Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Document Entity Information | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-36397 |
Entity Registrant Name | WEIBO CORPORATION |
Entity Incorporation, State or Country Code | KY |
Entity Address, Address Line One | 8/F, QIHAO Plaza |
Entity Address, Address Line Two | No. 8 Xinyuan S. Road |
Entity Address, Address Line Three | Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100027 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Firm ID | 1424 |
Auditor Location | Beijing, the People’s Republic of China |
Entity Central Index Key | 0001595761 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Business Contact | |
Document Entity Information | |
Entity Address, Address Line One | 8/F, QIHAO Plaza |
Entity Address, Address Line Two | No. 8 Xinyuan S. Road |
Entity Address, Address Line Three | Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100027 |
Contact Personnel Name | Fei Cao |
Country Region | +86 |
City Area Code | 10 |
Local Phone Number | 5898-3095 |
Contact Personnel Fax Number | +86 10 8260-8888 |
ADS | |
Document Entity Information | |
Title of 12(b) Security | American depositary shares, each representing one Class A ordinary share |
Trading Symbol | WB |
Security Exchange Name | NASDAQ |
Entity Listing, Depository Receipt Ratio | 1 |
Common Stock | |
Document Entity Information | |
Entity Common Stock, Shares Outstanding | 242,610,942 |
Class A Ordinary shares | |
Document Entity Information | |
Title of 12(b) Security | Class A ordinary shares, par value US$0.00025 per share |
Entity Listing, Par Value Per Share | $ / shares | $ 0.00025 |
Entity Common Stock, Shares Outstanding | 154,788,918 |
No Trading Symbol Flag | true |
Class B ordinary shares | |
Document Entity Information | |
Entity Common Stock, Shares Outstanding | 87,822,024 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 2,584,635 | $ 2,690,768 |
Short-term investments | 641,035 | 480,428 |
Accounts receivable, net of allowances for doubtful accounts | 440,768 | 502,443 |
Prepaid expenses and other current assets (including loans to and interest receivable from other related parties of US$110,000 and US$100,000 as of December 31, 2022 and 2023, respectively) | 359,881 | 391,502 |
Total current assets | 4,512,716 | 4,552,258 |
Property and equipment, net | 220,663 | 249,553 |
Operating lease assets | 170,266 | 190,368 |
Intangible assets, net | 134,129 | 125,072 |
Goodwill | 166,436 | 120,151 |
Long-term investments | 1,320,386 | 993,630 |
Other non-current assets (including loans to and interest receivable from a related party of US$454,912 and US$349,716 as of December 31, 2022 and 2023, respectively) | 755,762 | 898,422 |
Total assets | 7,280,358 | 7,129,454 |
Current liabilities (including amounts of the consolidated VIEs without recourse to the primary beneficiary of US$575,057 and US$576,394 as of December 31, 2022 and 2023, respectively) : | ||
Accounts payable | 161,493 | 161,029 |
Accrued and other liabilities | 656,445 | 913,984 |
Operating lease liability, short-term | 10,388 | 9,694 |
Income taxes payable | 94,507 | 55,282 |
Deferred revenues | 75,187 | 79,949 |
Unsecured senior notes | 799,325 | |
Total current liabilities | 1,797,345 | 1,219,938 |
Long-term liabilities | ||
Convertible senior notes | 317,625 | |
Unsecured senior notes | 743,695 | 1,540,717 |
Long-term loans | 791,647 | 880,855 |
Deferred tax liability | 66,151 | 41,694 |
Operating lease liability, long-term | 42,857 | 55,710 |
Other non-current liabilities | 3,422 | |
Total long-term liabilities | 1,965,397 | 2,518,976 |
Total liabilities | 3,762,742 | 3,738,914 |
Commitments and contingencies | ||
Redeemable non-controlling interests | 68,728 | 45,795 |
Shareholders' equity: | ||
Ordinary shares | 61 | 59 |
Treasury stock (3,056 and nil shares as of December 31, 2022 and 2023, respectively) | (57,682) | |
Additional paid-in capital | 1,428,935 | 1,445,519 |
Accumulated other comprehensive loss | (217,817) | (102,740) |
Retained earnings | 2,187,556 | 2,045,094 |
Total Weibo shareholders' equity | 3,398,735 | 3,330,250 |
Non-controlling interests | 50,153 | 14,495 |
Total shareholders' equity | 3,448,888 | 3,344,745 |
Total liabilities, redeemable non-controlling interests and shareholders' equity | 7,280,358 | 7,129,454 |
Third parties | ||
Current assets: | ||
Accounts receivable, net of allowances for doubtful accounts | 341,486 | 378,500 |
Related party | Alibaba | ||
Current assets: | ||
Accounts receivable, net of allowances for doubtful accounts | 61,094 | 75,347 |
Related party | SINA | ||
Current assets: | ||
Amount due from SINA | 486,397 | 487,117 |
Other related parties | ||
Current assets: | ||
Accounts receivable, net of allowances for doubtful accounts | $ 38,188 | $ 48,596 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts receivables, net of allowances | $ 54,557,000 | $ 38,180,000 |
Prepaid expenses and other current assets | 359,881,000 | 391,502,000 |
Loans to and interest receivable from other related parties | 755,762,000 | 898,422,000 |
Current liabilities | $ 1,797,345,000 | $ 1,219,938,000 |
Ordinary shares, par value (in dollars per share) | $ 0.00025 | $ 0.00025 |
Ordinary shares, shares authorized | 2,400,000,000 | 2,400,000,000 |
Ordinary shares, shares issued | 237,242,000 | |
Ordinary shares, shares outstanding | 242,611,000 | 234,186,000 |
Treasury stock | 0 | 3,056 |
Related party | Loans to and interest receivable | ||
Loans to and interest receivable from other related parties | $ 349,716,000 | $ 454,912,000 |
Other related parties | ||
Accounts receivables, net of allowances | 0 | 555,000 |
Loans to and interest receivable | 100,000,000 | 110,000,000 |
Third parties | ||
Accounts receivables, net of allowances | 54,557,000 | 37,625,000 |
Loans to and interest receivable | 137,042,000 | 136,683,000 |
Consolidated VIEs | ||
Prepaid expenses and other current assets | 165,557,000 | 179,516,000 |
Consolidated VIEs | Without recourse | ||
Current liabilities | 576,394,000 | 575,057,000 |
Alibaba | Related party | ||
Accounts receivables, net of allowances | 0 | 0 |
Other related parties | Related party | ||
Loans to and interest receivable | $ 100,000,000 | $ 110,000,000 |
Class A ordinary shares | ||
Ordinary shares, shares authorized | 1,800,000,000 | 1,800,000,000 |
Ordinary shares, shares outstanding | 154,789,000 | 142,417,000 |
Class B ordinary shares | ||
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 |
Ordinary shares, shares issued | 94,825,000 | |
Ordinary shares, shares outstanding | 87,822,000 | |
Ordinary shares to be designated | ||
Ordinary shares, shares authorized | 400,000,000 | 400,000,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | |||
Total revenues | $ 1,759,836 | $ 1,836,332 | $ 2,257,083 |
Costs and Expenses | |||
Cost of revenues | 374,279 | 400,585 | 403,841 |
Sales and marketing | 461,421 | 477,107 | 591,682 |
Product development | 333,628 | 415,190 | 430,673 |
General and administrative | 117,574 | 52,806 | 133,475 |
Impairment of intangible assets | 10,176 | ||
Total costs and expenses | 1,286,902 | 1,355,864 | 1,559,671 |
Income from operations | 472,934 | 480,468 | 697,412 |
Income (loss) from equity method investments | 13,392 | (24,069) | 14,217 |
Realized gain (loss) from investments | (766) | 1,591 | 3,243 |
Fair value changes through earnings on investments, net | 43,002 | (243,619) | (72,787) |
Investment-related impairment and provision | (23,642) | (71,081) | (106,800) |
Interest income | 118,209 | 105,434 | 77,280 |
Interest expense | (120,070) | (71,598) | (71,006) |
Other income (loss), net | (277) | (49,040) | 9,159 |
Income before income tax expenses | 502,782 | 128,086 | 550,718 |
Less: income tax expenses | 145,287 | 30,277 | 138,841 |
Net income | 357,495 | 97,809 | 411,877 |
Less: Net income (loss) attributable to non-controlling interests and redeemable non-controlling interests | 2,095 | 12,254 | (16,442) |
Accretion to redeemable non-controlling interests | 12,802 | ||
Net income attributable to Weibo's shareholders | 342,598 | 85,555 | 428,319 |
Other comprehensive income (loss) | |||
Currency translation adjustments (for which there were no taxes) | (114,683) | (261,729) | 78,196 |
Total comprehensive income (loss) | 242,812 | (163,920) | 490,073 |
Less: comprehensive income (loss) attributable to non-controlling interests and redeemable non-controlling interests | 15,291 | 10,197 | (15,652) |
Comprehensive income (loss) attributable to Weibo's shareholders | $ 227,521 | $ (174,117) | $ 505,725 |
Shares used in computing net income per share attributable to Weibo's shareholders: | |||
Basic (in shares) | 235,560 | 235,164 | 228,814 |
Diluted (in shares) | 239,974 | 236,407 | 230,206 |
Income per share: | |||
Basic (in dollars per share) | $ 1.45 | $ 0.36 | $ 1.87 |
Diluted (in dollars per share) | $ 1.43 | $ 0.36 | $ 1.86 |
Advertising and marketing revenues | |||
Revenues: | |||
Total revenues | $ 1,534,014 | $ 1,596,650 | $ 1,980,795 |
Advertising and marketing revenues | Third parties | |||
Revenues: | |||
Total revenues | 1,344,354 | 1,392,723 | 1,633,242 |
Advertising and marketing revenues | Other related parties | |||
Revenues: | |||
Total revenues | 32,733 | 40,524 | 69,953 |
Advertising and marketing revenues | Alibaba | Related party | |||
Revenues: | |||
Total revenues | 111,608 | 107,197 | 181,241 |
Advertising and marketing revenues | SINA | Related party | |||
Revenues: | |||
