Latest news with #WeiboCorporation
Yahoo
29-05-2025
- Business
- Yahoo
Weibo Beats Q1 Estimates But Benchmark Sees Growth Concerns
In light of Weibo Corporation (NASDAQ:WB)'s first-quarter 2025 release, Benchmark analysts maintained their Hold rating alongside a price target of $11.70 on the company's shares, on May 24. Copyright: dolgachov / 123RF Stock Photo Weibo Corporation (NYSE:WB) exceeded the consensus expectation of $0.40 by reporting adjusted earnings per share of $0.45. At $396.9 million, revenue was steady year-over-year and somewhat higher than forecasts of $394.24 million. In order to safeguard the company's current market share, Weibo's management has opted to take a conservative approach by investing in artificial intelligence. Despite these efforts, Benchmark analysts voiced concerns about Weibo's future growth, even though the company's execution seems to be on track with stable guidance. Weibo Corporation (NYSE:WB) may be limited in its ability to grow due to its reliance on brand advertising and what Benchmark analysts view as a less advanced advertising technology stack. Weibo may serve as an industry tracker at best, according to the analysts, but they expect the company to keep losing market share in the current competitive marketplace. While we acknowledge the potential of WB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WB and that has 100x upside potential, check out our report about the cheapest AI stock. Read More: and . Disclosure: None. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
21-05-2025
- Business
- Yahoo
Weibo Announces First Quarter 2025 Unaudited Financial Results
BEIJING, May 21, 2025 /PRNewswire/ -- Weibo Corporation ("Weibo" or the "Company") (Nasdaq: WB and HKEX: 9898), a leading social media in China, today announced its unaudited financial results for the first quarter ended March 31, 2025. "We are pleased with our progresses made on the AI product front," said Gaofei Wang, CEO of Weibo. "On the user front, we remain committed to creating user value by focusing on the integration of Weibo's social features and upgrade of the recommendation system. In the first quarter, we further grew our user community and deepened user engagement. On the AI application front, we have made Weibo Intelligent Search, our AI-powered search function, available to all users. During the first quarter, both the user base and daily search queries of Weibo Intelligent Search achieved decent sequential growth. On the monetization front, we delivered solid performance of ad business, leveraging our strengths in content marketing and enhanced ad placement efficiency of our real-time-bidding information feed ad products. Benefiting from solid execution of disciplined spending strategy, our operating efficiency further improved, which laid foundation for us to invest for our product competitiveness, AI technology, as well as shareholder return." First Quarter 2025 Highlights Net revenues were US$396.9 million, flat year-over-year or an increase of 1% year-over-year on a constant currency basis [1]. Advertising and marketing revenues were US$339.1 million, flat year-over-year or an increase of 1% year-over-year on a constant currency basis [1]. Value-added services ("VAS") revenues were US$57.7 million, an increase of 2% year-over-year or 3% year-over-year on a constant currency basis [1]. Income from operations was US$110.3 million, representing an operating margin of 28%. Net income attributable to Weibo's shareholders was US$107.0 million and diluted net income per share was US$0.41. Non-GAAP income from operations was US$129.5 million, representing a non-GAAP operating margin of 33%. Non-GAAP net income attributable to Weibo's shareholders was US$119.5 million and non-GAAP diluted net income per share was US$0.45. Monthly active users ("MAUs") were 591 million in March 2025. Average daily active users ("DAUs") were 261 million in March 2025. [1] We define constant currency (non-GAAP) by assuming that the average exchange rate in the first quarter of 2025 was the same as it was in the first quarter of 2024, or RMB7.15=US$1.00. First Quarter 2025 Financial Results For the first quarter of 2025, Weibo's total net revenues were US$396.9 million, relatively flat compared to US$395.5 million for the same period last year. Advertising and marketing revenues for the first quarter of 2025 were US$339.1 million, relatively flat compared to US$339.0 million for the same period last year. Advertising and marketing revenues excluding advertising revenues from Alibaba were US$296.5 million, a decrease of 6% compared to US$316.4 million for the same period last year. The decrease mainly resulted from less revenue contributions from the online gaming and handset manufacturing sectors on a year over year basis, primarily due to high base effect and difference of handset product launch schedule respectively. Advertising and marketing revenues from Alibaba were US$42.6 million, an increase of 89% compared to US$22.6 million, mainly attributable to its strong promotional demand related to Spring Festival Gala, as well as incremental ad spend in promoting its AI-related