Quick Facts / Company Snapshot
- Company Name: Weibo Corporation
- Stock Code: 9898 (Hong Kong Stock Exchange), WB (Nasdaq Global Select Market)
- Headquarters: Beijing, People’s Republic of China
- Founding Year: 2009 (Launched by SINA)
- Industry: Social Media / Internet Technology
- Total Net Revenues (2024): US$1.75 billion
- Net Income (2024): US$310.1 million
- Monthly Active Users (MAUs): 590 million (December 2024)
- Average Daily Active Users (DAUs): 260 million (December 2024)
- Total Employees: 4,982 (as of jan, 2025)
- Chairman of the Board: Charles Guowei Chao
- Chief Executive Officer: Gaofei Wang
- Parent Company: SINA Corporation
- Key Strategic Investor: Alibaba Group
- Primary Revenue Stream: Advertising and Marketing (85% of total revenues)
- Total Assets: US$6.5 billion (as of December 31, 2024)
- Cash and Cash Equivalents: US$1.89 billion (as of December 31, 2024)
- Registered Office: Cayman Islands
- Auditor: PricewaterhouseCoopers Zhong Tian LLP
Company Overview
Weibo Corporation operates as a leading social media platform in China, facilitating the creation, discovery, and distribution of content. Since its launch in 2009, Weibo has established itself as an integral part of the daily lives of millions of users, serving as a hub for public expression and social interaction. The platform connects people and organizations in China and global Chinese communities, offering a simple and inspirational way to stay connected with the world in real-time.
The company’s platform is built on a “social interest graph” recommendation engine. This technology aggregates user actions—such as posting, reposting, commenting, liking, and following—to develop a comprehensive understanding of user interests. Leveraging this data, Weibo employs multiple algorithms and hyperscale online training to push relevant content to users, thereby enhancing user stickiness and engagement.
Weibo serves a diverse ecosystem of users, including ordinary individuals, celebrities, key opinion leaders (KOLs), media outlets, businesses, government agencies, and charities. As of December 2024, the platform boasted 590 million Monthly Active Users (MAUs) and 260 million Average Daily Active Users (DAUs). The company has successfully cultivated a content ecosystem that spans various verticals, collaborating with industry-leading multi-channel networks (MCNs) to provide high-quality multimedia content, including text, photos, short videos, and live streaming.
Commercially, Weibo monetizes its massive user base primarily through advertising and marketing services. It offers a full spectrum of solutions ranging from brand awareness to interest generation and sales conversion. The company also generates revenue through value-added services (VAS), such as VIP memberships and game-related services. Weibo Corporation is incorporated in the Cayman Islands and conducts its business operations in China through a series of subsidiaries and Variable Interest Entities (VIEs).
Business Segments
Weibo Corporation generates revenue through two primary business segments: Advertising and Marketing Services, and Value-Added Services.
1. Advertising and Marketing Services
- 2024 Revenue: US$1,498.7 million
- Percentage of Total Revenue: 85.4%
This segment is the core driver of Weibo’s financial performance. The company provides a comprehensive suite of advertising and marketing solutions to a wide range of customers, from large brand advertisers to small and medium-sized enterprises (SMEs).
- Operational Scope:
- Social Display and Promoted Marketing: Weibo enables customers to promote their brands, products, and services to users based on user demographics, social relationships, and interests.
- Customer Base: The segment serves customers across various industries. In 2024, the total number of advertisers was approximately 0.6 million.
- Key Partners: A significant portion of revenue is derived from related parties. In 2024, Alibaba contributed US$116.8 million, and SINA contributed US$25.0 million to this segment.
- Ad Formats: The company offers diverse ad formats and features, constantly innovating to improve the effectiveness of advertisement targeting capabilities. The “Super Topic” and other community products are leveraged to create social marketing campaigns.