Total revenues | 45,319 | 56,206 | 96,359 |
Value-added services revenues | |||
Revenues: | |||
Total revenues | $ 225,822 | $ 239,682 | $ 276,288 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Currency translation adjustments, tax | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Ordinary Shares | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Non-controlling Interests | Total |
Balance at beginning at Dec. 31, 2020 | $ 57 | $ 1,201,622 | $ 79,526 | $ 1,531,220 | $ 16,191 | $ 2,828,616 | |
Balance at beginning (in shares) at Dec. 31, 2020 | 227,688 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Issuance of ordinary shares pursuant to stock plan | $ 1 | 1,312 | 1,313 | ||||
Issuance of ordinary shares pursuant to stock plan (in shares) | 1,715 | ||||||
Issuance of shares - global offering, net of issuance costs | $ 1 | 178,739 | 178,740 | ||||
Issuance of shares - global offering, net of issuance costs (in shares) | 5,500 | ||||||
Shares lent to underwriters for settlement of over-allocations | 1,650 | ||||||
Compensation cost to non-controlling interest shareholders | 3,215 | 3,215 | |||||
Disposal of subsidiaries with non-controlling interests | (278) | 12 | (266) | ||||
Acquisition of a subsidiary with non-controlling interests | 10,811 | 10,811 | |||||
Non-cash stock-based compensation | 95,896 | 95,896 | |||||
Net income (loss) before accretion to redeemable non-controlling interests | 428,319 | (16,442) | 411,877 | ||||
Net loss attributable to redeemable non-controlling interests | 13,000 | 13,000 | |||||
Currency translation adjustments | 77,406 | 790 | 78,196 | ||||
Balance at ending at Dec. 31, 2021 | $ 59 | 1,477,291 | 156,932 | 1,959,539 | 27,577 | 3,621,398 | |
Balance at ending (in shares) at Dec. 31, 2021 | 236,553 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Issuance of ordinary shares pursuant to stock plan (in shares) | 2,339 | ||||||
Shares returned from underwriters for settlement of over-allocations (in shares) | (1,650) | ||||||
Repurchase of American depositary shares ("ADSs") | $ (57,682) | (57,682) | |||||
Repurchase of American depositary shares ("ADSs") (in shares) | (3,056) | ||||||
Compensation cost to non-controlling interest shareholders | 1,368 | 1,368 | |||||
Reversal of compensation cost to non-controlling interest shareholders | (4,274) | (4,274) | |||||
Non-cash stock-based compensation | 119,006 | 119,006 | |||||
Net income (loss) before accretion to redeemable non-controlling interests | 85,555 | 12,254 | 97,809 | ||||
Net loss attributable to redeemable non-controlling interests | 10,298 | 10,298 | |||||
Contribution from non-controlling interest shareholders | 8,520 | (25,535) | (17,015) | ||||
Purchase of a subsidiary's shares from non-controlling shareholders | (270) | (5,136) | (5,406) | ||||
Acquisition of Sina.com Technology (China) Co., Ltd ("STC") | (159,028) | (159,028) | |||||
Currency translation adjustments | (259,672) | (2,057) | (261,729) | ||||
Balance at ending at Dec. 31, 2022 | $ 59 | $ (57,682) | 1,445,519 | (102,740) | 2,045,094 | 14,495 | $ 3,344,745 |
Balance at ending (in shares) at Dec. 31, 2022 | 237,242 | 237,242,000 | |||||
Balance at ending (in shares) at Dec. 31, 2022 | (3,056) | 3,056 | |||||
Increase (Decrease) in Shareholders' Equity | |||||||
Issuance of ordinary shares pursuant to stock plan | $ 1 | $ 1 | |||||
Issuance of ordinary shares pursuant to stock plan (in shares) | 2,191 | ||||||
Acquisition of a subsidiary with non-controlling interests | 37,071 | 37,071 | |||||
Retirement of repurchased American depositary shares ("ADSs") | $ (1) | $ 57,682 | (57,681) | ||||
Retirement of repurchased American depositary shares ("ADSs") (in shares) | (3,056) | 3,056 | |||||
ADS lending arrangement in connection with issuance of convertible senior notes | $ 2 | 2,000 | 2,002 | ||||
ADS lending arrangement in connection with issuance of convertible senior notes (in shares) | 6,234 | ||||||
Non-cash stock-based compensation | 107,883 | 107,883 | |||||
Net income (loss) before accretion to redeemable non-controlling interests | 342,598 | 2,095 | 344,693 | ||||
Changes due to investment in INMYSHOW | (71,695) | (71,695) | |||||
Contribution from non-controlling interest shareholders | 3,869 | 3,869 | |||||
Purchase of a subsidiary's shares from non-controlling shareholders | (960) | (3,902) | (4,862) | ||||
Dividends to shareholders | (200,136) | (200,136) | |||||
Currency translation adjustments | (115,077) | 394 | (114,683) | ||||
Balance at ending at Dec. 31, 2023 | $ 61 | $ 1,428,935 | $ (217,817) | $ 2,187,556 | $ 50,153 | $ 3,448,888 | |
Balance at ending (in shares) at Dec. 31, 2023 | 242,611 | ||||||
Balance at ending (in shares) at Dec. 31, 2023 | 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 357,495 | $ 97,809 | $ 411,877 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 58,509 | 54,694 | 55,008 |
Stock-based compensation | 101,131 | 111,713 | 87,996 |
Amortization of operating lease assets | 13,792 | 11,461 | 6,224 |
Non-cash compensation cost to non-controlling interest shareholders | 11,541 | (20,638) | 23,246 |
Provision of allowance for credit losses | 19,092 | 4,440 | 19,702 |
Deferred income taxes | 24,038 | (24,821) | (12,478) |
Foreign currency exchange loss | 9,142 | 66,975 | |
(Income) loss from equity method investments | (13,392) | 24,069 | (14,217) |
Dividend received from equity method investments | 771 | 5,772 | 11,695 |
(Gain) loss on sale of investments | 766 | (1,591) | (3,243) |
Fair value changes through earnings on investments, net | (43,002) | 243,619 | 72,787 |
Investment-related impairment and provision | (23,642) | (71,081) | (106,800) |
Impairment of intangible assets | 10,176 | ||
Gain on disposal of property and equipment | (444) | (240) | (172) |
Amortization of issuance cost of convertible senior notes, unsecured senior notes and long-term loans | 8,287 | 6,273 | 6,445 |
Changes in assets and liabilities: | |||
Prepaid expenses and other current assets | 6,157 | (20,686) | 2,589 |
Other non-current assets | (13,156) | (27,980) | (14,512) |
Accounts payable | 19,665 | (35,481) | 41,809 |
Accrued and other liabilities | (197) | (38,058) | 274,803 |
Deferred revenues | (1,905) | (3,925) | (56,181) |
Operating lease liabilities | (9,612) | (10,128) | (6,684) |
Income taxes payable | 40,656 | (79,623) | 38,910 |
Net cash provided by operating activities | 672,820 | 564,104 | 814,020 |
Cash flows from investing activities: | |||
Purchases of bank time deposits and wealth management products | (755,315) | (629,889) | (1,170,070) |
Maturities of bank time deposits and wealth management products | 585,466 | 859,075 | 2,040,599 |
Investment in and prepayment on long-term investments | (602,740) | (193,784) | (1,593,880) |
Proceeds from disposal of/refund of prepayment on long-term investments | 347,766 | 141,806 | 447,381 |
Proceeds from disposal of property and equipment | 463 | 269 | 383 |
Purchases of property and equipment | (36,772) | (43,136) | (35,094) |
Prepayment for purchase of SINA Plaza | (153,572) | (132,531) | |
Cash received from (paid for) acquisitions, net of cash acquired | (243,385) | 939 | (61,160) |
Prepayment to agent for share repurchase | (2,318) | ||
Return of prepayment to agent for share repurchase | 2,318 | ||
Net cash used in investing activities | (736,846) | (33,014) | (423,960) |
Cash flows from financing activities: | |||
Proceeds from employee options exercised | 1 | 0 | 1,313 |
Payments for share repurchases | (57,682) | ||
Cash received from (paid for) global offering, net of issuance costs | (8,414) | 188,129 | |
Proceeds from long-term loans, net of issuance costs | 4,982 | 880,353 | |
Repayment of convertible senior notes | (899,992) | ||
Repayment of long-term loans | (100,000) | ||
Proceeds from convertible senior notes, net of issuance costs | 321,707 | ||
Proceeds from ADS lending arrangement in connection with issuance of convertible senior notes | 2 | ||
Purchase of a subsidiary's shares from non-controlling shareholders | (4,871) | (5,406) | |
Dividends paid to shareholders | (200,131) | ||
Net cash provided by (used in) financing activities | 21,690 | (91,141) | 189,442 |
Effect of exchange rate changes on cash and cash equivalents | (63,797) | (172,884) | 29,357 |
Net increase (decrease) in cash and cash equivalents | (106,133) | 267,065 | 608,859 |
Cash and cash equivalents at the beginning of the year | 2,690,768 | 2,423,703 | 1,814,844 |
Cash and cash equivalents at the end of the year | 2,584,635 | 2,690,768 | 2,423,703 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest expenses on convertible senior notes, unsecured senior notes and long-term loans | (111,231) | (64,562) | (37,906) |
Cash paid for income taxes | (79,476) | (135,055) | (111,260) |
Non-cash investing and financing activities | |||
Property and equipment in accounts payable | 4,179 | 17,641 | 5,520 |
Unpaid consideration for acquisition of STC | 218,402 | ||
Unpaid consideration for other acquisitions | (5,674) | (687) | (6,293) |
Third parties | |||
Changes in assets and liabilities: | |||
Accounts receivable due from | 7,291 | 159,365 | (273,728) |
Related party | Alibaba | |||
Changes in assets and liabilities: | |||
Accounts receivable due from | 12,321 | 10,162 | 49,003 |
Related party | SINA | |||
Changes in assets and liabilities: | |||
Amount due from SINA | 30,741 | (47,303) | (7,787) |
Cash flows from investing activities: | |||