products. VAS revenues for the first quarter of 2025 were US$57.7 million, an increase of 2% compared to US$56.5 million for the same period last year, primarily driven by the growth of membership services revenues. Costs and expenses for the first quarter of 2025 totaled US$286.5 million, a decrease of 3% compared to US$295.8 million for the same period last year, primarily resulting from the decrease in sales and marketing expenses. Income from operations for the first quarter of 2025 was US$110.3 million, compared to US$99.7 million for the same period last year. Operating margin was 28%, compared to 25% last year. Non-GAAP income from operations was US$129.5 million, compared to US$125.8 million for the same period last year. Non-GAAP operating margin was 33%, compared to 32% last year. Non-operating income for the first quarter of 2025 was US$22.1 million, compared to non-operating loss of US$23.6 million for the same period last year. Non-operating income for the first quarter of 2025 mainly included (i) net interest and other income of US$13.7 million; and (ii) gain from fair value change of investments of US$8.1 million, which was excluded under non-GAAP measures. Income tax expenses for the first quarter of 2025 were US$24.3 million, compared to US$25.0 million for the same period last year. Net income attributable to Weibo's shareholders for the first quarter of 2025 was US$107.0 million, compared to US$49.4 million for the same period last year. Diluted net income per share attributable to Weibo's shareholders for the first quarter of 2025 was US$0.41, compared to US$0.19 for the same period last year. Non-GAAP net income attributable to Weibo's shareholders for the first quarter of 2025 was US$119.5 million, compared to US$106.6 million for the same period last year. Non-GAAP diluted net income per share attributable to Weibo's shareholders for the first quarter of 2025 was US$0.45, compared to US$0.41 for the same period last year. As of March 31, 2025, Weibo's cash, cash equivalents and short-term investments totaled US$2.08 billion, compared to US$2.35 billion as of December 31, 2024. The decrease of Weibo's cash, cash equivalent and short-term investments mainly resulted from the purchase of long-term wealth management products in the first quarter of 2025. For the first quarter of 2025, cash provided by operating activities was US$113.2 million, capital expenditures totaled US$9.4 million, and depreciation and amortization expenses amounted to US$13.6 million. Conference Call Weibo's management team will host a conference call from 7:00 AM to 8:00 AM Eastern Time on May 21, 2025 (or 7:00 PM to 8:00 PM Beijing Time on May 21, 2025) to present an overview of the Company's financial performance and business operations. Participants who wish to dial in to the teleconference must register through the below public participant link. Dial-in and instructions will be provided in the confirmation email upon registering. Participants Registration Link: Additionally, a live and archived webcast of this conference call will be available at Non-GAAP Financial Measures This release contains the following non-GAAP financial measures: non-GAAP income from operations, non-GAAP net income attributable to Weibo's shareholders, non-GAAP diluted net income per share attributable to Weibo's shareholders and adjusted EBITDA. These non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of the Company's financial performance prepared in accordance with U.S. GAAP. The Company's non-GAAP financial measures exclude stock-based compensation, amortization of intangible assets resulting from business acquisitions, net results of impairment and provision on investments, gain/loss on sale of investments and fair value change of investments, non-GAAP to GAAP reconciling items on the share of equity method investments, non-GAAP to GAAP reconciling items for the income/loss attributable to non-controlling interests, income tax expense related to the amortization of intangible assets resulting from business acquisitions and fair value change of investments (other non-GAAP to GAAP reconciling items have no tax effect), and amortization of issuance cost of convertible senior notes, unsecured senior notes and long-term loans. Adjusted EBITDA represents non-GAAP net income attributable to Weibo's shareholders before interest income/expense, net, income tax expenses/benefits, and depreciation expenses. The Company's management uses these non-GAAP financial measures in their financial and operating decision-making, because management believes these measures reflect the Company's ongoing operating performance in a manner that allows more meaningful period-to-period comparisons. The Company believes that these non-GAAP financial measures provide useful information to investors and others in the following ways: (i) in comparing the Company's current financial results with the Company's past financial results in a consistent manner, and (ii) in understanding and evaluating the Company's current operating performance and future prospects in the same manner as management does. The