UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
Forthe month of
May 2024
Commission File Number: 001-36397
Weibo Corporation
(Registrant's Name)
8/F, QIHAO Plaza, No. 8 Xinyuan S. Road
Chaoyang District, Beijing 100027
People's Republic of China
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annualreports
under cover of Form 20-F or Form 40-F.
Form 20-F/
x
Form 40-F
..
Exhibit Index
Exhibit 99.1 - Press Release regarding Financial Results for the First Quarter
Ended March 31, 2024 issued by Weibo Corporation on May 23, 2024
SIGNATURES
Pursuant to the requirements of the SecuritiesExchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
WEIBO CORPORATION
Date://May 23, 2024 By: /s/ Fei Cao
Fei Cao
Chief Financial Officer
Exhibit 99.1
Weibo Announces First Quarter 2024 UnauditedFinancial Results
BEIJING, China - May 23, 2024 -Weibo Corporation ("Weibo" or the "Company")
(NASDAQ: WB and HKEX: 9898), a leading social media in China, todayannounced
its unaudited financial results for the first quarter ended March 31, 2024.
"We had a solid start to the year," said Gaofei Wang, CEO of Weibo. "On the
user front, we focused on the acquisitionand engagement of high quality users
and improving ROI of our channel investments. On the content front, we also
made progress in optimizingtraffic structure through continuous execution of
vertical content strategy. On the monetization front, Weibo's business
demonstratedstabilized trend, with enhanced operating efficiency this quarter.
Looking forward, we are committed to consistently driving value ofour platform
and improving shareholder returns."
First Quarter 2024 Highlights
. Net revenues were US$395.5 million, a decrease of 4%
year-over-year or flat year-over-year on a constant currency basis
[1]
.
. Advertising and marketing revenues were US$339.0 million, a decrease of
5% year-over-year or flat year-over-year on a constant currencybasis
[1]
.
. Value-added services ("VAS") revenues were US$56.5 million, a decrease of 3%
year-over-year or an increase of 1% year-over-yearon a constant currency basis
[1]
.
. Income from operations was US$99.7 million,
representing an operating margin of 25%.
. Net income attributable to Weibo's shareholders was US$49.4
million and diluted net income per share was US$0.19.
. Non-GAAP income from operations was US$125.8 million,
representing a non-GAAP operating margin of 32%.
. Non-GAAP net income attributable to Weibo's shareholders was US$106.6
million and non-GAAP diluted net income per share wasUS$0.41.
. Monthly active users ("MAUs") were 588 million in March 2024.
. Average daily active users ("DAUs")
were 255 million in March 2024.
[1]
Wedefine constant currency (non-GAAP) by assuming that the average exchange
rate in the first quarter of 2024 had been the same as itwas in the first
quarter of 2023, or RMB6.86=US$1.00.
First Quarter2024
Financial Results
For the firstquarter of 2024, Weibo's total net revenues were US$395.5 million
, a decrease of 4% compared to US$413.8 million for thesame period last year.
Advertising and marketing revenues for the first quarter of 2024 wereUS$339.0
million, a decrease of 5% compared to US$355.3 million for the same period
last year. Advertising and marketing revenues excludingadvertising revenues
from Alibaba were US$316.4 million, a decrease of 6% compared to US$337.0
million for the same period last year,primarily attributable to the
unfavorable foreign exchange impact on the reported numbers.
VAS revenues for the first quarter of 2024 were US$56.5 million, adecrease of
3% year-over-year compared to US$58.5 million for the same period last year.
Costsand expenses for the
first quarter of 2024 totaled US$295.8 million, a decrease of 7% compared to
US$317.3 million for the sameperiod last year. In addition to the foreign
exchange impact, the decrease was mainly resulted from the decrease in
personnel relatedcost and marketing expense.
Income from operations for the first quarter of 2024 was US$99.7 million,compare
d to US$96.5 million for the same period last year. Operating margin was 25%,
compared to 23% last year. Non-GAAP income from operationswas US$125.8
million, compared to US$128.6 million for the same period last year. Non-GAAP
operating margin was 32%, compared to 31% lastyear.
Non-operating loss for the first quarter of 2024 was US$23.6 million,compared
to non-operating income of US$29.8 million for the same period last year.