2. Value-Added Services (VAS)
- 2024 Revenue: US$256.0 million
- Percentage of Total Revenue: 14.6%
Value-Added Services represent the company’s efforts to monetize user engagement directly through non-advertising channels. This segment includes fee-based services that enhance the user experience and provide exclusive privileges.
- Operational Scope:
- VIP Membership: Weibo offers membership subscriptions (monthly, quarterly, or annual) that provide users with additional functions such as following more users, personalized pages, and premium management tools.
- Game-Related Services: This includes revenues from game operations and virtual currency or in-game virtual items sold for game-related services.
- Live Streaming: Revenue sharing from live streaming sessions conducted by content creators and platform partners.
- Social Commerce: Tools allowing content creators to monetize their social assets through e-commerce, tipping, and subscription models.
History and Evolution
Weibo’s journey began in August 2009 when it was launched by SINA Corporation, originally as a microblogging service provider. The platform quickly gained traction, and in 2010, SINA incorporated T.CN Corporation in the Cayman Islands to hold the assets associated with the Weibo business.
- 2011: Weibo upgraded its platform with social networking features and an improved open platform architecture, supporting both internally developed and third-party applications.
- 2012: The company was renamed Weibo Corporation. Monetization efforts began primarily through advertising and marketing services.
- 2013: A significant milestone occurred in April 2013 when Alibaba Group invested US$585.8 million through its subsidiary, Ali WB, acquiring approximately 18% of Weibo’s outstanding shares. This strategic partnership integrated e-commerce capabilities with social media.
- 2014: Weibo Corporation completed its initial public offering (IPO) and listed on The Nasdaq Global Select Market in April 2014.
- 2021: The company completed a global offering in Hong Kong, with its Class A ordinary shares commencing trading on the Hong Kong Stock Exchange under the stock code “9898” in December 2021.
- 2023-2024: Weibo continued to evolve its content ecosystem, emphasizing video content and community building. The company also integrated generative AI features to assist content creators and streamline product development. Throughout its history, Weibo has maintained its position as a dominant social media platform in China despite intense competition from newer market entrants.
Products and Services
Weibo offers a diverse array of products designed to facilitate discovery, self-expression, and social interaction.
1. Discovery Products
- Information Feed: This is the core product residing on users’ home pages. It includes:
- Relationship-based Feed: Displays posts from accounts the user follows.
- Interest-based Feed: Recommendations based on the user’s social interest graph.
- Search: A robust search function allowing users to find content, accounts, and topics across the platform.
- Trends: A list of the most popular and discussed topics on Weibo, serving as a barometer for public sentiment and breaking news in China.
2. Self-Expression Products
- Individual Page: Each user has a profile page to share text, photos, and videos. Verified users (orange “V”) and enterprise accounts (blue “V”) have distinct markers.
- Enterprise Page: Specialized profiles for businesses and organizations to manage their brand presence.
- Matrix: Tools for managing multiple accounts and content distribution.
3. Social Interaction Products
- Follow: The fundamental mechanism connecting users.
- Repost, Comment, Like: Core engagement tools allowing users to interact with content.
- @Mention: Allows users to involve others in conversations.
- Topic: Aggregates content under specific hashtags, facilitating focused discussions.
- Super Topic: A community product that brings together users with shared interests, fostering deeper engagement.
- Vote: Interactive features for polling user opinions.
4. Advertising and Marketing Solutions
- Promoted Feeds: Native advertisements appearing in the user’s information stream.
- Social Display Ads: Banners and other visual ad formats.
- Real-time Bidding System: Enables advertisers to bid for ad placement inventory.
- Analytical Tools: Provides customers with data to track and improve campaign effectiveness.
5. Value-Added Tools
- Weibo Wallet: A platform acting as an intermediary for financial products, including micro-loan facilitation, insurance, and funds offered by third-party partners.
- Weibo Membership: A subscription service offering premium features like enhanced personalization and follower management.
- Game Center: A hub for accessing and playing games, often integrated with social features.
