Earnings Highlights and Review: Weibo's Revenue Soared 67%; Adjusted EPS Rocketed 271%
Research Desk Line-up: 58.com Post Earnings Coverage
LONDON, UK / ACCESSWIRE / June 5, 2017 / Pro-Trader Daily publishes post-earnings coverage on Weibo Corp. (NASDAQ: WB) following the Company's announcement of its first quarter fiscal 2017 financial results on May 16, 2017. The Chinese social media giant surpassed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Earnings Reviewed
For the first quarter ended March 31, 2017, Weibo reported net revenues of $199.2 million compared to $119.3 million for the same period last year. The Company's revenue number surpassed its own guidance between $185 million and $190 million and analysts' consensus for revenue of $189 million.
For Q1 2017, Weibo's advertising and marketing revenues totaled $169.3 million compared to $99.2 million for Q1 2016. The Company's advertising and marketing revenues from small & medium-sized enterprises ("SMEs") and key accounts were $161.5 million compared to $88.1 million for the same period last year. Other revenues totaled $29.9 million compared to $20.0 million for the same period last year.
Weibo's Monthly active users ("MAUs") in March 2017 totaled 340 million, an increase of 30% on a y-o-y basis, 91% of which were mobile users. The Company's average daily active users in March 2017 were 154 million, an increase of 28% on a y-o-y basis.
For Q1 2017, Weibo's costs and expenses totaled $143.4 million compared to $112.1 million for Q1 2016. The Company's non-GAAP costs and expenses were $132.5 million for the reported quarter compared to $103.4 million for the prior year's same quarter. Weibo's adjusted EBITDA was $70.5 million for Q1 2017, an increase of 272% on a y-o-y basis, or 35% of net revenues, compared to 16% for the same period last year.
Weibo's income from operations for Q1 2017 was $55.9 million compared to $7.2 million for Q1 2016. The Company's non-GAAP income from operations was $66.7 million in the reported quarter compared to $15.9 million for the year ago corresponding period. Weibo's non-operating income for Q1 2017 was $2.1 million compared to $0.6 million for Q1 2016.
For Q1 2017, net income attributable to Weibo was $46.9 million, or diluted net income per share of $0.21, compared to $7.1 million, or diluted net income per share of $0.03, for Q1 2016. During the reported quarter, non-GAAP net income attributable to Weibo was $57.8 million, or diluted net income per share of $0.26, compared to $16.4 million for the year ago same period, or diluted net income per share of $0.07.The Company's earnings surpassed Wall Street's expectations of $0.16 per share.
Balance Sheet
As of March 31, 2017, Weibo's cash, cash equivalents, and short-term investments totaled $444.2 million. For the first quarter of 2017, cash provided by operating activities was $72.5 million, capital expenditures totaled $4.5 million, and depreciation and amortization expenses amounted to $3.4 million.
Business Outlook
For Q2 2017, Weibo is forecasting net revenues to be in the range of $240 million and $250 million, which assumes a RMB to US dollar average exchange rate of 6.9.
Stock Performance
On Friday, June 02, 2017, the stock closed the trading session at $74.52, slightly climbing 0.51% from its previous closing price of $74.14. A total volume of 1.16 million shares have exchanged hands. Weibo's stock price skyrocketed 36.23% in the last one month, 45.23% in the past six months, and 178.16% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 83.55%. The stock is trading at a PE ratio of 112.91 and currently has a market cap of $16.17 billion.
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