Weibo Announces First Quarter 2024 Unaudited Financial Results
05/23/24
BEIJING, May 23, 2024 /PRNewswire/ -- Weibo Corporation ("Weibo" or the "Company") (NASDAQ: WB and HKEX: 9898), a leading social media inChina, today announced 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 acquisition and engagement of high quality
users and improving ROI of our channel investments. On the content front, we also made progress in optimizing traffic structure through continuous
execution of vertical content strategy. On the monetization front, Weibo's business demonstrated stabilized trend, with enhanced operating efficiency
this quarter. Looking forward, we are committed to consistently driving value of our 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 aconstant currency basis [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-year on 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 pershare was US$0.41.
Monthly active users ("MAUs") were 588 million in March 2024.
Average daily active users ("DAUs") were 255 million in March 2024.
[1] We define constant currency (non-GAAP) by assuming that the average exchange rate in the first quarter of 2024 had been the same as it was in

the first quarter of 2023, or RMB6.86=US$1.00.
First Quarter 2024 Financial Results
For the first quarter of 2024, Weibo's total net revenues were US$395.5 million, a decrease of 4% compared to US$413.8 million for the same period
last year.
Advertising and marketing revenues for the first quarter of 2024 were US$339.0 million, a decrease of 5% compared to US$355.3 million for the sameperiod last year. Advertising and marketing revenues excluding advertising 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 reportednumbers.
VAS revenues for the first quarter of 2024 were US$56.5 million, a decrease of 3% year-over-year compared to US$58.5 million for the same period
last year.
Costs and expenses for the first quarter of 2024 totaled US$295.8 million, a decrease of 7% compared to US$317.3 million for the same period lastyear. In addition to the foreign exchange impact, the decrease was mainly resulted from the decrease in personnel related cost and marketing
expense.
Income from operations for the first quarter of 2024 was US$99.7 million, compared to US$96.5 million for the same period last year. Operating margin
was 25%, compared to 23% last year. Non-GAAP income from operations was 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% last year.
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 lastyear. Non-operating loss for the first quarter of 2024 mainly included (i) net interest and other loss of US$18.6 million; and (ii) loss from fair valuechange 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 first quarter of 2024 was US$49.4 million, compared to US$100.5 million for the same period
last year. Diluted net income per share attributable to Weibo's shareholders for the first quarter of 2024 was US$0.19, compared to US$0.42 for thesame period last year. Non-GAAP net income attributable to Weibo's shareholders for the first quarter of 2024 was US$106.6 million, compared toUS$111.2 million for the same period last year. Non-GAAP diluted net income per share attributable to Weibo's shareholders for the first quarter of2024 was US$0.41, compared to US$0.47 for the same period last year.
As of March 31, 2024, Weibo's cash, cash equivalents and short-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 toUS$14.8 million.
Conference Call
Weibo's management team will host a 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 Timeon May 23, 2024) to present an overview of the Company's financial performance and business operations.
Participants who wish to dial in to the teleconference must register through the below public participant link. Dial in and instruction will be in theconfirmation email upon registering.
Participants Registration 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-GAAP income from operations, non-GAAP net income attributable to Weibo's
shareholders, non-GAAP diluted net income per share attributable to Weibo's shareholders 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 resulting from businessacquisitions, net results of impairment and provision on investments, gain/loss on sale of investments and fair value change of investments,
non-GAAP to GAAP reconciling items on the share of equity method investments, non-GAAP to GAAP reconciling items for the income/loss
attributable to non-controlling interests, income tax expense related to the amortization of intangible assets resulting from business acquisitions andfair value change of investments (other non-GAAP to GAAP reconciling items have no tax effect), and amortization of issuance cost of convertible
senior notes, unsecured senior notes and long-term loans. Adjusted EBITDA represents non-GAAP net income attributable to Weibo's shareholders
before interest income/expense, net, income tax expenses/benefits, 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-periodcomparisons. 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) inunderstanding and evaluating the Company's current operating performance and future prospects in the same manner as management does. TheCompany 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 thataffect 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 GAAPResults."
About Weibo
Weibo is a leading social media for people to create, share and discover content online. Weibo combines the means of public self-expression in realtime 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 ofadvertising and marketing solutions to companies of all sizes. Weibo generates a substantial majority of its revenues from the sale of advertising andmarketing services, including the sale of social display advertisement and promoted marketing offerings. Weibo displays content in a simple
information feed format and offers native advertisement that conform to the information feed on our platform. We have developed and continuously
refining our social interest graph recommendation engine, which enables our customers to perform people marketing and target audiences based onuser demographics, social relationships, interests and behaviors, to achieve greater relevance, engagement and marketing effectiveness.
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements 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 andstrategic 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-looking statements 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 "HongKong Stock Exchange"), in press releases and other written materials and in oral statements made by its officers, directors or employees to thirdparties. Statements that 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 differ materially fromthose contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, Weibo's limited operating history incertain new businesses; failure to sustain or 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-upand impairment; failure to compete successfully against new entrants and established industry competitors; changes in the macro-economicenvironment, 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 reports on Form 20-F and otherfilings with the SEC and the Hong Kong Stock Exchange. 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 5898-3336
Email: ir@staff.weibo.com

