Twitter's Chinese Peer Weibo's Q3 User Growth Strong with MAUs Topping 605M, But Revenue Falls

Weibo Corp (NASDAQ: WB) reported a third-quarter FY23 revenue decline of 3% year-on-year to $442.2 million, marginally missing the consensus of $442.4 million. Revenue of the Chinese social network company grew by 2% Y/Y on a CC basis.

Adjusted EPS of $0.53 missed the consensus of $0.55.

Weibo's Advertising and marketing revenues declined 1% Y/Y at $389.3 million. Value-added service (VAS) revenues decreased 12% Y/Y to $52.9 million.

Monthly active users (MAUs) increased by 21 million Y/Y to 605 million in September 2023, while Average daily active users (DAUs) rose by 8 million Y/Y to 260 million. Mobile MAUs represented 95% of MAUs.

The adjusted operating margin expanded by 133 bps to 37.1% as profits climbed by 1.1% Y/Y. 

Weibo held $2.8 billion in cash and equivalents and generated $131.6 million in operating cash flow.

The Q4 consensus revenue and EPS are $485.14 million and $0.57. The stock has lost 38.3% YTD.

Price Action: WB shares traded lower by 0.41% at $12.01 on the last check Thursday.