BEIJING, Nov. 28, 2018 /PRNewswire/ -- Weibo Corporation
("Weibo" or the "Company") (NASDAQ: WB), a leading social media in
China, today announced its
unaudited financial results for the third quarter ended
September 30, 2018.
"Weibo has once again achieved strong user growth and user
engagement this quarter. We are delighted to see our adverting and
marketing revenues continue to deliver healthy growth." said Gaofei
Wang, CEO of Weibo. "We continue to focus on optimizing user
product experience and strengthening content distribution to
feature Weibo's unique advantages in content creation, consumption
and user social interaction. We expect these actions will help
increase user acquisition efficiency, and in the longer-term,
enhance Weibo's monetization potentials."
Third Quarter 2018 Highlights
- Net revenues totaled $460.2
million, an increase of 44% year-over-year.
- Advertising and marketing revenues were $409.3 million, an increase of 48%
year-over-year.
- Value-added service ("VAS") revenues were $50.9 million, an increase of 18%
year-over-year.
- Net income attributable to Weibo was $165.3 million, an increase of 63%
year-over-year, and diluted net income per share was $0.73, compared to $0.45 for the same period last year.
- Non-GAAP net income attributable to Weibo was $171.8 million, an increase of 49%
year-over-year, and non-GAAP diluted net income per share was
$0.75, compared to $0.51 for the same period last year.
- Adjusted EBITDA was $192.8
million, an increase of 42% year-over-year, or 42% of net
revenues, compared to 42% for the same period last year.
- Monthly active users ("MAUs") had a net addition of
approximately 70 million users year over year and reached 446
million in September 2018. Mobile
MAUs represented 93% of MAUs.
- Average daily active users ("DAUs") had a net addition of
approximately 30 million users year over year and reached 195
million in September 2018.
Third Quarter 2018 Financial Results
For the third quarter of 2018, Weibo reported net revenues of
$460.2 million. The net revenues for
the same period last year were $320.0
million. Advertising and marketing revenues totaled
$409.3 million, compared to
$276.8 million for the same period
last year, and advertising and marketing revenues from small &
medium-sized enterprises ("SMEs") and key accounts were
$380.7 million, compared to
$251.5 million for the same period
last year, or an increase of 51% year-over-year. VAS revenues
totaled $50.9 million, compared to
$43.2 million for the same period
last year.
Costs and expenses for the third quarter of 2018 totaled
$298.2 million, compared to
$201.6 million for the same period
last year. Other than the inclusion of marketing expense related to
advertising barter transactions under ASC Topic 606 as illustrated
below, the increase in costs and expenses was primarily
attributable to more marketing expenses incurred for channels,
product promotion and development expenditures incurred in
relations to the personnel-related cost, as well as goodwill and
acquired intangibles impairment charge for non-core business line.
Non-GAAP costs and expenses were $272.2
million, compared to $188.0
million for the same period last year.
Income from operations for the third quarter of 2018 was
$162.0 million, compared to
$118.5 million for the same period
last year. Non-GAAP income from operations was $188.0 million, compared to $132.0 million for the same period last year.
Non-operating income for the third quarter of 2018 was
$42.9 million, compared to a
non-operating income of $4.3 million
for the same period last year. The increase was primarily due to
$41.9 million of fair value change of
investments. Income tax expenses were $37.9
million, compared to $22.0
million for the same period last year, largely attributable
to the deferred tax liabilities recognized from fair value change
of investments and higher profitability with a relatively stable
tax rates in the Company's PRC operation.
Net income attributable to Weibo for the third quarter of 2018
was $165.3 million, or diluted net
income per share of $0.73, compared
to $101.1 million for the same period
last year, or diluted net income per share of $0.45. Non-GAAP net income attributable to Weibo
for the third quarter of 2018 was $171.8
million, or diluted net income per share of $0.75, compared to $115.2
million for the same period last year, or diluted net income
per share of $0.51.
As of September 30, 2018, Weibo's
cash, cash equivalents and short-term investments totaled
$1.60 billion. For the third quarter
of 2018, cash provided by operating activities was $122.1 million, capital expenditures totaled
$6.0 million, and depreciation and
amortization expenses amounted to $4.5
million.
