Weibo Reports First Quarter 2022 Unaudited Financial Results

BEIJING,June 1,2022 -- Weibo Corporation ("Weibo" or the "Company") (NASDAQ: WB and HKEX: 9898),a leading social media in China,today announced its unaudited financial results for first quarter ended March 31,2022.

"We delivered a solid start to 2022," said Gaofei Wang,CEO of Weibo. "In the first quarter,our user base and traffic continued to grow nicely with disciplined marketing spending,which demonstrated our core value in public conversation and enriched content ecosystem. On monetization,Weibo has delivered a relatively resilient performance of advertising business in the first quarter,despite disruptions from COVID-19 resurgence in China."

First Quarter 2022 Highlights

Net revenues were $484.6 million,an increase of 6% year-over-year or an increase of 3% year-over-year on a constant currency basis[1].

Advertising and marketing revenues were $427.1 million,an increase of 10% year-over-year.

Value-added service ("VAS") revenues were $57.5 million,a decrease of 17% year-over-year.

Income from operations was $102.8 million,representing an operating margin of 21%.

Net loss attributable to Weibo was $67.5 million and diluted net loss per share was $0.29.

Non-GAAP income from operations was $141.7 million,representing a non-GAAP operating margin of 29%.

Non-GAAP net income attributable to Weibo was $132.9 million and non-GAAP diluted net income per share was $0.56.

Monthly active users ("MAUs") were 582 million in March 2022,a net addition of approximately 51 million users on a year-over-year basis. Mobile MAUs represented 95% of MAUs.

Average daily active users ("DAUs") were 252 million in March 2022,a net addition of approximately 22 million users on a year-over-year basis.

[1]On a constant currency (non-GAAP) basis,we assume that the exchange rate in the first quarter of 2022 had been the same as it was in the first quarter of 2021,or RMB 6.48=US$1.00.

First Quarter 2022 Financial Results

For the first quarter of 2022,Weibo's total net revenues were $484.6 million,an increase of 6% compared to $458.9 million for the same period last year.

Advertising and marketing revenues for the first quarter of 2022 were $427.1 million,an increase of 10% compared to $390.0 million for the same period last year. Advertising and marketing revenues excluding ad revenues from Alibaba were $401.2 million,an increase of 12% compared to $356.7 million for the same period last year,which represented a relatively resilient performance of our advertising business this quarter,despite macro uncertainties,and disruption from COVID-19 resurgence and subsequent restrictions and lockdowns in major areas of China since mid-March.

VAS revenues for the first quarter of 2022 were $57.5 million,a decrease of 17% year-over-year compared to $68.9 million for the same period last year. The decrease of VAS revenues was mainly due to less revenue contribution from membership service and decrease of live streaming revenues.

Costs and expenses for the first quarter of 2022totaled $381.8 million,an increase of 9% compared to $350.3 million for the same period last year. The increase was primarily attributable to (i) higher personnel related costs; (ii) increases in content costs primarily associated with the Winter Olympic Games; and (iii) recognition of cultural business construction fee with the lapse of exemption policy in 2022. The increase was primarily offset by a decrease of sales and marketing expenses,with disciplined channel investments and reduced offline events.

Income from operations for the first quarter of 2022 was $102.8 million,compared to $108.6 million for the same period last year. Operating margin was 21%,compared to 24% last year. Non-GAAP income from operations was $141.7 million,compared to $137.5 million for the same period last year. Non-GAAP operating margin was 29%,compared to 30% last year.

Non-operating loss for the first quarter of 2022 was $163.5 million,compared to a loss of $44.7 million for the same period last year. Non-operating loss for the first quarter of 2022 mainly included (i) a $163.7 million net loss from fair value change of investments,primarily resulted from net loss from fair value change of investments in Didi Global Inc. (NYSE: DIDI) and INMYSHOW Digital Technology (Group) Co.,Ltd. (SHH: 600556),which was excluded under non-GAAP measures; (ii) a $14.2 million investment related impairment,which was excluded under non-GAAP measures; and (iii) a $14.4 million net interest and other income.

Income tax expense were $11.7 million,compared to $14.9 million for the same period last year.

Net loss attributable to Weibo for the first quarter of 2022 was $67.5 million,compared to an income of $49.8 million for the same period last year. Diluted net loss per share attributable to Weibo for the first quarter of 2022 was $0.29,compared to a diluted net income per share attributable to Weibo of $0.22 for the same period last year. Non-GAAP net income attributable to Weibo for the first quarter of 2022 was $132.9 million,compared to $130.7 million for the same period last year. Non-GAAP diluted net income per share attributable to Weibo for the first quarter of 2022 was $0.56,compared to $0.57 for the same period last year.

As of March 31,2022,Weibo's cash,cash equivalents and short-term investments totaled $3.3 billion. For the first quarter of 2022,cash provided by operating activities was $248.6 million,capital expenditures totaled $8.5 million,and depreciation and amortization expenses amounted to $15.0 million.

Conference Call

Weibo's management team will host a conference call from 7:00 AM to 8:00 AM Eastern Time on June 1,2022 (or 7:00 PM – 8:00 PM Beijing Time on June 1,2022) 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/3399110

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 available from 22:00 China Standard Time on June 1,2022 to 21:59 China Standard Time on June 9,2022.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: 400 820 9035

International: +61 2 8199 0299

Replay PIN: 3399110

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,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,we have 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.

