Weibo (WB) investor relations material

Executive summary

• Net revenues reached $421.3 million for Q1 2026, up 6% year-over-year, driven by advertising growth and product enhancements.

• Advertising revenues grew 9% year-over-year to $369.8 million, with notable growth from non-Alibaba clients.

• MAUs reached 562 million and DAUs 254 million in March 2026, reflecting strong user engagement and modest DAU growth.

• Value-added service revenues declined 11% year-over-year to $51.6 million, mainly due to lower game-related revenue.

• Strategic focus remained on user retention, content ecosystem competitiveness, and AI-driven monetization.

Financial highlights

• Non-GAAP operating income was $119.8 million, with a non-GAAP operating margin of 28%.

• Net income attributable to shareholders was $91.9 million (non-GAAP) and $34.7 million (GAAP), with diluted EPS of $0.34 (non-GAAP) and $0.14 (GAAP); net margin was 22%.

• Operating margin was 28%, down from 33% in the same period last year.

• Cash, cash equivalents, and short-term investments totaled $2.59 billion as of March 31, 2026.

• Cash provided by operating activities was $164 million; capital expenditures were $11.9 million.

Outlook and guidance

• Advertising revenue growth in Q2 is expected to be driven by new product launches in automotive and handset sectors, despite ongoing industry headwinds.

• FMCG and e-commerce sectors face high base effects and profitability pressures, but major events like the World Cup may boost ad budgets in the second half.

• AI adoption in advertising is expected to further improve ad conversion and efficiency.

• Management highlighted stabilized advertising trends and ongoing AI-driven improvements in advertising conversion.

• Continued focus on expanding content marketing and enhancing user engagement through product innovation.