BEIJING - Weibo Corporation (NASDAQ: NASDAQ:WB), a prominent social media platform in China, reported a robust start to 2024 with first-quarter earnings and revenue surpassing analyst expectations.
The company announced an adjusted EPS of $0.41, which was $0.05 higher than the analyst consensus of $0.36. Revenue for the quarter was reported at $395.5 million, also exceeding the consensus estimate of $391.75 million.
The company's stock responded positively to the news, rising by 2%.
Weibo's CEO, Gaofei Wang, commented on the company's performance, stating, "We had a solid start to the year. 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."
Despite the positive earnings report, Weibo's net revenues saw a 4% decrease compared to the same period last year, with advertising and marketing revenues down by 5%. However, on a constant currency basis, these figures were flat year-over-year. The company's income from operations increased, boasting a 25% operating margin, up from 23% the previous year. Non-GAAP income from operations was $125.8 million, representing a non-GAAP operating margin of 32%.
The decrease in total net revenues and advertising and marketing revenues was primarily due to unfavorable foreign exchange impacts. However, Weibo managed to reduce costs and expenses by 7% compared to the same period last year, which contributed to the increase in operating income.
Weibo's monthly active users (MAUs) reached 588 million, and average daily active users (DAUs) were 255 million in March 2024, highlighting the platform's continued user engagement.
As the company looks ahead, it remains committed to driving value on its platform and improving shareholder returns, with a focus on user acquisition, content optimization, and monetization efficiency.
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