Weibo Reports Fourth Quarter and Fiscal Year 2021 Unaudited Financial Results

BEIJING,March 3,2022 -- Weibo Corporation ("Weibo" or the "Company") (NASDAQ: WB and HKEX: 9898),a leading social media in China,today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31,2021.

"We closed 2021 on a solid note with decent growth of the fourth quarter,with strong execution of our growth strategies," said Gaofei Wang,CEO of Weibo. "In 2021,we have achieved solid growth of user community and engagement,leveraging Weibo's unique advantage and competitiveness in the social media sector. On monetization,we surpassed the $2 billion mark in revenues for 2021 and further enhanced our operation efficiency,demonstrating strong recovery momentum and resilience of our business. Heading into 2022,we are dedicated to serving a broader community through enhancement of product functionalities and enrichment of content ecosystem,and driving value for customers to market efficiently and innovatively on our platform."

Fourth Quarter 2021 Highlights

Net revenues were $616.3 million,an increase of 20% year-over-year or an increase of 16% year-over-year on a constant currency basis[1].

Advertising and marketing revenues were $550.8 million,an increase of 21% year-over-year.

Value-added service ("VAS") revenues were $65.5 million,an increase of 9% year-over-year.

Income from operations was $182.5 million,representing an operating margin of 30%.

Net income attributable to Weibo was $115.7 million and diluted net income per share was $0.50.

Non-GAAP income from operations was $219.8 million,representing a non-GAAP operating margin of 36%.

Non-GAAP net income attributable to Weibo was $195.5 million and non-GAAP diluted net income per share was $0.83.

Monthly active users ("MAUs") were 573 million in December 2021,a net addition of approximately 52 million users on year-over-year basis. Mobile MAUs represented 95% of MAUs.

Average daily active users ("DAUs") were 249 million in December 2021,a net addition of approximately 25 million users on year-over-year basis.

Fiscal Year 2021 Highlights

Net revenues were $2.26 billion,an increase of 34% year-over-year or an increase of 25% year-over-year on a constant currency basis[2].

Advertising and marketing revenues were $1.98 billion,an increase of 33% year-over-year.

VAS revenues were $276.3 million,an increase of 36% year-over-year.

Income from operations was $697.4 million,representing an operating margin of 31%.

Net income attributable to Weibo was $428.3 million and diluted net income per share was $1.86.

Non-GAAP income from operations was $829.2 million,representing a non-GAAP operating margin of 37%.

Non-GAAP net income attributable to Weibo was $718.5 million and non-GAAP diluted net income per share was $3.08.

[1]On a constant currency (non-GAAP) basis,we assume that the exchange rate in the fourth quarter of 2021 had been the same as it was in the fourth quarter of 2020,or RMB 6.64=US$1.00.

[2]On a constant currency (non-GAAP) basis,we assume that the average exchange rate of 2021 had been the same as 2020,or RMB 6.91=US$1.00.

Fourth Quarter 2021 Financial Results

For the fourth quarter of 2021,Weibo's total net revenues were $616.3 million,an increase of 20% compared to $513.4 million for the same period last year.

Advertising and marketing revenues for the fourth quarter of 2021 were $550.8 million,an increase of 21% compared to $453.5 million for the same period last year. Advertising and marketing revenues excluding ad revenues from Alibaba were $505.3 million,an increase of 28% compared to $393.9 million for the same period last year,primarily driven by solid growth of advertising spending from customers in most key industries.

VAS revenues for the fourth quarter of 2021 were $65.5 million,an increase of 9% year-over-year compared to $59.9 million for the same period last year.

Costs and expenses for the fourth quarter of 2021 totaled $433.8 million,an increase of 31% compared to $331.8 million for the same period last year. The increase was primarily due to higher personnel-related costs and incremental ad costs associated with seasonal ad campaigns execution.

Income from operations for the fourth quarter of 2021 was $182.5 million,compared to $181.6 million for the same period last year. Non-GAAP income from operations was $219.8 million,compared to $204.1 million for the same period last year.

Non-operating loss for the fourth quarter of 2021 was $36.8 million,compared to a loss of $175.8 million for the same period last year. Non-operating loss for the fourth quarter of 2021 mainly included (i) a $39.7 million net loss from fair value change of investments,which is excluded under non-GAAP measures; (ii) a $4.2 million investment related impairment,which is excluded under non-GAAP measures; and (iii) a $5.2 million net interest and other income.

