Weibo Q3 income: income under guidance, net income exceeded expectations, up 4% before the market – Wall Street



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Weibo adjusted earnings per share for the third quarter was 75 cents, with a market forecast of 71 cents, net income for the fourth quarter was estimated at $ 480 million to $ 490 million, with a market estimate of $ 499.1 million.

Weibo revealed the third quarterly report on the night of November 28 Beijing time, the core data is as follows:

  • Net income of $ 460.2 million,44% year-on-year growthfrom

    The previous income guidance was between $ 465 million and $ 475 million.

  • Advertising and marketing revenues reached $ 409.3 million, up 48% year-on-year, value-added service revenue was $ 50.9 million, up 18% year-on-year.
  • Net profit attributable to Weibo is US $ 165.3 million.63% year-on-year growthfrom

    Diluted earnings per share was 73 cents, compared to 45 cents in the same period last year.

  • Under Non-GAAP, net income attributable to Weibo was US $ 171.8 million, up 49% year-on-year, and diluted earnings per share was 75 cents, compared with 51 cents in the same period last year.
  • Adjusted EBITDA was US $ 192.8 million, up 42% year-on-year, and the net profit margin was 42%. The profit margin for the same period last year was also 42%.
  • As of September 2018, monthly Weibo (MAU) active users were compared with the same period last year.Net increase of around 70 millionfrom

    , reaching 446 million, 93% of monthly active users are cellular users;

  • As of September 2018, the Weibo daily active user (DAU) average has increased by around 30 million from the same period the previous year to 195 million.

After the disclosure of financial statements, Weibo stock prices quickly increased, and the price rose more than 4%.

Weibo CEO Wang Gaofei said:

The scale of users and Weibo user activity continued to increase in the third quarter, and advertising revenue continued to grow rapidly. We will continue to work hard to strengthen the experience of products and communication systems, further highlighting the unique advantages of Microblogging in information production, consumption and interaction, and increasing the efficiency of Weibo access to users, which in turn will increase the potential for Weibo commercialization.

Income growth is not as good as a performance guide

Net income for the third quarter of 2018 was $ 460.2 million, compared to a net income of $ 320 million for the same period last year.This increased by 44% year on year.

Advertising and marketing revenues for the third quarter of 2018 reached $ 409.3 million, compared to $ 276.8 million for the same period last year, value-added service revenue was $ 50.9 million, an increase of 18% year-on-year. .

Among them, advertising and marketing revenues from small and medium enterprises (SMEs) and major customers reached $ 380.7 million, compared with $ 251.5 million in the same period last year, a year-on-year increase of 51%. Value added service revenue for the third quarter of 2018 was $ 50.9 million, compared with $ 43.2 million for the same period last year.

Weibo previously revealed the third quarterThe revenue guide is between $ 465 million and $ 475 millionfrom

Q3 Weibo Income is not as good as expected.

Cost growth exceeds revenue growth

Costs and expenses for the third quarter reached $ 298.2 million, compared to $ 201.6 million for the same period last year.Year-on-year growth is 48%, which is higher than the level of income growth.from

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

As stated in the financial statements, increased costs and year-on-year expenditures are mainly related to increased marketing costs related to product channels and promotions, increased research and development costs related to labor costs, and goodwill from non-core business lines and a decrease in the acquisition of intangible assets.

Operating profit margin remains stable

Operating profit for the third quarter of 2018 was $ 162 million, compared with $ 118.5 million for the same period last year, a year-on-year increase of 37%.

Under Non-GAAP, operating profit was $ 188 million, compared with $ 132 million in the same period last year, a year-on-year increase of 42%.

Non-operating income for the third quarter of 2018 was $ 42.9 million compared to $ 4.3 million for the same period last year. The increase in non-operating income was mainly related to adjustments to the fair value of investments of $ 41.9 million.

Among them, the income tax burden was 37.9 million US dollars, compared with 22 million US dollars in the same period last year. The increase in income tax expense was mainly due to deferred tax liabilities arising from adjusting the fair value of investment and increasing the profitability of the company's domestic operations in a relatively stable tax environment.

Net income exceeds expectations

Net income attributable to Weibo in the third quarter of 2018 was $ 165.3 million, and net income per share was 73 cents Net income for the same period last year was $ 101.1 million, or diluted earnings per share of 45 cents.

Under Non-GAAP, net income attributable to Weibo was $ 171.8 million.Diluted earnings per share of 75 cents, the market is estimated at 71 cents;from

Net profit for the same period last year was $ 115.2 million, or diluted earnings per share of 51 cents.

As of September 30, 2018, cash, cash were equal, and Weibo short-term investments reached US $ 1.6 billion.

In addition, cash for operations in the third quarter was $ 122.1 million, capital expenditure was $ 6 million, and depreciation and amortization costs were $ 4.5 million.

Guidelines for next quarter results are less than expected

Weibo expects net income in the fourth quarter of 2018 to be between US $ 480 million and US $ 490 million, denominated in RMB.Year to year increase between 35% and 38%from

.

It is reported that this expectation assumes that the average exchange rate of the RMB against the US dollar is 7.00 yuan to 1 US dollar. The expectations above reflect the initial Weibo assessment and can be adjusted in the future.

However, the previous market estimated that Weibo net income for the fourth quarter was $ 499.1 million.Guide to performance is less than expected.

Sina Q3's income and profit exceeded expectations

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

Cao Guowei, Chair and CEO of Sina, said:

We are satisfied with Sina's third quarter results. Despite intense industry competition and adverse macro factors, our income and income areWeiboHealthy growth is driven by ongoing business momentum.

* This article is from Wall Street (WeChat ID: wallstreetcn). Open Wall Street to see VIP members and immediately access systematic financial market services.*

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