Contact:

Investor Relations

Weibo Corporation

Phone: +86 10 5898-3336

Email: ir@staff.weibo.com

WEIBO CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

Three months ended

March 31,

December 31,

2022

2021

2021

Net revenues:

Advertising and marketing

$ 427,121

$ 390,011

$ 550,826

Value-added service

57,501

68,885

65,461

Net revenues

484,622

458,896

616,287

Costs and expenses:

Cost of revenues (1)

104,801

79,770

128,545

Sales and marketing (1)

125,311

143,975

152,475

Product development (1)

112,434

96,566

113,867

General and administrative (1)

39,227

29,981

38,878

Total costs and expenses

381,773

350,292

433,765

Income from operations

102,849

108,604

182,522

Non-operating loss:

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

change of investments,net

(177,950)

(58,200)

(41,976)

Interest and other income,net

14,416

13,504

5,161

(163,534)

(44,696)

(36,815)

Income (loss) before income tax expenses

(60,685)

63,908

145,707

Income taxexpenses

(11,716)

(14,945)

(45,581)

Net income (loss)

(72,401)

48,963

100,126

Less: Net loss attributable to non-controlling interests

(4,877)

(857)

(15,607)

Net income (loss) attributable to Weibo's shareholders

$ (67,524)

$ 49,820

$ 115,733

Basic net income (loss) per share attributable to Weibo's

shareholders

$ (0.29)

$ 0.22

$ 0.50

Diluted net income (loss) per share attributable to Weibo's

shareholders

$ (0.29)

$ 0.22

$ 0.50

Shares used in computing basic net income (loss) per share

attributable to Weibo's shareholders

235,206

227,771

230,679

Shares used in computing diluted net income (loss) per share

attributable to Weibo's shareholders

235,206

229,302

231,506

(1) Stock-based compensation in each category:

Cost of revenues

$ 2,337

$ 1,413

$ 2,422

Sales and marketing

4,615

2,251

5,043

Product development

13,336

8,076

14,362

General and administrative

6,763

4,013

4,911

WEIBO CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)

March 31,

2022

2021

Assets

Current assets:

Cash and cash equivalents

$ 2,501,799

$ 2,423,703

Short-term investments

792,725

711,062

Accounts receivable,net

604,469

723,089

Prepaid expenses and other current assets

466,018

450,726

Amount due from SINA(1)

494,120

494,200

Current assets subtotal

4,859,131

4,802,780

Property and equipment,net

65,850

68,396

Goodwill and intangible assets,net

291,811

297,335

Long-term investments

1,112,439

1,207,651

Other non-current assets

1,139,677

1,143,360

Total assets

$ 7,468,908

$ 7,519,522

Liabilities,Redeemable Non-controlling Interests and Shareholders' Equity

Liabilities:

Current liabilities:

Accounts payable

$ 197,324

$ 197,643

Accrued expenses and other current liabilities

799,877

828,952

Deferred revenues

94,739

91,136

Income tax payable

155,104

144,747

Convertible debt

897,576

896,541

Current liabilities subtotal

2,144,620

2,159,019

Long-term liabilities:

Unsecured senior notes

1,538,991

1,415

Other long-term liabilities

125,175

134,068

Total liabilities

3,808,786

3,831,502

Redeemable non-controlling interests

68,796

66,622

Shareholders' equity:

Weibo shareholders' equity

3,564,488

3,593,821

Non-controlling interests

26,838

27,577

Total shareholders' equity

3,591,326

3,621,398

Total liabilities,redeemable non-controlling interests and

shareholders' equity

$ 7,522

(1) Included short-term loans to and interest receivable from SINA of $474.3 million as of March 31,2022

and $479.6 million as of December 31,2021.

WEIBO CORPORATION

UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS

(In thousands of U.S. dollars,

2022

2021

2021

Income from operations

$

102,849

$

108,604

$

182,522

Add:

Stock-based compensation

27,051

15,753

26,738

Amortization of intangible assets resulting from business

acquisitions

5,751

4,519

5,716

Non-cash compensation cost to non-controlling interest

shareholders

6,074

8,631

4,826

Non-GAAP income from operations

$

141,725

$

137,507

$

219,802

Net income (loss) attributable to Weibo's shareholders

$

(67,524)

$

49,820

$

115,733

Add:

Stock-based compensation

27,826

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

change of investments

177,950

58,200

41,976

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

method investments

(2,654)

(1,075)

4,343

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

attributable to non-controlling interests

(4,631)

359

(16,844)

Tax effects on non-GAAP adjustments(1)

(10,771)

(7,148)

11,405

Amortization of convertible debt and unsecured senior notes

issuance cost

1,611

1,612

1,611

Non-GAAP net income attributable to Weibo's shareholders

$

132,857

$

130,671

$

195,504

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

shareholders

$

0.56

*

$

0.57

*

$

0.83

*

Shares used in computing GAAP diluted net income (loss) per share

attributable to Weibo's shareholders

235,206

229,302

231,506

Add:

The number of shares for dilution resulted from convertible

debt(2)

6,753

6,753

The number of shares for dilution resulted from unvested

restricted share units(2)

447

-

-

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

attributable to Weibo's shareholders

242,406

236,055

238,259

Adjusted EBITDA:

Net income (loss) attributable to Weibo's shareholders

$

(67,733

Non-GAAP adjustments

200,381

80,851

79,771

Non-GAAP net income attributable to Weibo's shareholders

132,857

130,671

195,504

Interest income,net

(10,986)

(3,939)

(4,231)

Income tax expenses

22,487

22,093

34,176

Depreciation expenses

8,730

7,909

8,593

Adjusted EBITDA

$

153,088

$

156,734

$

234,042

(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 and unvested restricted share units 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

March 31,

2022

2021

2021

Net revenues

Advertising and marketing

Non-Ali advertisers

$ 401,196

$ 356,711

$ 505,333

Alibaba - as an advertiser

25,925

33,300

45,493

Subtotal

427,121

390,011

550,826

Value-added service

57,461

$ 484,622

$ 458,896

$ 616,287

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