Income tax expense were $45.6 million,compared to income tax benefits of $25.3 million for the same period last year. The increase of income tax expenses was primarily resulted from tax benefits booked in the fourth quarter of 2020 due to preferential tax treatment enjoyed by a PRC subsidiary of the Company as a Key Software Enterprise ("KSE"),which lapsed in 2021,and super deduction true-up for eligible R&D expenses in the fourth quarter of 2020.

Net income attributable to Weibo for the fourth quarter of 2021 was $115.7 million,compared to $29.0 million for the same period last year. Diluted net income per share attributable to Weibo for the fourth quarter of 2021 was $0.50,compared to $0.13 for the same period last year. Non-GAAP net income attributable to Weibo for the fourth quarter of 2021 was $195.5 million,compared to $212.7 million for the same period last year. Non-GAAP diluted net income per share attributable to Weibo for the fourth quarter of 2021 was $0.83,compared to $0.92 for the same period last year.

As of December 31,2021,Weibo's cash,cash equivalents and short-term investments totaled $3.13 billion. For the fourth quarter of 2021,cash provided by operating activities was $249.7 million,capital expenditures totaled $11.3 million,and depreciation and amortization expenses amounted to $14.8 million.

Fiscal Year 2021 Financial Results

For fiscal year 2021,Weibo's total net revenues were $2.26 billion,an increase of 34% compared to $1.69 billion in 2020.

Advertising and marketing revenues for 2021 were $1.98 billion,an increase of 33% compared to $1.49 billion in 2020. Advertising and marketing revenues excluding ad revenues from Alibaba were $1.84 billion,an increase of 38% compared to $1.33 billion for 2020. The strong momentum of our ad business in 2021 was mainly attributable to (i) relatively resilient ad demand from our customers in the key industries amid macro and regulatory headwinds; (ii) stronger sales capability and execution of our team to drive value for our clients; and (iii) solid recovery of our advertising business post the Covid-19 pandemic outbreak in 2020.

VAS revenues for 2021 were $276.3 million,an increase of 36% compared to $203.8 million for 2020. The increase was primarily resulted from incremental revenue contribution from the interactive entertainment company acquired and consolidated to the Company in November 2020 and other online gaming revenues,and was partially offset by the decrease of revenues from live streaming business.

Costs and expenses for 2021 totaled $1.56 billion,compared to $1.18 billion for 2020. The increase was primarily due to higher personnel-related cost and increased marketing spend.

Income from operations for 2021 was $697.4 million,compared to $506.8 million for 2020. Operating margin for 2021 was 31%,compared to 30% last year. Non-GAAP income from operations was $829.2 million,compared to $579.6 million for 2020. Non-GAAP operating margin was 37%,compared to 34% last year.

Non-operating loss for 2021 was $146.7 million,compared to a loss of $130.9 million for 2020. Non-operating loss in 2021 mainly included (i) a $106.8 million investment related impairment,including a $75.3 million impairment on the investment in Yixia Tech Co.,Ltd,which is excluded under non-GAAP measures; (ii) a $72.8 million net loss from fair value change of investments,which is excluded under non-GAAP measures; and (iii) a $29.7 million net interest and other income.

Income tax expenses for 2021 were $138.8 million,compared to $61.3 million for 2020. The increase was mainly resulted from (i) higher profits in 2021 versus 2020; (ii) tax benefits booked in 2020 due to preferential tax treatment enjoyed by a PRC subsidiary of the Company as a KSE,which lapsed in 2021; and (iii) tax liability recognized in 2021 related to uncertain tax positions.

Net income attributable to Weibo for 2021 was $428.3 million,compared to $313.4 million for 2020. Diluted net income per share attributable to Weibo for 2021 was $1.86,compared to $1.38 for 2020. Non-GAAP net income attributable to Weibo for 2021 was $718.5 million,compared to $547.5 million for 2020. Non-GAAP diluted net income per share attributable to Weibo for 2021 was $3.08,compared to $2.38 for 2020.

For fiscal year 2021,cash provided by operating activities was $814.0 million,capital expenditures totaled $35.1 million,and depreciation and amortization expenses amounted to $55.0 million.

Secondary Listing in Hong Kong

On December 8,Weibo successfully listed on the Main Board of the Hong Kong Stock Exchange under the stock code "9898" through a global offering of 11,000,000 Class A ordinary shares. The gross proceeds totaled HK$1,500.4 million,before deducting underwriting fees and other offering expenses.

Conference Call

Weibo's management team will host a conference call from 6:00 AM to 7:00 AM Eastern Time on March 3,2022 (or 7:00 PM – 8:00 PM Beijing Time on March 3,2022) to present an overview of the Company's financial performance and business operations.