Brand Portfolio
Weibo operates primarily under its master brand, “Weibo,” which is synonymous with social media in China.
1. Weibo (Core Brand)
- Role: The primary social media platform.
- Performance: Generates the vast majority of user traffic and advertising revenue.
- Brand Strength: Highly recognized in Chinese communities globally for its “V” verification system and “Hot Search” trends.
2. Weibo Wallet
- Role: Financial services integration.
- Function: Facilitates payments and connects users with third-party financial products. It is not an operator of financial products but a platform for partners.
3. SINA (Affiliation)
- Role: Parent brand and sales agent.
- Relationship: SINA acts as an agent servicing Weibo’s advertising and marketing clients. The “SINA” brand is closely linked via historical ties and the “SINA” app ecosystem.
Geographical Presence
Weibo’s operations are predominantly concentrated in the People’s Republic of China, which is its primary market for both users and revenue generation.
China
- Revenue Contribution: The company derives substantially all of its revenues from China. In 2024, total income before tax from China operations was US$569.5 million.
- Operational Footprint:
- Headquarters: Beijing (Chaoyang District).
- Key Offices: Shanghai and Tianjin.
- Infrastructure: Most system hardware and back-up systems are hosted in facilities located in China. The company leases its data center facilities.
- User Base: The vast majority of the 590 million MAUs are located within China.
International (Non-China)
- Revenue Contribution: Limited. The annual report notes a “Loss from non-China operations” of US$148.9 million in 2024.
- Operational Footprint:
- Entities: Weibo Hong Kong Limited (Hong Kong) and WB Online Investment Limited (Cayman Islands).
- Role: Primarily holding companies and investment vehicles.
- Assets: Cash and cash equivalents and short-term investments are held by financial institutions in the United States and Hong Kong (US$1.35 billion held by entities outside China).
Financial Performance Analysis
In 2024, Weibo faced a challenging macroeconomic environment but maintained a relatively stable revenue base while optimizing costs.
Consolidated Performance Trend
| Metric | 2024 (US$ ‘000) | 2023 (US$ ‘000) | 2022 (US$ ‘000) |
| Total Net Revenues | 1,754,677 | 1,759,836 | 1,836,332 |
| Operating Income | 494,324 | 472,934 | 480,468 |
| Net Income | 310,105 | 357,495 | 97,809 |
| Net Income Attributable to Shareholders | 300,801 | 342,598 | 85,555 |
| **Diluted EPS (US$)** | 1.16 | 1.43 | 0.36 |
Key Observations:
- Revenue Stability: Total revenues remained relatively flat, decreasing slightly from US$1,759.8 million in 2023 to US$1,754.7 million in 2024.
- Operating Efficiency: Despite flat revenues, income from operations increased to US$494.3 million in 2024 from US$472.9 million in 2023, reflecting disciplined cost management.
- Net Income Volatility: Net income decreased in 2024 compared to 2023, primarily due to investment-related impairments and changes in fair value of investments.
Profit and Loss Analysis
Revenue Breakdown (2024)
- Advertising & Marketing: US$1,498.7 million (Down 2% YoY).
- Third Parties: US$1,315.1 million.
- Alibaba: US$116.8 million.
- SINA: US$25.0 million.
- Value-Added Services: US$256.0 million (Up 13% YoY).
Expense Analysis (2024)
- Cost of Revenues: US$369.5 million. Costs associated with platform maintenance, bandwidth, and personnel.
- Sales and Marketing: US$480.8 million. Increased from 2023 due to promotional activities.
- Product Development: US$308.7 million. Decreased from US$333.6 million in 2023, reflecting streamlined development costs.
- General and Administrative: US$101.3 million.
- Total Costs and Expenses: US$1,260.4 million.
Profitability Ratios (2024)
- Operating Margin: 28.2% (Calculated: Operating Income / Total Revenue).
- Net Profit Margin: 17.7% (Calculated: Net Income / Total Revenue).
