Weibo Corporation (WB) is a Chinese microblogging website and app that is similar to Twitter and Instagram. According to its latest earnings release Weibo had 511 million monthly active users and 224 million daily active users in September 2020. Mobile monthly active users accounted for 94% of all monthly active users in September. “We began monetization on our platform in 2012, and we have since experienced rapid revenue growth. Our revenues increased from $1,150.1 million in 2017 to $1,718.5 million in 2018, and further to $1,766.9 million in 2019 representing a CAGR of 24.0%. We generate revenues primarily from customers who purchase advertising and marketing services, and, to a lesser extent, from fee-based revenues, such as VIP membership. In 2019, revenues generated from advertising and marketing services accounted for 87% of our total revenues,” Weibo said in its latest 20-F filing.
Weibo reported its 2020 Q3 earnings results on December 28. Weibo Corp. (WB) shares fell 13.50 percent on Monday after the Chinese social network company reported a drop in its third-quarterly earnings and revenue on a year-over-year basis. The company earned 15 cents per share for the quarter, well below 64 cents per share in the same period of 2019. Revenue also decreased to $465.7 million in the quarter, versus $467.8 million in the year-ago quarter. Weibo reported nearly $3.2 billion in cash and short-term investments vs. a debt load of $$2.4 billion. This means its enterprise value is $800 million lower than its market capitalization. Weibo estimates approximately flat revenue growth for the fourth quarter of 2020.