Annual General Meeting
On November 22, 2018, the Company held its annual general
meeting of shareholders,
where the shareholders re-elected each of Mr. Frank Kui
Tang and Ms. Hong Du as a director
of Weibo.
Business Outlook
For the fourth quarter of 2018, Weibo estimates its net revenues
to be between $480 million and
$490 million, or an increase of
35% year over year to 38% year over year on a constant currency
basis. This forecast reflects the currency translation risks and
assumes an average exchange rate of RMB
7.00 to US$1.00. This forecast
also reflects Weibo's current and preliminary view, which is
subject to change.
Financial Impact from New Revenue Guidance
As the Company adopted new revenue guidance ASC Topic 606 on
January 1, 2018, results for
reporting periods beginning after January 1,
2018 are presented under Topic 606 ('New Basis'), while
prior period amounts are not adjusted and continue to be reported
under Topic 605 ('Old Basis'), the Company's historic accounting
method.
Adoption of the new revenue guidance impacted the Company's
current period reported results as follows:
|
Three months
ended
|
|
September 30,
2018
|
|
|
|
Adjustments
|
|
|
|
Old Basis
ASC 605
|
|
VAT
|
|
Barter
Transaction
|
|
New Basis
ASC 606
|
|
($ In thousands,
except for percentage)
|
|
|
|
|
|
|
|
|
Net
revenues
|
459,232
|
|
(25,886)
|
|
26,825
|
|
460,171
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
95,902
|
|
(25,886)
|
|
-
|
|
70,016
|
Operating
expenses
|
|
|
|
|
|
|
|
-Sales and
marketing expenses
|
112,132
|
|
-
|
|
28,927
|
|
141,059
|
Income from
operations
|
164,061
|
|
-
|
|
(2,102)
|
|
161,959
|
Operating
margin
|
35.7%
|
|
|
|
|
|
35.2%
|
Conference Call
Weibo's management team will host a conference call from
6AM - 7AM Eastern Time on
November 28, 2018 (or 7 PM -
8 PM Beijing Time on November 28, 2018) to present an overview of the
Company's financial performance and business operations. A live
webcast of the call will be available through the Company's
corporate website at http://ir.weibo.com.
The conference call can be accessed as follows:
US Toll
Free:
|
+1
866-519-4004
|
Hong Kong Toll
Free:
|
800-906-601
|
China Toll
Free:
|
400-620-8038
|
International:
|
+65
6713-5090
|
Passcode for all
regions:
|
5368429
|
A replay of the conference call will be available from 22:00
China Standard Time on November 28,
2018 - 20:59 China Standard Time on December 6, 2018. The dial-in number is +61
2-8199-0299. The passcode for the replay is 5368429.
Non-GAAP Financial Measures
This release contains the following non-GAAP financial measures:
non-GAAP costs and expenses, non-GAAP income from operations,
non-GAAP net income attributable to Weibo, non-GAAP diluted net
income per share attributable to Weibo 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, net results of
impairment on, gain/loss on sale of and fair value change of
investments, non-GAAP to GAAP reconciling items for the gain/loss
attributable to non-controlling interests, provision for income tax
related to the amortization of intangible assets and fair value
change of investments (other non-GAAP to GAAP reconciling items
have no tax effect), and amortization of convertible debt issuance
cost. Adjusted EBITDA excludes interest income, net, income tax
expenses, 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, if they so
choose. 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. It 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. The Company
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 has developed and is continuously
refining its social interest graph recommendation engine, which
enables its 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 that
relate to, among other things, Weibo's expected financial
performance and strategic and operational plans (as described,
without limitation, in the "Business Outlook" section and in
quotations from management in this press release. Weibo may also
make forward-looking statements in the Company's periodic reports
to the U.S. Securities and Exchange Commission ("SEC"), 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.
