Weibo (WB) Tops Q3 EPS by 6c, Revenues Beat

Weibo (NASDAQ: WB) reported Q3 EPS of $0.66, $0.06 better than the analyst estimate of $0.60. Revenue for the quarter came in at $465.7 million versus the consensus estimate of $449.26 million.

Third Quarter 2020 Highlights

• Net revenues were $465.7 million, flat year-over-year or a decrease of 4% year-over-year on a constant currency basis [1].
• Advertising and marketing revenues were $416.7 million, an increase of 1% year-over-year.
• Value-added service ("VAS") revenues were $49.1 million, a decrease of 11% year-over-year.
• Net income attributable to Weibo was $33.8 million and diluted net income per share was $0.15.
• Non-GAAP net income attributable to Weibo was $152.9 million and non-GAAP diluted net income per share was $0.66.
• Monthly active users ("MAUs") were 511 million in September 2020, a net addition of approximately 14 million users on year-over-year basis. Mobile MAUs represented approximately 94% of MAUs.
• Average daily active users ("DAUs") were 224 million in September 2020, a net addition of approximately 8 million users on year-over-year basis.

"We are pleased with Weibo's recovery trend, despite challenges still persisted," said Gaofei Wang, CEO of Weibo. "Weibo's KA business delivered broad-based recovery, with a record high number of brand customers marketing with us. We are glad to see brands increasingly recognize Weibo's unique value proposition in reaching young audience, leveraging KOL's influence and serving brand plus performance needs. For performance ad business, we continued to drive value for customers, with team's solid execution on advertising system upgrade, ad product optimization and ROI improvement," said Mr. Wang.

Business Outlook

For the fourth quarter of 2020, Weibo estimates its net revenues to increase by 1% to 3% year-over-year on a constant currency basis. This forecast includes revenues estimate of an interactive entertainment company which was acquired and consolidated to the Company in November 2020 and represents approximately 2% of our revenues estimate this quarter. This forecast reflects Weibo's current and preliminary view, which is subject to change.

For earnings history and earnings-related data on Weibo (WB) click here.

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