Weibo Q3 profit increased by 68.5% year-on-year, strong performance in membership and game revenue | Financial Report Insights
In the third quarter, Weibo's operating revenue was USD 464.5 million (approximately RMB 3.294 billion), an increase of 5% year-on-year. The net profit was USD 130.6 million, with a diluted net income per share of USD 0.50
Weibo achieved double growth in revenue and profit in the third quarter, with strong business income. On November 19, Weibo announced its third-quarter performance, with the following data:
1) Key Financial Data
Revenue: The company's operating revenue for the third quarter was USD 464.5 million (approximately RMB 3.294 billion), an increase of 5% year-on-year.
Net Profit Attributable to Shareholders: The company's net profit for the third quarter was USD 130.6 million, an increase of 68.5% year-on-year, with diluted earnings per share of USD 0.50.
Operating Profit: The company's operating profit for the third quarter was USD 141.3 million, with an operating profit margin of 30%.
Costs and Expenses: The company's costs and expenses for the third quarter were USD 323.2 million, an increase of 5% compared to USD 308.2 million in the same period last year, mainly due to increased marketing and personnel-related expenses.
Steady Growth in Advertising Business, Value-Added Service Revenue Increased by 25% Year-on-Year
Specifically, in the third quarter, advertising and marketing revenue was USD 398.6 million, an increase of 2% year-on-year; among them, advertising and marketing revenue excluding income from Alibaba was USD 377.1 million, an increase of 3% year-on-year.
Driven mainly by the growth in membership services and game-related revenue, value-added service revenue was USD 65.9 million, an increase of 25% year-on-year, primarily driven by the growth in membership services and game-related revenue.
The financial report also showed that in September this year, Weibo's monthly active users reached 587 million, with daily active users averaging 257 million.
Weibo's CEO Wang Gaofei stated:
“In terms of users, we continue to focus on acquiring and engaging high-quality users. Our advertising business showed a stable trend this quarter. We are pleased to see strong growth in advertising revenue in certain key areas, mainly due to advertising demand during the Summer Olympics.
Our value-added services business also showed strong momentum this quarter, benefiting from the upgrade of membership services, catering to users' social interactions on the platform.”
Before the U.S. stock market opened, Weibo's stock rose nearly 5%, but it has fallen 19.18% year-to-date.
