First-quarter revenue reached $421.3 million, up 6% year over year and slightly above analyst expectations, while constant-currency revenue increased 1%. Adjusted earnings were 34 cents per share, below the 36 cents expected. Advertising and marketing revenue grew 9% to $369.8 million, supported by foreign-exchange effects and stronger demand from internet services, automobiles, and local services. Value-added services revenue fell 11% to $51.6 million, mainly due to reduced game-related revenue. Monthly active users declined to 562 million and average daily active users fell to 254 million. Adjusted operating margin narrowed to 28%, and adjusted operating income decreased 7.5%. Cash totaled $2.59 billion, with $164 million from operating activities and $11.9 million in capital expenditures. The company focused on user retention and engagement through feed optimization and improved new-user conversion, while expanding original video content and AI features including content creation tools, AI-generated video, and upgraded multi-turn AI search.
"Weibo reported first-quarter revenue of $421.3 million, up 6% from a year earlier and above the analyst consensus estimate of $417.9 million. On a constant-currency basis, revenue increased 1% year over year. Adjusted earnings came in at 34 cents per share, missing analyst expectations of 36 cents per share. Advertising and marketing revenue rose 9% year over year to $369.8 million, driven by favorable foreign-exchange impacts and stronger advertising demand from sectors including internet services, automobiles and local services."
"Value-added services revenue declined 11% year over year to $51.6 million, mainly due to lower revenue contribution from game-related businesses. Weibo reported 562 million monthly active users in March 2026, down from 591 million a year earlier. Average daily active users declined to 254 million from 261 million in the prior-year period. Adjusted operating margin narrowed to 28% from 33% a year earlier, while adjusted operating income fell 7.5% year over year."
"As of March 31, 2026, the company held $2.59 billion in cash, cash equivalents and short-term investments. Cash provided by operating activities totaled $164 million during the quarter, while capital expenditures were $11.9 million. Depreciation and amortization expenses amounted to $15.5 million. Chief Executive Officer Gaofei Wang said the company remains focused on improving user retention, engagement quality and sustainable growth by optimizing its information-feed experience and improving conversion efficiency for new users."
"Wang said Weibo's video business continued to drive engagement growth, with time spent on video playback pages increasing at a double-digit rate year over year during the quarter as the company expanded original video content and improved recommendation algorithms. He also highlighted Weibo's AI initiatives, including AI-powered content creation tools, AI-generated video features and upgraded multi-turn AI search functions aimed at improving content discove"
Read at www.benzinga.com
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