SINA Corporation reported fourth-quarter 2018 non-GAAP earnings of 80 cents per share, missing the Zacks Consensus Estimate by 23 cents. However, the figure increased marginally from the year-ago quarter.
Non-GAAP net revenues grew 13.8% year over year to $570.4 million. However, the figure missed the Zacks Consensus Estimate of $579 million.
The year-over-year increase in revenues was driven by robust growth in Weibo’s ad and marketing revenues and user base expansion.
Quarter Details
Advertising revenues (84.9% of total revenues) increased 14% year over year to $484.3 million, primarily driven by an increase of $84.7 million in Weibo advertising and marketing revenues. However, the decline in portal advertising revenues and unfavourable currency translation partially offset the increase.
Non-advertising (non-GAAP) revenues increased 12.7% year over year to $88.7 million. The increase was primarily attributed to revenues generated from Weibo’s acquired live broadcasting platform and growth in Weibo membership fees.
Revenues from Weibo (WB - Free Report) business grew 27.7% year over year to $482 million, primarily driven by robust growth in user base. SINA holds 46% stake in Weibo.
Notably, Weibo’s monthly active users (MAU) totaled 462 million in the reported quarter, a net addition of approximately 70 million users on a year-over-year basis.
Moreover, Weibo's average daily active users (DAU) were 200 million in the reported quarter, a net addition of approximately 28 million users on a year-over-year basis.
Weibo’s non-ad revenues surged 43.9% to $64.9 million and ad and marketing revenues grew 25.5% to $417.1 million in the reported quarter.
Portal advertising revenues declined 29.3% year over year to $67.4 million. Decline in Small Medium Enterprise (SME) customers’, who operate in sectors with strict regulation, ad budget negatively impacted growth.
Notably, Mobile app revenues accounted for 81% of total portal ad revenues compared with 59% in the year-ago quarter.
Portal non-advertising revenues declined 29.3% to $67.4 million. This decline was attributed to weakness in the payment business.
SINA is witnessing higher adoption of KL marketing among brand advertisers, which is a positive.
Sina Corporation Price, Consensus and EPS Surprise
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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SINA Corporation reported fourth-quarter 2018 non-GAAP earnings of 80 cents per share, missing the Zacks Consensus Estimate by 23 cents. However, the figure increased marginally from the year-ago quarter.
Non-GAAP net revenues grew 13.8% year over year to $570.4 million. However, the figure missed the Zacks Consensus Estimate of $579 million.
The year-over-year increase in revenues was driven by robust growth in Weibo’s ad and marketing revenues and user base expansion.
Quarter Details
Advertising revenues (84.9% of total revenues) increased 14% year over year to $484.3 million, primarily driven by an increase of $84.7 million in Weibo advertising and marketing revenues. However, the decline in portal advertising revenues and unfavourable currency translation partially offset the increase.
Non-advertising (non-GAAP) revenues increased 12.7% year over year to $88.7 million. The increase was primarily attributed to revenues generated from Weibo’s acquired live broadcasting platform and growth in Weibo membership fees.
Revenues from Weibo (WB - Free Report) business grew 27.7% year over year to $482 million, primarily driven by robust growth in user base. SINA holds 46% stake in Weibo.
Notably, Weibo’s monthly active users (MAU) totaled 462 million in the reported quarter, a net addition of approximately 70 million users on a year-over-year basis.
Moreover, Weibo's average daily active users (DAU) were 200 million in the reported quarter, a net addition of approximately 28 million users on a year-over-year basis.
Weibo’s non-ad revenues surged 43.9% to $64.9 million and ad and marketing revenues grew 25.5% to $417.1 million in the reported quarter.
Portal advertising revenues declined 29.3% year over year to $67.4 million. Decline in Small Medium Enterprise (SME) customers’, who operate in sectors with strict regulation, ad budget negatively impacted growth.
Notably, Mobile app revenues accounted for 81% of total portal ad revenues compared with 59% in the year-ago quarter.
Portal non-advertising revenues declined 29.3% to $67.4 million. This decline was attributed to weakness in the payment business.
SINA is witnessing higher adoption of KL marketing among brand advertisers, which is a positive.
Sina Corporation Price, Consensus and EPS Surprise
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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