Loans to SINA | (1,105,747) | (1,261,880) | (978,162) |
Repayment of loans by SINA | 1,071,100 | 1,249,476 | 1,058,574 |
Other related parties | |||
Changes in assets and liabilities: | |||
Accounts receivable due from | $ 9,491 | $ (3,031) | $ (5,872) |
Operations
Operations | 12 Months Ended |
Dec. 31, 2023 | |
Operations | |
Operations | 1. Operations Weibo Corporation (“Weibo” or the “Company”) is a leading social media platform in China for people to create, discover and distribute content. By providing a simple and inspirational way for people and organizations in China and the global Chinese communities to express themselves publicly in real time, interact with others on a platform with vast scale and stay connected with the world, Weibo has had a profound social impact in China. Launched in 2009, Weibo has been committed to enabling faster, easier, and richer connection among people and has become an integral part of many of Weibo users’ daily lives. Incorporated in the Cayman Islands, Weibo Corporation is a controlled subsidiary of Sina Corporation (the “Parent” or “SINA”). In April 2014, the Company completed an initial public offering (the “IPO”) and received US$306.5 million in net proceeds. Immediately prior to the completion of the IPO, all the ordinary shares held by SINA were converted into an equal number of the Class B ordinary shares, all the ordinary shares held by other shareholders converted into an equal number of the Class A ordinary shares, and all of its outstanding preferred shares automatically converted into Class A ordinary shares. Each Class A ordinary share is entitled to one vote per share and each Class B ordinary share is entitled to three votes per share. Each Class B ordinary share can be converted into one Class A ordinary share at any time, while Class A ordinary shares cannot be converted into Class B ordinary shares. In December 2021, the Company successfully listed its Class A ordinary shares on the main board of the Hong Kong Stock Exchange. Net proceeds from the offering, after deducting estimated underwriting fees and other offering expenses, were approximately US$178.4 million. Weibo Corporation is an exempted company with limited liability under the laws of the Cayman Islands. WB Online and Weibo HK are wholly owned subsidiaries of the Company, and Weibo Technology, a wholly foreign-owned enterprise, (“the WFOE”), is a subsidiary of Weibo HK. The operation of Weibo business is carried out by various subsidiaries and variable interest entities (“VIE”) of the Company. The Company’s VIEs and VIEs’ subsidiaries are controlled by the WFOE through a series of contractual agreements. Weibo Corporation, its subsidiaries, VIEs and VIEs’ subsidiaries together are referred to as “the Group”. The following sets forth the Company’s major subsidiaries and major VIEs: Percentage of Direct/ Indirect Date of Place of Economic Company Incorporation Incorporation Interest Major Subsidiaries Weibo Hong Kong Limited (“Weibo HK”) July 19, 2010 Hong Kong 100 % Weibo Internet Technology (China) Co., Ltd. (“Weibo Technology” or “the WFOE”) October 11, 2010 PRC 100 % WB Online Investment Limited (“WB Online”) June 5, 2014 Cayman Islands 100 % Hangzhou Weishichangmeng Advertising Co., Ltd. (“Weishichangmeng”) September 25, 2018 PRC 100 % Major VIEs Beijing Weimeng Technology Co., Ltd (“Weimeng”) August 9, 2010 PRC 99 % Beijing Weimeng Chuangke Investment Management Co., Ltd. (“Weimeng Chuangke”) April 9, 2014 PRC 100 % 1. Operations (Continued) Intellectual Property License Agreement The intellectual property license agreement was entered into by and between SINA and the Company in April 2013. Under this agreement, SINA granted the Company and its subsidiaries a perpetual, worldwide, royalty-free, fully paid-up, non-sub licensable, non-transferable, limited, exclusive license of certain trademarks and a non-exclusive license of certain other intellectual property owned by SINA to make, sell, offer to sell and distribute products, services and applications on a microblogging and social networking platform. The Company granted SINA and its affiliates a non-exclusive, perpetual, worldwide, non-sub licensable, non-transferable limited license of certain of the Company’s intellectual property to use, reproduce, modify, prepare derivative works of, perform, display or otherwise exploit such intellectual property. This agreement commenced on April 29, 2013 and will continue to be in effect unless and until terminated as provided in the agreement. Transactions between SINA and Weibo Accounts receivable directly related to the Group but for which SINA will receive payments and remit payments to the Group, as well as accounts receivable directly from SINA, are included in the amount due from SINA. Liabilities directly related to the Group but for which SINA will make payments and receive reimbursements from the Group, as well as liabilities directly to SINA, are included in the amount due to SINA. The amount due from/to SINA is presented as an offsetting balance on the Group’s consolidated balance sheets. Loans from SINA are presented under cash flow from financing activities, whereas loans to SINA are presented under investing activities in the consolidated statements of cash flows. Cash payment for billings from SINA for costs and expenses allocated to the Group is presented under operating activities in the consolidated statements of cash flows. The Group’s consolidated statements of comprehensive income contain all the related costs and expenses of the Weibo business, including allocation to the cost of revenues, sales and marketing expenses, product development expenses, and general and administrative expenses, which are incurred by SINA but related to the Weibo business. These allocations were based on proportional cost allocation by considering proportion of the revenues, infrastructure usage metrics and labor usage metrics, among other things, attributable to the Group and are made on a basis considered reasonable by mutual managements. Refer to Note 6 for information related to the acquisition of STC. Total costs and expenses allocated from SINA were as follows: Year Ended December 31, 2021 2022 2023 (In US$ thousands) Cost of revenues $ 14,749 $ 17,255 $ 12,313 Sales and marketing 3,319 1,953 — Product development 10,083 12,192 6,850 General and administrative 10,119 15,778 17,320 $ 38,270 $ 47,178 $ 36,483 While the costs and expenses allocated to the Group for these items are not necessarily indicative of the costs and expenses that would have been incurred if the Group had transactions with independent third-party suppliers directly or hired more employees, the Company does not believe there would be any significant difference between the nature and amounts of these allocated costs and expenses and the ones that would have been incurred if the Group had transactions with independent third-party suppliers directly or hired more employees. 1. Operations (Continued) Consolidation The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, VIEs controlled by the WFOE through a series of contractual agreements, and VIEs’ subsidiaries. All significant intercompany balances and transactions have been . To comply with PRC laws and regulations, the Group provides a substantial amount of its services in China via the VIEs, which hold critical operating licenses that enable the Group to do business in China. Most of the Group’s revenues, costs and expenses, and net income before intercompany transactions in China were generated directly or indirectly through the VIEs and VIEs’ subsidiaries. The Company relies on contractual arrangements among its PRC subsidiaries, the VIEs and their shareholders to control the business operations of the VIEs and VIEs’ subsidiaries and the Group has determined that Weibo Technology, the WFOE, is the primary beneficiary of the VIEs through its contractual arrangements with the VIEs. Accordingly, the Company has consolidated the results of operations and assets and liabilities of VIEs and VIEs’ subsidiaries in the Group’s financial statements pursuant to the United States Generally Accepted Accounting Principles (“US GAAP”) for all the periods presented. Shareholders of the VIEs are certain nominee shareholders from the Company or SINA. The capital for their investments in the VIEs is funded by the Company and recorded as interest-free loans to these individuals. These loans were eliminated with the capital of the VIEs during consolidation. Each shareholder of the VIEs has agreed to transfer their equity interest in the VIEs to Weibo Technology when permitted by PRC laws and regulations or to designees of the Company at any time for the amount of loans outstanding. All voting rights of the VIEs, including without limitation the right to appoint all directors of the VIEs, has been assigned to Weibo Technology. Weibo Technology has also entered into exclusive technical service agreements with the VIEs under which Weibo Technology provides technical and other services to the VIEs in exchange for substantially all net income of the VIEs. In addition, the shareholders of the VIEs have pledged their shares in the VIEs as collateral for the non-payment of loans or for the technical and other services fees due to Weibo Technology. As of December 31, 2022 and 2023, the total amounts of interest-free loans to the VIEs’ shareholders were US$84.8 million and US$82.2 million, respectively. The VIEs and VIEs’ subsidiaries had accumulated deficit of US$150.8 million and US$125.5 million as of December 31, 2022 and 2023,respectively, which were included in the Group’s consolidated financial statements. 