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Social Media Sina Weibo Saw Net Income Increase by 191% for Q2 2020

September 28, 2020 5:48 pm

BEIJING (PingWest) — Chinese leading social media giant Weibo Corporation ("Weibo" or the "Company") (NASDAQ: WB), today announced its unaudited financial results for the second quarter ended June 30, 2020.

"With the Covid-19 pandemic situation in China largely brought under control, we are glad to see the solid recovery of our brand advertising business in the second quarter, with more brands embracing our differentiated social marketing solutions to connect with broader audience on Weibo," said Gaofei Wang, CEO of Weibo. "For performance ad business, we focused on enhancing ad performance and efficiency through upgrade of advertising system and product optimization, aiming to capture higher wallet share in the performance ad market," said Mr. Wang.     

The company’s net revenues were $387.4 million, a decrease of 10% year-over-year or 7% year-over-year on a constant currency basis.

The social media giant’s advertising and marketing revenues were $340.6 million, down 8% year-over-year.

Net income attributable to Weibo was $198.4 million and diluted net income per share was $0.86. Non-GAAP net income attributable to Weibo was $114.5 million and non-GAAP diluted net income per share was $0.50.

The company saw its Monthly active users ("MAUs") reach 523 million in June 2020, up 37 million on year-over-year basis. Mobile MAUs represented approximately 94% of all MAUs.

The company’s average daily active users ("DAUs") topped 229 million in June 2020, up 18 million on year-on-year.

The company saw its total net revenues reach $387.4 million for Q2 2020, a decrease of 10% compared to $431.8 million for the same period last year.

Costs and expenses for Q2 2020 totaled $281.2 million, compared to $280.6 million for the same period last year. The slight change of costs and expenses was a result of modest pickup in marketing expenses, higher bad debt provision, and the decrease of cost of revenues primarily due to the exemption and refund of cultural business construction fee during this year. Non-GAAP costs and expenses were $265.5 million, compared to $265.6 million for the same period last year.

Net income attributable to Weibo for Q2 2020 was $198.4 million, compared to $103.0 million for the same period last year.