Company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gains/losses and other items (i) that are not expected to result in future cash payments or (ii) that are non-recurring in nature or may not be indicative of the Company's core operating results and business outlook. Use of non-GAAP financial measures has limitations. The Company's non-GAAP financial measures do not include all income and expense items that affect the Company's operations. They may not be comparable to non-GAAP financial measures used by other companies. Accordingly, care should be exercised in understanding how the Company defines its non-GAAP financial measures. Reconciliations of the Company's non-GAAP financial measures to the nearest comparable GAAP measures are set forth in the section below titled "Unaudited Reconciliation of Non-GAAP to GAAP Results." About Weibo Weibo is a leading social media for people to create, share and discover content online. Weibo combines the means of public self-expression in real time with a powerful platform for social interaction, content aggregation and content distribution. Any user can create and post a feed and attach multi-media and long-form content. User relationships on Weibo may be asymmetric; any user can follow any other user and add comments to a feed while reposting. This simple, asymmetric and distributed nature of Weibo allows an original feed to become a live viral conversation stream. Weibo enables its advertising and marketing customers to promote their brands, products and services to users. Weibo offers a wide range of advertising and marketing solutions to companies of all sizes. Weibo generates a substantial majority of its revenues from the sale of advertising and marketing services, including the sale of social display advertisement and promoted marketing offerings. Weibo displays content in a simple information feed format and offers native advertisement that conform to the information feed on our platform. We are continuously refining our social interest graph recommendation engine, which enables our customers to perform people marketing and target audiences based on user demographics, social relationships, interests and behaviors, to achieve greater relevance, engagement and marketing effectiveness. Safe Harbor Statement This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology, such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "confidence," "estimates" and similar statements. Among other things, Weibo's expected financial performance and strategic and operational plans, as described, without limitation, in quotations from management in this press release, contain forward-looking statements. Weibo may also make written or oral forward-looking statements in the Company's periodic reports to the U.S. Securities and Exchange Commission ("SEC"), in announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, Weibo's limited operating history in certain new businesses; failure to sustain or grow active user base and the level of user engagement; the uncertain regulatory landscape in China; fluctuations in the Company's quarterly operating results; the Company's reliance on advertising and marketing sales for a majority of its revenues; failure to successfully develop, introduce, drive adoption of or monetize new features and products; failure to compete effectively for advertising and marketing spending; failure to successfully integrate acquired businesses; risks associated with the Company's investments, including equity pick-up and impairment; failure to compete successfully against new entrants and established industry competitors; changes in the macro-economic environment, including the depreciation of the Renminbi; and adverse changes in economic and political policies of the PRC government and its impact on the Chinese economy. Further information regarding these and other risks is included in Weibo's annual reports on Form 20-F and other filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is current as of the date hereof, and Weibo assumes no obligation to update such information, except as required under applicable law. Contact:Investor RelationsWeibo CorporationPhone: +86 10 5898-3336Email: ir@ WEIBO CORPORATIONUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands of U.S. dollars, except per share data) Three months ended March 31,March 31, 20242025Net revenues: Advertising and marketing$ 338,951$ 339,106 Value-added services56,54657,749 Net revenues395,497396,855 Costs and expenses: Cost of revenues (1)86,82188,802 Sales and marketing (1)103,62795,810 Product development (1)80,72676,021 General and administrative (1)24,58625,912 Total costs and expenses295,760286,545Income from operations99,737110,310 Non-operating income (loss): Investment related income (loss), net(4,970)8,357 Interest and other income (loss), net(18,611)13,746 (23,581)22,103 Income before income tax expenses76,156132,413 Less: Income tax expenses25,04424,291 Net income51,112108,122 Less: Net income attributable to non-controlling interests548334 Accretion to redeemable non-controlling interests1,126824Net income attributable to Weibo's shareholders$ 49,438$ 106,964Basic net