These forward-looking statements can be identified by terminology,
such as "will," "expects," "anticipates," "future," "intends,"
"plans," "believes," "confidence," "estimates" and similar
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 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 report on Form 20-Fs and other
filings with the SEC. 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 Relations
Weibo Corporation
Phone: +86 10 5898-3017
Email: ir@staff.weibo.com
WEIBO
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
[1]:
|
|
|
|
|
|
|
|
|
|
|
|
Advertising and
marketing
|
|
$
409,273
|
|
$
276,803
|
|
$
369,942
|
|
$
1,082,164
|
|
$
664,440
|
|
Value-added
service
|
|
50,898
|
|
43,232
|
|
56,647
|
|
154,479
|
|
108,169
|
|
|
Net
revenues
|
|
460,171
|
|
320,035
|
|
426,589
|
|
1,236,643
|
|
772,609
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
[1][2]
|
|
70,016
|
|
62,428
|
|
61,790
|
|
194,708
|
|
159,250
|
|
Sales and marketing
[1][2]
|
|
141,059
|
|
76,346
|
|
139,977
|
|
386,899
|
|
182,872
|
|
Product
development[2]
|
|
66,222
|
|
50,770
|
|
60,613
|
|
187,358
|
|
135,489
|
|
General and
administrative[2]
|
|
10,361
|
|
12,037
|
|
9,313
|
|
30,890
|
|
32,723
|
|
Goodwill and acquired
intangibles impairment
|
|
10,554
|
|
-
|
|
-
|
|
10,554
|
|
-
|
|
|
Total costs and
expenses
|
|
298,212
|
|
201,581
|
|
271,693
|
|
810,409
|
|
510,334
|
|
Income from
operations
|
|
161,959
|
|
118,454
|
|
154,896
|
|
426,234
|
|
262,275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment on, gain/loss on sale of and
fair value change of
investments, net [3]
|
|
31,683
|
|
(680)
|
|
(1,535)
|
|
28,649
|
|
(2,050)
|
|
Interest and other income , net
|
|
11,218
|
|
4,937
|
|
12,481
|
|
32,827
|
|
9,927
|
|
|
|
|
42,901
|
|
4,257
|
|
10,946
|
|
61,476
|
|
7,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income tax expenses
|
|
204,860
|
|
122,711
|
|
165,842
|
|
487,710
|
|
270,152
|
|
Income tax
expenses
|
|
(37,882)
|
|
(22,022)
|
|
(25,148)
|
|
(81,327)
|
|
(49,701)
|
|
Net
income
|
|
166,978
|
|
100,689
|
|
140,694
|
|
406,383
|
|
220,451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income (loss) attributable to
noncontrolling interests
|
1,661
|
|
(440)
|
|
(220)
|
|
1,067
|
|
(1,157)
|
|
Net income
attributable to Weibo
|
$
165,317
|
|
$
101,129
|
|
$
140,914
|
|
$
405,316
|
|
$
221,608
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
per share attributable to Weibo
|
$
0.74
|
|
$
0.46
|
|
$
0.63
|
|
$
1.81
|
|
$
1.01
|
|
Diluted net income
per share attributable to Weibo
|
$
0.73
|
|
$
0.45
|
|
$
0.62
|
|
$
1.79
|
|
$
0.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing basic
|
|
|
|
|
|
|
|
|
|
|
|
net
income per share attributable to Weibo
|
224,060
|
|
221,428
|
|
223,542
|
|
223,506
|
|
220,005
|
|
Shares used in
computing diluted
|
|
|
|
|
|
|
|
|
|
|
|
net
income per share attributable to Weibo
|
232,660
|
|
225,683
|
|
232,768
|
|
232,719
|
|
225,162
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] On January
1, 2018, the Company adopted ASC 606 "Revenue from Contracts with
Customers" using the modified retrospective method, which means
amounts for 2018 are reported on the new basis while prior periods
amount will be reported on a historical basis. Under the new
accounting standard, the
main impact to the Company is that it now reports the revenue net
of value added tax and recognizes revenues and expenses at fair
value for the
advertising barter transaction.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[2] Stock-based
compensation in each category:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
$
1,684
|
|
$
1,014
|
|
$
1,445
|
|
$
4,140
|
|
$
2,649
|
|
|
Sales and
marketing
|
|
3,243
|
|
2,287
|
|
2,831
|
|
8,042
|
|
6,048
|
|
|
Product
development
|
|
7,829
|
|
6,386
|
|
6,064
|
|
18,944
|
|
16,631
|
|
|
General and
administrative
|
|
2,598
|
|
3,689
|
|
1,908
|
|
7,490
|
|
10,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[3] The Company
adopted ASU 2016-01 "Classification and Measurement of Financial
Instruments" beginning the first quarter of fiscal year 2018.