1. Operations (Continued) Consolidation (Continued) The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and VIEs’ subsidiaries taken as a whole, which are included in the Group’s consolidated balance sheets and consolidated statements of comprehensive income: As of December 31, 2022 2023 (In US$ thousands) Cash and cash equivalents $ 657,578 $ 625,486 Short-term investments 53,822 35,870 Accounts receivable 467,083 426,420 Prepaid expenses and other current assets 179,516 165,557 Amount due from SINA 17,908 12,919 Property and equipment, net 1,641 1,721 Operating lease assets 25,776 23,082 Intangible assets, net 124,856 133,920 Goodwill 120,151 166,436 Long-term investments 327,423 266,718 Other non-current assets 295,500 202,695 Total assets $ 2,271,254 $ 2,060,824 Accounts payable $ 97,269 $ 118,773 Accrued and other liabilities 405,979 380,810 Income taxes payable 25,055 31,987 Deferred revenues 45,433 42,254 Amount due to the subsidiaries of the Group 1,676,499 1,393,967 Operating lease liability 26,756 25,791 Deferred tax liability 28,665 29,732 Other non-current liabilities — 3,422 Total liabilities 2,305,656 2,026,736 Redeemable non-controlling interests 45,795 68,728 Total shareholders’ equity (80,197) (34,640) Total liabilities, redeemable non-controlling interests and shareholders’ equity $ 2,271,254 $ 2,060,824 1. Operations (Continued) Consolidation (Continued) Year Ended December 31, 2021 2022 2023 (In US$ thousands) Total revenues $ 1,821,294 $ 1,540,585 $ 1,531,675 Net income (loss) $ (36,406) $ (18,356) $ 25,343 Year Ended December 31, 2021 2022 2023 (In US$ thousands) Net cash provided by (used in) operating activities $ 335,940 $ (136,442) $ 159,891 Net cash provided by (used in) investing activities $ (583,397) $ 410,164 $ 88,119 Net cash provided by (used in) financing activities $ 156,997 $ 226,938 $ (260,289) Under the contractual arrangements with the VIEs, the Company has the power to direct activities of the VIEs through Weibo Technology and can have assets transferred freely out of the VIEs without restrictions. Therefore, the Company considers that there is no asset of the VIEs that can only be used to settle obligations of the VIEs and VIEs’ subsidiaries, except for the registered capital and non-distributable reserve funds of the VIEs and VIEs’ subsidiaries, amounting to US$228.0 million and US$209.3 million as of December 31, 2022 and 2023, respectively. Since the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of the Company. There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs. As the Company is conducting certain businesses mainly through the VIEs, the Company may provide such support on a discretionary basis in the future, which could expose the Company to a loss. The total amount of costs and expenses allocated from SINA to the VIEs was US$3.4 million, US$4.2 million and US$6.6 million for 2021, 2022 and 2023, respectively. The VIEs hold assets with no carrying value in the consolidated balance sheets that are important to the Company’s ability to produce revenue (referred to as unrecognized revenue-producing assets). Unrecognized revenue-producing assets held by the VIEs include the Internet Content Provision License, the Online Culture Operating Permit, the domain names of Weibo.com, Weibo.cn and Weibo.com.cn and so on. Recognized revenue-producing assets held by the VIEs include game technology, supplier-relationship contracts, and trademark and domain names, which were acquired through the previous acquisitions. Unrecognized revenue-producing assets, including customer lists relating to advertising and marketing services, membership, and game-related services, as well as trademarks, are also held by Weibo Technology. The following is a summary of the VIE agreements with Weimeng. The VIE agreements with Weimeng Chuangke are substantially the same as those described below: Loan Agreements. Share Transfer Agreements. Loan Repayment Agreements. 1. Operations (Continued) Consolidation (Continued) Agreement on Authorization to Exercise Shareholder’s Voting Power. Share Pledge Agreements. Exclusive Technical Services Agreement, Exclusive Sales Agency Agreement and Trademark License Agreement. Spousal Consent Letters. These VIE agreements provide Weibo Technology with the power to direct the activities that most significantly affect the economic performance of the Group’s consolidated VIEs and enable the Group to receive substantially all of the economic benefits generated by them. For the years ended December 31, 2021, 2022 and 2023, the total amount of service fees that Weibo Technology charged to Weimeng under these service agreements and trademark license agreement was US$1,026.2 million, US$745.1 million and US$714.8 million, respectively, which were based on the actual cost incurred from providing the services and the operations of Weimeng. Weibo Technology, Weimeng Chuangke and Weimeng Chuangke’s shareholders have entered into contractual arrangements which contain agreements and terms substantially similar to Weibo Technology’s contractual arrangements with Weimeng and Weimeng’s shareholders described above. 1. Operations (Continued) Consolidation (Continued) Minority Investment in Weimeng In April 2020, WangTouTongDa (Beijing) Technology Co., Ltd., a subsidiary of a state-owned enterprise, China Internet Investment Fund Management Co., Ltd., which is owned by several state-owned enterprises, made an investment of approximately RMB10.7 million in Weimeng for 1% of Weimeng’s enlarged registered capital. Such third-party minority stake holder is entitled to customary economic rights in proportion to its equity ownership, and certain minority shareholder rights such as the right to appoint a director to Weimeng’s three-member board of directors, and veto rights over certain matters related to content decision, and certain future financings of Weimeng. The third-party minority stake holder is not a party to the contractual arrangements mentioned above that are currently in effect among Weimeng, Weibo Technology and Weimeng’s other shareholders. As such, despite the fact that the Company is still able to enjoy economic benefits and exercise effective control over Weimeng and its subsidiaries, the Company is not able to purchase or have the third-party minority stake holder pledge its 1% equity interests in Weimeng in the same manner as agreed under existing contractual arrangements, nor is it granted the authorization of voting rights over these 1% equity interests. The Company believes Weibo Technology, the wholly-owned PRC subsidiary, still controls and is the primary beneficiary of Weimeng as it continues to have a controlling financial interest in Weimeng pursuant to ASC 810-10-25-38A after the issuance of such 1% equity interests. The Company believes that the contractual arrangements among the WFOE, VIEs and VIEs’ shareholders are in compliance with the current PRC laws and legally enforceable. However, uncertainties in the interpretation and enforcement of the PRC laws, regulations and policies could limit the Company’s ability to enforce these contractual arrangements. As a result, the Company may be unable to consolidate the VIEs and VIEs’ subsidiaries in the consolidated financial statements. The Company’s ability to control the VIEs also depends on the authorization by the shareholders of the VIEs to exercise voting rights on all matters requiring shareholder approval in the VIEs. The Company believes that the agreements on authorization to exercise shareholder’s voting power are legally enforceable. In addition, if the legal structure and contractual arrangements with the VIEs were found to be in violation of any future PRC laws and regulations, the Company may be subject to fines or other actions. The Company believes the possibility that it will no longer be able to control and consolidate the VIEs as a result of the aforementioned risks and uncertainties is remote. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of presentation The preparation of the Group’s consolidated financial statements is in conformity with U.S. GAAP. The consolidated financial statements include the accounts of Weibo, its wholly owned subsidiaries, VIEs, and VIEs’ subsidiaries. All significant intercompany balances and transactions have been eliminated. Use of estimates Conformity with U.S. GAAP requires the use of estimates and judgments that affect the reported amounts in the consolidated financial statements and accompanying notes. These estimates form the basis for judgments the management makes about the carrying values of the assets and liabilities, which are not readily apparent from other sources. U.S. GAAP requires making estimates and judgments in several areas, including, but not limited to, the basis of consolidation, revenue recognition, fair value accounting, income taxes, long-term investments, goodwill and other long-lived assets, allowances for credit losses, stock-based compensation, the estimated useful lives of assets, convertible senior notes, business combination, and foreign currency. The management bases the estimates and judgments on historical information and on various other assumptions that management believes are reasonable under the circumstances. Actual results could differ materially from such estimates. Revenue recognition Under ASC 606, revenues are recognized when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. The Group identifies its contracts with customers and all performance obligations within those contracts. The Group then determines the transaction price and allocates the transaction price to the performance obligations within the Group’s contracts with customers, recognizing revenue when, or as, the Group satisfies its performance obligations. 