- Weibo Corp (NASDAQ: WB) reported a third-quarter FY22 revenue decline of 25% year-on-year to $453.6 million, missing the consensus of $470.3 million. Revenue declined 20% Y/Y on a CC basis.
- Segments: Weibo's Advertising and marketing revenues fell 27% Y/Y to $393.4 million. Value-added service (VAS) revenues decreased 14% Y/Y to $60.1 million.
- Drivers: Monthly active users (MAUs) increased by 11 million Y/Y to 584 million in September 2022, while Average daily active users (DAUs) rose 5 million Y/Y to 253 million.
- Margin: The non-GAAP operating margin contracted 500 bps to 36% as non-GAAP income from operations fell 34.8% Y/Y.
- Non-GAAP EPS of $0.50 missed the consensus of $0.51.
- Weibo held $3 billion in cash and equivalents and generated $74 million in operating cash flow.
- CEO Gaofei Wang said, "In the third quarter, our user community and engagement remained solid, as we continued to improve operation efficiency on the user front. As our business entered into a gradual recovery trajectory, we continued to optimize cost structure to improve operating efficiency and cash generation capability, aiming to remain competitive in the long-run."
- Price Action: WB shares traded lower by 6.82% at $13.80 in the premarket session on the last check Thursday.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.