BRIEF: Weibo ad revenue grows, as adjusted profit falls 23%
Social media platform Weibo Corp. (9898.HK; WB.US) reported on Thursday that its revenue rose 6% year-on-year to $421 million in the first quarter, as advertising and marketing revenue increased 9% to $370 million. But its adjusted net profit fell 23% year-on-year to $91.9 million on higher costs.
The company’s first-quarter costs and expenses rose 8% year-on-year to $310 million, mainly due to higher advertising production and marketing expenses, causing its adjusted operating margin to decline by 5 percentage points to 28%.
Weibo also recorded a non-operating loss of $59.9 million, mainly related to fair value losses on investments and losses from equity-method investments. On a GAAP basis, the company’s net profit fell 67.5% year-on-year to $34.7 million.
CEO Wang Gaofei said he was satisfied with the company’s first-quarter performance and that Weibo would continue expanding its content marketing solutions across more industries and clients, while systematically improving advertising conversion efficiency through AI technologies.
Weibo’s stock opened higher on Friday in Hong Kong, but later reversed course and closed 1.7% lower at HK$60.10 by the midday break.
By Lee Shih Ta
To subscribe to Bamboo Works weekly free newsletter, click here
Related Articles
RELATED ARTICLES
-
Bilibili’s ad surge illustrates new rules of China’s video market
BILI.US - OneRobotics powers ahead on top line, but falls just short of profits
-
BRIEF: NetEase’s quarterly profit falls, even as revenue rises
NTES.US
-
BRIEF: Tsingtao Brewery revenue falls but profit rises in first quarter
0168.HK
-
BRIEF: FinVolution revenue falls, as overseas growth continues
FINV.US
- BRIEF: ZTO gross profit falls, despite revenue growth
-
Faded AI beauty: After superstar debut Nuobikan falls back to earth
2635.HK
