quarter amounted to 122.1 million US dollars, capital expenditure was 6 million USD, and depreciation and amortization costs amounted to 4.5 million USD.

The results are less than expected in the quarter

Weibo expects net revenue in the fourth quarter of 2018 to be from USD 480 million to USD 490 million, expressed in RMB.Compared to the corresponding period of the previous year, the increase is from 35% to 38%no

.

It is reported that this hope is that the RMB's average exchange rate against the US dollar is 7.00 yuan to 1 USD. The above expectations reflect the current Weibo previous judgment, and can be adjusted in the future.

However, the market previously estimated that Weibo's net revenue in the fourth quarter was $ 499.1 million.Performance guidelines were lower than expected.

S3 Q3 earnings and earnings exceed expectations

Sina and Weibo also revealed profits, Sina's adjusted earnings per share in the third quarter of 93 cents, the market valued at 69 cents, net revenue of 557.2 million US dollars, market valuation of 551.6 million US dollars.

Mr Cao Guowei, chairman and CEO of Sina, said:

We are pleased with Sina's third quarter results. Despite the industry's strong competition and macroeconomic factors, our revenue and profit areWeiboHealthy growth is driven by continued business momentum.

* This article is from Wall Street (WeChat ID: wallstreetcn). Open on Wall Street to see VIP members and instant access to financial services systemic services.*


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