According to Sina Financial Report, Sinas net revenue in the third quarter of 2019 was $561.4 million, up 1% from $557.2 million in the same period of last year; non-U.S. GAAPs net revenue was $558.8 million, up 1% from $554.6 million in the same period of last year.
Weibos net revenue in the third quarter of 2019 was 467.8 million US dollars, up 2% from 4602.0 million US dollars in the same period of last year, basically in line with the market expectation of 468.0 million US dollars; its net profit was 146.2 million US dollars, lower than the market expectation of 148.0 million US dollars, down 11% from the same period of last year, narrowed down from nearly 27% in the second quarter; under non-U.S. GAAP, its net profit was 176.1 million US dollars, higher than the same period of last year The growth rate was 2.5%, and it was basically flat in the second quarter.
For the fourth quarter of 2019, Weibo estimated in its financial report that its net income based on fixed income would increase by 0% to 3% year on year.
By the end of the day, Sinas shares had fallen 18.75% to $33.68 a share, with a total market value of $2.343 billion. Weibo fell 17.7% to $43.44 a share, with a total market value of $9.776 billion.
Some analysts believe that with the rise of short videos and other social media, investors are worried about the decline of microblogs attraction to users. Moreover, Weibos fourth quarter performance outlook itself is not very optimistic.
On April 29, 2013, Alibaba, through its wholly-owned subsidiary, purchased preferred shares and common shares issued by Sina Weibo company for us $586 million, accounting for about 18% of the total diluted shares of Weibo company. According to the documents submitted by Weibo to the US SEC, as of March 31, 2019, Sina was its first major shareholder, holding 45.2% of the shares and 71.2% of the voting rights, while Ali held 30.2% of the shares, the second largest shareholder of Weibo, with 15.8% of the voting rights.
Advertising and marketing are the main revenue sources of Weibo. From the perspective of financial statements, the advertising and marketing revenue of Weibo in the third quarter was $412.5 million, up 1% year on year. Revenue of value-added services reached US $55.3 million, up 9% year on year. Among them, the year-on-year growth of value-added service revenue is mainly due to the revenue generated by live broadcast business.
In November 2018, Weibo acquired a live broadcast product under the technology group. At that time, Weibo planned to use one to two quarters of 2019 to integrate and optimize Weibo and a live broadcast product.
Weibo said that since 2019, the overall growth of mobile Internet users has slowed down, and the growth rate of time has also begun to decline, and the market environment has comprehensively transitioned from incremental competition to stock competition.
In September this year, Wang Yajuan, senior vice president of Weibo, said in an interview with surging journalists that in terms of advertising business, Weibo used to be small in size. Since the third quarter of 2015, the data of Weibos own business has doubled, up many quarters. With the growth of scale, how to keep high speed is much more difficult than when the scale is small. From 200 million yuan to 400 million yuan, its doubled, from 400 million yuan to 800 million yuan, but from 5 billion yuan to 10 billion yuan, its not easy to double the growth rate. In addition, the industry background is also one of the factors that affect the growth rate. For example, the biggest industry of real-time competitive advertising last year was game and Internet finance. When the industry is under great pressure, microblog will also be affected. Wang Yajuan said.
For how to grow the second curve in the original advertising business, Wang Yajuan believes that the initial value of microblog is exposure, which is a platform for young people to gather, and also an open square. When the demographic dividend is about to disappear, microblog should extend its thinking.
In this regard, Weibo continued to strengthen the core advantages of the platform in hot discussions, and launched a number of new functions to enhance social interaction. Since this year, in addition to strengthening the video layout, Weibo has also internally tested the image video social sharing platform oasis, hoping that the oasis can complement the Weibo content ecology.
On the evening of November 14, Wang Gaofei, chief executive of Weibo, said in the financial report conference call that oasis is the spokesman product of Weibos social field layout. Wang Gaofei pointed out that in the development process of microblog platform, although microblog tries to support more traffic to vertical accounts, in the past few years, the proportion of non media content and vertical content of microblog accounts in the overall content field is still declining. All industries, including the stars head accounts, are on Weibo, but there are not so many life-style content and vertical content. Therefore, Weibo hopes to open a platform with more focus on vertical and life oriented content through oasis, so that these accounts can get more content exposure on Weibo and oasis.
According to Weibo, oasis is expected to officially go online this month.
From the perspective of the new quarters financial report, in terms of commercialization, Weibo has further obtained more social advertising budget shares of customers by virtue of differentiated advertising products and the social influence of platform head users. In the third quarter, the brand advertising of microblog increased by 19% on a month on month basis, and the revenue of small and medium-sized and self-service advertising increased by 16% on a month on month basis.
It is worth noting that by the end of September 2019, the monthly active users of microblog had reached 497 million, a net increase of about 51 million compared with the same period of last year, lower than the increase of 55 million in the second quarter. Among them, 94% of monthly users are mobile users. Daily active users increased to 216 million, a net increase of about 21 million over the same period last year.
In addition, in the third quarter, the overall traffic and interaction volume of microblog maintained a double-digit year-on-year growth, and the number of microblog head users, content production and reading volume achieved a double-digit year-on-year growth for eight consecutive quarters. For example, in terms of focusing on hot spot continuous consumption and discussion, the hot events in the head of microblog cover 11 vertical fields, with the number of topics increasing by 67% month on month, and the number of hot topics in the head users increasing by 54% month on month.