Weibo Announces First Quarter 2025 Unaudited Financial Results

Rhea-AI Summary

Weibo (WB) reported its Q1 2025 financial results with net revenues of $396.9M, flat year-over-year. Advertising revenues remained stable at $339.1M, while VAS revenues increased 2% to $57.7M. The company achieved strong profitability with net income of $107M ($0.41 per share), up from $49.4M year-over-year. Operating margin improved to 28% from 25%. Key metrics showed solid user engagement with 591M monthly active users and 261M daily active users. Notably, advertising revenue from Alibaba surged 89% to $42.6M, driven by Spring Festival promotions and AI product advertising. The company's cash position stood at $2.08B as of March 31, 2025. Weibo highlighted progress in AI integration, particularly with Weibo Intelligent Search, showing growth in both user base and daily search queries. The company maintained focus on content marketing and enhanced ad placement efficiency while implementing disciplined spending strategies.

Positive

• Net income more than doubled YoY to $107M from $49.4M
• Operating margin improved to 28% from 25% last year
• Advertising revenue from Alibaba increased 89% to $42.6M
• VAS revenues grew 2% YoY to $57.7M
• Costs and expenses decreased 3% YoY to $286.5M
• Strong cash position of $2.08B

Negative

• Overall revenue remained flat YoY at $396.9M
• Non-Alibaba advertising revenue decreased 6% to $296.5M
• Cash and short-term investments decreased from $2.35B to $2.08B QoQ
• Declining revenue from online gaming and handset manufacturing sectors

Insights

Financial Analyst

Weibo posted strong Q1 with flat revenue but improved profitability through cost discipline and growth in high-margin AI offerings.

Weibo's Q1 2025 results showcase effective operational optimization despite a challenging revenue environment. While total revenue remained essentially flat at $396.9 million year-over-year, the company significantly improved profitability metrics across the board. Operating margin expanded to 28%, up from 25% in the prior year period, while non-GAAP operating margin rose to 33% from 32%.

The revenue composition reveals important shifts in Weibo's business dynamics. Ad revenue from Alibaba surged by 89% to $42.6 million, primarily driven by Spring Festival promotions and increased spending on AI-related products. However, this was offset by weakness in the gaming and smartphone sectors, with non-Alibaba advertising revenue declining 6% to $296.5 million. Value-added services revenue showed modest growth of 2%, reaching $57.7 million, supported by improved membership services.

The most substantial improvement appears on the cost side, where disciplined spending resulted in a 3% reduction in total costs and expenses to $286.5 million. This efficiency drove net income attributable to shareholders to more than double, reaching $107 million compared to $49.4 million in Q1 2024. Diluted EPS followed a similar trajectory, increasing from $0.19 to $0.41.

User metrics remained solid with 591 million monthly active users and 261 million daily active users in March 2025, though the release doesn't provide year-over-year comparisons for these figures. The company's cash position decreased from $2.35 billion to $2.08 billion quarter-over-quarter, primarily due to investments in long-term wealth management products.

Weibo's strategic focus on AI integration appears to be gaining traction, with management highlighting the rollout of Weibo Intelligent Search to all users and noting "decent sequential growth" in both user base and daily search queries. This AI-first approach, coupled with enhanced ad placement efficiency in their real-time-bidding products, positions the company to potentially accelerate growth despite the current flat revenue environment.

Technology Product Analyst

Weibo's AI investments are showing promising user adoption, particularly in intelligent search, while strengthening core social engagement metrics.

Weibo's product strategy is increasingly centered around AI integration with social features, marking a significant evolution for the platform. The company has successfully rolled out Weibo Intelligent Search to its entire user base during Q1, representing a major milestone in their AI product roadmap. The sequential growth in both the user base and daily search queries for this AI-powered search function indicates positive early adoption.

The platform's user metrics reflect continued engagement strength with 591 million monthly active users and 261 million daily active users. While year-over-year comparisons aren't provided, management's commentary suggests their focus on integrating social features with an upgraded recommendation system is yielding results in terms of community growth and deepened user engagement.

On the advertising technology front, Weibo appears to be leveraging AI to enhance monetization efficiency. The improved performance of their real-time-bidding information feed ad products suggests algorithm enhancements are improving ad targeting and placement, which could lead to higher yield per impression over time. This technical advancement in their ad stack is particularly important given the flat overall revenue environment.

Alibaba's significant increase in ad spending on Weibo (89% year-over-year) specifically for AI-related products is noteworthy. It suggests Weibo's platform is being recognized as an effective channel for introducing AI innovations to Chinese consumers, potentially creating a virtuous cycle where Weibo's own AI features benefit from increased visibility through these campaigns.

Looking ahead, the company's disciplined spending approach appears to be creating headroom for strategic investment in AI capabilities and product competitiveness. This balanced approach of operational efficiency coupled with targeted technology investments positions Weibo to potentially accelerate their AI product roadmap while maintaining financial discipline.

BEIJING, May 21, 2025 /PRNewswire/ -- Weibo Corporation ("Weibo" or the "Company") (Nasdaq: WB and HKEX: 9898), a leading social media in China, today announced its unaudited financial results for the first quarter ended March 31, 2025.

"We are pleased with our progresses made on the AI product front," said Gaofei Wang, CEO of Weibo. "On the user front, we remain committed to creating user value by focusing on the integration of Weibo's social features and upgrade of the recommendation system. In the first quarter, we further grew our user community and deepened user engagement. On the AI application front, we have made Weibo Intelligent Search, our AI-powered search function, available to all users. During the first quarter, both the user base and daily search queries of Weibo Intelligent Search achieved decent sequential growth. On the monetization front, we delivered solid performance of ad business, leveraging our strengths in content marketing and enhanced ad placement efficiency of our real-time-bidding information feed ad products. Benefiting from solid execution of disciplined spending strategy, our operating efficiency further improved, which laid foundation for us to invest for our product competitiveness, AI technology, as well as shareholder return."

First Quarter 2025 Highlights 

• Net revenues were US$396.9 million, flat year-over-year or an increase of 1% year-over-year on a constant currency basis ^[1].
• Advertising and marketing revenues were US$339.1 million, flat year-over-year or an increase of 1% year-over-year on a constant currency basis ^[1].
• Value-added services ("VAS") revenues were US$57.7 million, an increase of 2% year-over-year or 3% year-over-year on a constant currency basis ^[1].
• Income from operations was US$110.3 million, representing an operating margin of 28%.
• Net income attributable to Weibo's shareholders was US$107.0 million and diluted net income per share was US$0.41.
• Non-GAAP income from operations was US$129.5 million, representing a non-GAAP operating margin of 33%.
• Non-GAAP net income attributable to Weibo's shareholders was US$119.5 million and non-GAAP diluted net income per share was US$0.45.
• Monthly active users ("MAUs") were 591 million in March 2025.
• Average daily active users ("DAUs") were 261 million in March 2025.

[1] We define constant currency (non-GAAP) by assuming that the average exchange rate in the first quarter of 2025 was the same as it was in the first quarter of 2024, or RMB7.15=US$1.00.

First Quarter 2025 Financial Results

For the first quarter of 2025, Weibo's total net revenues were US$396.9 million, relatively flat compared to US$395.5 million for the same period last year.

Advertising and marketing revenues for the first quarter of 2025 were US$339.1 million, relatively flat compared to US$339.0 million for the same period last year. Advertising and marketing revenues excluding advertising revenues from Alibaba were US$296.5 million, a decrease of 6% compared to US$316.4 million for the same period last year. The decrease mainly resulted from less revenue contributions from the online gaming and handset manufacturing sectors on a year over year basis, primarily due to high base effect and difference of handset product launch schedule respectively. Advertising and marketing revenues from Alibaba were US$42.6 million, an increase of 89% compared to US$22.6 million, mainly attributable to its strong promotional demand related to Spring Festival Gala, as well as incremental ad spend in promoting its AI-related products.

VAS revenues for the first quarter of 2025 were US$57.7 million, an increase of 2% compared to US$56.5 million for the same period last year, primarily driven by the growth of membership services revenues.

Costs and expenses for the first quarter of 2025 totaled US$286.5 million, a decrease of 3% compared to US$295.8 million for the same period last year, primarily resulting from the decrease in sales and marketing expenses.

Income from operations for the first quarter of 2025 was US$110.3 million, compared to US$99.7 million for the same period last year. Operating margin was 28%, compared to 25% last year. Non-GAAP income from operations was US$129.5 million, compared to US$125.8 million for the same period last year. Non-GAAP operating margin was 33%, compared to 32% last year.

Non-operating income for the first quarter of 2025 was US$22.1 million, compared to non-operating loss of US$23.6 million for the same period last year. Non-operating income for the first quarter of 2025 mainly included (i) net interest and other income of US$13.7 million; and (ii) gain from fair value change of investments of US$8.1 million, which was excluded under non-GAAP measures.

Income tax expenses for the first quarter of 2025 were US$24.3 million, compared to US$25.0 million for the same period last year.

Net income attributable to Weibo's shareholders for the first quarter of 2025 was US$107.0 million, compared to US$49.4 million for the same period last year. Diluted net income per share attributable to Weibo's shareholders for the first quarter of 2025 was US$0.41, compared to US$0.19 for the same period last year. Non-GAAP net income attributable to Weibo's shareholders for the first quarter of 2025 was US$119.5 million, compared to US$106.6 million for the same period last year. Non-GAAP diluted net income per share attributable to Weibo's shareholders for the first quarter of 2025 was US$0.45, compared to US$0.41 for the same period last year.

As of March 31, 2025, Weibo's cash, cash equivalents and short-term investments totaled US$2.08 billion, compared to US$2.35 billion as of December 31, 2024. The decrease of Weibo's cash, cash equivalent and short-term investments mainly resulted from the purchase of long-term wealth management products in the first quarter of 2025. For the first quarter of 2025, cash provided by operating activities was US$113.2 million, capital expenditures totaled US$9.4 million, and depreciation and amortization expenses amounted to US$13.6 million.

Conference Call

Weibo's management team will host a conference call from 7:00 AM to 8:00 AM Eastern Time on May 21, 2025 (or 7:00 PM to 8:00 PM Beijing Time on May 21, 2025) to present an overview of the Company's financial performance and business operations.

Participants who wish to dial in to the teleconference must register through the below public participant link. Dial-in and instructions will be provided in the confirmation email upon registering.

Participants Registration Link:  

https://register-conf.media-server.com/register/BIbb5c504e4aeb43a380f69d373cfb8ca0

Additionally, a live and archived webcast of this conference call will be available at http://ir.weibo.com.

Non-GAAP Financial Measures

This release contains the following non-GAAP financial measures: non-GAAP income from operations, non-GAAP net income attributable to Weibo's shareholders, non-GAAP diluted net income per share attributable to Weibo's shareholders and adjusted EBITDA. These non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of the Company's financial performance prepared in accordance with U.S. GAAP.

The Company's non-GAAP financial measures exclude stock-based compensation, amortization of intangible assets resulting from business acquisitions, net results of impairment and provision on investments, gain/loss on sale of investments and fair value change of investments, non-GAAP to GAAP reconciling items on the share of equity method investments, non-GAAP to GAAP reconciling items for the income/loss attributable to non-controlling interests, income tax expense related to the amortization of intangible assets resulting from business acquisitions and fair value change of investments (other non-GAAP to GAAP reconciling items have no tax effect), and amortization of issuance cost of convertible senior notes, unsecured senior notes and long-term loans. Adjusted EBITDA represents non-GAAP net income attributable to Weibo's shareholders before interest income/expense, net, income tax expenses/benefits, and depreciation expenses.

The Company's management uses these non-GAAP financial measures in their financial and operating decision-making, because management believes these measures reflect the Company's ongoing operating performance in a manner that allows more meaningful period-to-period comparisons. The Company believes that these non-GAAP financial measures provide useful information to investors and others in the following ways: (i) in comparing the Company's current financial results with the Company's past financial results in a consistent manner, and (ii) in understanding and evaluating the Company's current operating performance and future prospects in the same manner as management does. The Company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gains/losses and other items (i) that are not expected to result in future cash payments or (ii) that are non-recurring in nature or may not be indicative of the Company's core operating results and business outlook.

Use of non-GAAP financial measures has limitations. The Company's non-GAAP financial measures do not include all income and expense items that affect the Company's operations. They may not be comparable to non-GAAP financial measures used by other companies. Accordingly, care should be exercised in understanding how the Company defines its non-GAAP financial measures. Reconciliations of the Company's non-GAAP financial measures to the nearest comparable GAAP measures are set forth in the section below titled "Unaudited Reconciliation of Non-GAAP to GAAP Results."

About Weibo

Weibo is a leading social media for people to create, share and discover content online. Weibo combines the means of public self-expression in real time with a powerful platform for social interaction, content aggregation and content distribution. Any user can create and post a feed and attach multi-media and long-form content. User relationships on Weibo may be asymmetric; any user can follow any other user and add comments to a feed while reposting. This simple, asymmetric and distributed nature of Weibo allows an original feed to become a live viral conversation stream.

Weibo enables its advertising and marketing customers to promote their brands, products and services to users. Weibo offers a wide range of advertising and marketing solutions to companies of all sizes. Weibo generates a substantial majority of its revenues from the sale of advertising and marketing services, including the sale of social display advertisement and promoted marketing offerings. Weibo displays content in a simple information feed format and offers native advertisement that conform to the information feed on our platform. We are continuously refining our social interest graph recommendation engine, which enables our customers to perform people marketing and target audiences based on user demographics, social relationships, interests and behaviors, to achieve greater relevance, engagement and marketing effectiveness.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology, such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "confidence," "estimates" and similar statements. Among other things, Weibo's expected financial performance and strategic and operational plans, as described, without limitation, in quotations from management in this press release, contain forward-looking statements. Weibo may also make written or oral forward-looking statements in the Company's periodic reports to the U.S. Securities and Exchange Commission ("SEC"), in announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, Weibo's limited operating history in certain new businesses; failure to sustain or grow active user base and the level of user engagement; the uncertain regulatory landscape in China; fluctuations in the Company's quarterly operating results; the Company's reliance on advertising and marketing sales for a majority of its revenues; failure to successfully develop, introduce, drive adoption of or monetize new features and products; failure to compete effectively for advertising and marketing spending; failure to successfully integrate acquired businesses; risks associated with the Company's investments, including equity pick-up and impairment; failure to compete successfully against new entrants and established industry competitors; changes in the macro-economic environment, including the depreciation of the Renminbi; and adverse changes in economic and political policies of the PRC government and its impact on the Chinese economy. Further information regarding these and other risks is included in Weibo's annual reports on Form 20-F and other filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is current as of the date hereof, and Weibo assumes no obligation to update such information, except as required under applicable law.

Contact:
Investor Relations
Weibo Corporation
Phone: +86 10 5898-3336
Email: ir@staff.weibo.com 

 

WEIBO CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except per share data)
			Three months ended
			March 31,		March 31,
			2024		2025
Net revenues:
Advertising and marketing			$        338,951		$        339,106
Value-added services			56,546		57,749
	Net revenues		395,497		396,855
Costs and expenses:
Cost of revenues (1)			86,821		88,802
Sales and marketing (1)			103,627		95,810
Product development (1)			80,726		76,021
General and administrative (1)			24,586		25,912
	Total costs and expenses		295,760		286,545
Income from operations			99,737		110,310
Non-operating income (loss):
Investment related income (loss), net			(4,970)		8,357
Interest and other income (loss), net			(18,611)		13,746
			(23,581)		22,103
Income before income tax expenses			76,156		132,413
Less: Income tax expenses			25,044		24,291
Net income			51,112		108,122
Less: Net income attributable to non-controlling interests			548		334
Accretion to redeemable non-controlling interests			1,126		824
Net income attributable to Weibo's shareholders			$          49,438		$        106,964
Basic net income per share attributable to Weibo's shareholders			$               0.21		$               0.45
Diluted net income per share attributable to Weibo's shareholders			$               0.19		$               0.41
Shares used in computing basic net income per share attributable
to Weibo's shareholders			236,694		238,284
Shares used in computing diluted net income per share attributable
to Weibo's shareholders			263,644		266,494
(1) Stock-based compensation in each category:
	Cost of revenues		$            1,773		$             1,239
	Sales and marketing		3,823		2,929
	Product development		10,438		6,840
	General and administrative		4,978		4,039

 

WEIBO CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
				As of
				December 31,		March 31,
				2024		2025
Assets
	Current assets:
			Cash and cash equivalents	$       1,890,632		$       1,205,765
			Short-term investments	459,852		878,054
			Accounts receivable, net	339,754		357,201
			Prepaid expenses and other current assets	348,774		341,241
			Amount due from SINA(1)	452,769		452,988
			Current assets subtotal	3,491,781		3,235,249
	Property and equipment, net			215,034		226,867
	Goodwill and intangible assets, net			272,004		269,088
	Long-term investments			1,389,199		1,408,323
	Other non-current assets			1,136,481		1,519,352
	Total assets			$       6,504,499		$       6,658,879
Liabilities, Redeemable Non-controlling Interests and Shareholders' Equity
	Liabilities:
		Current liabilities:
			Accounts payable	$          158,435		$          164,823
			Accrued expenses and other current liabilities	652,369		649,888
			Income tax payable	84,690		89,589
			Deferred revenues	72,642		86,537
			Dividends payable	-		200,643
			Current liabilities subtotal	968,136		1,191,480
		Long-term liabilities:
			Convertible senior notes	320,803		321,588
			Unsecured senior notes	744,662		744,904
			Long-term loans	795,311		796,228
			Other long-term liabilities	96,701		96,461
			Total liabilities	2,925,613		3,150,661
	Redeemable non-controlling interests			45,103		24,523
	Shareholders' equity :
		Weibo shareholders' equity		3,482,771		3,432,055
		Non-controlling interests		51,012		51,640
			Total shareholders' equity	3,533,783		3,483,695
	Total liabilities, redeemable non-controlling interests and     shareholders' equity			$       6,504,499		$       6,658,879
	(1) Included short-term loans to and interest receivable from SINA of US$417.7 million as of December 31, 2024 and US$413.5 million as of March 31, 2025.

 

WEIBO CORPORATION
UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS
(In thousands of U.S. dollars, except per share data)
					Three months ended
					March 31,			March 31,
					2024			2025
Income from operations					$	99,737		$	110,310
Add:	Stock-based compensation					21,012			15,047
	Amortization of intangible assets resulting from business acquisitions					5,059			4,122
Non-GAAP income from operations					$	125,808		$	129,479
Net income attributable to Weibo's shareholders					$	49,438		$	106,964
Add:	Stock-based compensation					21,012			15,047
	Amortization of intangible assets resulting from business   acquisitions					5,059			4,122
	Investment related gain/loss, net (1)					4,970			(8,357)
	Non-GAAP to GAAP reconciling items on the share of equity   method investments					25,358			1,039
	Non-GAAP to GAAP reconciling items for the income/loss   attributable to non-controlling interests					(436)			(492)
	Tax effects on non-GAAP adjustments (2)					(1,103)			(734)
	Amortization of  issuance cost of convertible senior notes, unsecured   senior notes and long-term loans					2,314			1,943
Non-GAAP net income attributable to Weibo's shareholders					$	106,612		$	119,532
Non-GAAP diluted net income per share attributable to Weibo's   shareholders					$	0.41	*	$	0.45	*
Shares used in computing GAAP diluted net income per share attributable   to Weibo's shareholders						263,644			266,494
Shares used in computing non-GAAP diluted net income per share   attributable to Weibo's shareholders						263,644			266,494
Adjusted EBITDA:
Net income attributable to Weibo's shareholders					$	49,438		$	106,964
Non-GAAP adjustments						57,174			12,568
Non-GAAP net income attributable to Weibo's shareholders						106,612			119,532
	Interest income, net					(9,151)			(13,986)
	Income tax expenses					26,147			25,025
	Depreciation expenses					9,417			9,149
Adjusted EBITDA					$	133,025		$	139,720
Net revenues					$	395,497		$	396,855
Non-GAAP operating margin						32 %			33 %
(1)	To adjust impairment and provision on investments, gain/loss on sale of investments and fair value change of investments.
(2)	To adjust the income tax effects of non-GAAP adjustments, which primarily related to amortization of intangible assets resulting from business acquisitions and fair value change of investments. Other non-GAAP adjustment items have no tax effect, because (i) they were recorded in entities established in tax free jurisdictions, or (ii) full valuation allowances were provided for related deferred tax assets as it is more-likely-than-not they will not be realized.
*	Net income attributable to Weibo's shareholders is adjusted for interest expense of convertible senior notes for calculating diluted EPS.

 

WEIBO CORPORATION
UNAUDITED ADDITIONAL INFORMATION
(In thousands of U.S. dollars)
			Three months ended
			March 31,		March 31,
			2024		2025
Net revenues
	Advertising and marketing
	Non-Ali advertisers		$        316,400		$        296,494
	Alibaba		22,551		42,612
	Subtotal		338,951		339,106
	Value-added services		56,546		57,749
			$        395,497		$        396,855

View original content:https://www.prnewswire.com/news-releases/weibo-announces-first-quarter-2025-unaudited-financial-results-302461555.html

SOURCE Weibo Corporation

FAQ

What were Weibo's (WB) key financial results for Q1 2025?

Weibo reported Q1 2025 net revenues of $396.9M (flat YoY), net income of $107M ($0.41 per share), and operating margin of 28%. The company had 591M monthly active users and 261M daily active users.

How did Weibo's advertising revenue from Alibaba perform in Q1 2025?

Weibo's advertising revenue from Alibaba increased 89% YoY to $42.6M, driven by strong promotional demand during Spring Festival Gala and increased spending on AI-related products.

What was Weibo's (WB) user base in Q1 2025?

Weibo reported 591 million monthly active users (MAUs) and 261 million daily active users (DAUs) in March 2025.

How much cash does Weibo (WB) have as of Q1 2025?

Weibo had $2.08 billion in cash, cash equivalents, and short-term investments as of March 31, 2025, down from $2.35 billion in December 2024.

What progress did Weibo make in AI development during Q1 2025?

Weibo made its AI-powered search function, Weibo Intelligent Search, available to all users, achieving sequential growth in both user base and daily search queries.