Weibo’s Q1 results beat estimated earnings by 21.74%
On June 1, Sina Weibo released its financial results for the first quarter of 2022. During Q1, Weibo’s total revenue reached US$485 million, which increased 6% year-over-year, with US$57.5 million in value-added services revenue, which decreased 17% year-over-year. Advertising revenue reached US$427 million, which increased 10% year-over-year, with 94% coming from mobile devices. The company’s adjusted operating profit reached $142 million in the first quarter. Weibo beat estimated earnings by 21.74%, reporting earnings per share of $0.56 versus an estimate of $0.46, per SeekingAlpha.
During the first quarter, Weibo benefited from two events that received national attention — the Spring Festival and Winter Olympics. By the end of March, more than 30 million users signed up for the Weibo Video, a short video platform inside Weibo.
Weibo’s advertising revenue maintained growth amid an unfavorable environment caused by the pandemic, thanks to its efforts in businesses such as gaming and footwear, as well as its focus on boosting user activity and improving community ecology. In Q1, Weibo reached 582 million monthly active users, a net increase of 51 million year-over-year, and 252 million daily active users, a net increase of 22 million year-over-year.
Weibo’s advertising revenue in the gaming industry maintained a year-on-year growth of over 50% in the first quarter, as a result of collaborations with titles such as Genshin Impact. The game has used Weibo to promote its version updates, branding, and celebrity collabs, accumulating over 4 million followers on the platform.
In response to the uncertainties in the advertising market due to strict COVID prevention measures, Weibo said that it is actively responding to the situation by formulating favorable policies to support industries affected by the epidemic, and improving the efficiency of content marketing, as well as expanding customer scenarios.