For the quarter ended September 2024, Weibo Corporation (WB) reported revenue of $464.48 million, up 5.1% over the same period last year. EPS came in at $0.53, compared to $0.57 in the year-ago quarter.The reported revenue represents a surprise of +6.68% over the Zacks Consensus Estimate of $435.42 million. With the consensus EPS estimate being $0.46, the EPS surprise was +15.22%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall ...

Group 1 - Analysts project Weibo Corporation (WB) will announce quarterly earnings of $0.46 per share, a decline of 19.3% year over year [1] - Revenues are expected to reach $435.42 million, declining 1.5% from the same quarter last year [1] - There has been no revision in the consensus EPS estimate over the last 30 days, indicating analysts' reconsideration of their initial forecasts [1] Group 2 - The estimate for 'Net revenues- Value-added service' is projected at $57.82 million, reflecting a year-over-year change of -3.9% [4] - 'Net revenues- Advertising and marketing' are expected to be $377.60 million, indicating a change of -4% from the prior-year quarter [4] Group 3 - The average prediction for 'Average daily active users (DAUs)' is 257.95 million, down from 260 million in the same quarter last year [5] - 'Monthly active users (MAUs)' are expected to be 593.90 million, compared to 605 million a year ago [5] - Weibo shares have returned -11.8% over the past month, contrasting with the Zacks S&P 500 composite's +3.1% change [5]

Company Overview - Weibo Corporation (WB) shares increased by 7.1% to close at $10.80, with notable trading volume compared to typical sessions [1] - The stock has gained 34.8% over the past four weeks, driven by increased user engagement and partnerships enhancing advertising revenue and content ecosystem [1] Earnings Expectations - The upcoming quarterly earnings are expected to be $0.46 per share, reflecting a year-over-year decline of 19.3% [1] - Revenue is projected at $435.42 million, which is a decrease of 1.5% from the same quarter last year [1] Market Sentiment - The consensus EPS estimate for Weibo has remained unchanged over the last 30 days, indicating a lack of upward trend in earnings estimate revisions [2] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [2] Industry Context - Weibo is part of the Zacks Internet - Content industry, which includes other companies like Airbnb, Inc. (ABNB) [2] - Airbnb's consensus EPS estimate has decreased by 2.1% over the past month, with a year-over-year change of -7.1% [2]

Core Viewpoint - Weibo Corporation's stock is considered extremely undervalued, with a market capitalization decline of 95% from over USD 30 billion in 2018 to approximately USD 1.8 billion today [1]. Company Summary - The significant drop in Weibo's market cap indicates a potential investment opportunity, as the company's book value has not been detailed but is implied to be more favorable compared to its current market valuation [1]. Analyst Background - The analysis is provided by a full-time investor with 15 years of experience in Asian and Global markets, previously serving as Head of Financial Markets at Fitch Solutions [1].

Financial Data and Key Metrics Changes - Weibo's total revenues for Q2 2024 reached $437.9 million, a decrease of 1% year-over-year, but an increase of 1% on a constant currency basis [27][28] - Advertising revenues were $375.3 million, reflecting a decrease of 3% year-over-year or 1% on a constant currency basis [28] - Non-GAAP operating income was $157.6 million, representing a non-GAAP operating margin of 36%, a modest increase year-over-year [27][32] - Net income attributable to Weibo was $126.3 million, with a net margin of 29%, remaining flat year-over-year [32] Business Line Data and Key Metrics Changes - VAS (Value-Added Services) revenues increased to $62.6 million, a growth of 15% year-over-year or 18% on a constant currency basis, primarily driven by membership services [31] - Mobile ad revenues accounted for approximately 94% of total ad revenue, amounting to $352.3 million [28] Market Data and Key Metrics Changes - MAU (Monthly Active Users) reached 583 million, while average DAUs (Daily Active Users) were 256 million, indicating improved user engagement [6][27] - The entertainment sector showed good momentum, driven by popular TV programs, while the FMCG sector faced challenges [29] Company Strategy and Development Direction - The company is focusing on user acquisition and engagement, particularly targeting high-quality users [6][27] - Weibo aims to enhance its monetization competitiveness by leveraging hot trends and IPs, and driving vertical content ecosystems [19][26] - The strategy includes strengthening partnerships with industries such as automotive and digital products to improve content marketing and ad revenue [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the macroeconomic environment and its impact on advertising demand for the second half of 2024, particularly in first-tier cities [36][37] - There is a noted stability in ad spending from advertisers, despite challenges in certain sectors like cosmetics and beauty [36][39] - The company anticipates a boost in user engagement and ad placements during the Summer Olympics, but expects a slowdown post-event [31] Other Important Information - The company has developed a large language model (LLM) to enhance content production and user interaction, which has received government approval [44][45] - The AI technology is expected to improve content recommendation and user experience on the platform [49] Q&A Session Summary Question: Overall macro outlook and advertising outlook for the second half of the year - Management noted that ad revenue in Q2 was flat year-over-year, with some sectors like cosmetics experiencing a decline, while others showed growth [36] - There are uncertainties regarding macroeconomic developments, particularly in consumption, which may impact ad spending [37][38] Question: Developments in AIGC and its impact on content production - Management highlighted the approval of their LLM and its application in enhancing user interaction and content understanding [44][45] - The AI is expected to improve content recommendations and user experience, with significant user engagement already observed [49]