After
the adoption of this new accounting update, the Company measures
long-term investments, other than equity method, at fair value
through earnings. For
those investments without readily determinable fair values, the
Company elected to record these investments at cost, less
impairment, and plus or minus
subsequent adjustments for observable price changes. Changes in the
basis of these investments are reported in current
earnings.
|
|
|
|
WEIBO
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
792,533
|
|
$
1,000,953
|
|
|
|
|
Short-term
investments
|
|
807,032
|
|
791,730
|
|
|
|
|
Accounts
receivable, net
|
|
304,182
|
|
170,100
|
|
|
|
|
Prepaid expenses
and other current assets[1]
|
|
319,470
|
|
69,233
|
|
|
|
|
Amount due from
SINA
|
|
68,266
|
|
16,356
|
|
|
|
|
Current assets
subtotal
|
|
2,291,483
|
|
2,048,372
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
41,155
|
|
33,793
|
|
|
Goodwill and
intangible assets, net
|
|
2,284
|
|
13,937
|
|
|
Long-term
investments
|
|
700,341
|
|
452,337
|
|
|
Other
assets
|
|
11,760
|
|
13,380
|
|
|
Total
assets
|
|
$
3,047,023
|
|
$
2,561,819
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
Liabilities:
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
102,300
|
|
$
64,043
|
|
|
|
|
Accrued expenses
and other current liabilities
|
|
284,859
|
|
268,615
|
|
|
|
|
Deferred
revenues
|
|
106,327
|
|
81,311
|
|
|
|
|
Income tax
payable[2]
|
|
80,347
|
|
70,907
|
|
|
|
|
Current liabilities
subtotal
|
|
573,833
|
|
484,876
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
Convertible
debt
|
|
883,089
|
|
879,983
|
|
|
|
|
Other long-term
liabilities
|
|
11,258
|
|
2,166
|
|
|
|
|
Total
liabilities
|
|
1,468,180
|
|
1,367,025
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity :
|
|
|
|
|
|
|
|
Weibo
shareholders' equity[3]
|
|
1,575,889
|
|
1,192,587
|
|
|
|
Non-controlling
interests
|
|
2,954
|
|
2,207
|
|
|
|
|
Total
shareholders' equity
|
|
1,578,843
|
|
1,194,794
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
$
3,047,023
|
|
$
2,561,819
|
|
|
|
|
|
|
-
|
|
-
|
|
|
[1] Included
short-term loans to SINA of $104.8 million as of September 30,
2018.
|
|
|
|
|
[2] Commencing on
January 1, 2018, in order to enhance comparability with industry
peers, income tax payable has
been presented as a single line item in balance sheet as opposed to
be part of accounts payable. To conform with
current period presentation, the relevant amount of $70.9 million
as of December 31, 2017 has been adjusted
accordingly.
|
|
|
[3] The Company
adopted ASU 2016-1 "Classification and Measurement of Financial
Instruments" beginning the
first quarter of
fiscal year 2018. After the adoption of this new accounting update,
the Company measures long-
term investments, other than equity method, at fair value through
earnings. For those investments without readily
determinable fair values, the Company elected to record these
investments at cost, less impairment, and plus or
minus subsequent adjustments for observable price changes. Changes
in the basis of these investments are
reported in current earnings. The cumulative impact arising from
the adoption of this update was immaterial to
retained earnings as of January 1, 2018.
