Weibo Shares Are Trading Higher On Upbeat Q4 Results, Strong Guidance

Chinese social media company Weibo Corp WB reported a 10% year-on-year net revenue growth to $513.4 million, exceeding the analyst estimate of $499.05 million during the fourth quarter of FY20. 

• Advertising and marketing revenues rose 12% to $453.5 million. Value-added service revenues declined 4% to $59.9million.
• Operating income rose 21% to $181.6 million, and the operating margin expanded by 300 basis points to 35%.
• EPS rose 19.5% to $0.92 exceeding the consensus estimate of $0.74.
• Monthly active users (MAUs) noted 5 million incremental users and stood at 521 million. Mobile MAUs represented 94% of MAUs. Average daily active users (DAUs) witnessed 3 million additional users and stood at 225 million.
• Weibo's cash and equivalents amounted to $3.50 billion, and it generated an operating cash flow of $321.2 million.
• Wei Wang and Fei Cao were appointed as COO and CFO effective immediately.
• Guidance: Weibo is well-positioned to capture incremental ad wallet, leveraging the enhanced digitalization of brick-and-mortar, distinguished social ad offerings, and restored bidding system as reflected by 25% to 30% net revenue growth expectation for the first quarter FY21.
• Price action: WB shares traded higher by 5.08% at $53 in the premarket session on the last check Thursday.