In This Article:
-
Revenue: $464.5 million, up 5% year over year.
-
Advertising Revenue: $398.6 million, up 2% year over year.
-
Value-Added Services (VAS) Revenue: $65.9 million, up 25% year over year.
-
Non-GAAP Operating Income: $164.5 million, with a non-GAAP operating margin of 35%.
-
Net Income: $139.2 million, with a net margin of 30%.
-
Diluted EPS: $0.53.
-
Mobile Ad Revenue: $374.2 million, contributing approximately 94% of total ad revenue.
-
Cash, Cash Equivalents, and Short-term Investments: $2.2 billion as of September 30, 2024.
-
Cash Provided by Operating Activities: $124.2 million.
-
Capital Expenditures: $11.8 million.
-
Depreciation and Amortization Expenses: $14.4 million.
-
Monthly Active Users (MAU): 587 million in September 2024.
-
Daily Active Users (DAU): 257 million in September 2024.
Release Date: November 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Weibo Corp (NASDAQ:WB) reported a 5% year-over-year increase in total revenue for Q3 2024, reaching USD464.5 million.
-
The company's ad revenue grew by 2% year-over-year, driven by Olympic-related hot trends and strong momentum in value-added services.
-
Weibo's MAU reached approximately 587 million, with DAUs at 257 million, reflecting successful user acquisition and engagement strategies.
-
The value-added services (VAS) segment saw a 25% increase in revenue, primarily due to growth in membership and game-related services.
-
Weibo's non-GAAP operating income was USD164.5 million, with a non-GAAP operating margin of 35%, indicating strong operational efficiency.
Negative Points
-
Despite revenue growth, Weibo Corp (NASDAQ:WB) faced a sluggish consumer environment, impacting client marketing demand.
-
Ad revenue from the handset industry declined year-over-year due to the product launch pipeline in Q3.
-
The cosmetics and personal care industry underperformed, dragging down overall FMCG growth.
-
Net income attributable to Weibo's shareholders increased by only 2%, with a slight decrease in net margin from 31% to 30% year-over-year.
-
The company anticipates continued uncertainties and does not expect a V-shaped recovery in the advertising market despite government stimulus measures.
Q & A Highlights
Q: In light of recent macro stimulus, how does management see these policies impacting advertisement outlook in Q4, and could you share more details by industry verticals? A: Gaofei Wang, CEO: In Q3, ad revenue increased due to hot trends like the Olympics. For Q4, while we see optimism from government policies boosting domestic demand, recovery in luxury products and real estate remains challenging. However, we expect double-digit growth in 3C products and consumer electronics due to national subsidies. Weibo's focus on hot trend marketing, such as the Paris Olympics, has driven growth in food, beverage, apparel, and automotive sectors. Advertisers are shifting budgets from traditional TV to social media, benefiting Weibo.