# Micro-blog released 2018 Q1 unaudited earnings net revenue of $349 million 900 thousand

2018-05-09 11:15:40
category:Internet

Since January 1, 2018, the company began to adopt a new income criterion, customer contract income, in accordance with the revised traceability method. The scope of application includes contracts that have not been completed in January 1, 2018. Under the revised tracing method, the income published after January 1, 2018 was compiled (the new foundation) in accordance with the new income guidelines, and the income published before January 1, 2018 was compiled in accordance with the old income criteria (the old compilation basis). The new compilation basis requires income to be shown in accordance with the net value of the deductible VAT (VAT) rather than the total amount, resulting in a decrease in the amount of income and cost. In addition, the new basis for advertising swap transactions (hereinafter referred to as swaps) requires that the relevant income and expenses be recognized according to fair value. In view of the adoption of the new revenue guidelines, the effect of the uncompleted swap transaction in January 1, 2018 was about $600 thousand. The impact of the new income criteria on the companys current financial results is shown below: Performance focus of the first quarter of 2018 Net revenue of $349 million 900 thousand, an increase of 76% over the previous year, exceeding the companys $335 million to $345 million expectations. Advertising and marketing revenues totaled $302 million 900 thousand, an increase of 79% over the same period last year. Value added services revenue of $46 million 900 thousand, an increase of 57% over the same period last year. Net profit attributable to micro-blog was $99 million 100 thousand, an increase of 111% over the previous year, and a net profit of 44 cents per share, which was 21 cents a year earlier. Non US general accounting standards attributable to micro-blogs net profit of $112 million 600 thousand, a year-on-year increase of 95%, a net profit of 50 cents per share, and 26 cents a year earlier. After the adjustment, the EBITDA (interest, tax, depreciation and amortization) was 124 million 600 thousand US dollars, up 77% from the same period, and the profit margin of net revenue was 36%, and 35% in the same period of last year. In March 2018, the number of monthly active users (MAUs) increased by about 70 million over the same period last year, reaching 411 million. 93% of the monthly active users are mobile end users. The average number of active users in March 2018 (DAUs) increased by about 30 million over the same period last year, reaching 184 million. Business performance in the first quarter of 2018 Net revenue in the first quarter of 2018 was $349 million 900 thousand, compared with $199 million 200 thousand in the same period last year. Advertising and marketing revenues totaled $302 million 900 thousand in the first quarter of 2018, compared with $169 million 300 thousand in the same period last year. Advertising and marketing revenues from small and medium enterprises (SMEs) and major customers totaled $276 million 600 thousand, compared with $161 million 500 thousand in the same period last year, an increase of 71% over the same period last year. In the first quarter of 2018, value-added services revenue was $46 million 900 thousand, compared with $29 million 900 thousand in the same period last year. Total cost and expenditure amounted to US $240 million 500 thousand in the first quarter of 2018, compared with us $143 million 400 thousand in the same period last year. In addition to the 606 clause of ASC mentioned above, the marketing expenditure related to swap related to the cost and expenditure, the increase in cost and expenditure is mainly related to the marketing expenditure of channels and marketing activities, as well as the increase in R & D expenditure related to human cost. In the first quarter of 2018, the cost and expenses of non GAAP were US $229 million 300 thousand, compared with us $132 million 500 thousand in the same period last year. Non operating profit in the first quarter of 2018 was $7 million 600 thousand, compared with $2 million 100 thousand in the same period last year. Income tax expenditure in the first quarter of 2018 was $18 million 300 thousand, compared with $11 million 300 thousand in the same period last year. The increase in income tax expenditure is mainly due to the improvement of the domestic profit level and the stable domestic effective tax rate. In the first quarter of 2018, the net profit attributable to micro-blog was $99 million 100 thousand, with a net profit of 44 cents per share, with a net profit of $46 million 900 thousand in the same period last year, and a net profit of 21 cents per share. In the first quarter of 2018, the net profit of non US general accounting standards belonging to micro-blog was $112 million 600 thousand and 50 cents per share diluted net profit. The net profit of the same period was $57 million 800 thousand, and the net profit per share was 26 cents per share. As of March 31, 2018, micro-blogs cash, cash equivalents and short-term investments amounted to $1 billion 920 million. Cash provided by operational activities in the first quarter of 2018 amounted to $84 million 800 thousand, capital expenditure of $4 million 300 thousand, depreciation and amortization expense of $4 million 700 thousand. Performance outlook micro-blog expects net revenue in the second quarter of 2018 to be between $420 million and $430 million, assuming that the mean value of the RMB to the dollar is 6.35 yuan to $1. The above expectation is reflected in the preliminary judgement of micro-blog and may be adjusted in the future. Source: NetEase science and technology report editor: Yao Liwei _NT6056 In the first quarter of 2018, the net profit attributable to micro-blog was $99 million 100 thousand, with a net profit of 44 cents per share, with a net profit of $46 million 900 thousand in the same period last year, and a net profit of 21 cents per share. In the first quarter of 2018, the net profit of non US general accounting standards belonging to micro-blog was $112 million 600 thousand and 50 cents per share diluted net profit. The net profit of the same period was $57 million 800 thousand, and the net profit per share was 26 cents per share. As of March 31, 2018, micro-blogs cash, cash equivalents and short-term investments amounted to $1 billion 920 million. Cash provided by operational activities in the first quarter of 2018 amounted to $84 million 800 thousand, capital expenditure of $4 million 300 thousand, depreciation and amortization expense of $4 million 700 thousand. Performance outlook Micro-blog expects net revenue in the second quarter of 2018 to be between $420 million and $430 million, assuming that the mean value of the RMB to the dollar is 6.35 yuan to $1. The above expectation is reflected in the preliminary judgement of micro-blog and may be adjusted in the future.