Weibo’s monthly active users (“MAUs”) grew to 516 million in December 2019, a net addition of approximately 54 million users year-over-year. Mobile MAUs represented 94% of MAUs.
Weibo’s average daily active users reached 222 million in December 2019, a net addition of approximately 22 million users year-over-year.
Weibo Financial Results in Q4 2019
Weibo’s total net revenues were $468.1 million in Q4 2019, a decrease of 3% compared to $481.9 million in Q4 2018.
Advertising and marketing revenues for the fourth quarter of 2019 were $405.9 million, a decrease of 3% compared to $417.0 million in Q4 2018.
Advertising and marketing revenues from key accounts (“KAs”) and small & medium-sized enterprises (“SMEs”) were $368.1 million, a decrease of 5% compared to $385.5 million for the same period last year.
VAS revenues for Q4 2019 were $62.2 million, a decrease of 4% year-over-year compared to $64.9 million in Q4 2018.
Costs and expenses for Q4 2019 totaled $317.4 million, an increase of 6% compared to $298.8 million for the same period last year. Non-GAAP costs and expenses were $299.2 million, an increase of 1% compared to $295.5 million for the same period last year.
Income from operations for Q4 2019 was $150.7 million, compared to $183.0 million for the same period last year. Non-GAAP income from operations was $168.9 million, compared to $186.4 million for the same period last year.
Non-operating loss for the fourth quarter of 2019 was $25.1 million, compared to a loss of $1.9 million for the same period last year.
Non-operating loss for the fourth quarter of 2019 mainly included
- a $176.5 million net gain from fair value change of investments, which is excluded under non-GAAP measures;
- a $214.7 million impairment on the Company’s investment in Yixia Tech Co., Ltd., which is excluded under non-GAAP measures;
- a $13.3 million net interest and other income.
Income tax expenses were $31.1 million, compared to $14.9 million for the same period last year, largely attributable to the deferred tax charges recognized from the fair value change of investment in the fourth quarter of 2019.
Net income attributable to Weibo for Q4 2019 was $95.1 million, compared to $166.5 million for the same period last year.
Diluted net income per share attributable to Weibo for the fourth quarter of 2019 was $0.42, compared to $0.73 for the same period last year. Non-GAAP net income attributable to Weibo for the fourth quarter of 2019 was $176.5 million, compared to $183.6 million for the same period last year. Non-GAAP diluted net income per share attributable to Weibo for the fourth quarter of 2019 was $0.77, compared to $0.80 for the same period last year.
As of December 31, 2019, Weibo’s cash, cash equivalents and short-term investments totaled $2.40 billion. For the fourth quarter of 2019, cash provided by operating activities was $253.2 million, capital expenditures totaled $6.5 million, and depreciation and amortization expenses amounted to $6.5 million.
Weibo Financial Results in 2019
For the fiscal year 2019, Weibo’s total net revenues were $1.77 billion, an increase of 3% compared to $1.72 billion in 2018.
Advertising and marketing revenues for 2019 were $1.53 billion, an increase of 2% compared to $1.50 billion in 2018. Advertising and marketing revenues from KAs and SMEs were $1.43 billion, an increase of 4% compared to $1.38 billion for 2018.
VAS revenues for 2019 were $236.7 million, representing an increase of 8% compared to $219.3 million for 2018. The increase was mainly attributable to the revenues derived from the live streaming business acquired in the fourth quarter of 2018.
Costs and expenses for 2019 totaled $1.17 billion, compared to $1.11 billion for 2018. Non-GAAP costs and expenses were $1.10 billion, compared to $1.06 billion for 2018.
Income from operations for 2019 was $597.6 million, compared to $609.3 million for 2018. Non-GAAP income from operations was $662.2 million, at similar level compared to 2018.
Non-operating income for 2019 was $4.8 million, compared to a non-operating income of $59.6 million for 2018. Non-operating income in 2019 mainly included
- a $207.4 million net gain from fair value change of investments, which is excluded under non-GAAP measures;
- a $249.9 million impairment on the Company’s certain investments, which is excluded under non-GAAP measures;
- a $46.7 million net interest and other income.
Income tax expenses were $109.6 million, compared to $96.2 million for 2018. The increase was primarily attributable to higher deferred tax charges recognized from fair value change of investment in 2019.
Net income attributable to Weibo for 2019 was $494.7 million, compared to $571.8 million for 2018. Diluted net income per share attributable to Weibo for 2019 was $2.18, compared to $2.52 for 2018. Non-GAAP net income attributable to Weibo for 2019 was $637.5 million, compared to $624.2 million for 2018. Non-GAAP diluted net income per share attributable to Weibo for 2019 was $2.78, compared to $2.73 for 2018.
Weibo anticipates its first quarter of 2020 net revenues to decrease by 15% to 20% year-over-year on a constant currency basis. This forecast reflects Weibo’s current and preliminary view, which is subject to change.