Weibo Shares Gain On Q1 Beat Aided By User Base, Traffic

Weibo Corp WB reported first-quarter FY22 revenue growth of 6% year-on-year to $484.6 million, beating the consensus of $473.98 million. Revenue grew 3% Y/Y on a CC basis.
Segments: Weibo's Advertising and marketing revenues rose 10% Y/Y to $427.1 million. Value-added service (VAS) revenues decreased 17% Y/Y to $57.5 million.
Drivers: Monthly active users (MAUs) increased by 51 million Y/Y to 582 million in March 2022, while Average daily active users (DAUs) rose 22 million Y/Y to 252 million.
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Margin: The non-GAAP operating margin contracted 100 bps to 29% as costs and expenses rose 9% Y/Y.
Non-GAAP EPS of $0.56 beat the consensus of $0.46.
Weibo held $3.3 billion in cash and equivalents and generated $248.6 million in operating cash flow.
CEO Gaofei Wang said, "In the first quarter, our user base and traffic continued to grow nicely with disciplined marketing spending, which demonstrated our core value in public conversation and enriched content ecosystem. On monetization, Weibo has delivered a relatively resilient performance of advertising business in the first quarter, despite disruptions from COVID-19 resurgence in China."
Price Action: WB shares traded higher by 5.82% at $23.28 in the premarket session on the last check Wednesday.