2. Significant Accounting Policies (Continued) Revenue recognition (Continued) The Group does not believe that significant management judgments are involved in revenue recognition, but the amount and timing of the Group’s revenues could be different for any period if management made different judgments. Certain customers may receive sales rebates, which are accounted for as variable consideration. The Group estimates annual expected revenue volume of each individual agent with reference to their historical results. The Group recognizes revenue for the amount of fees it receives from its customers, after deducting estimated sales rebates and net of value-added tax (“VAT”) under ASC 606. The Group believes that there will not be significant changes to its estimates of variable consideration. The Group considers the ultimate beneficiary of its online advertising services as an “advertiser,” meaning the party whose products, brand awareness or marketing activities benefited from the execution of advertisement. The Group considers a party that it enters into an advertisement service contract with as its “customer” from accounting perspective. As such, the Group treats an advertising agency who enters into an advertisement service contract with it as a customer, and such advertising agency may represent and serve multiple advertisers. If an advertiser directly enters into an advertisement service contract with the Group, it will treat such advertiser also as a customer. Revenue disaggregated by revenue source for the years ended December 31, 2021, 2022 and 2023 consists of the following: Year Ended December 31, 2021 2022 2023 (In US$ thousands) Advertising and marketing revenues Revenues from advertisers signing contracts with the Group directly $ 478,874 $ 356,503 $ 437,276 Revenues from advertising agencies 1,501,921 1,240,147 1,096,738 1,980,795 1,596,650 1,534,014 Value-added services revenues 276,288 239,682 225,822 Total revenues $ 2,257,083 $ 1,836,332 $ 1,759,836 The Group enters into contracts with its customers, which may give rise to contract assets (unbilled revenue) or contract liabilities (deferred revenue). The payment terms and conditions within the Group’s contracts vary by the type and location of its customers and products or services purchased, the substantial majority of which are due in less than one year. Deferred revenues related to unsatisfied performance obligations at the end of the period are mainly from the customer advance of the advertising and marketing services and the sales of the fee-based services, such as membership, and virtual currency or in-game virtual items sold for game related services. The deferred revenues are recognized based on customers’ consumption or amortized on a straight-line basis through the service period for different products/services. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following reporting period. The amount of revenue recognized that was included in the deferred revenue balance at the beginning of the period was US$126.5 million, US$56.1 million and US$49.9 million for the years ended December 31, 2021, 2022 and 2023, respectively. Practical Expedients and Exemptions The Group generally expenses sales commissions when incurred because the amortization period is generally one year or less. These costs are recorded within sales and marketing expenses. Advertising and marketing revenues Advertising and marketing revenues are derived principally from online advertising, including social display ads and promoted marketing. Social display ad arrangements allow customers to place advertisements on particular areas of the Group’s platform or website in particular formats and over particular periods of time, which is typically no more than three months. The Group enters into cost per mille (“CPM”), or cost per thousand impressions, advertising arrangements with the customers, under which the Group recognizes revenues based on the number of times that the advertisement has been displayed. The Group also enters into cost per day (“CPD”) advertising arrangements with customers, under which the Group recognizes revenues ratably over the contract periods. Promoted marketing arrangements are primarily priced based on CPM. Under the CPM model, customers are obligated to pay when the advertisement is displayed. 2. Significant Accounting Policies (Continued) Revenue recognition (Continued) Advertising and marketing revenues (Continued) The Group’s majority revenue transactions are based on standard business terms and conditions, which are recognized net of agency rebates. The agency rebates are accounted for as variable consideration and are estimated during interim periods based on estimated annual revenue volume of each individual agent with reference to their historical results, which involves accounting judgment. The Group believes its estimation approach in variable consideration results in revenue recognition in a manner consistent with the underlying economics of the transaction. The Group’s contracts with customers may include multiple performance obligations, which primarily consist of combinations of service to allow customers to place advertisements on different areas of its platform or website. For such arrangements, advertising arrangements involving multiple deliverables are broken down into single-element arrangements based on their stand-alone selling price for revenue recognition purposes. The estimation of stand-alone selling price involves significant judgment, especially for the deliverables that have not been sold separately. For those deliverables, the Group determines best estimate of the stand-alone selling price by taking into consideration of the pricing of advertising areas of the Group’s platform or website with similar popularities and advertisements with similar formats and quoted prices from competitors and other market conditions. The Group believes the estimation approach in stand-alone selling price and allocation of the transaction price on a relative stand-alone selling price to each performance obligation results in revenue recognition in a manner consistent with the underlying economics of the transaction and the allocation principle included in ASC 606. Revenues recognized with reference to best estimation of selling price were immaterial for all periods presented. Most of such contracts have all performance obligations completed within one year. Changes in judgments on these assumptions and estimates could materially impact the timing or amount of revenue recognition. Contracts with customers of online advertising may require cooperation from third parties. The Group pays a predetermined portion of revenues earned from advertising contracts to the third parties such as key opinion leaders who participate in advertising and promotion activities by monetizing their social assets. The Group has determined that it is the principal in these transactions, as it has primary responsibility for fulfilling all the obligations related to advertising contracts. The Group has discretion in establishing pricing of the contracts and controls the advertising inventory before the delivery to customers. The Group records revenues derived from such contracts on a gross basis and the portion paid to the third parties is recognized as cost of revenues. Value-added services revenues The Group generates value-added services revenues principally from fee-based services, mainly including membership, and game-related services. Revenues from these services are recognized when control of the promised services is transferred to customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those services. Membership. Game-related services. 