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Weibo Shares Pop On Q3 Beat Backed By User Growth, Clocks 30% Revenue Growth

Benzinga · 11/11/2021 06:22
  • Weibo Corp (NASDAQ:WBreported third-quarter FY21 revenue growth of 30% year-on-year to $607.4 million, beating the consensus of $589.8 million.
  • Segments: Weibo's Advertising and marketing revenues rose 29% Y/Y to $537.6 million. Value-added service (VAS) revenues grew 42% Y/Y to $69.8 million.
  • Drivers: Monthly active users (MAUs) increased by 62 million Y/Y to 573 million in September 2021, while Average daily active users (DAUs) rose 23 million Y/Y to 248 million.
  • Margin: The non-GAAP operating margin expanded 200 bps to 41%.
  • Non-GAAP EPS of $0.90 beat the consensus of $0.84.
  • Weibo held $2.7 billion in cash and equivalents and generated $226 million in operating cash flow.
  • "We delivered another solid quarter, with sustained user growth and top line expansion," said CEO Gaofei Wang.
  • "In September, both our MAUs and DAUs continued to grow from prior quarter, driven by a greater focus on Weibo's core positioning in social media, strong execution ability,effective channel investment strategies and the Olympic Game effect," Wang added.
  • Outlook: Weibo sees Q4 revenue growth of 15%-20% on a constant currency basis compared to the consensus of $594.3 million.
  • Price Action: WB shares traded higher by 7.30% at $47.3 in the premarket session on the last check Thursday.