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Weibo Q3 Profit: Under-Orientation Income, Exceeded Net Profit Expectations, Increases Up to 4% Market – Wall Street

In the third quarter, the Weibo quota adjustment adjusted to 75 cents, a forecast for the 71 cents market, a net income for the fourth quarter, expected to be $ 480 million and a forecast of $ 490 billion with a planned $ 499.1 million market.

Weibo reported on the third quarter of the afternoon of November 28 in Beijing. The following data are:

  • Net income of 460.2 million dollars,44% year-on-year growthof

    The previous income orientation was $ 465 million and $ 475 million.

  • Advertising and marketing revenue totaled $ 409.3 million, up 48% year-on-year; The value added services earnings amounted to $ 50.9 million, up 18% year-on-year.
  • Weibo's net profit is US $ 165.3 million.Year-on-year growth grew 63%of

    Net profits per share were 73 cents, compared to 45 cents in the same period last year.

  • According to GAIA, Weibo US net profit of $ 171.8 million came to US $ 171.8 million, 49% increase year-on-year and net profits were diluted to 75 cents compared to 51 cents a year earlier.
  • The adjusted EBITDA came to 192.8 million dollars, an increase of 42% in year-on-year terms, and the profit margin was 42%. The same profit margin for the same period of the previous year was also 42%.
  • In September of 2018, Weibo Monthly Active Users (MAU) were compared in the same period last year.Net increase of 70 millionof

    By reaching 446 million euros, 93% of active monthly users are mobile users;

  • In September 2018, Weibo's average active user (DAU) reached 30 million less than in the same period of the previous year, 195 million.

After publishing the financial report, the price of Weibo's quota was rapidly rising and prices rose by more than 4%.

Weibo CEO, Wang Gaofei, said:

Weibo user scaling and user activity increased in the third quarter, and advertising revenue has continued to grow rapidly. We continue to work to strengthen the product experience and communication system, the main advantages of Microblogging in information production, consumption and interaction, and improve the efficiency of Weibo users' access, while also boosting Weibo's potential marketing.

Income growth is not as good as performance guidance

The net income for the third quarter of 2018 was $ 460.2 million, with a gain of 320 million dollars in the same period last year.It grew by 44% year-on-year.

The advertising and marketing of the third quarter of 2018 came to 409.3 million dollars compared to 276.8 million dollars in the same period of the previous year; Value-added services were $ 50.9 million, 18% year-on-year.

Among these, the advertising and marketing of small and medium-sized companies (SMEs) and clients were 380.7 million dollars, compared to 251.5 million dollars in the same period of the previous year, with an inter-annual increase of 51%. In the third quarter of 2018, value added services were $ 50.9 million, compared to the same period last year, compared to $ 43.2 million.

Weibo was released in the third quarterThe revenue orientation is $ 465 million and $ 475 millionof

Weibo Q3 revenue is not as good as expected.

Cost growth exceeds revenue growth

The cost and expenses of the third quarter came to 298.2 million dollars compared to 2016 million in the same period of the previous year.Year-on-year growth was 48%, higher than income growth.of

While not GAAP, costs and expenses were $ 272.2 million compared to $ 188 million in the same period last year.

As mentioned in the Financial Report, the year-on-year increase in costs and expenses was mainly linked to the increase in sales associated with the promotion of channels and product related costs, the increase in research and development costs associated with labor costs and the loss of the main business lines and intangible assets.

The profitability of profits remains stable

In the third quarter of 2018, the operating income was 162 million dollars, compared to the same period last year, at 118.5 million dollars, an interannual increase of 37%.

While not GAAP, operating operations amounted to $ 188 million, compared to $ 132 million in the same period last year, an increase of 42% year-on-year.

In the third quarter of 2018, non-operating profits amounted to $ 42.9 million over the same period last year, compared to $ 4.3 billion. The increase in non-operating profit was primarily adjusting the fair value of investment of $ 41.9 million.

Among them, tax expenses were $ 37.9 million, 22 million dollars more than the previous year. Increases in tax expense, mainly due to deferred tax deductions from fair value adjustment, increase the profitability of internal operations of the company, in a fairly stable tax rate.

The net profit exceeded the expectations

Weibo, in the third quarter of 2007, earned profit was $ 165.3 million, and Net Profit was diluted at 73 cents. Profit earnings were net profits of the same period of the previous year, 101.1 million euros or diluted net profit of 45 cents.

According to Non-GAAP, Weibo's net profit attributable is 171.8 million dollars.Net profits of earnings based on 75 cents, the market is calculated at 71 cents;of

The net profit for the same period of last year was $ 115.2 million, or net profit of 51 cents was diluted.

From September 30, 2016, Weibo had cash, cash and short-term investments at US $ 1.6 million.

On the other hand, the cost of operations in the third quarter was $ 122.1 million, capital expenditures amounting to $ 6 million, and depreciation costs totaling $ 4.5 million.

The next quarters results are less than expected from the orientation

Weibo expects net profit in the fourth quarter of 2018, amounting to USD $ 480 million and $ 490 million for $ 49 million in RMB.Year-to-year increase of 35% and 38%.of


According to the statement, the average RMB exchange against US dollars is 7.00 yuan and it is $ 1 in USD. Higher expectations reflect the previous trial of Weibo and can be adjusted in the future.

However, the market estimates that the net profit of Weibo in the fourth quarter was $ 499.1 million.The performance orientation was less than expected.

Sina Q3 earnings and profits have exceeded forecasts

Sina and Weibo also disclosed profits, adjusting the profit from Sina's quota in the third quarter of 93 cents; the market estimated 69 cents; $ 557.2 million net income of $ 551.6 million.

Mr. Cao Guowei, President and CEO of Sina, said:

Sina is pleased with the third quarter results. Although powerful industry competition and macro-reverse factors are our revenue and profitsWeiboStrong growth is a constant boost in the business.

* This article is from Wall Street (WeChat ID: wallstreetcn). Open Wall Street to see VIP members and instantly fund market-based services to get systematized.*

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