2. Significant Accounting Policies (Continued) Cost of revenues Cost of revenues consists mainly of costs associated with the maintenance of platform, which primarily include bandwidth and other infrastructure costs, revenue-share cost, advertisement production cost, labor cost and turnover taxes levied on the revenues, part of which were allocated from SINA. The Group is subject to 3% cultural business construction fees for its advertising and marketing revenues, which is included in cost of revenues. Starting from July 1 2019, the 3% cultural business construction fees was reduced to 1.5%, valid until December 31, 2024. Moreover, as part of the measures taken by the government to ease the negative impact from COVID-19 pandemic, the cultural business construction fees were exempted for the fiscal years of 2021 and restored to 1.5% since the fiscal year of 2022. Sales and marketing expenses Sales and marketing expenses consist mainly of online and offline advertising and promotional expenses, salary, benefits and commission expenses, and facility expenses. Advertising and promotional expenses generally represent the expenses of promotions of corporate image and product marketing. The Group expenses all advertising and promotional expenses as incurred and classifies these expenses under sales and marketing expenses. For the years ended December 31, 2021, 2022 and 2023, the advertising and promotional expenses were US$418.0 million, US$310.4 million and US$302.3 million, respectively. Product development expenses Product development expenses consist mainly of payroll-related expenses and infrastructure costs incurred for enhancement to and maintenance of the Group’s platform, as well as costs associated with new product development and product enhancements, part of which were allocated from SINA. The Group expenses all costs incurred for the planning, post implementation phases of development and costs associated with repair or maintenance of the existing site or the development of platform content. Since inception, the amount of costs qualifying for capitalization has been immaterial and, as a result, all product development costs have been expensed as incurred. Stock-based compensation All stock-based awards to employees and directors, such as stock options and restricted share units (“RSUs”), are measured at the grant date based on the fair value of the awards. Stock-based compensation, net of forfeitures, is recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. The Group uses the Black-Scholes option pricing model to estimate the fair value of stock options. The determination of estimated fair value of stock-based payment awards on the grant date using an option pricing model is affected by the fair value of the Company’s ordinary shares as well as assumptions regarding a number of complex and subjective variables. These variables include the expected value volatility of the Company over the expected term of the awards, actual and projected employee stock option exercise behaviors, a risk-free interest rate and expected dividends, if any. Options granted generally vest over four years. The Group recognizes the estimated compensation cost of restricted share units based on the fair value of its ordinary shares on the date of the grant. The Group recognizes the compensation cost, net of estimated forfeitures, over a vesting term of generally four years for service-based restricted share units. The Group uses Monte Carlo simulation model to estimate the fair value of restricted share units with market conditions on the date of the grant and recognizes the estimated compensation cost, net of estimated forfeitures, over the estimated requisite service period. The Group also recognizes the compensation cost of performance-based restricted share units, net of estimated forfeitures, if it is probable that the performance condition will be achieved at the end of each reporting period. Forfeitures are estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. The Group uses historical data to estimate pre-vesting option and records stock-based compensation expense only for those awards that are expected to vest. See Note 7 Stock-based Compensation 2. Significant Accounting Policies (Continued) Taxation Income taxes Uncertain tax positions. Short-term investments Short-term investments represent bank time deposits whose original maturities are of greater than three months but less than one year and wealth management products which are certain deposits with variable interest rates or principal not-guaranteed with certain financial institutions. In accordance with ASC 825, Financial Instruments Credit losses Pursuant to ASC 326, the Group makes estimates of expected credit and collectability trends for the allowance for credit losses based upon assessment of various factors, including historical experience, the age of the accounts receivable balances, credit-worthiness of the customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from the customers. The Group also provides specific provisions for allowance when facts and circumstances indicate that the receivable is unlikely to be collected. Expected credit losses for accounts receivable are recorded as general and administrative expenses on the consolidated statements of comprehensive income. ASC Topic 326 is also applicable to the loans to and interest receivable from other related parties included in the prepaid expenses and other current assets and other non-current assets on the consolidated balance sheets. Management estimates the allowance for credit losses on loans and interest receivable not sharing similar risk characteristics on an individual basis. The key factors considered when determining the above allowances for credit losses include the fair value of the assets held by the borrowers. Fair value measurements Financial instruments All financial assets and liabilities are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The Group measures the equity method investments at fair value on a non-recurring basis only if an impairment charge were to be recognized. For those investments without readily determinable fair value, the Group measures them at fair value when observable price changes are identified or impairment charge was recognized. The fair values of the Group’s privately held investments as disclosed are determined based on the discounted cash flow model using the discount curve of market interest rates or based on the similar transaction price in the market directly. The fair values of the Group’s long-term investments in the equity securities of publicly listed companies are measured using quoted market prices. The Group’s non-financial assets, such as intangible assets, goodwill, fixed assets and operating lease assets, are measured at fair value only if they are determined to be impaired. 2. Significant Accounting Policies (Continued) Fair value measurements (Continued) Financial instruments (Continued) Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value: ● Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. ● Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. ● Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The carrying amount of cash and cash equivalents, short-term investments, accounts receivable due from third parties, accounts receivable due from Alibaba, accounts receivable due from other related parties, amount due from SINA, accounts payable, accrued and other liabilities approximates fair value because of their short-term nature. See Note 14 Fair Value Measurement Long-term investments Long-term investments are comprised of investments in publicly traded companies, privately held companies, and limited partnerships. The Group uses the equity method to account for common shares or in-substance common shares investments on which it has significant influence but does not own a majority equity interest or otherwise control. Under the equity method, the Group initially records its investments at cost and the difference between the cost of the equity investee and the fair value of the underlying equity in the net assets of the equity investee is recognized as equity method goodwill, which is included in the equity method investment on the consolidated balance sheets. The Group subsequently adjusts the carrying amount of the investments to recognize the Group’s proportionate share of each equity investee’s net income or loss into earnings after the date of investment. The Group evaluates the equity method investments for impairment under ASC 323. An impairment loss on the equity method investments is recognized in earnings when the decline in value is determined to be other-than-temporary. The Group measures investments in equity securities, other than equity method investments, at fair value through earnings. For those investments without readily determinable fair values, the Group elects to record these investments at cost, less impairment, plus or minus subsequent adjustments for observable price changes (referred to as the measurement alternative). Under this measurement alternative, changes in the carrying value of the investments will be recognized in consolidated statement of comprehensive income, whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. 2. Significant Accounting Policies (Continued) Long-term investments (Continued) Pursuant to ASC 321, for equity investments measured at fair value with changes in fair value recorded in earnings, the Group does not assess whether those securities are impaired. For equity investments without readily determinable fair value for which the Group has elected to use the measurement alternative, the Group makes a qualitative assessment of whether the investment is impaired at each reporting date, applying significant judgement in considering various factors and events including a) adverse performances and business prospects of investees; b) adverse changes in the general market condition affecting investees; c) adverse changes in regulatory, economic or technological environment of the investees and d) adverse changes in cash flow forecasts of investees. If a qualitative assessment indicates that the investment is impaired, the Group estimates the investment’s fair value in accordance with the principles of ASC 820-Fair Value Measurement. If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss in net income equal to the difference between the carrying value and fair value. Significant judgement is applied by the Group in estimating the fair value to determine if an impairment exists, and if so, to measure the impairment losses for these equity security investments. These judgements include the selection of valuation methods in estimating fair value and the determination of key valuation assumptions used, which are related to selection of comparable companies, valuation mutiples, revenue growth rate of investees, scenario probability estimates and lack of marketability discounts. Business combination Business combinations are recorded using the purchase method of accounting, and the cost of an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of the (i) the total of consideration paid, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the subsidiary acquired over (ii) the fair value of the identifiable net assets of the subsidiary acquired is recorded as goodwill. If the consideration of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive income. Leases The Group determines if an arrangement is a lease at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether the Group obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. Operating lease assets and liabilities are included in operating lease right-of-use assets, operating lease liabilities, short-term, and operating lease liabilities, long-term on the Group’s consolidated balance sheets. The Group has chosen to not recognize lease assets and lease liabilities for leases with a term of twelve months or less on the consolidated balance sheets. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of lease payments over the lease terms at the lease commencement dates. The Group uses its incremental borrowing rate in determining the present value of lease payments. The incremental borrowing rate is a hypothetical rate based on the Group’s understanding of what interest the Group would pay in order to obtain a borrowing with an amount equivalent to the lease payments in a similar economic environment over the lease term on a collateralized basis from banks in China. Certain lease agreements contain an option for the Group to renew a lease for a term agreed by the Group and the lessor or an option to terminate a lease earlier than the maturity dates. The Group considers these options, which may be elected at the Group’s sole discretion, in determining the lease term on a lease-by-lease basis. The Group’s lease agreements generally do not contain any residual value guarantees or material restrictive covenants. Certain of the Group’s leases contain free or escalating rent payment terms. The Group’s lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. The Group has chosen to combine payments for non-lease components with lease payments and accounted them together as a single lease component. Payments under the lease arrangements are primarily fixed. However, for arrangements accounted for as a single lease component, there may be variability in future lease payments as the amount of the non-lease components is typically revised from one period to the next. 2. Significant Accounting Policies (Continued) Long-lived assets Property and equipment Property and equipment are stated at cost less accumulated depreciation, amortization and impairment, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally from three Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Group’s acquisitions of interests in its subsidiaries, consolidated VIEs and VIEs’ subsidiaries. The Group assesses goodwill for impairment in accordance with ASC Subtopic 350-20 (“ASC 350-20”), Intangibles-Goodwill and Other: Goodwill Intangible assets other than goodwill Intangible assets arising from acquisitions are recognized at fair value upon acquisition and amortized on a straight-line basis over their estimated useful lives, generally from three Convertible senior notes and unsecured senior notes The Group determines the appropriate accounting treatment of its convertible senior notes in accordance with the terms in relation to the conversion feature. After considering the impact of such features, the Group may account for such instrument as a liability in its entirety, or separate the instrument into debt and equity components following the respective guidance described under ASC 815 Derivatives and Hedging Debt The debt discount, if any, together with related issuance cost are subsequently amortized as interest expense over the contractual life. The Group presented the issuance costs of debt as a direct deduction from the related debt during the periods presented. The unsecured senior notes are recognized initially at fair value, net of debt discounts or premiums, if any, issuance costs and other incidental fees, all of which are recorded as a direct deduction of the proceeds received from issuing the unsecured senior notes and the related accretion is recorded as interest expense in the consolidated statement of comprehensive income over the estimated term using the effective interest method. 2. Significant Accounting Policies (Continued) Deferred revenues Deferred revenues consist of contractual billings in excess of recognized revenue and payments received in advance of revenue recognition, which are mainly from the customer advance of the advertising and marketing services and the sales of the fee-based services, such as membership, and virtual currency or in-game virtual items sold for game related services. Non-controlling interests For the Company’s majority-owned subsidiaries and VIE, non-controlling interests are recognized to reflect the portion of their equity that is not attributable, directly or indirectly, to the Company as the controlling shareholder. To reflect the economic interest held by non-controlling shareholders, net income/loss attributable to the non-controlling ordinary shareholders is recorded as non-controlling interests in the Company’s consolidated statements of comprehensive income. Non-controlling interests are classified as a separate line item in the equity section of the Company’s consolidated balance sheets and have been separately disclosed in the Company’s consolidated financial statements to distinguish the interests from that of the Company. Foreign currency The Company’s reporting currency and functional currency is the U.S. dollar. The Group’s operations in China and in international regions use their respective currencies as their functional currencies. The financial statements of these subsidiaries are translated into U.S. dollars using period-end rates of exchange for assets and liabilities and average rates of exchange in the period for revenues, costs and expenses. Translation gains and losses are recorded in accumulated other comprehensive income (loss) as a component of shareholders’ equity. Translation gains or losses are not released to net income unless the associated net investment has been sold, liquidated, or substantially liquidated. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rate prevailing on the transactions dates. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheets dates. Net gains and losses resulting from foreign exchange transactions are included in other income, net. Foreign currency translation adjustments included in the Group’s consolidated statements of comprehensive income for the years ended December 31, 2021, 2022 and 2023 were a gain of US$78.2 million, a loss of US$261.7 million and a loss of US$114.7 million, respectively. Net foreign currency transaction gains or losses arise from transacting in a currency other than the functional currency of the entity and the amounts recorded were immaterial for 2021, a loss of US$67.0 million for the year ended 2022 and a loss of US$9.1 million for the year ended 2023, respectively. Net income per share Basic net income per share is computed using the weighted average number of ordinary shares outstanding during the period. Options and RSUs are not considered outstanding in the computation of basic earnings per share. Diluted net income per share is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period, which include options to purchase ordinary shares, restricted share units and conversion of the convertible senior notes. The computation of diluted net income per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect (i.e. an increase in earnings per share amounts or a decrease in loss per share amounts) on net income per share. The Group uses the two-class method to calculate net income per share though both classes share the same rights in dividends. Therefore, basic and diluted earnings per share are the same for both classes of ordinary shares. Segment reporting In accordance with ASC 280, Segment Reporting 2. Significant Accounting Policies (Continued) Concentration of risks Concentration of credit risk. As of D |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-term Investments | 12 Months Ended |
Dec. 31, 2023 | |
Cash, Cash Equivalents and Short-term Investments | |
Cash, Cash Equivalents and Short-term Investments | 3. Cash, Cash Equivalents and Short-term Investments Cash, cash equivalents and short-term investments consist of the following: As of December 31, 2022 2023 (In US$ thousands) Cash and cash equivalents: $ 2,690,768 $ 2,584,635 Short-term investments: Bank time deposits 268,233 616,500 Wealth management products 212,195 24,535 Subtotal 480,428 641,035 Total cash, cash equivalents and short-term investments $ 3,171,196 $ 3,225,670 The carrying amounts of cash, cash equivalents and short-term investments approximate the fair value. |
Long-term Investments
Long-term Investments | 12 Months Ended |
Dec. 31, 2023 | |
Long-term Investments | |
