BEIJING, Dec, 28, 2020 /PRNewswire/ -- Weibo Corporation ("Weibo" or the "Company") (NASDAQ: WB), a leading social media in China, today announced its unaudited financial results for the third quarter ended September 30, 2020.

"We are pleased with Weibo's recovery trend, despite challenges still persisted," said Gaofei Wang, CEO of Weibo. "Weibo's KA business delivered broad-based recovery, with a record high number of brand customers marketing with us. We are glad to see brands increasingly recognize Weibo's unique value proposition in reaching young audience, leveraging KOL's influence and serving brand plus performance needs. For performance ad business, we continued to drive value for customers, with team's solid execution on advertising system upgrade, ad product optimization and ROI improvement," said Mr. Wang.  

Third Quarter 2020 Highlights

• Net revenues were $465.7 million, flat year-over-year or a decrease of 4% year-over-year on a constant currency basis ^[1].
• Advertising and marketing revenues were $416.7 million, an increase of 1% year-over-year.
• Value-added service ("VAS") revenues were $49.1 million, a decrease of 11% year-over-year.
• Net income attributable to Weibo was $33.8 million and diluted net income per share was $0.15.
• Non-GAAP net income attributable to Weibo was $152.9 million and non-GAAP diluted net income per share was $0.66.
• Monthly active users ("MAUs") were 511 million in September 2020, a net addition of approximately 14 million users on year-over-year basis. Mobile MAUs represented approximately 94% of MAUs.
• Average daily active users ("DAUs") were 224 million in September 2020, a net addition of approximately 8 million users on year-over-year basis.

Third Quarter 2020 Financial Results

For the third quarter of 2020, Weibo's total net revenues were $465.7 million, compared to $467.8 million for the same period last year.

Advertising and marketing revenues for the third quarter of 2020 were $416.7 million, an increase of 1% compared to $412.5 million for the same period last year. Advertising and marketing revenues from key accounts ("KAs") and small & medium-sized enterprises ("SMEs") were $387.5 million, a decrease of 1% compared to $393.3 million for the same period last year.

VAS revenues for the third quarter of 2020 were $49.1 million, a decrease of 11% year-over-year compared to $55.3 million for the same period last year, which was primarily resulted from the decrease of live streaming revenues, and was partially offset by the increase in membership revenues.

Costs and expenses for the third quarter of 2020 totaled $304.8 million, an increase of 3% compared to $295.2 million for the same period last year. The increase was primarily due to higher bad debt provision and personnel related costs, partially offset by decreased marketing spend. Non-GAAP costs and expenses were $286.4 million, compared to $277.5 million for the same period last year.

Income from operations for the third quarter of 2020 was $161.0 million, compared to $172.5 million for the same period last year. Non-GAAP income from operations was $179.4 million, compared to $190.2 million for the same period last year.

Non-operating loss for the third quarter of 2020 was $97.5 million, compared to an income of $5.3 million for the same period last year. Non-operating loss for the third quarter of 2020 mainly included (i) a $110.0 million non-deductible impairment charge on equity and loan investments in an investee in e-commerce business, which is excluded under non-GAAP measures; (ii) a $10.1 million net gain from fair value change of investments, which is excluded under non-GAAP measures; and (iii) a $6.3 million net interest and other income.

Income tax expenses were $30.0 million, compared to $31.4 million for the same period last year.

Net income attributable to Weibo for the third quarter of 2020 was $33.8 million, compared to $146.2 million for the same period last year. Diluted net income per share attributable to Weibo for the third quarter of 2020 was $0.15, compared to $0.64 for the same period last year. Non-GAAP net income attributable to Weibo for the third quarter of 2020 was $152.9 million, compared to $176.1 million for the same period last year. Non-GAAP diluted net income per share attributable to Weibo for the third quarter of 2020 was $0.66, compared to $0.77 for the same period last year.

As of September 30, 2020, Weibo's cash, cash equivalents and short-term investments totaled $3.18 billion. For the third quarter of 2020, cash provided by operating activities was $235.2 million, capital expenditures totaled $10.7 million, and depreciation and amortization expenses amounted to $7.7 million.

Business Outlook

For the fourth quarter of 2020, Weibo estimates its net revenues to increase by 1% to 3% year-over-year on a constant currency basis. This forecast includes revenues estimate of an interactive entertainment company which was acquired and consolidated to the Company in November 2020 and represents approximately 2% of our revenues estimate this quarter. This forecast reflects Weibo's current and preliminary view, which is subject to change.

Conference Call

Weibo's management team will host a conference call from 6:00 AM to 7:00 AM Eastern Time on December 28, 2020 (or 7:00 PM – 8:00 PM Beijing Time on December 28, 2020) to present an overview of the Company's financial performance and business operations.

Please register in advance of the conference call using the link provided below. Upon registering, you will be provided with dial-in numbers, passcode and unique registrant ID by email. To join the conference, please use the conference access information provided in the email received at the point of registering.

PRE-REGISTER LINK:

Additionally, a live webcast of the call will be available through the Company's corporate website at .

A telephone replay will be available from 22:00 PM China Standard Time on December 28, 2020 to 20:59 PM China Standard Time on January 5, 2021. To access the recording, please use the following dial-in information listed below: