Weibo: Weibo Announces Fourth Quarter and Fiscal Year 2024 Unaudited Financial Results and Annual Dividend

In This Article: BEIJING , March 13, 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 fourth quarter and fiscal year ended December 31, 2024 and annual divide nd. "We capped off the year with solid performance in the fourth quarter of 2024," said Gaofei Wang, CEO of Weibo. "In 2024, we have proactively adjusted our user strategy to focus on the acquisition and engagement of high quality users. On the content front, we further optimized our content ecosystem through reinforcement of our core areas of strength, investment into vertical content and construction of AI-empowered content ecosystem. On the monetization front, we delivered solid performance this year, with advertising business in a stabilized trend and good momentum of value-added service. Our operating efficiency remained solid, with operating margin reaching 28% and non-GAAP operating margin reaching 33% for the full year of 2024. With our decent profitability and healthy cash flow as foundation, we are committed to enhancing shareholder return. We are pleased to announce that our board of directors has approved the adoption of annual dividend policy and an annual dividend payout of US$200 million to our shareholders for fiscal year 2024." Fourth Quarter 2024 Highlights Net revenues were US$456.8 million , a decrease of 1% year-over-year or relatively flat year-over-year on a constant currency basis [1] . Advertising and marketing revenues were US$385.9 million , a decrease of 4% year-over-year or a decrease of 3% year-over-year on a constant currency basis [1] . Value-added services ("VAS") revenues were US$71.0 million , an increase of 18% year-over-year or an increase of 18% year-over-year on a constant currency basis [1] . Income from operations was US$117.9 million , representing an operating margin of 26%. Net income attributable to Weibo's shareholders was US$8.9 million and diluted net income per share was US$0.04 . Non-GAAP income from operations was US$136.2 million , representing a non-GAAP operating margin of 30%. Non-GAAP net income attributable to Weibo's shareholders was US$106.6 million and non-GAAP diluted net income per share was US$0.40 . Monthly active users ("MAUs") were 590 million in December 2024 . Average daily active users ("DAUs") were 260 million in December 2024 . [1] We define constant currency (non-GAAP) by assuming that the average exchange rate in the fourth quarter of 2024 had been the same as it was in the fourth quarter of 2023, or RMB7.22=US$1.00. Fiscal Year 2024 Highlights Net revenues were US$1.75 billion , relatively flat year-over-year or an increase of 1% year-over-year on a constant currency basis [2] . Advertising and marketing revenues were US$1.50 billion , a decrease of 2% year-over-year or a decrease of 1% year-over-year on a constant currency basis [2] . Value-added services ("VAS") revenues were US$256.0 million , an increase of 13% year-over-year or an increase of 15% year-over-year on a constant currency basis [2] . Income from operations was US$494.3 million , representing an operating margin of 28%. Net income attributable to Weibo's shareholders was US$300.8 million and diluted net income per share was US$1.16 . Non-GAAP income from operations was US$584.1 million , representing a non-GAAP operating margin of 33%. Non-GAAP net income attributable to Weibo's shareholders was US$478.6 million and non-GAAP diluted net income per share was US$1.82 . [2] We define constant currency (non-GAAP) by assuming that the average exchange rate of 2024 had been the same as it was in 2023, or RMB7.08=US$1.00. Fourth Quarter 2024 Financial Results For the fourth quarter of 2024, Weibo's total net revenues were US$456.8 million , a decrease of 1% compared to US$463.7 million for the same period last year. Advertising and marketing revenues for the fourth quarter of 2024 were US$385.9 million , a decrease of 4% compared to US$403.7 million for the same period last year. The decrease was mainly due to the underperformance of online game sector, as we faced a tough year-over-year comparison due to the concentrated release of blockbuster games in the fourth quarter of 2023. Advertising and marketing revenues excluding advertising revenues from Alibaba were US$345.5 million , a decrease of 4% compared to US$358.8 million for the same period last year. VAS revenues for the fourth quarter of 2024 were US$71.0 million , an increase of 18% year-over-year compared to US$59.9 million for the same period last year, primarily driven by the growth of membership services and game-related revenues. Costs and expenses for the fourth quarter of 2024 totaled US$338.9 million , a decrease of 2% compared to US$344.7 million for the same period last year. Income from operations for the fourth quarter of 2024 was US$117.9 million , compared to US$119.0 million for the same period last year. Operating margin