|
|
|
|
|
|
|
|
WEIBO
CORPORATION
|
UNAUDITED
RECONCILIATION OF NON-GAAP TO GAAP RESULTS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
September 30,
2018
|
|
September 30,
2017
|
|
June 30,
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising and
marketing
|
|
$
409,273
|
|
|
|
$
409,273
|
|
$
276,803
|
|
|
|
$
276,803
|
|
$
369,942
|
|
|
|
$
369,942
|
|
Value-added
service
|
|
50,898
|
|
|
|
50,898
|
|
43,232
|
|
|
|
43,232
|
|
56,647
|
|
|
|
56,647
|
|
|
Net
revenues
|
|
$
460,171
|
|
|
|
$
460,171
|
|
$
320,035
|
|
|
|
$
320,035
|
|
$
426,589
|
|
|
|
$
426,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(15,354)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(90)
|
(b)
|
|
|
|
|
(13,376)
|
(a)
|
|
|
|
|
(12,248)
|
(a)
|
|
|
|
|
|
|
|
|
(10,554)
|
(c)
|
|
|
|
|
(161)
|
(b)
|
|
|
|
|
(164)
|
(b)
|
|
|
Total costs and
expenses
|
|
$
298,212
|
|
$
(25,998)
|
|
$
272,214
|
|
$
201,581
|
|
$
(13,537)
|
|
$
188,044
|
|
$
271,693
|
|
$
(12,412)
|
|
$
259,281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,354
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
90
|
(b)
|
|
|
|
|
13,376
|
(a)
|
|
|
|
|
12,248
|
(a)
|
|
|
|
|
|
|
|
|
10,554
|
(c)
|
|
|
|
|
161
|
(b)
|
|
|
|
|
164
|
(b)
|
|
|
Income from
operations
|
|
$
161,959
|
|
$
25,998
|
|
$
187,957
|
|
$
118,454
|
|
$
13,537
|
|
$
131,991
|
|
$
154,896
|
|
$
12,412
|
|
$
167,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,354
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
90
|
(b)
|
|
|
|
|
|
|
|
|
|
|
12,248
|
(a)
|
|
|
|
|
|
|
|
|
10,554
|
(c)
|
|
|
|
|
13,376
|
(a)
|
|
|
|
|
164
|
(b)
|
|
|
|
|
|
|
|
|
(31,683)
|
(d)
|
|
|
|
|
161
|
(b)
|
|
|
|
|
1,535
|
(d)
|
|
|
|
|
|
|
|
|
1,560
|
(e)
|
|
|
|
|
680
|
(d)
|
|
|
|
|
277
|
(e)
|
|
|
|
|
|
|
|
|
9,582
|
(f)
|
|
|
|
|
(113)
|
(e)
|
|
|
|
|
(41)
|
(f)
|
|
|
|
|
|
|
|
|
1,035
|
(g)
|
|
|
|
|
(40)
|
(f)
|
|
|
|
|
1,035
|
(g)
|
|
|
Net income
attributable to Weibo
|
$
165,317
|
|
$
6,492
|
|
$
171,809
|
|
$
101,129
|
|
$
14,064
|
|
$
115,193
|
|
$
140,914
|
|
$
15,218
|
|
$
156,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable
to Weibo
|
$
0.73
|
*
|
|
|
$
0.75
|
*
|
$
0.45
|
|
|
|
$
0.51
|
|
$
0.62
|
*
|
|
|
$
0.68
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net income per share attributable to Weibo
|
232,660
|
|
|
|
232,660
|
|
225,683
|
|
|
|
225,683
|
|
232,768
|
|
|
|
232,768
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable to Weibo
|
|
|
|
|
$
171,809
|
|
|
|
|
|
$
115,193
|
|
|
|
|
|
$
156,132
|
|
|
|
Interest
income,net
|
|
|
|
|
|
(11,733)
|
|
|
|
|
|
(5,131)
|
|
|
|
|
|
(12,604)
|
|
|
|
Income tax
expenses
|
|
|
|
|
|
28,300
|
|
|
|
|
|
22,062
|
|
|
|
|
|
25,189
|
|
|
|
Depreciation
expenses
|
|
|
|
|
|
4,437
|
|
|
|
|
|
3,733
|
|
|
|
|
|
4,626
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
$
192,813
|
|
|
|
|
|
$
135,857
|
|
|
|
|
|
$
173,343
|
|
WEIBO
CORPORATION
|
UNAUDITED
RECONCILIATION OF NON-GAAP TO GAAP RESULTS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2018
|
|
September 30,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
Actual
|
|
Adjustments
|
|
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising and
marketing
|
|
$
1,082,164
|
|
|
|
$
1,082,164
|
|
$
664,440
|
|
|
|
$
664,440
|
|
|
|
|
|
|
|
Value-added
service
|
|
154,479
|
|
|
|
154,479
|
|
108,169
|
|
|
|
108,169
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
$
1,236,643
|
|
|
|
$
1,236,643
|
|
$
772,609
|
|
|
|
$
772,609
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(38,616)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(423)
|
(b)
|
|
|
|
|
(36,002)
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10,554)
|
(c)
|
|
|
|
|
(473)
|
(b)
|
|
|
|
|
|
|
|
|
Total costs and
expenses
|
|
$
810,409
|
|
$
(49,593)
|
|
$
760,816
|
|
$
510,334
|
|
$
(36,475)
|
|
$
473,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38,616
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
423
|
(b)
|
|
|
|
|
36,002
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,554
|
(c)
|
|
|
|
|
473
|
(b)
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
$
426,234
