Weibo (WB) Tops Q4 EPS by 5c, Revenues Miss; 'Anticipates Q1 Revenues to Decrease 15%-20%' Due to Coronavirus
Weibo (NASDAQ: WB) reported Q4 EPS of $0.77, $0.05 better than the analyst estimate of $0.72. Revenue for the quarter came in at $468.1 million versus the consensus estimate of $469.73 million.
Fourth Quarter 2019 Highlights
- Net revenues were $468.1 million, a decrease of 3% year-over-year or 2% year-over-year on a constant currency basis [1].
- Advertising and marketing revenues were $405.9 million, a decrease of 3% year-over-year.
- Value-added service ("VAS") revenues were $62.2 million, a decrease of 4% year-over-year.
- Net income attributable to Weibo was $95.1 million and diluted net income per share was $0.42.
- Non-GAAP net income attributable to Weibo was $176.5 million and non-GAAP diluted net income per share was $0.77.
- Monthly active users ("MAUs") were 516 million in December 2019, a net addition of approximately 54 million users year-over-year. Mobile MAUs represented 94% of MAUs.
- Average daily active users ("DAUs") were 222 million in December 2019, a net addition of approximately 22 million users year-over-year.
"We ended the year 2019 well as our community and business continue to grow," said Gaofei Wang, CEO of Weibo. "Our user base and engagement grew robustly as we remained focused on improving user product and optimizing content consumption experience. On monetization, we are pleased with the solid growth from key accounts sector in 2019, underpinned by robust momentum in user traffic and our differentiated value proposition to brand advertisers. Entering into 2020, we will continue to build our ecosystem to enhance our core competitiveness. We will also focus on driving marketing value for our customers and diversifying monetization opportunities to achieve sustainable growth in future," Mr. Wang concluded.
Business Outlook
For the first quarter of 2020, Weibo's business has been significantly impacted by the coronavirus outbreak in China. Due to the high uncertainty of the evolving situation, we have limited visibility on the full quarter revenue impact brought upon by the epidemic. Based on our current best estimate, Weibo anticipates its first quarter of 2020 net revenues to decrease by 15% to 20% year-over-year on a constant currency basis. This forecast reflects Weibo's current and preliminary view, which is subject to change.
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