Non-operating loss for the first quarter of 2024 mainlyincluded (i) net
interest and other loss of US$18.6 million; and (ii) loss from fair value
change of investments of US$3.6 million,which was excluded under non-GAAP
measures.
Income tax expenses for the first quarter of 2024 were US$25.0 million,compared
to US$21.9 million for the same period last year.
Net income attributable to Weibo's shareholders for the firstquarter of 2024
was US$49.4 million, compared to US$100.5 million for the same period last
year. Diluted net income per share attributableto Weibo's shareholders for the
first quarter of 2024 was US$0.19, compared to US$0.42 for the same period
last year. Non-GAAP netincome attributable to Weibo's shareholders for the
first quarter of 2024 was US$106.6 million, compared to US$111.2 million
forthe same period last year. Non-GAAP diluted net income per share
attributable to Weibo's shareholders for the first quarter of 2024was US$0.41,
compared to US$0.47 for the same period last year.
As of March 31, 2024, Weibo's cash, cash equivalents andshort-term investments
totaled US$3.3 billion. For the first quarter of 2024, cash provided by
operating activities was US$139.6 million,capital expenditures totaled US$21.7
million, and depreciation and amortization expenses amounted to US$14.8
million.
Conference Call
Weibo's ma
nagement team will hosta conference call from 7:00 AM to 8:00 AM Eastern Time
on May 23, 2024 (or 7:00 PM to 8:00 PM Beijing Time on May 23, 2024)to present
an overview of the Company's financial performance and business operations.
Participants who wish to dial in to theteleconference must register through
the below public participant link. Dial in and instruction will be in the
confirmation email uponregistering.
ParticipantsRegistration Link:
https://register.vevent.com/register/BIe95f7f5ac02f4170bb6b8e878a03b278
Additionally,a live and archived webcast of this conference call will
available at
http://ir.weibo.com
.
Non-GAAP Financial Measures
This release contains the following non-GAAP financial measures: non-GAAPincome
from operations, non-GAAP net income attributable to Weibo's shareholders,
non-GAAP diluted net income per share attributableto Weibo's shareholders and
adjusted EBITDA. These non-GAAP financial measures should be considered in
addition to, not as a substitutefor, measures of the Company's financial
performance prepared in accordance with U.S. GAAP.
The Company'snon-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-GAAPto GAAP reconciling
items on the share of equity method investments, non-GAAP to GAAP reconciling
items for the income/loss attributableto non-controlling interests, income tax
expense related to the amortization of intangible assets resulting from
business acquisitionsand fair value change of investments (other non-GAAP to
GAAP reconciling items have no tax effect), and amortization of issuance
costof convertible senior notes, unsecured senior notes and long-term loans.
Adjusted EBITDA represents non-GAAP net income attributable toWeibo's
shareholders before interest income/expense, net, income tax expenses/benefits,
and depreciation expenses.
The Company's management uses these non-GAAP financial measuresin their
financial and operating decision-making, because management believes these
measures reflect the Company's ongoing operatingperformance in a manner that
allows more meaningful period-to-period comparisons. The Company believes that
these non-GAAP financial measuresprovide useful information to investors and
others in the following ways: (i) in comparing the Company's current
financialresults with the Company's past financial results in a consistent
manner, and (ii) in understanding and evaluating the Company'scurrent
operating performance and future prospects in the same manner as management
does. The Company also believes that the non-GAAPfinancial 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
indicativeof the Company's core operating results and business outlook.
Use of non-GAAP financial measures has limitations. The Company'snon-GAAP
financial measures do not include all income and expense items that affect the
Company's operations. They may not be comparableto non-GAAP financial measures
used by other companies. Accordingly, care should be exercised in
understanding how the Company definesits non-GAAP financial measures.
Reconciliations of the Company's non-GAAP financial measures to the nearest
comparable GAAP measuresare set forth in the section below titled "Unaudited
Reconciliation of Non-GAAP to GAAP Results."
A
boutWeibo
Weibo is a leading social media for people to create, share anddiscover
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 relationshipson Weibo may be
asymmetric; any user can follow any other user and add comments to a feed
while reposting. This simple, asymmetricand distributed nature of Weibo allows
an original feed to become a live viral conversation stream.