Significant Items Impacting Profit:
- Investment Impairment: Recorded a US$93.4 million charge in 2024 related to investment impairments.
- Fair Value Changes: Recognized a gain of US$18.6 million from fair value changes in investments.
- Interest Expense: US$105.4 million, related to convertible and senior notes.
Balance Sheet Analysis
Weibo maintains a solid balance sheet with significant liquidity, though total assets decreased in 2024.
Assets (as of Dec 31, 2024)
- Total Assets: US$6,504.5 million.
- Cash and Cash Equivalents: US$1,890.6 million.
- Short-term Investments: US$459.9 million.
- Accounts Receivable (Net): US$339.8 million.
- Long-term Investments: US$1,389.2 million.
- Goodwill: US$162.2 million.
Liabilities (as of Dec 31, 2024)
- Total Liabilities: US$2,925.6 million.
- Current Liabilities: US$968.1 million.
- Convertible Senior Notes (Long-term): US$320.8 million.
- Unsecured Senior Notes (Long-term): US$744.7 million.
- Long-term Loans: US$795.3 million.
Equity (as of Dec 31, 2024)
- Total Shareholders’ Equity: US$3,533.8 million.
- Retained Earnings: US$2,294.0 million.
Liquidity Position:
- The company holds substantial cash reserves (US$1.89 billion) relative to its short-term liabilities (US$968 million), indicating a strong ability to meet immediate financial obligations.
Cash Flow Analysis
Operating Cash Flow
- 2023: US$672.8 million (Net cash provided by operating activities).
- 2022: US$564.1 million.
- Note: While the specific total for 2024 operating cash flow was not explicitly summed in the provided summary text, the components such as Net Income ($310.1 million) and non-cash adjustments like Depreciation ($58.1 million) and Stock-based compensation ($69.7 million) indicate continued positive operating cash generation.
Investing Cash Flow
- Activities: Major outflows typically involve investments in private companies and technology. In 2024, the company recorded US$93.4 million in investment-related impairments, suggesting an active but volatile investment portfolio.
Financing Cash Flow
- Dividends: In 2024, Weibo paid US$199.4 million in dividends to shareholders.
- Debt Repayment: The company repaid US$23.0 million in debt financing to WFOE in 2024 (VIE level).
Board of Directors and Leadership Team
Weibo’s leadership comprises experienced executives from the technology and media sectors.
Directors
- Charles Guowei Chao
- Role: Chairman of the Board.
- Profile: Has served as Chairman since inception. He has been the Chief Executive Officer of SINA since May 2006. He holds a Master of Professional Accounting from the University of Texas at Austin and an M.A. in Journalism from the University of Oklahoma.
- Gaofei Wang
- Role: Director and Chief Executive Officer.
- Profile: Responsible for the overall management and strategic direction of Weibo.
- Hong Du
- Role: Director.
- Profile: Serves as Co-President of SINA.
- Bo Liu
- Role: Director.
- Pechong Chen
- Role: Independent Director.
- Committee: Chair of the Compensation Committee.
- Pochin Christopher Lu
- Role: Independent Director.
- Committee: Member of the Audit Committee (Audit Committee Financial Expert).
- Yan Wang
- Role: Independent Director.
- Committee: Member of the Compensation Committee.
Executive Officers
- Fei Cao: Chief Financial Officer.
- Zenghui Cao: Senior Executive.
Subsidiaries, Associates, Joint Ventures
Weibo operates through a structure involving wholly-owned subsidiaries and Variable Interest Entities (VIEs) to comply with PRC regulations.
Major Subsidiaries (100% Ownership)
- Weibo Hong Kong Limited: Incorporated in Hong Kong.
- WB Online Investment Limited: Incorporated in the Cayman Islands.
- Weibo Internet Technology (China) Co., Ltd. (“Weibo Technology”): The Wholly Foreign-Owned Enterprise (WFOE) in PRC.