income per share attributable to Weibo's shareholders$ 0.21$ 0.45Diluted net income per share attributable to Weibo's shareholders$ 0.19$ 0.41 Shares used in computing basic net income per share attributable to Weibo's shareholders236,694238,284Shares used in computing diluted net income per share attributable to Weibo's shareholders263,644266,494 (1) Stock-based compensation in each category: Cost of revenues$ 1,773$ 1,239 Sales and marketing3,8232,929 Product development10,4386,840 General and administrative4,9784,039 WEIBO CORPORATIONUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands of U.S. dollars)As ofDecember 31,March 31,20242025Assets Current assets:Cash and cash equivalents $ 1,890,632$ 1,205,765 Short-term investments 459,852878,054 Accounts receivable, net 339,754357,201 Prepaid expenses and other current assets 348,774341,241 Amount due from SINA(1) 452,769452,988 Current assets subtotal 3,491,7813,235,249 Property and equipment, net 215,034226,867 Goodwill and intangible assets, net 272,004269,088 Long-term investments 1,389,1991,408,323 Other non-current assets 1,136,4811,519,352 Total assets $ 6,504,499$ 6,658,879Liabilities, Redeemable Non-controlling Interests and Shareholders' Equity Liabilities: Current liabilities:Accounts payable $ 158,435$ 164,823 Accrued expenses and other current liabilities 652,369649,888 Income tax payable 84,69089,589 Deferred revenues 72,64286,537 Dividends payable -200,643 Current liabilities subtotal 968,1361,191,480Long-term liabilities:Convertible senior notes 320,803321,588 Unsecured senior notes 744,662744,904 Long-term loans 795,311796,228 Other long-term liabilities 96,70196,461 Total liabilities 2,925,6133,150,661 Redeemable non-controlling interests 45,10324,523 Shareholders' equity : Weibo shareholders' equity 3,482,7713,432,055Non-controlling interests 51,01251,640 Total shareholders' equity 3,533,7833,483,695 Total liabilities, redeemable non-controlling interests and shareholders' equity $ 6,504,499$ 6,658,879 (1) Included short-term loans to and interest receivable from SINA of US$417.7 million as of December 31, 2024 and US$413.5 million as of March 31, 2025. WEIBO CORPORATIONUNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS(In thousands of U.S. dollars, except per share data)Three months ended March 31,March 31, 20242025 Income from operations$ 99,737$ 110,310Add: Stock-based compensation 21,012 15,047 Amortization of intangible assets resulting from business acquisitions 5,059 4,122Non-GAAP income from operations$ 125,808$ 129,479 Net income attributable to Weibo's shareholders$ 49,438$ 106,964Add: Stock-based compensation 21,012 15,047 Amortization of intangible assets resulting from business acquisitions 5,059 4,122 Investment related gain/loss, net (1) 4,970 (8,357) Non-GAAP to GAAP reconciling items on the share of equity method investments 25,358 1,039 Non-GAAP to GAAP reconciling items for the income/loss attributable to non-controlling interests (436) (492) Tax effects on non-GAAP adjustments (2) (1,103) (734) Amortization of issuance cost of convertible senior notes, unsecured senior notes and long-term loans2,314 1,943Non-GAAP net income attributable to Weibo's shareholders$ 106,612$ 119,532 Non-GAAP diluted net income per share attributable to Weibo's shareholders$ 0.41 * $ 0.45 *Shares used in computing GAAP diluted net income per share attributable to Weibo's shareholders 263,644 266,494Shares used in computing non-GAAP diluted net income per share attributable to Weibo's shareholders 263,644 266,494 Adjusted EBITDA: Net income attributable to Weibo's shareholders$ 49,438$ 106,964 Non-GAAP adjustments 57,174 12,568 Non-GAAP net income attributable to Weibo's shareholders 106,612 119,532 Interest income, net (9,151) (13,986) Income tax expenses 26,147 25,025 Depreciation expenses 9,417 9,149Adjusted EBITDA$ 133,025$ 139,720 Net revenues $ 395,497$ 396,855 Non-GAAP operating margin 32 % 33 % (1) To adjust impairment and provision on investments, gain/loss on sale of investments and fair value change of investments.(2) To adjust the income tax effects of non-GAAP adjustments, which primarily related to amortization of intangible assets resulting from businessacquisitions and fair value change of investments. Other non-GAAP adjustment items have no tax effect, because (i) they were recorded in entities established in tax free jurisdictions, or (ii) full valuation allowances were provided for related deferred tax assets as it is more-likely-than-not they will not be realized. * Net income attributable to Weibo's shareholders is adjusted for interest expense of convertible senior notes for calculating diluted EPS. WEIBO CORPORATIONUNAUDITED ADDITIONAL INFORMATION(In thousands of U.S. dollars)Three months ended March 31,March 31, 20242025 Net revenues Advertising and marketing Non-Ali advertisers$ 316,400$ 296,494 Alibaba 22,55142,612 Subtotal338,951339,106Value-added services56,54657,749 $ 395,497$ 396,855 View original content: SOURCE Weibo Corporation Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-04-2025
- Business
- Yahoo
Is Weibo Corporation (WB) the Ridiculously Cheap Stock to Invest in?
