Weibo Shares Pop On Q3 Beat Backed By User Growth, Clocks 30% Revenue Growth

Weibo Corp WB reported third-quarter FY21 revenue growth of 30% year-on-year to $607.4 million, beating the consensus of $589.8 million.
Segments: Weibo's Advertising and marketing revenues rose 29% Y/Y to $537.6 million. Value-added service (VAS) revenues grew 42% Y/Y to $69.8 million.
Drivers: Monthly active users (MAUs) increased by 62 million Y/Y to 573 million in September 2021, while Average daily active users (DAUs) rose 23 million Y/Y to 248 million.
Margin: The non-GAAP operating margin expanded 200 bps to 41%.
Non-GAAP EPS of $0.90 beat the consensus of $0.84.
Weibo held $2.7 billion in cash and equivalents and generated $226 million in operating cash flow.
"We delivered another solid quarter, with sustained user growth and top line expansion," said CEO Gaofei Wang.
"In September, both our MAUs and DAUs continued to grow from prior quarter, driven by a greater focus on Weibo's core positioning in social media, strong execution ability，effective channel investment strategies and the Olympic Game effect," Wang added.
Outlook: Weibo sees Q4 revenue growth of 15%-20% on a constant currency basis compared to the consensus of $594.3 million.
Price Action: WB shares traded higher by 7.30% at $47.3 in the premarket session on the last check Thursday.

Momentum45.27

Growth38.78

Quality3.76

Value94.16

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