Weibo enables its advertising and marketing customers to promotetheir brands,
products and services to users. Weibo offers a wide range of advertising and
marketing solutions to companiesof all sizes. Weibo generates a substantial
majority of its revenues from the sale of advertising and marketing services,
including thesale of social display advertisement and promoted marketing
offerings. Weibo displays content in a simple information feed format
andoffers native advertisement that conform to the information feed on our
platform. We have developed and continuously refining oursocial interest graph
recommendation engine, which enables our customers to perform people marketing
and target audiences based on userdemographics, social relationships,
interests and behaviors, to achieve greater relevance, engagement and
marketing effectiveness.
Safe Harbor Statement
This press release contains forward-looking statements. These statementsare
made under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-lookingstatements 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-lookingstatements 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. Statementsthat 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 differmaterially from those contained in any
forward-looking statement. Potential risks and uncertainties include, but are
not limited to, Weibo'slimited operating history in certain new businesses;
failure to sustain or grow active user base and the level of user engagement;
theuncertain regulatory landscape in China; fluctuations in the Company's
quarterly operating results; the Company's relianceon advertising and
marketing sales for a majority of its revenues; failure to successfully
develop, introduce, drive adoption of or monetizenew features and products;
failure to compete effectively for advertising and marketing spending; failure
to successfully integrate acquiredbusinesses; risks associated with the
Company's investments, including equity pick-up and impairment; failure to
compete successfullyagainst new entrants and established industry competitors;
changes in the macro-economic environment, including the depreciation of
theRenminbi; and adverse changes in economic and political policies of the PRC
government and its impact on the Chinese economy. Furtherinformation regarding
these and other risks is included in Weibo's annual reports on Form 20-F and
other filings with the SECand the Hong Kong Stock Exchange. All information
provided in this press release is current as of the date hereof, and Weibo
assumes noobligation to update such information, except as required under
applicable law.
Contact:
Investor Relations
Weibo Corporation
Phone: +86 10 5898-3336
E
mail:
ir@staff.weibo.com
WEIBO CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except per share data)
Three months ended
March 31, December 31, March 31,
2023 2023 2024
Net
revenues:
Advertising $ 355,300 $ 403,739 $ 338,951
and marketing
Value-added 58,478 59,928 56,546
services
Net 413,778 463,667 395,497
revenues
Costs and
expenses:
Cost of 85,853 100,156 86,821
revenues
(1)
Sales and 106,494 139,726 103,627
marketing
(1)
Product 90,676 67,243 80,726
development
(1)
General and 34,265 37,537 24,586
administrative
(1)
Total costs 317,288 344,662 295,760
and expenses
Income from 96,490 119,005 99,737
operations
Non-operating
income (loss):
Investment related 27,155 25,544 (4,970 )
income (loss), net
Interest and other 2,682 16,713 (18,611 )
income (loss), net
29,837 42,257 (23,581 )
Income before 126,327 161,262 76,156
income tax expenses
Less: Income 21,852 72,578 25,044
tax expenses
Net income 104,475 88,684 51,112
Less: Net income attributable 556 808 548
to non-controlling interests
/Accretion to redeemable 3,427 4,646 1,126
non-controlling interests
Net income attributable $ 100,492 $ 83,230 $ 49,438
to Weibo's shareholders
Basic net income per share $ 0.43 $ 0.35 $ 0.21
attributable to Weibo's shareholders
Diluted net income per share $ 0.42 $ 0.34 $ 0.19
attributable to Weibo's shareholders
Shares used in computing basic net income per 234,705 236,311 236,694
share attributable/to Weibo's shareholders
Shares used in computing diluted net income per 236,895 246,382 263,644
share attributable/to Weibo's shareholders
(1)Stock-based compensation
in each category:
Cost of $ 2,536 $ 1,851 $ 1,773
revenues
