Weibo’s FY 2024 Earnings: Resilient Performance Amid Advertising Challenges, Announces $200M Dividend
- GordonGekko
- Mar 13
- 3 min read
Introduction
Weibo Corporation (NASDAQ: WB, HKEX: 9898), China’s premier social media platform, released its fourth-quarter (Q4) and full-year (FY) 2024 earnings report on March 13, 2025.
Despite sluggish advertising revenue, the company demonstrated strong operational efficiency and solid user engagement, announcing a $200 million annual dividend to enhance shareholder value.
Key Financial Highlights
Metric | Q4 2024 | YoY Change | FY 2024 | YoY Change |
Revenue | $456.8M | -1% | $1.75B | Flat |
Advertising Revenue | $385.9M | -4% | $1.50B | -2% |
Value-Added Services (VAS) Revenue | $71.0M | +18% | $256.0M | +13% |
Net Income | $8.9M | -89% | $300.8M | -12% |
Operating Margin | 26% | Flat | 28% | +1% |
Monthly Active Users (MAUs) | 590M | +2% | — | — |
Daily Active Users (DAUs) | 260M | +3% | — | — |
(Source: Weibo FY 2024 Earnings Report)
Advertising Revenue Faces Pressure, VAS Gains Momentum
Weibo’s advertising and marketing revenue experienced a 4% decline YoY in Q4 and a 2% drop for the full year, primarily due to weaker demand from the gaming sector.
The slowdown was attributed to tough year-over-year comparisons, as Q4 2023 saw a surge in gaming ads due to blockbuster launches.
On the flip side, Value-Added Services (VAS) revenue surged 18% YoY in Q4 and 13% YoY for FY 2024, driven by strong membership growth and increased game-related revenues. This signals Weibo’s growing diversification beyond traditional advertising.
Profitability & Cost Management Keep Margins Strong
Despite slightly declining revenue, Weibo maintained robust profitability, thanks to efficient cost management.
Operating margin remained stable at 26% in Q4.
FY 2024 operating margin improved to 28% (vs. 27% in 2023), reflecting effective cost control.
Non-GAAP operating margin stood at 33%, indicating a healthy underlying business model.
However, a non-operating loss of $85.1M in Q4 due to investment impairments led to a sharp 89% drop in net income to $8.9M for the quarter.
Weibo Announces $200 Million Annual Dividend
A major highlight of Weibo’s earnings call was the announcement of an annual dividend policy, with a payout of $0.82 per share (or ADS), totaling $200 million.
Record date: April 9, 2025
Payment dates: May 8 (Ordinary Shares), May 15 (ADS Holders)
This move reinforces Weibo’s commitment to shareholder returns, boosting investor confidence amid market volatility.
User Growth & Engagement Remain Strong
Weibo continues to show steady user growth, maintaining its position as one of China’s top social media platforms:
MAUs reached 590 million (up 2% YoY).
DAUs hit 260 million (up 3% YoY).
This consistent growth reflects Weibo’s strong content strategy, AI-driven recommendations, and community engagement.
Outlook for 2025: AI & Monetization Strategies
Looking ahead, Weibo plans to expand AI-powered content recommendations and enhance its monetization framework. The company aims to:
✔ Optimize targeted advertising solutions to boost ad effectiveness.
✔ Invest in AI-driven content curation to improve user experience.
✔ Expand video & vertical content ecosystems for better engagement.
✔ Diversify revenue streams beyond traditional ads.
Conclusion: A Resilient Performance with Promising Growth Prospects
Weibo’s FY 2024 performance showcased resilience, with strong operating margins, stable user growth, and a strategic shift towards shareholder returns. While advertising revenue faces headwinds, the growth in VAS and AI-driven initiatives presents a positive long-term outlook.
With a solid cash position and new dividend policy, Weibo remains a key player in China’s digital ecosystem, poised for sustainable growth in 2025 and beyond.
Disclaimer: This article is for educational and informational purposes only and should not be considered financial or investment advice. All investments carry risks, including potential capital loss. Readers should conduct their own research and consult a qualified financial professional before making any investment decisions. The author and publisher are not responsible for any financial losses incurred based on the information provided.
