Benzinga | May 10, 2021 11:40AM EDT

Weibo Shares Lose Steam Despite Q1 Earnings Beat, Robust Q2 Guidance As Monthly Active Users Fall 4%

* Weibo Corp (NASDAQ: WB) reported first-quarter FY21 net revenue growth of 42% year-on-year to $458.9 million (31% Y/Y on a constant currency basis), beating the analyst consensus of $429.84 million.

* Advertising and marketing revenues rose 42% Y/Y to $390 million. Advertising and marketing revenues excluding Alibaba ad revenues increased 44% Y/Y to $356.7 million.

* Value-added service (VAS) revenues rose 44% Y/Y to $68.9 million, mainly derived from the interactive entertainment company acquired in November 2020.

* Monthly active users (MAUs) declined 4% Y/Y to 530 million, and Mobile MAUs represented 94% of MAUs. Average daily active users (DAUs) dropped 5% Y/Y to 230 million.

* On the monetization front, Weibo posted broad-based Y/Y growth across industries and robust momentum with certain differentiated ad products, demonstrating competitiveness in fulfilling advertiser's increasing brand plus performance needs, Wang CEO Gaofei Wang said.

* Adjusted operating income rose 85.6% Y/Y to $137.5 million, as the margin expanded 700 basis points to 30%.

* Non-GAAP net income rose 93.9% Y/Y to $130.7 million, with adjusted EPS of $0.57, beating the analyst consensus of $0.47.

* Weibo held $3.41 billion in cash and equivalents and generated $244.3 million in operating cash flow.

* Guidance: Weibo sees a Q2 net revenue growth guidance of $484.25 million - $503.62 million, above the analyst consensus of $480.78 million.

* Price action: WB shares traded lower by 5.3% at $44.34 on the last check Monday.