Weibo Corp (ADR)(NASDAQ:WB) stock corrected over 2.1% in the pre-market session on August 9th, 2017 (as of 7:37AM EDT; Source: Google finance) post their third quarter of 2017 results. Investors must be expecting a better outcome from this social media firm.
Weibo Corp’s first quarter of 2017 results exceeded expectations with Net revenues surging 67% yoy to $199.2 million, better than their guidance range of $185 million and $190 million.
Advertising and marketing revenues reached $169.3 million in the first quarter of 2017 from $99.2 million in the prior corresponding period. Advertising and marketing revenues from small & medium-sized enterprises and major accounts reached $161.5 million, from $88.1 million in the prior corresponding period. But for second quarter of 2017, the group expects their net revenues to be in the range of $240 million and $250 million (assuming a RMB to US dollar average exchange rate of 6.9).
Monthly active users reached 340 million, rising 30% on a yoy basis driven by mobile users which comprise 91%. Average daily active users surged 28% yoy to 154 million during the first quarter of 2017. Other revenues surged 49% yoy to $29.9 million in the first quarter of 2017.
Accordingly, Net income attributable to Weibo surged 561% yoy to $46.9 million during the quarter while diluted net income per share enhanced to $0.21, from $0.03 in the prior corresponding period. Non-GAAP net income attributable surged 254% yoy to $57.8 million, while non-GAAP diluted net income per share reached $0.26, from $0.07 in the prior corresponding period. Adjusted EBITDA surged 272% yoy to $70.5 million, or 35% of net revenues, against 16% in the prior corresponding period.
Cash, cash equivalents and short-term investments reached $444.2 million as of March 31st, 2017 while cash provided by operating activities reached $72.5 million during the quarter. Capital expenditures reached $4.5 million, while depreciation and amortization expenses reached $3.4 million.
Weibo stock generated an outstanding returns of over 112.5% in this year to date (as of August 8th, 2017; Source: Google finance). But as per three analysts consensus recommendation at tipranks.com, WB stock has an average analyst target price of $86 which is 0.3% downside.