Weibo Corporation reported third‑quarter 2025 revenue of $442.3 million, falling 1.12% below the consensus estimate of $447.31 million and marking a 5% year‑over‑year decline from $464.5 million in Q3 2024. The shortfall is largely attributable to a 6% drop in advertising and marketing revenue, which fell to $375.4 million, while value‑added services (VAS) grew modestly by 2% to $66.9 million. The advertising decline reflects weaker demand in categories that benefited from the Paris Olympics, coupled with intensified competition from other digital platforms.
Weibo’s diluted earnings per share (EPS) of $0.42 matched the consensus estimate of $0.42, a result that hinges on disciplined cost management and a 30% non‑GAAP operating margin—down from 35% a year earlier but still robust enough to offset the revenue dip. The company’s ability to preserve earnings despite lower top‑line growth underscores the effectiveness of its cost‑control initiatives and the resilience of its core advertising business.
Segment analysis shows that advertising and marketing revenue, the company’s primary income driver, slipped 6% YoY, while VAS revenue edged up 2% YoY. The VAS growth is driven by incremental revenue from e‑commerce and automotive advertising, which have benefited from the company’s AI‑enhanced targeting capabilities. In contrast, the advertising segment’s decline is linked to reduced spend in event‑driven categories and a shift in advertiser focus toward platforms with stronger real‑time bidding ecosystems.
CEO Gaofei Wang highlighted the progress of the company’s intelligent search platform, noting that the recent revamp of the homepage information feed—now centered on a recommendation feed—has improved user engagement and content consumption efficiency. CFO Fei Cao emphasized the transformative role of AI across the business, pointing to sustained growth in search queries and the strategic importance of AI in monetizing the platform’s large user base.
The market reacted positively, with Weibo’s shares rising 2.5% in pre‑market trading on November 18. The uptick was driven by the company’s ability to meet EPS expectations despite a revenue miss, and by investor confidence in its AI‑centric strategy and product innovations, which are expected to underpin future growth.
While the company did not provide explicit guidance for the next quarter, analysts and investors are optimistic about the potential for a rebound in advertising demand, particularly with the upcoming 2026 Winter Olympics, and the continued expansion of AI‑driven services that could offset current headwinds.
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