Principal Variable Interest Entities (VIEs)
- Beijing Weimeng Technology Co., Ltd. (“Weimeng”):
- Role: Holds critical operating licenses (e.g., Internet Content Provision).
- Contribution: Along with other VIEs, accounted for 86.2% of total revenues in 2024.
- Beijing Weimeng Chuangke Investment Management Co., Ltd. (“Weimeng Chuangke”):
- Role: Investment management entity within the VIE structure.
Significant Associates (Investments)
- INMYSHOW Digital Technology (Group) Co., Ltd.:
- Ownership: Approximately 26.57% beneficially owned.
- Profile: A Shanghai Stock Exchange-listed company. Weibo invested US$230.8 million in this entity during 2023.
Physical Properties
Weibo does not own significant real estate but leases facilities for its operations.
- Headquarters: Leased office space at 8/F, QIHAO Plaza, No. 8 Xinyuan S. Road, Chaoyang District, Beijing.
- Regional Offices: Leased premises in Shanghai and Tianjin.
- Data Centers: The company leases its data center facilities to support its platform infrastructure. It does not own the underlying real estate for these centers.
Segment-wise Performance
Advertising and Marketing Services
- 2024 Revenue: US$1,498.7 million.
- 2023 Revenue: US$1,534.0 million.
- Year-over-Year Change: -2%.
- Performance Driver: The decrease was primarily due to macro challenges affecting ad spend, though the company maintained a substantial advertiser base of 0.6 million.
Value-Added Services (VAS)
- 2024 Revenue: US$256.0 million.
- 2023 Revenue: US$225.8 million.
- Year-over-Year Change: +13%.
- Performance Driver: Growth in this segment helped offset the decline in advertising revenue, driven by enhanced membership offerings and game-related services.
Founders
- SINA Corporation: Weibo was founded as a division of SINA Corporation.
- Charles Guowei Chao: As the CEO of SINA and Chairman of Weibo, Mr. Chao is the key figure behind the company’s founding and strategic direction. He orchestrated the launch of Weibo in 2009 and its subsequent spin-off and IPO. He controls the company through his control of SINA.
Shareholding Pattern
Weibo features a dual-class share structure (Class A and Class B) to preserve control for its parent company and management.
Voting Structure
- Class A Ordinary Shares: 1 vote per share.
- Class B Ordinary Shares: 3 votes per share. (Convertible into Class A).
Major Shareholders (as of March 31, 2025)
- SINA Corporation:
- Holdings: 87,822,024 Class B ordinary shares.
- Voting Power: 62.7%.
- Status: Controlling shareholder.
- Charles Guowei Chao:
- Voting Power: 62.7% (Mr. Chao controls SINA Corporation and thus controls the shares held by SINA).
- Alibaba Group:
- Role: Strategic Investor.
- Voting Power: Holds a significant equity stake but less than SINA’s voting control. (Specific percentage not explicitly detailed in the voting rights table snippet, but listed as a major shareholder in related party sections).
Parent
- Name: SINA Corporation
- Status: A privately held company (formerly listed on Nasdaq).
- Ownership: Wholly owned by Sina Group Holding Company Limited, which is controlled by Mr. Charles Chao.
- Relationship: SINA remains the controlling shareholder of Weibo. It provides sales and marketing support and holds significant influence over Weibo’s strategic decisions.
Investments and Capital Expenditure Plans
Weibo maintains an active investment portfolio to support its ecosystem and technology.
Investments
- Total Equity Investments: US$1,389.2 million (as of Dec 31, 2024).
- Strategy: Investing in complementary businesses, including online brokerage services, media companies, and MCNs.
- Recent Activity:
- Invested US$137.0 million in private companies in 2024.
- Invested US$25.8 million in equity method investees in 2024.
- Acquired control of “Werewolf” game operator (Yunrui) in 2023.
Capital Expenditure
- Focus: Infrastructure maintenance, data centers, and product development assets.
