Weibo Corporation (Weibo), a leading social media in China, announced its unaudited financial results for the second quarter ended June 30, 2018.
“We continue to see great momentum in our business. Net revenues grew 68% year over year, while both MAUs and DAUs maintained their growth trajectories,” said Gaofei Wang, Weibo’s CEO. “As a leading social media platform with a full spectrum of media formats in China, we believe Weibo’s larger user scale, enriched content ecosystem and strong social marketing capabilities will put us in a unique position to take advantage of the marketing budget shift toward mobile, social and video in the Chinese mobile internet market.”
Second Quarter 2018 Highlights
- Net revenues totaled $426.6 million, an increase of 68% year-over-year.
- Advertising and marketing revenues were $369.9 million, an increase of 69% year-over-year.
- Value-added service (“VAS”) revenues were $56.6 million, an increase of 62% year-over-year.
Net income attributable to Weibo was $140.9 million, an increase of 92% year-over-year, and diluted net income per share was $0.62, compared to $0.33 for the same period last year.
Non-GAAP net income attributable to Weibo was $156.1 million, an increase of 80% year-over-year, and non-GAAP diluted net income per share was $0.68, compared to $0.38 for the same period last year.
Adjusted EBITDA was $173.3 million, an increase of 68% year-over-year, or 41% of net revenues, compared to 41% for the same period last year.
Monthly active users (“MAUs”) had a net addition of approximately 70 million users year over year and reached 431 million in June 2018. Mobile MAUs represented 93% of MAUs.
Average daily active users (“DAUs”) had a net addition of approximately 31 million users year over year and reached 190 million in June 2018.
Second Quarter 2018 Financial Results
For the second quarter of 2018, Weibo reported net revenues of $426.6 million; despite the fact that the general weakening of the China Renminbi related to the US dollar had an unfavorable impact on revenue. The net revenues for the same period last year were $253.4 million. Advertising and marketing revenues totaled $369.9 million, compared to $218.3 million for the same period last year, and advertising and marketing revenues from small & medium-sized enterprises (“SMEs”) and key accounts were $338.7 million, compared to $205.1 million for the same period last year, or an increase of 65% year-over-year. VAS revenues totaled $56.6 million, compared to $35.0 million for the same period last year.
Costs and expenses for the second quarter of 2018 totaled $271.7 million, compared to $165.4 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, brand promotion and development expenditures incurred in relations to the personnel-related cost. Non-GAAP costs and expenses were $259.3 million, compared to $153.3 million for the same period last year.
Income from operations for the second quarter of 2018 was $154.9 million, compared to $88.0 million for the same period last year. Non-GAAP income from operations was $167.3 million, compared to $100.1 million for the same period last year.