|
|
$
49,593
|
|
$
475,827
|
|
$
262,275
|
|
$
36,475
|
|
$
298,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38,616
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
423
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,554
|
(c)
|
|
|
|
|
36,002
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(28,649)
|
(d)
|
|
|
|
|
473
|
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,719
|
(e)
|
|
|
|
|
2,050
|
(d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,499
|
(f)
|
|
|
|
|
(336)
|
(e)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,105
|
(g)
|
|
|
|
|
(118)
|
(f)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Weibo
|
$
405,316
|
|
$
35,267
|
|
$
440,583
|
|
$
221,608
|
|
$
38,071
|
|
$
259,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to Weibo
|
$
1.79
|
*
|
|
|
$
1.93
|
*
|
$
0.98
|
|
|
|
$
1.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net income per share attributable to Weibo
|
232,719
|
|
|
|
232,719
|
|
225,162
|
|
|
|
225,162
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable to Weibo
|
|
|
|
|
$
440,583
|
|
|
|
|
|
$
259,679
|
|
|
|
|
|
|
|
|
|
Interest income,
net
|
|
|
|
|
|
(35,246)
|
|
|
|
|
|
(10,385)
|
|
|
|
|
|
|
|
|
|
Income tax
expenses
|
|
|
|
|
|
71,828
|
|
|
|
|
|
49,819
|
|
|
|
|
|
|
|
|
|
Depreciation
expenses
|
|
|
|
|
|
13,584
|
|
|
|
|
|
10,343
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
$
490,749
|
|
|
|
|
|
$
309,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
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|
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|
(a) To
exclude stock-based compensation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) To
exclude amortization of intangible assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) To
exclude goodwill and acquired intangibles
impairment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) To
exclude net results of impairment on, gain/loss on sale of and fair
value change of investments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(e) To
exclude non-GAAP to GAAP reconciling items for the income/loss
attributable to non-controlling interests.
|
|
|
|
|
|
|
|
|
|
|
|
(f) To
exclude the provision for income tax related to item (b) and (d).
Other non-GAAP to GAAP reconciling items have no income tax
effect.
|
|
|
|
|
|
|
|
|
|
The Company considered the tax implication arising from the
reconciliation items and part of these items recorded in entities
in tax free jurisdictions were without relevant tax
implications.
|
For impairment on
investments, valuation allowances were made for those differences
the Company does not expect they can be realized in the foreseeable
future.
|
(g) To
exclude the amortization of convertible debt issuance
cost.
|
|
|
|
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|
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* Net income
attributable to Weibo is adjusted for interest expense of
convertible debt for calculating diluted EPS.
|
|
|
|
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|
|
|
|
|
|
WEIBO
CORPORATION
|
UNAUDITED
ADDITIONAL INFORMATION
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
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|
|
|
|
|
|
|
|
|
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|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
|
Advertising and
marketing
|
|
|
|
|
|
|
|
|
|
|
|
Small & medium-sized
enterprises and key accounts
|
$
380,745
|
|
$
251,456
|
|
$
338,662
|
|
$
996,020
|
|
$
618,106
|
|
|
Alibaba
|
28,528
|
|
25,347
|
|
31,280
|
|
86,144
|
|
46,334
|
|
|
Subtotal
|
409,273
|
|
276,803
|
|
369,942
|
|
1,082,164
|
|
664,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Value-added
service
|
50,898
|
|
43,232
|
|
56,647
|
|
154,479
|
|
108,169
|
|
|
|
$
460,171
|
|
$
320,035
|
|
$
426,589
|
|
$
1,236,643
|
|
$
772,609
|
|
|
|
-
|
|
|
|
|
|
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|
View original
content:http://www.prnewswire.com/news-releases/weibo-reports-third-quarter-2018-unaudited-financial-results-300756700.html
SOURCE Weibo Corporation