Weibo

Weibo Drops 5% After Reporting In-Line Q1 Revenues Of $67.5M, Better-Than-Expected $0.03 Loss Per Share

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This afternoon Weibo reported the financial results of its first quarter, including revenue of $67.5 and non-GAAP earnings per share of -$0.03. The market had expected the company to lose 5 cents per share on revenue of $67.45 million.

The company, up more than 6 percent in regular trading, has fallen around 5 percent in after-hours trading.

The company’s revenue figure for the quarter represented a 161 percent year-over-year increased. However, the company’s GAAP net loss exploded a similar 146 percent to $47.4 million in the period. It’s non-GAAP net loss was, unsurprisingly, a more modest $4.8 million, down 74 percent from the year-ago period.

Weibo’s user ship grew slightly more than a third in the past year, with monthly active users — 143.8 million — up 34 percent, and daily active users — 66.6 million — up 37 percent.

Why is the stock taking a beating? Massive GAAP loss aside, Weibo indicates in its report that it expects “between $74 million and $76 million” in second-quarter revenue. That’s below street estimates, tallied by Yahoo Finance, of $77.85 million for that period. So the market expects faster growth than what the company is promising.

Weibo, which went public at $17, is trading post-report at just around $19 per share. It spiked as high as $24.48 in its brief life as a public company. The firm floated in April.

At the end of the first quarter, Weibo had cash, equivalents and short-term investments of $466.2 million. Expect that figure to spike on its next report as IPO incomes will then be counted. The company burned through $18.2 million in cash to fund its operating activities in the quarter.

Weibo is a quickly growing social firm that still trades at a premium to its recent offering price. Investors, however, anticipated faster future acceleration than the company is willing to promise.

IMAGE BY Flickr USER Antonio Morales García UNDER CC BY-SA 2.0 LICENSE