Weibo's Q1 2021: Revenue Up 42%, Net Profit Down 4%

Revenue achieved USD 459 million, beating the market expectation of USD 432 million. 

Adjusted earnings per share reached 57 cents, higher than the market forecast of 48 cents.

Revenue of microblog advertising and marketing leaped by 42% to USD 390 million due to strong growth on the basis of the economic downturn last year.

Revenue of value-added services was USD 68.9 million, with a growth of 44% due to the revenue contribution of interactive entertainment company that was acquired and consolidated in November 2020.

Operating profit was USD 108.6 million, up 87% over the same period last year. 

Operating profit margin ended up at 24%, with a year-on-year growth of 33%.

Non-US GAAP operating profit soared 86%, reaching USD 137.5 million.

Non-US GAAP operating profit margin improved by 30% to 30%.

The number of monthly active users in March 2021 was 530 million, a decrease of 4% over 1Q 2020 and an increase of 2% over 4Q 2020, about 94% of which are mobile users.

The number and activity of users maintained a steady growth due to the improvement of microblog's access to customers through channels, as well as the continuous reinforcement of microblog's advantages in hot spots and social networking.

Cost and expense of microblogs in the first quarter totaled USD 350.3 million, jumping 32% year-on-year due to the climb of marketing expenses and personnel-related costs. 

Non-operating loss in the first quarter was USD 44.7 million, including a net loss of $58.2 million on investment sales and changes in fair value, which is not included in non operating profit and loss calculated in accordance with non-US GAAP, as well as net interest and other income of $13.5 million. 

Net revenue and the pre-tax earnings are expected to grow by 25% to 30% year-on-year in 2Q 2021 over the last year, which reflects the current preliminary judgment of microblogging that might be adjusted in the future.