WEIBO CORPORATIONUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands of U.S. dollars, except per share data)

Three months ended
March 31,2023
Net revenues:
Advertising and marketing$December 31,
2023$

403,739
59,928March 31,2024

Value-added services

355,300
58,478$338,951
56,546

Net revenues

413,778

463,667

Cost of revenues (1)85,853

100,156

86,821

Sales and marketing (1)106,494

139,726

103,627

Product development (1)90,676

67,24380,726395,497

Costs and expenses:

General and administrative (1)34,26537,537

24,586

Total costs and expenses

317,288344,662

295,760

96,490119,005

99,737

27,155
2,682

25,544
16,713(4,970)(18,611)29,83742,257(23,581)

126,327
21,852

161,262
72,57876,15625,044104,475
556
3,427

88,684808
4,646

51,112
548
1,126

Income from operations
Non-operating income (loss):
Investment related income (loss), net
Interest and other income (loss), net

Income before income tax expenses
Less: Income tax expenses
Net income
Less: Net income attributable to non-controlling interests
Accretion to redeemable non-controlling interests
Net income attributable to Weibo's shareholders$

100,492$

83,230$49,438

Basic net income per share attributable to Weibo's shareholders
Diluted net income per share attributable to Weibo's shareholders

$$

0.43
0.42$$0.350.34$
$0.21
0.19

Shares used in computing basic net income per share attributableto Weibo's shareholders
Shares used in computing diluted net income per share attributableto Weibo's shareholders(1) Stock-based compensation in each category:
Cost of revenues
Sales and marketing
Product development
General and administrative$234,705

236,311

236,694

236,895

246,382

263,644

2,536
4,613
13,800
6,676

$

1,851
3,559
11,079
5,259

$

1,773
3,823
10,4384,978

WEIBO CORPORATIONUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands of U.S. dollars)
As ofDecember 31,2023
AssetsCurrent assets:
Cash and cash equivalents
Short-term investments
Accounts receivable, net
Prepaid expenses and other current assets$

Amount due from SINA(1)Current assets subtotal
Property and equipment, net
Goodwill and intangible assets, net
Long-term investments
Other non-current assets$Total assets

2,584,635 $
641,035
440,768
359,881

March 31,2024

2,144,546
1,107,904
431,515356,720

486,397

476,007

4,512,716

4,516,692

220,663
300,565
1,320,386
926,028

216,684
290,7311,251,032
1,000,723

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
94,507112,388
Deferred revenues
75,18792,726
Unsecured senior notes
799,325
799,659
199,399
Dividends payable
Current liabilities subtotal
Long-term liabilities:
Convertible senior notes
Unsecured senior notes
Long-term loans
Other long-term liabilities
Total liabilities
Redeemable non-controlling interests
Shareholders' equity :Weibo shareholders' equity
Non-controlling interests
Total shareholders' equity
Total liabilities, redeemable non-controlling interests and$shareholders' equity

