If we can use MAUs to increase stock price sentiment in the last quarter, this quarter’s microblog revenue miss, the main advertising business growth is almost stagnant, net profit fell year-on-year, even if MAUs increased net profit by about 51 million users, the first The second time is already useless.
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If the last quarter can also use MAUs to increase the stock price sentiment by 50 million, this quarter’s microblog revenue miss, the main advertising business growth is almost stagnant, net profit fell year-on-year, even if MAUs increased net year-on-year About 51 million users, the second time is already useless.
The revenue growth is weak, and the growth of the main advertising business is almost stagnant
Q3 Weibo net income was US$467.8 million, up 1.65% year-on-year, and is expected to be 468 million. Although Ebitar exceeded analysts’ highest expectations, net profit of $146.2 million was still down about 11.6% year-on-year.
Weibo’s main advertising business was $412.5 million, an increase of only 1% year-on-year.
Specifically, advertising and marketing revenue from major customers and SMEs was $393.3 million, up 3% year-on-year.
The previous analysis has predicted that advertiser spending is weak. In terms of major customers, due to economic and industry-specific problems, spending in the automotive, real estate, smart phone and entertainment industries was weak, while FMCG and cosmetics advertising were strong. In the case of small and medium-sized enterprises, the P2P industry is still dragging down growth, and the spending of game advertisers has recovered. The Tiger Securities Investment Research Team believes that on the one hand, there are macro-environment reasons, on the other hand, it is necessary for Weibo to play iron. The short video platform will rob the user time, which will negatively affect Weibo and increase the advertising load.
The profit performance of cost control is not a long-term solution
The profitability of Weibo’s profit margin exceeded expectations. It can be said that Weibo has matured as a company.
Although Ebitar exceeded analysts’ high expectations this quarter, it was far from a surprise. As for the year-on-year decline in net profit, it is also necessary to know the existence of non-operational factors:
In the third quarter of 2019, non-operating profit was $5.3 million, compared with non-operating profit of $42.9 million in the same period last year. Non-operating profit year-on-year decrease mainly with 2018