Futu Information noted that Weibo Corp had released a quarterly report before trading on May 9, 2018.
Wang Gaofei, CEO of Weibo Corp, said: "our business continues to maintain strong momentum, with advertising and marketing revenue growing 79 per cent year-on-year. Weibo Corp continues to make money in the long-term trend of shifting corporate advertising budgets to mobile, social and video. We will continue to strive to expand the scale of users, strengthen content cooperation with top IP, media, stars and KOLs, enhance Weibo Corp's platform effect and social influence, and help us further expand our advantages in the customer market. "
I. key financial data
Source: Weibo Corp Financial report
According to the financial report, Weibo Corp's first-quarter net revenue rose 76 per cent year-on-year to $349.9 million, exceeding the company's previous forecast of $335-345 million.
Under general accounting standards, the net profit attributed to Weibo Corp was $99.1 million, an increase of 111% over the same period last year, or 44 cents per diluted net profit per share, compared with 21 cents in the same period last year. Non-American general accounting standards attributed to Weibo Corp's net profit was $112.6 million, an increase of 95%, or 50 cents per diluted net profit per share, compared with 26 cents in the same period last year.
Second, a brief analysis of the key points of financial statements.
Change of income accounting standards
Weibo Corp began to adopt the new revenue criterion "customer contract income" in accordance with the revised retroactive method on January 1, 2018, which applies to contracts that have not yet been completed on January 1, 2018.The new establishment basis requires income to be shown in terms of net value deducted from the relevant VAT rather than the total, resulting in an equal decrease in income and costs.
In addition, the new basis for advertising swap transactions requires the recognition of related income and fees in accordance with fair value.The impact of swaps outstanding on January 1, 2018 on opening undistributed profits was reduced by approximately $600000.
Source: Weibo Corp Financial report
Advertising and marketing revenue has greatly increased
Advertising and marketing revenue totaled $302.9 million in the first quarter of 2018, compared with $169.3 million a year earlier.Advertising and marketing revenue from small and medium-sized enterprises (SMEs) and major accounts totaled $276.6 million, up 71 per cent from $161.5 million a year earlier.Revenue from value-added services in the first quarter of 2018 was $46.9 million, compared with $29.9 million in the same period last year, an increase of 36.24%.
The number of active users per month increases again.
As of March this year, the number of Weibo Corp's monthly active users has increased to 411 million, the proportion from mobile devices is 93%, and the number of daily active users has reached 184 million.Weibo Corp said that in the past two years, Weibo Corp has achieved an increase in user size and activity through the integration of user interaction and products with top content IP.
Next, Weibo Corp plans to further strengthen content cooperation and product innovation with top variety shows and TV dramas this year. One of the most important contents is the 21st World Cup to be held in Russia. At present, FIFA has settled in Weibo Corp in March this year, when Weibo Corp's user scale and activity are expected to increase significantly.
Future business outlook
Weibo Corp expects net revenue in the second quarter of 2018 to be between $420 million and $430 million.This expectation assumes that the average exchange rate of the renminbi against the dollar is 6.35 yuan to the dollar. The above expectations reflect Weibo Corp's current preliminary judgment and may be adjusted in the future.
(editor / Zhang Huiyu)