Weibo Shares Are Trading Higher On Upbeat Q4 Results, Strong Guidance

Chinese social media company Weibo Corp WB reported a 10% year-on-year net revenue growth to $513.4 million, exceeding the analyst estimate of $499.05 million during the fourth quarter of FY20. 

  • Advertising and marketing revenues rose 12% to $453.5 million. Value-added service revenues declined 4% to $59.9million.
  • Operating income rose 21% to $181.6 million, and the operating margin expanded by 300 basis points to 35%.
  • EPS rose 19.5% to $0.92 exceeding the consensus estimate of $0.74.
  • Monthly active users (MAUs) noted 5 million incremental users and stood at 521 million. Mobile MAUs represented 94% of MAUs. Average daily active users (DAUs) witnessed 3 million additional users and stood at 225 million.
  • Weibo's cash and equivalents amounted to $3.50 billion, and it generated an operating cash flow of $321.2 million.
  • Wei Wang and Fei Cao were appointed as COO and CFO effective immediately.
  • Guidance: Weibo is well-positioned to capture incremental ad wallet, leveraging the enhanced digitalization of brick-and-mortar, distinguished social ad offerings, and restored bidding system as reflected by 25% to 30% net revenue growth expectation for the first quarter FY21.
  • Price action: WB shares traded higher by 5.08% at $53 in the premarket session on the last check Thursday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceManagementTechMedia
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!