Sina Weibo Release Their First Quarter 2014 Financial Results

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Sina Weibo Release Their First Quarter 2014 Financial Results

The leading social media platform for people to create, distribute and discover Chinese-language content, Weibo recently announce its unaudited financial results for the first quarter ending of March 31, 2014.

First Quarter 2014 Highlights

  • Net revenues increased 161% year over year to $67.5 million.
  • Advertising and marketing revenues grew 176% year over year to $51.9 million.
  • Weibo Value Added Services (“Weibo VAS”) revenues increased 120% year over year to $15.7 million.
  • Net loss increased 146% year over year to $47.4 million, or $0.31 diluted net loss per share attributable to Weibo’s ordinary shareholders. Net loss in the first quarter of 2014 included a loss of $40.2 million from the change in fair value of investor option liability.
  • Non-GAAP net loss decreased 74% year over year to $4.8 million, or $0.03 non-GAAP diluted net loss per share attributable to Weibo’s ordinary shareholders.
  • Monthly active users (“MAUs”) were 143.8 million as of March 31, 2014, an increase of 34% year over year.
  • Daily active users (“DAUs”) were 66.6 million on average for March 2014, an increase of 37% year over year.

“Weibo’s IPO in five years from inception exemplifies the strong technology and media know how of our team. We are delighted to report robust traffic and revenue growth in the first quarter of 2014,” stated Gaofei Wang, Weibo CEO. “During the first quarter, we leveraged the chains of media events and fine-tuned our operations and products to improve social information distribution and discovery, resulting in Weibo’s MAU growing 11% sequentially and further solidifying Weibo as a leading social media in China. On top of Weibo’s traffic acceleration, Weibo’s net revenues grew 161% year over year. In May, we rolled out promoted feeds for brand advertisers, further diversifying Weibo’s revenue stream.”

Financial Results

For the first quarter of 2014, Webio has reported a new revenue of up to $67.5 million, compared to the $25.9 million for the same period of previous year. Advertising and marketing revenues during the first quarter of 2014 totaling up to $51,9 million, compared to $18.8 million for the same period last year, with a growth coming from social display ads as well as promoted fends and e-commerce related advertisement from the strategic alliance with Alibaba.

The latter two were launched during the second quarter of 2013. Webio VAS revenues for the first quarter during 2014 was $15.7 million, compared to $7.1 million during the same period last year, mainly due to the growth in game-related service, VIP membership as well as data licensing, which was introducing during the fourth quarter of 2013.

Cost and expanses for the first quarter of 2014 amounted to $75.6 million, compared to $42.3 million for the same period last year. Non-GAAP cost and expenses for the first quarter of 2014 was around $73.1 million, compared to the $41.5 million during the same period of last year. The increase in non-GAAP cost and expenses were due to an increase in VAT cost much higher revenues, as well as an increase in bandwitdh cost, marketing expenditures and personnel-related costs.

Loss from operations during the first quarter of 2014 was $8.1 million, compared to the lost of $16.4 million during the same period of time, last year. Non-GAAP loss from operations for the first quarter of 2014 was $5.6 million, compared to $16 million during the exact same time last year.

Non-operating loss for the first quarter of 2014 amounted to $39.9 million, compared to $2.6 million during the previous year. Non-operating loss for the first quarter also included a loss of $40.2 million from the change in fair value of investors option liability in connection with Alibaba’s investment in Weibo.

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Kevin C is passionate for tech world wide. He was apart of Qbox media and currently is apart of a UX firm based in Hong Kong.

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