was 26%, same as last year. Non-GAAP income from operations was US$136.2 million , compared to US$145.9 million for the same period last year. Non-GAAP operating margin was 30%, compared to 31% last year. Non-operating loss for the fourth quarter of 2024 was US$85.1 million , compared to non-operating income of US$42.3 million for the same period last year. Non-operating loss for the fourth quarter of 2024 mainly included (i) investment related impairment of US$82.8 million , which was excluded under non-GAAP measures; (ii) loss from fair value change of investments of US$3.9 million , which was excluded under non-GAAP measures; and (iii) net interest and other income of US$1.6 million . Income tax expenses for the fourth quarter of 2024 were US$20.0 million , compared to US$72.6 million for the same period last year. The decrease was primarily due to the accrual of withholding tax related to the earnings of the company's wholly-foreign owned enterprise ("WFOE"). In 2024, the Company accrued withholding tax related to its WFOE's earnings for 2024 on a quarterly basis. In contrast, in the fourth quarter of 2023, the Company cumulatively accrued a US$43.7 million withholding tax related to its WFOE's earnings for 2023 and certain years prior to 2023. These earnings have been and are expected to be remitted to Weibo Hong Kong Limited to fund the demand for U.S. dollars in business operations, payments of dividends and debts, and potential investments, etc. Net income attributable to Weibo's shareholders for the fourth quarter of 2024 was US$8.9 million , compared to US$83.2 million for the same period last year. Diluted net income per share attributable to Weibo's shareholders for the fourth quarter of 2024 was US$0.04 , compared to US$0.34 for the same period last year. Non-GAAP net income attributable to Weibo's shareholders for the fourth quarter of 2024 was US$106.6 million , compared to US$76.4 million for the same period last year. Non-GAAP diluted net income per share attributable to Weibo's shareholders for the fourth quarter of 2024 was US$0.40 , compared to US$0.31 for the same period last year. As of December 31, 2024 , Weibo's cash, cash equivalents and short-term investments totaled US$2.4 billion . For the fourth quarter of 2024, cash provided by operating activities was US$244.0 million, capital expenditures totaled US$17.7 million, and depreciation and amortization expenses amounted to US$14.4 million. Fiscal Year 2024 Financial Results For fiscal year 2024, Weibo's total net revenues were US$1.75 billion , relatively flat compared to US$1.76 billion in 2023. Advertising and marketing revenues for 2024 were US$1.50 billion , a decrease of 2% compared to US$1.53 billion in 2023. Advertising and marketing revenues excluding advertising revenues from Alibaba were US$1.38 billion , a decrease of 3% compared to US$1.42 billion for 2023. VAS revenues for 2024 were US$256.0 million , an increase of 13% compared to US$225.8 million for 2023. Costs and expenses for 2024 totaled US$1.26 billion , a decrease of 2% compared to US$1.29 billion for 2023. Income from operations for 2024 was US$494.3 million , compared to US$472.9 million for 2023. Operating margin for 2024 was 28%, compared to 27% last year. Non-GAAP income from operations was US$584.1 million , compared to US$592.1 million for 2023. Non-GAAP operating margin was 33%, compared to 34% last year. Non-operating loss for 2024 was US$73.7 million , compared to non-operating income of US$29.8 million for 2023. Non-operating loss in 2024 mainly included (i) investment related impairment of US$91.9 million , which was excluded under non-GAAP measures; (ii) gain from fair value change of investments of US$18.6 million , which was excluded under non-GAAP measures; and (iii) net interest and other income of US$0.9 million . Income tax expenses for 2024 were US$110.6 million , compared to US$145.3 million for 2023. In 2024, the Company accrued a US$22.1 million withholding tax related to its WFOE's earnings for 2024. In 2023, the Company cumulatively accrued a US$43.7 million withholding tax related to its WFOE's earnings for 2023 and certain years prior to 2023. Net income attributable to Weibo's shareholders for 2024 was US$300.8 million , compared to US$342.6 million for 2023. Diluted net income per share attributable to Weibo's shareholders for 2024 was US$1.16 , compared to US$1.43 for 2023. Non-GAAP net income attributable to Weibo's shareholders for 2024 was US$478.6 million , compared to US$450.6 million for 2023. Non-GAAP diluted net income per share attributable to Weibo's shareholders for 2024 was US$1.82 , compared to US$1.88 for 2023. For fiscal year 2024, cash provided by operating activities was US$639.9 million , compared to US$672.8 million for 2023. Capital expenditures totaled US$61.5 million , and depreciation and amortization expenses amounted to US$58.1 million . Adoption of Dividend Policy and Declaration of 2024 Dividend