Please register in advance of the conference call using the link provided below. Upon registering,you will be provided with dial-in numbers,passcode and unique registrant ID by email. To join the conference,please use the conference access information provided in the email received at the point of registering.

PRE-REGISTER LINK: http://apac.directeventreg.com/registration/event/4087626

Additionally,a live webcast of the call will be available through the Company's corporate website at http://ir.weibo.com.

A telephone replay will be availablefrom 22:00 PM China Standard Time on March 3,2022 to 20:59 PM China Standard Time on March 11,2022.To access the recording,please use the following dial-in information listed below:

United States:

+1 855 452 5696

Hong Kong:

800 963 117

Mainland China:

400 602 2065

International:

+61 2 8199 0299

Replay PIN:

4087626

Non-GAAP Financial Measures

This release contains the following non-GAAP financial measures: non-GAAP income from operations,non-GAAP net income attributable to Weibo's shareholders,non-GAAP diluted net income per share attributable to Weibo's shareholders and adjusted EBITDA. These non-GAAP financial measures should be considered in addition to,not as a substitute for,measures of the Company's financial performance prepared in accordance with U.S. GAAP.

The Company's non-GAAP financial measures excludestock-based compensation,amortization of intangible assets resulting from business acquisitions,non-cash compensation cost to non-controlling interest shareholders,net results of impairment on,gain/loss on sale of and fair value change of investments,non-GAAP to GAAP reconciling items on the share of equity method investments,non-GAAP to GAAP reconciling items for the income/loss attributable to non-controlling interests,income tax expense related to the amortization of intangible assets resulting from business acquisitions and fair value change of investments (other non-GAAP to GAAP reconciling items have no tax effect),and amortization of convertible debt and senior notes issuance cost. Adjusted EBITDA excludes interest income,net,income tax expenses (benefit),and depreciation expenses.

The Company's management uses these non-GAAP financial measures in their financial and operating decision-making,because management believes these measures reflect the Company's ongoing operating performance in a manner that allows more meaningful period-to-period comparisons. The Company believes that these non-GAAP financial measures provide useful information to investors and others in the following ways: (i) in comparing the Company's current financial results with the Company's past financial results in a consistent manner,and (ii) in understanding and evaluating the Company's current operating performance and future prospects in the same manner as management does,if they so choose. The Company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses,gains (losses) and other items (i) that are not expected to result in future cash payments or (ii) that are non-recurring in nature or may not be indicative of the Company's core operating results and business outlook.

Use of non-GAAP financial measures has limitations. The Company's non-GAAP financial measures do not include all income and expense items that affect the Company's operations. They may not be comparable to non-GAAP financial measures used by other companies. Accordingly,care should be exercised in understanding how the Company defines its non-GAAP financial measures. Reconciliations of the Company's non-GAAP financial measures to the nearest comparable GAAP measures are set forth in the section below titled "Unaudited Reconciliation of Non-GAAP to GAAP Results."

About Weibo

Weibois a leading social media for people to create,share and discover content online. Weibo combines the means of public self-expression in real time with a powerful platform for social interaction,content aggregation and content distribution. Any user can create and post a feed and attach multi-media and long-form content. User relationships onWeibomay be asymmetric; any user can follow any other user and add comments to a feed while reposting. This simple,asymmetric and distributed nature ofWeiboallows an original feed to become a live viral conversation stream.

Weiboenables its advertising and marketing customers to promote their brands,products and services to users.Weibooffers a wide range of advertising and marketing solutions to companies of all sizes. The Company generates a substantial majority of its revenues from the sale of advertising and marketing services,including the sale of social display advertisement and promoted marketing offerings.Designed with a "mobile first" philosophy,Weibo displays content in a simple information feed format and offers native advertisement that conform to the information feed on our platform. To support the mobile format,wehave developed and continuously refining our social interest graph recommendation engine,which enables our customers to perform people marketing and target audiences based on user demographics,social relationships,interests and behaviors,to achieve greater relevance,engagement and marketing effectiveness.

Safe Harbor Statement

This press release contains forward-looking statements that relate to,among other things,Weibo's expected financial performance and strategic and operational plans (as described,without limitation,in the "Business Outlook" section and in quotations from management in this press release. Weibo may also make forward-looking statements in the Company's periodic reports to the U.S. Securities and Exchange Commission ("SEC"),in announcements,circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"),in press releases and other written materials and in oral statements made by its officers,directors or employees to third parties. Statements that are not historical facts,including statements about the Company's beliefs and expectations,are forward-looking statements. These forward-looking statements can be identified by terminology,such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "confidence," "estimates" and similar statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include,but are not limited to,Weibo's limited operating history in certain new businesses; failure to grow active user base and the level of user engagement; the uncertain regulatory landscape in China; fluctuations in the Company's quarterly operating results; the Company's reliance on advertising and marketing sales for a majority of its revenues; failure to successfully develop,introduce,drive adoption of or monetize new features and products; failure to compete effectively for advertising and marketing spending; failure to successfully integrate acquired businesses; risks associated with the Company's investments,including equity pick-up and impairment; failure to compete successfully against new entrants and established industry competitors; changes in the macro-economic environment,including the depreciation of the Renminbi; and adverse changes in economic and political policies of the PRC government and its impact on the Chinese economy. Further information regarding these and other risks is included in Weibo's annual report on Form 20-Fs and other filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is current as of the date hereof,and Weibo assumes no obligation to update such information,except as required under applicable law.

WEIBO CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of U.S. dollars,except per share data)

Three months ended

Twelve months ended

December 31,

September 30,

December 31,

2021

2020

2021

2021

2020

Net revenues:

Advertising and marketing

$ 550,826

$ 453,477

$ 537,620

$ 1,980,795

$ 1,486,155

Value-added service

65,461

59,933

69,814

276,288

203,776

Net revenues

616,287

513,410

607,434

2,257,083

1,689,931

Costs and expenses:

Cost of revenues(1)

128,545

87,288

102,978

403,841

302,180

Sales and marketing(1)

152,475

139,136

140,839

591,682

455,619

Product development(1)

113,867

90,229

118,821

430,673

324,110

General and administrative(1)

38,878

15,113

31,747

133,475

101,224

Total costs and expenses

433,765

331,766

394,385

1,559,671

1,183,133

Income from operations

182,522

181,644

213,049

697,412

506,798

Non-operating income (loss):

Impairment on,gain/loss on sale of and fair value

change of investments,net

(41,976)

(185,371)

646

(176,344)

(174,717)

Interest and other income (expense),net

5,161

9,531

(489)

29,650

43,832

(36,815)

(175,840)

157

(146,694)

(130,885)

Income before income tax expenses

145,707

5,804

213,206

550,718

375,913

Income taxe benefits (expenses)

(45,581)

25,314

(31,405)

(138,841)

(61,316)

Net income

100,126

31,118

181,801

411,877

314,597

Less: Net income (loss) attributable to

non-controlling interests

(15,607)

2,076

63

(16,442)

1,233

Net income attributable to Weibo's shareholders

$ 115,733

$ 29,042

$ 181,738

$ 428,319

$ 313,364

Basic net income per share attributable to Weibo's

shareholders

$ 0.50

$ 0.13

$ 0.79

$ 1.87

$ 1.38

Diluted net income per share attributable to Weibo's

shareholders

$ 0.50

$ 0.13

$ 0.78

$ 1.86

$ 1.38

Shares used in computing basic net income

per share attributable to Weibo's shareholders

230,679

227,495

228,675

228,814

226,921

Shares used in computing diluted net income

per share attributable to Weibo's shareholders

231,506

228,489

237,183

230,206

227,637

(1) Stock-based compensation in each category:

Cost of revenues

$ 2,422

$ 1,475

$ 2,450

$ 8,112

$ 5,384

Sales and marketing

5,043

3,097

4,700

15,292

9,983

Product development

14,362

10,203

11,047

43,622

33,093

General and administrative

4,911

4,545

6,840

20,970

18,645

WEIBO CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)

December 31,

2021

2020

Assets

Current assets:

Cash and cash equivalents

$ 2,423,703

$ 1,814,844

Short-term investments

711,062

1,682,048

Accounts receivable,net

723,089

492,010

Prepaid expenses and other current assets

450,726

296,757

Amount due from SINA(1)

494,200

548,900

Current assets subtotal

4,802,780

4,834,559

Property and equipment,net

68,396

60,632

Goodwill and intangible assets,net

297,335

208,688

Long-term investments

1,207,651

1,179,466

Other non-current assets

1,143,360

51,772

Total assets

$ 7,519,522

$ 6,335,117

Liabilities,Redeemable Non-controlling Interests and Shareholders' Equity

Liabilities:

Current liabilities:

Accounts payable

$ 197,643

$ 149,509

Accrued expenses and other current liabilities

828,952

562,333

Deferred revenues

91,136

143,684

Income tax payable

144,747

102,844

Convertible debt

896,541

-

Current liabilities subtotal

2,159,019

958,370

Long-term liabilities:

Convertible debt

-

892,399

Unsecured senior notes

1,538,415

1,536,112

Other long-term liabilities

134,068

61,906

Total liabilities

3,831,502

3,448,787

Redeemable non-controlling interests

66,622

57,714

Shareholders' equity:

Weibo shareholders' equity

3,593,821

2,812,425

Non-controlling interests

27,577

16,191

Total shareholders' equity

3,621,398

2,828,616

Total liabilities,redeemable non-controlling interests and

shareholders' equity

$ 7,117

(1) Included short-term loans to and interest receivable from SINA of $479.6 million as of December 31,

2021 and $547.9 million as of December 31,2020.

WEIBO CORPORATION

UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS

(In thousands of U.S. dollars,

2021

2020

2021

2021

2020

Income from operations

$

182,522

$

181,644

$

213,049

$

697,412

$

506,798

Add:

Stock-based compensation

26,738

19,320

25,037

87,996

67,105

Amortization of intangible assets resulting from business

acquisitions

5,716

3,174

5,478

20,589

5,654

Non-cash compensation cost to non-controlling interest

shareholders

4,826

-

5,140

23,246

-

Non-GAAP income from operations

$

219,802

$

204,138

$

248,704

$

829,243

$

579,557

Net income attributable to Weibo's shareholders

$

115,733

$

29,042

$

181,738

$

428,319

$

313,364

Add:

Stock-based compensation

26,826

-

5,246

-

Net results of impairment on,gain/loss on sale of and fair value

change of investments

41,976

185,371

(646)

176,344

174,717

Non-GAAP to GAAP reconciling items on the share of equity

method investments

4,343

(6,399)

(1,715)

(6,538)

(11,953)

Non-GAAP to GAAP reconciling items for the income/loss

attributable to non-controlling interests

(16,844)

(562)

(233)

(16,916)

(468)

Tax effects on non-GAAP adjustments(1)

11,405

(18,889)

(6,856)

(951)

(6,897)

Amortization of convertible debt and unsecured senior notes

issuance cost

1,611

1,611

6,445

5,944

Non-GAAP net income attributable to Weibo's shareholders

$

195,504

$

212,668

$

209,554

$

718,534

$

547,466

Non-GAAP diluted net income per share attributable to Weibo's

shareholders

$

0.83

*

$

0.92

*

$

0.90

*

$

3.08

*

$

2.38

*

Shares used in computing GAAP diluted net income per share

attributable to Weibo's shareholders

231,506

228,489

237,183

230,206

227,637

Add:

The number of shares for dilution resulted from convertible

debt(2)

6,753

6,753

-

6,753

Shares used in computing non-GAAP diluted net income per share

attributable to Weibo's shareholders

238,259

235,242

237,183

236,959

234,390

Adjusted EBITDA:

Net income attributable to Weibo's shareholders

$

115,364

Non-GAAP adjustments

79,771

183,626

27,816

290,215

234,102

Non-GAAP net income attributable to Weibo's shareholders

195,504

212,668

209,554

718,534

547,466

Interest income,net

(4,231)

(4,021)

(701)

(12,719)

(34,345)

Income tax expenses

34,176

(6,425)

38,261

139,792

68,213

Depreciation expenses

8,593

7,511

8,141

32,847

26,453

Adjusted EBITDA

$

234,042

$

209,733

$

255,255

$

878,454

$

607,787

(1)

To exclude the income tax expenses primarily related to amortization of intangible assets resulting from business acquisitions and fair value change

of investments. The Company considered the tax implication arising from the reconciliation items. Part of these items were recorded in entities

established in tax free jurisdictions and there were no relevant tax implications. For impairment on investments,valuation allowances were made for

those differences as the Company does not expect they can be realized in the foreseeable future.

(2)

To adjust the number of shares for dilution resulted from convertible debt which were anti-dilutive under GAAP measures.

*

Net income attributable to Weibo's shareholders is adjusted for interest expense of convertible debt for calculating diluted EPS.

WEIBO CORPORATION

UNAUDITED ADDITIONAL INFORMATION

(In thousands of U.S. dollars)

Three months ended

Twelve months ended

December 31,

2021

2020

2021

2021

2020

Net revenues

Advertising and marketing

Non-Ali advertisers

$ 505,333

$ 393,945

$ 516,818

$ 1,841,234

$ 1,334,155

Alibaba - as an advertiser

45,493

59,532

20,802

139,561

152,000

Subtotal

550,826

453,477

537,620

1,795

1,155

Value-added service

65,776

$ 616,287

$ 513,410

$ 607,434

$ 2,083

$ 1,931

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