1,797,345

2,016,431

317,625
743,695
791,647
112,430

318,446
743,937
792,563
109,743

3,762,742

3,981,120

68,72836,326

3,398,735
50,153

3,208,844
49,572

3,448,888

3,258,416

7,280,358 $

7,275,862(1) Included short-term loans to and interest receivable from SINA of US$445.2 million as ofDecember 31, 2023 and US$449.9 million as of March 31, 2024.

WEIBO CORPORATIONUNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS

(In thousands of U.S. dollars, except per share data)
Three months ended
March 31,2023
Income from operations
Add: Stock-based compensation

December 31,
2023

March 31,2024$

96,49027,625
4,439$

119,005
21,7485,103$

99,73721,012
5,059

Non-GAAP income from operations$

128,554$

145,856$

125,808

Net income attributable to Weibo's shareholders
Add: Stock-based compensationAmortization of intangible assets resulting from businessacquisitions$

100,492
27,625$

83,23021,748$49,43821,012

Amortization of intangible assets resulting from business acquisitions

Investment related gain/loss, net (1)Non-GAAP to GAAP reconciling items on the share of equity
method investments
Non-GAAP to GAAP reconciling items for the income/loss
attributable to non-controlling interests
Tax effects on non-GAAP adjustments (2)Amortization of issuance cost of convertible senior notes, unsecured
senior notes and long-term loans

4,439

5,103

5,059

(27,155)(25,544)

4,970

4,183

(10,547)

25,358

(157)

(311)

(436)

196(781)(1,103)

1,606

3,468

Non-GAAP net income attributable to Weibo's shareholders$111,229$

76,366

Non-GAAP diluted net income per share attributable to Weibo'sshareholders

$0.47

$

0.31

Shares used in computing GAAP diluted net income per share attributableto Weibo's shareholders
Shares used in computing non-GAAP diluted net income per share
attributable to Weibo's shareholders
Adjusted EBITDA:
Net income attributable to Weibo's shareholders$Non-GAAP adjustments
Non-GAAP net income attributable to Weibo's shareholders
Interest income, net
Income tax expenses

Net revenues
Non-GAAP operating margin*

106,612$0.41

236,895

246,382

263,644236,895

246,382

263,644

100,492
10,737$111,229(9,743)21,657
10,601

Depreciation expenses
Adjusted EBITDA

2,314
$

83,230(6,864)$76,366(870)
73,3599,303

49,43857,174
106,612(9,151)
26,147
9,417$

133,744$

158,158$

133,025$

413,778$

463,667$

395,497

31 %

31 %

32 %

(1) To adjust impairment and provision on investments, gain/loss on sale of investments and fair value change of investments.
To adjust the income tax effects of non-GAAP adjustments, which primarily related to amortization of intangible assets resulting frombusiness acquisitions and fair value change of investments. Other non-GAAP adjustment items have no tax effect, because (i) they wererecorded in entities established in tax free jurisdictions, or (ii) full valuation allowances were provided for related deferred tax assets as it is(2) 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 CORPORATIONUNAUDITED ADDITIONAL INFORMATION(In thousands of U.S. dollars)*Three months ended
March 31,2023
Net revenues
Advertising and marketing
Non-Ali advertisers$

Alibaba - as an advertiser
Subtotal

337,031
18,269December 31,
2023$

355,300
58,478

Value-added services$

413,778$

March 31,2024

358,848 $44,891

316,400
22,551

403,739

338,951

59,92856,546463,667 $395,497

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SOURCE Weibo Corporation