Weibo (WB) Tops Q3 EPS by 5c, Revenues Beat; Offers Q4 Revenue Guidance Below Consensus

Weibo (NASDAQ: WB) reported Q3 EPS of $0.75, $0.05 better than the analyst estimate of $0.70. Revenue for the quarter came in at $460.2 million versus the consensus estimate of $456.42 million.

"Weibo has once again achieved strong user growth and user engagement this quarter. We are delighted to see our adverting and marketing revenues continue to deliver healthy growth." said Gaofei Wang, CEO of Weibo. "We continue to focus on optimizing user product experience and strengthening content distribution to feature Weibo's unique advantages in content creation, consumption and user social interaction. We expect these actions will help increase user acquisition efficiency, and in the longer-term, enhance Weibo's monetization potentials."

Third Quarter 2018 Highlights

• Net revenues totaled $460.2 million, an increase of 44% year-over-year.
• Advertising and marketing revenues were $409.3 million, an increase of 48% year-over-year.
• Value-added service ("VAS") revenues were $50.9 million, an increase of 18% year-over-year.
• Net income attributable to Weibo was $165.3 million, an increase of 63% year-over-year, and diluted net income per share was $0.73, compared to $0.45 for the same period last year.
• Non-GAAP net income attributable to Weibo was $171.8 million, an increase of 49% year-over-year, and non-GAAP diluted net income per share was $0.75, compared to $0.51 for the same period last year.
• Adjusted EBITDA was $192.8 million, an increase of 42% year-over-year, or 42% of net revenues, compared to 42% for the same period last year.
• Monthly active users ("MAUs") had a net addition of approximately 70 million users year over year and reached 446 million in September 2018. Mobile MAUs represented 93% of MAUs.
• Average daily active users ("DAUs") had a net addition of approximately 30 million users year over year and reached 195 million in September 2018.

GUIDANCE:

Weibo sees Q4 2018 revenue of $480-490 million, versus the consensus of $499.47 million.

For earnings history and earnings-related data on Weibo (WB) click here.

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