Sales and 4,613 3,559 3,823
marketing
Product 13,800 11,079 10,438
development
General and 6,676 5,259 4,978
administrative
WEIBO CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
As of
December 31, March 31,
2023 2024
Assets
Current assets:
Cash and cash equivalents $ 2,584,635 $ 2,144,546
Short-term investments 641,035 1,107,904
Accounts receivable, net 440,768 431,515
Prepaid expenses and other current assets 359,881 356,720
Amount due from SINA 486,397 476,007
(1)
Current assets subtotal 4,512,716 4,516,692
Property and equipment, net 220,663 216,684
Goodwill and intangible assets, net 300,565 290,731
Long-term investments 1,320,386 1,251,032
Other non-current assets 926,028 1,000,723
Total assets $ 7,280,358 $ 7,275,862
Liabilities, Redeemable Non-controlling Interests and Shareholders' Equity
Liabilities:
Current liabilities:
Accounts payable $ 161,493 $ 149,456
Accrued expenses and other current liabilities 666,833 662,803
Income tax payable 94,507 112,388
Deferred revenues 75,187 92,726
Unsecured senior notes 799,325 799,659
Dividends payable - 199,399
Current liabilities subtotal 1,797,345 2,016,431
Long-term liabilities:
Convertible senior notes 317,625 318,446
Unsecured senior notes 743,695 743,937
Long-term loans 791,647 792,563
Other long-term liabilities 112,430 109,743
Total liabilities 3,762,742 3,981,120
Redeemable non-controlling interests 68,728 36,326
Shareholders' equity :
Weibo shareholders' equity 3,398,735 3,208,844
Non-controlling interests 50,153 49,572
Total shareholders' equity 3,448,888 3,258,416
Total liabilities, redeemable non-controlling interests and shareholders' equity $ 7,280,358 $ 7,275,862
(1) Included short-term loans to and interestreceivable from SINA of US$445.2
million as of December 31, 2023 and US$449.9 million as of March 31, 2024.
WEIBO CORPORATION
UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS
(In thousands of U.S. dollars, except per share data)
Three months ended
March 31, December 31, March 31,
2023 2023 2024
Income from $ 96,490 $ 119,005 $ 99,737
operations
Add: Stock-based 27,625 21,748 21,012
compensation
//Amortization of intangible assets 4,439 5,103 5,059
resulting from business acquisitions
Non-GAAP income $ 128,554 $ 145,856 $ 125,808
from operations
Net income attributable $ 100,492 $ 83,230 $ 49,438
to Weibo's shareholders
Add: Stock-based 27,625 21,748 21,012
compensation
//Amortization of intangible assets 4,439 5,103 5,059
resulting from business acquisitions
// (27,155 ) (25,544 ) 4,970
Investment related
gain/loss, net
(1)
//Non-GAAP to GAAP reconciling items on 4,183 (10,547 ) 25,358
the share of equity method investments
//Non-GAAP to GAAP reconciling items for the (157 ) (311 ) (436 )
income/loss attributable to non-controlling interests
// 196 (781 ) (1,103 )
Tax effects on
non-GAAP adjustments
(2)
//Amortization of issuance cost of convertible senior 1,606 3,468 2,314
notes, unsecured senior notes and long-term loans
Non-GAAP net income attributable $ 111,229 $ 76,366 $ 106,612
to Weibo's shareholders
Non-GAAP diluted net income per share $ 0.47 $ 0.31 * $ 0.41 *
attributable to Weibo's shareholders
Shares used in computing GAAP diluted net income 236,895 246,382 263,644
per share attributable to Weibo's shareholders
Shares used in computing non-GAAP diluted net income 236,895 246,382 263,644
per share attributable to Weibo's shareholders
Adjusted
EBITDA:
Net income attributable $ 100,492 $ 83,230 $ 49,438
to Weibo's shareholders
Non-GAAP 10,737 (6,864 ) 57,174
adjustments
Non-GAAP net income attributable 111,229 76,366 106,612
to Weibo's shareholders
Interest (9,743 ) (870 ) (9,151 )
income, net
Income tax 21,657 73,359 26,147
expenses
Depreciation 10,601 9,303 9,417
expenses
Adjusted $ 133,744 $ 158,158 $ 133,025
EBITDA
Net $ 413,778 $ 463,667 $ 395,497
revenues
Non-GAAP 31 % 31 % 32 %
operating margin
(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 business acquisitions 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 CORPORATION
UNAUDITED ADDITIONAL INFORMATION
(In thousands of U.S. dollars)
Three months ended
March 31, December 31, March 31,
2023 2023 2024
Net revenues
Advertising and marketing
Non-Ali advertisers $ 337,031 $ 358,848 $ 316,400
Alibaba - as an advertiser 18,269 44,891 22,551
Subtotal 355,300 403,739 338,951
Value-added services 58,478 59,928 56,546
$ 413,778 $ 463,667 $ 395,497