Core Insights - Weibo Corporation reported revenue of $437.87 million for the quarter ended June 2024, a decrease of 0.5% year-over-year, with EPS at $0.48 compared to $0.53 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $435.11 million by 0.64%, while the EPS surpassed the consensus estimate of $0.45 by 6.67% [1] User Metrics - Average daily active users (DAUs) were reported at 256 million, slightly below the average estimate of 259.31 million [3] - Monthly active users (MAUs) stood at 583 million, also below the estimated 597.03 million [4] Revenue Breakdown - Net revenues from value-added services reached $62.60 million, exceeding the average estimate of $56.50 million, reflecting a year-over-year increase of 14.7% [5] - Net revenues from advertising and marketing were $375.28 million, falling short of the average estimate of $378.61 million, with a year-over-year decline of 2.7% [6] Stock Performance - Weibo shares have returned 2.5% over the past month, outperforming the Zacks S&P 500 composite's 2.2% change [6] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [6]

Financial Performance - Net revenues for Q2 2024 were $437.9 million, a decrease of 1% year-over-year, but an increase of 1% on a constant currency basis[3]. - Advertising and marketing revenues were $375.3 million, a decrease of 3% year-over-year, while excluding Alibaba, revenues were $342.9 million, a decrease of 4%[5]. - Value-added services (VAS) revenues increased by 15% year-over-year to $62.6 million, driven primarily by growth in membership services[5]. - Net revenues for the six months ended June 30, 2024, were $714,228 thousand, a decrease of 3.5% compared to $740,974 thousand for the same period in 2023[19]. - Net income attributable to Weibo's shareholders for the six months ended June 30, 2024, was $161,369 thousand, down from $181,879 thousand in the same period of 2023, representing a decline of 11.3%[19]. - Net revenues for the second quarter of 2023 reached $440.24 million, a 11.3% increase from $395.50 million in the previous quarter[27]. User Engagement - Monthly active users (MAUs) reached 583 million, and average daily active users (DAUs) were 256 million in June 2024[3]. - The company emphasized improved user engagement and operating efficiency, focusing on high-quality user acquisition and a vertical content strategy[2]. Income and Margins - Income from operations was $135.4 million, with an operating margin of 31%, up from 28% in the previous year[6]. - Non-GAAP income from operations was $157.6 million, representing a non-GAAP operating margin of 36%, compared to 35% last year[6]. - Net income attributable to Weibo's shareholders was $111.9 million, an increase from $81.4 million in the same period last year[8]. - Basic net income per share attributable to Weibo's shareholders for the six months ended June 30, 2024, was $0.68, compared to $0.77 for the same period in 2023, a decrease of 11.7%[19]. Cash and Investments - Cash, cash equivalents, and short-term investments totaled $2.8 billion as of June 30, 2024[9]. - Cash and cash equivalents as of June 30, 2024, were $1,922,371 thousand, down from $2,584,635 thousand as of December 31, 2023, a decline of 25.7%[21]. - The company’s investment-related loss for the six months ended June 30, 2024, was $(4,725) thousand, compared to a loss of $(25,190) thousand for the same period in 2023, indicating an improvement[19]. - Investment related gain for the second quarter of 2023 was $25.19 million, significantly higher than $4.97 million in the previous quarter[24]. Costs and Expenses - Total costs and expenses for the six months ended June 30, 2024, were $598,248 thousand, compared to $634,075 thousand for the same period in 2023, reflecting a decrease of 5.7%[19]. - Stock-based compensation for the second quarter of 2023 was $26.07 million, compared to $21.01 million in the previous quarter[24]. Assets and Liabilities - Total assets as of June 30, 2024, were $7,102,285 thousand, a decrease from $7,280,358 thousand as of December 31, 2023, representing a decline of 2.4%[21]. - Total liabilities as of June 30, 2024, were $3,688,718 thousand, down from $3,762,742 thousand as of December 31, 2023, a decrease of 2.0%[22]. - The company reported a decrease in accounts receivable, net, to $371,291 thousand as of June 30, 2024, from $440,768 thousand as of December 31, 2023, a decline of 15.7%[21]. - The company’s total shareholders' equity increased to $3,375,350 thousand as of June 30, 2024, from $3,448,888 thousand as of December 31, 2023, a decrease of 2.1%[22]. Previous Quarter Comparisons - Non-GAAP diluted net income per share attributable to Weibo's shareholders was $0.53 for the second quarter of 2023, up from $0.41 in the previous quarter[24]. - Adjusted EBITDA for the second quarter of 2023 was $163.88 million, an increase from $133.03 million in the previous quarter[24]. - Non-GAAP operating margin improved to 35% in the second quarter of 2023, compared to 32% in the previous quarter[24]. - Advertising revenue from non-Ali advertisers was $358.89 million for the second quarter of 2023, compared to $316.40 million in the previous quarter, reflecting a 13.4% increase[27]. - Value-added services revenue increased to $54.57 million in the second quarter of 2023, up from $56.55 million in the previous quarter[27].

