Weibo Shares Lose Steam Despite Q1 Earnings Beat, Robust Q2 Guidance As Monthly Active Users Fall 4%

Weibo Corp WB reported first-quarter FY21 net revenue growth of 42% year-on-year to $458.9 million (31% Y/Y on a constant currency basis), beating the analyst consensus of $429.84 million.
Advertising and marketing revenues rose 42% Y/Y to $390 million. Advertising and marketing revenues excluding Alibaba ad revenues increased 44% Y/Y to $356.7 million.
Value-added service (VAS) revenues rose 44% Y/Y to $68.9 million, mainly derived from the interactive entertainment company acquired in November 2020.
Monthly active users (MAUs) declined 4% Y/Y to 530 million, and Mobile MAUs represented 94% of MAUs. Average daily active users (DAUs) dropped 5% Y/Y to 230 million.
On the monetization front, Weibo posted broad-based Y/Y growth across industries and robust momentum with certain differentiated ad products, demonstrating competitiveness in fulfilling advertiser's increasing brand plus performance needs, Wang CEO Gaofei Wang said.
Adjusted operating income rose 85.6% Y/Y to $137.5 million, as the margin expanded 700 basis points to 30%.
Non-GAAP net income rose 93.9% Y/Y to $130.7 million, with adjusted EPS of $0.57, beating the analyst consensus of $0.47.
Weibo held $3.41 billion in cash and equivalents and generated $244.3 million in operating cash flow.
Guidance: Weibo sees a Q2 net revenue growth guidance of $484.25 million - $503.62 million, above the analyst consensus of $480.78 million.
Price action: WB shares traded lower by 5.3% at $44.34 on the last check Monday.

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