- Purchase Commitments: As of December 31, 2024, purchase commitments totaled US$647.0 million, primarily for marketing activities and internet connection.
Future Strategy
Weibo’s management has outlined several strategic priorities to drive future growth:
- User Growth and Engagement: Continuing to refine the Social Interest Graph (SIG) recommendation engine to push relevant content and improve user stickiness.
- AI Integration: Incorporating generative AI features to assist content creators and streamline product development.
- Content Ecosystem Enrichment: Strengthening partnerships with MCNs and copyright providers to diversify content formats, particularly in short video and live streaming.
- Monetization Diversification: Expanding Value-Added Services to reduce reliance on advertising revenue.
- Efficiency: Focusing on operating margins and cost management to maintain profitability in a mature market.
Key Strengths
- Massive User Scale: 590 million MAUs and 260 million DAUs provide an unparalleled reach in the Chinese market.
- Social Interest Graph (SIG): A proprietary recommendation engine that creates high barriers to entry by leveraging vast amounts of user social data.
- Content Ecosystem: A mature network of content creators, media outlets, and celebrities that generates a continuous stream of viral content.
- Brand Authority: The “Weibo” brand is deeply ingrained in Chinese internet culture as the go-to source for trends and public discussion.
- Financial Stability: Strong cash reserves of US$1.89 billion and consistent operating profitability.
Key Challenges and Risks
- Regulatory Environment: The company operates in a highly regulated industry in China. Evolving laws regarding data security (Data Security Law, PIPL), cybersecurity, and internet content censorship pose ongoing compliance challenges and potential penalties.
- Competition: Intense competition from major players like Tencent (WeChat) and Bytedance (Douyin/TikTok) for user time and advertising budgets.
- Content Risks: Liability for information displayed on the platform. Regulatory actions could result in the removal of content or suspension of services.
- Economic Sensitivity: Advertising revenues are sensitive to the macroeconomic conditions in China. Fluctuations in the economy directly impact advertiser spending.
- Investment Impairments: The company faces risks related to the valuation of its investment portfolio, evidenced by a US$93.4 million impairment charge in 2024.
Conclusion and Strategic Outlook
Weibo Corporation remains a cornerstone of China’s social media landscape, distinguished by its massive user base and unique position as a public square for discourse. In 2024, the company demonstrated resilience by maintaining robust profitability and operating cash flow despite a flat revenue environment.
Moving forward, Weibo’s strategy hinges on technological innovation, particularly the integration of AI to enhance content distribution and creation. By diversifying its revenue streams through Value-Added Services and maintaining strict cost discipline, Weibo aims to navigate the competitive and regulatory complexities of the Chinese internet sector. The company’s strong balance sheet and controlled ownership structure provide a stable foundation for long-term strategic execution.
Official Site: http://ir.weibo.com
FAQ Section:
- What is Weibo Corporation’s primary revenue source?Weibo generates approximately 85.4% of its revenue from Advertising and Marketing services, specifically through social display and promoted marketing solutions.
- How many active users does Weibo have?As of December 2024, Weibo has 590 million Monthly Active Users (MAUs) and 260 million Average Daily Active Users (DAUs).
- Who owns Weibo Corporation?Weibo is a controlled subsidiary of SINA Corporation. SINA holds 62.7% of the voting power through Class B ordinary shares. Alibaba is also a key strategic investor.
- What was Weibo’s total revenue in 2024?Weibo Corporation reported a total net revenue of US$1.75 billion for the fiscal year ended December 31, 2024.
- Where is Weibo headquartered?Weibo’s headquarters are located in Beijing, People’s Republic of China.
- Does Weibo pay dividends?Yes, Weibo paid a special cash dividend of US$199.4 million in 2024 and adopted a new cash dividend policy in March 2025.
Source: Content on FirmsWorld.com is based on publicly available corporate filings, regulatory disclosures, annual reports, SEC 10-K filings, investor relations materials, and, where applicable, direct communications with the company.