We recently published a list of . In this article, we are going to take a look at where Weibo Corporation (NASDAQ:WB) stands against other ridiculously cheap stocks to invest in. Just as we hunt for bargains in the commodity market—comparing relative prices, identifying discounted products, and getting the product most valued for our money—investing in the financial market isn't any different. In both investments, price matters. In a world of overpriced stocks, spotting the hidden gem is what differentiates a smart investor from an impulsive investor. One who realizes that value isn't just about what you buy rather it's more about what you pay, is the one who is likely to identify an overlooked but full of value stock. Let's first understand what a cheap stock actually implies. There are two most common interpretations of such a stock. First, a stock may be regarded as a cheap stock if it has a low share price. Second, an undervalued stock is more commonly known as a cheap stock. Our analysis resonates with the second interpretation, that a cheap stock is a stock that is trading below its intrinsic value based on factors like earnings, revenue, or assets. Thus, in the market, investors say it's 'cheap' relative to its true potential, making it a compelling investment. One such measure to spot a cheap stock is through the forward price-to-earnings ratio. This is a measure used by investors to actually see how much they are paying for each dollar of a company's earnings. A low P/E can signal an undervalued stock when compared to its competitors, historical average, and broader market average. A report by Hoover Capital Management (HCM) analyzes the historical performance of value versus growth stocks through the French High Minus Low (HML) factor. The results from 97 years of data, from July 1926 to December 2023, strongly support value investing. The cumulative return of value stocks surpassed growth stocks by an impressive 3,000%. In other words, value investing has delivered a 30 times higher return on growth than growth investing. It can be further reinforced through the research by Economist Victoria Galsband, according to which cheap stocks outperformed growth stocks from 1975 to 2010 in every single G7 country, including Canada, the U.S., Japan, and the leading European countries. Another report that analyzed the impact of additions or removals of companies from the S&P index on their valuations indicated that, as removals are associated with the undervaluation of the stock and vice versa, many companies removed from the index outperformed the market. A study by Research Affiliates highlighted that stocks taken out of the S&P between 1990 and 2022 outperformed those that were added by more than 5% annually. This provides a compelling case for our view that undervalued stocks, translated to cheap stocks, have a greater probability of yielding higher returns. We have compiled a list of 11 ridiculously cheap stocks through the Finviz screener. In doing so, stocks have been selected that have a lower than 5 price-to-earnings (P/E) ratio. These stocks cover a range of industries, from consumer products to natural resources exploration. These companies are then listed according to their P/E ratios, from highest to lowest. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). An overhead view of a business center, bustling with activity. Forward P/E as of April 17: 4.16 Weibo Corporation (NASDAQ:WB) is a China-based social media platform that assists users in creating, distributing, and discovering Chinese-language content. With mainly two segments: Advertising and Marketing Services, and Value-Added Services, the company offers users public self-expression in real time with a platform for social engagement and interaction, as well as content aggregation and distribution. WB works towards a live viral conversation stream through its asymmetric nature. Weibo Corporation (NASDAQ:WB) is increasingly making investments in AI, with a focus on the vertical content ecosystem. Management recently announced a shift in its strategy towards AI-related technologies, which includes elevating the recommendation system and integrating AI into products like intelligent search and advertising solutions. Hence, like any other smart enterprise, Weibo Corporation (NASDAQ:WB) is jumping on the AI bandwagon. At times when there are macroeconomic uncertainties and high tariff risks, analysis suggests that the actual impact of tariffs could be much less for Weibo Corporation (NASDAQ:WB). As WB relies heavily on China as a social media platform and does not export goods directly to the U.S., the impact of tariffs would most likely be implicit. We already know that the Chinese government is welcoming any stimulus, and if it happens, the effect of trade barriers could be negated. Moreover, it can not be ignored that the tensions between China and the U.S. have existed for years, so these tariffs are not something new. The optimism surrounding Weibo Corporation (NASDAQ:WB) stems from a solid track record of generating profits, generous dividends, and growing strategic emphasis. The management has three main goals for this year: integrating social products to boost user engagement, enhancing the vertical content ecosystem, and improving operational efficiency through AI and other technologies. The more the company successfully delivers these goals, the more we can rely on this cheap stock to return value. Overall, WB ranks 7th on our list of ridiculously cheap stocks to invest in. While we acknowledge the potential of cheap stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WB but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
