20231110-招银国际-Soft_consumption_weighs_on_ad_recovery_5页_1mb

Summary of Weibo (WB US) Analysis from Bloomberg Report

• Financial Performance: Weibo reported 3Q23 revenue down 3% YoY to $442mn, but non-GAAP net income rose 15% YoY to $137mn, outperforming consensus estimates due to effective cost control. Ad revenue declined by 1% YoY, weighed down by macro uncertainty and soft consumption, though some verticals showed strong growth (e.g., 3C and food & beverage).

• Key Drivers and Outlook: Ad recovery is slow, but quarterly performance improved in certain areas, with a 5% constant currency ad revenue growth expected for Q4 2023E. Non-GAAP operating margin improved to 37.1%, but longer-term forecasts show lower earnings due to increased opex. User growth continued with MAUs at 605mn.

• Valuation and Recommendations: Target price revised to $23.5, attracting at 5x FY24 PE but below peers. Analyst maintains a BUY recommendation, citing potential for fundamental recovery, while noting valuation risks.

• Overall: Q3 results met expectations, but external factors constrain ad growth. Future improves with vertical focus and cost optimization, though earnings guidance was lowered.