In its upcoming report, Weibo Corporation (WB) is predicted by Wall Street analysts to post quarterly earnings of $0.45 per share, reflecting a decline of 15.1% compared to the same period last year. Revenues are forecasted to be $435.11 million, representing a year-over-year decrease of 1.2%.The current level reflects a downward revision of 1.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their init ...

BEIJING, July 31, 2024 /PRNewswire/ -- Weibo Corporation (Nasdaq: WB and HKEX: 9898), a leading social media for people to create, share and discover content, will announce its unaudited financial results for the second quarter 2024 before the U.S. market opens on Thursday, August 22, 2024. Following the announcement, Weibo's management team will host a conference call from 7 AM – 8 AM Eastern Time on August 22, 2024 (or 7 PM – 8 PM Beijing Time on August 22, 2024) to present an overview of the Company's fi ...

Investment Rating - The report maintains a "Buy" rating for the company, indicating a potential upside of 93.8% from the current price of $8.77 to a target price of $17.00 [2][3]. Core Insights - The company's total revenue for Q1 2024 decreased by 4% year-over-year to $395 million, aligning with consensus estimates. Non-GAAP net income also fell by 4% to $107 million, exceeding consensus estimates by 24% [2]. - Advertising revenue showed a mixed performance, with a 5% decline year-over-year to $339 million, primarily due to pressure in the cosmetics and beauty verticals. However, domestic beauty brands saw over 50% growth in advertising revenue [2][3]. - The company has adjusted its revenue forecasts for FY24-26 down by 2% to reflect the shrinking advertising budgets of cosmetics and beauty brands [2][3]. Revenue and Profitability Summary - FY22A revenue was $1,836 million, FY23A was $1,760 million, and FY24E is projected at $1,724 million, with a slight recovery expected in FY25E and FY26E [3][10]. - Adjusted net profit for FY22A was $540.1 million, FY23A was $450.6 million, and FY24E is expected to be $447.4 million, indicating a decline in profitability [3][10]. - The report highlights a non-GAAP operating profit margin (OPM) of 31.8% for Q1 2024, an increase of 0.7 percentage points year-over-year, attributed to strict control over operating costs [2][3]. User Engagement Metrics - Monthly Active Users (MAU) decreased by 1% year-over-year to 588 million, while Daily Active Users (DAU) remained stable at 255 million. The company is focusing on acquiring high-quality users [2][3]. - The report indicates that the company is investing in key content verticals such as automotive, online gaming, and healthcare to enhance user interaction and verified account growth [2][3]. Financial Position - As of March 31, 2024, the company had cash and cash equivalents of $2.1 billion, sufficient to cover upcoming debt obligations and shareholder return plans [2][3]. - The report notes a projected decline in non-GAAP OPM to 32.9% for FY24E, reflecting ongoing operational challenges [2][3].