Long-term Investments | 4. Long-term Investments Long-term investments comprised of investments in publicly traded companies, privately held companies, and limited partnerships. The following sets forth the changes in the Group’s long-term investments: Equity Securities Without Readily Equity Securities With Determinable Fair Readily Determinable Values Equity Method Fair Values Total (In US$ thousands) Balance at December 31, 2020 $ 579,084 $ 311,161 $ 289,221 $ 1,179,466 Investments made/transfers from prepayments 96,768 182,200 — 278,968 Income from equity method investments, net — 14,217 — 14,217 Dividend declared from equity method investments — (11,695) — (11,695) Disposal of investments (75,667) — (4,946) (80,613) Changes from measurement alternative to consolidation (Note 6) (66,415) — — (66,415) Reclassification of equity investment without readily determinable fair values to those with readily determinable fair values (142,000) — 142,000 — Impairment on investments (106,800) — — (106,800) Fair value change through earnings (23,316) — 9,877 (13,439) Currency translation adjustment 7,062 6,900 — 13,962 Balance at December 31, 2021 268,716 502,783 436,152 1,207,651 Investments made/transfers from prepayments 36,423 114,909 — 151,332 Loss from equity method investments, net — (24,069) — (24,069) Dividend declared from equity method investments — (5,772) — (5,772) Disposal of investments (29,974) (6,293) — (36,267) Impairment on investments (63,515) — — (63,515) Fair value change through earnings — — (196,602) (196,602) Currency translation adjustment (15,071) (24,057) — (39,128) Balance at December 31, 2022 196,579 557,501 239,550 993,630 Investments made/transfers from prepayments/other non-current assets 70,864 303,845 — 374,709 Income from equity method investments, net — 13,392 — 13,392 Dividend declared from equity method investments — (4,683) — (4,683) Disposal of investments (3,463) (14,250) — (17,713) Changes from measurement alternative to consolidation (Note 6) (43,988) — — (43,988) Reclassification of equity investment with readily determinable fair value to equity-method investment — 153,407 (153,407) — Impairment on investments (25,706) — — (25,706) Fair value change through earnings 10,877 — 32,125 43,002 Currency translation adjustment (3,873) (8,384) — (12,257) Balance at December 31, 2023 $ 201,290 $ 1,000,828 $ 118,268 $ 1,320,386 4. Long-term Investments (Continued) For the years ended December 31, 2021, 2022 and 2023, the Group invested in private companies totaling US$96.8 million, US$36.4 million and US$70.9 million, respectively, which were accounted for under investments without readily determinable fair values. These investments were primarily to further expand and strengthen the Group’s ecosystem and mainly included a further investment of US$39.5 million in the company operating Wuta application in 2021 and follow-on investments of US$20.0 million and US$40.0 million in a company providing online brokerage services during 2021 and 2023, respectively. The Group obtained control of the company operating the Wuta application through the step acquisition and recorded US$27.6 million fair value change loss in 2021 for the equity interest previously held by the Group immediately prior to the step acquisition. The impact of the transaction was reflected in the changes from measurement alternative to consolidation. The Group also invested US$182.2 million, US$114.9 million and US$303.8 million in companies, which were accounted for under equity method, for the years ended December 31, 2021, 2022 and 2023, respectively. These investments mainly included several investment funds in 2021 and 2022, and US$230.8 million investment in INMYSHOW Digital Technology (Group) Co., Ltd. (“INMYSHOW”, a Shanghai Stock Exchange listed company, providing social and new media marketing services) in 2023, respectively. In March 2023, the Group purchased all equity interests in ShowWorld HongKong Limited, a shareholder of INMYSHOW. As the shares of INMYSHOW was the only asset held by ShowWorld HongKong Limited, the transaction was considered an asset acquisition. Furthermore, as the Group and ShowWorld HongKong Limited are under the common control of SINA, the transaction was considered an asset acquisition under common control. According to ASC 805-50, for a transfer of assets between entities under common control, the acquirer entity shall initially measure the assets and liabilities transferred at their carrying values in the accounts of the transferring entity. Therefore, the newly acquired shares of INMYSHOW was recorded in the Group’s consolidated balance sheets using their carrying value at SINA, and the difference between the consideration paid by the Group and the carrying value of US$230.8 million of the assets was recognized in additional paid-in capital as a distribution on the acquisition date. Immediately following this transaction and together with the Group’s existing shareholding in INMYSHOW, the Group held in the aggregate approximately 26.57% of the total issued shares of INMYSHOW. Consequently, the Group reclassified its investment in INMYSHOW from equity securities with readily determinable fair values to equity method. The Group used measurement alternative for recording equity investments without readily determinable fair values at cost, less impairment, adjusted for subsequent observable price changes. Changes in the carrying value of the equity investment under measurement alternative will be recognized whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer, and impairment charges will be recorded when any impairment indicators are noted and the fair value is lower than the carrying value. The Group classifies the valuation techniques on investments that use similar identifiable transaction prices as Level 2 of fair value measurements. The following table summarizes the total carrying value of the equity investments accounted for under the measurement alternative as of December 31, 2022 and 2023, respectively, including cumulative upward and downward adjustments made to the initial cost basis of the securities. Cumulative Results (In US$ thousands) Initial cost basis $ 662,460 Upward adjustments 85,710 Downward adjustments (554,013) Foreign currency translation 2,422 Total carrying value at December 31, 2022 $ 196,579 Initial cost basis $ 689,724 Upward adjustments 92,736 Downward adjustments (579,719) Foreign currency translation (1,451) Total carrying value at December 31, 2023 $ 201,290 4. Long-term Investments (Continued) The Group assessed or engaged third-party valuation firms to help the management assess the fair value of certain investments, using Level 3 of fair value measurement and concluded that impairment was warranted for those investments at the year-end. Thus, the Group recognized US$63.5 million and US$25.7 million impairment charges to investments without readily determinable fair value for the years ended December 31, 2022 and 2023, respectively. The impairment charges mainly included a US$15.4 million write-off in a community software and a US$14.2 million impairment charge to a company running a business social platform in 2022 and a US$15.9 million write-off on an online education company in 2023, due to their negative financial performance with no obvious upturn or potential financing solutions in the foreseeable future. Investments in marketable equity securities are valued using the market approach based on the quoted prices in active markets at the reporting dates. The Group classified the valuation techniques that use these inputs as Level 1 of fair value measurements. The Group recorded a fair value change loss of US$142.7 million in 2022 and a fair value change gain of US$9.1 million in 2023 for INMYSHOW. One of the Group’s investees, Didi Global Inc. (“Didi”), a company operating a mobility technology platform, completed its initial public offering in and started trading on July 1, 2021, China time. Therefore, investment in Didi amounting to US$142.0 million was transferred from measurement alternative to equity securities with readily determinable fair value, and a fair value change loss of US$53.9 million and a gain of US$23.1 million was recorded in 2022 and 2023, respectively. Didi has officially delisted from NYSE in June 2022 and trade under the “DIDIY” ticker on the OTC exchange. The Group continues to record the investment in Didi under equity securities with readily determinable fair values. The following table shows the carrying amount and fair value of the marketable securities: Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Value (In US$ thousands) INMYSHOW $ 81,385 $ 62,952 $ — $ 144,337 Didi 142,000 — (46,787) 95,213 December 31, 2022 $ 223,385 $ 62,952 $ (46,787) $ 239,550 Didi $ 142,000 $ — $ (23,732) $ 118,268 December 31, 2023 $ 142,000 $ — $ (23,732) $ 118,268 4. Long-term Investments (Continued) For the year ended December 31, 2023, equity method investments held by the Group in aggregate have met the significance criteria as defined under Rule 4-08(g) of Regulation S-X. The condensed financial information of the Group’s equity method investments are summarized as a group as follow: Year ended December 31, 2021 2022 2023 (In US$ thousands) Operating data: Revenue $ 225,356 $ 158,110 $ 850,102 Gross profit $ 206,457 $ 129,393 $ 298,736 Income (loss) from operations $ 243,516 $ (195,636) $ 12,153 Net income (loss) $ 247,808 $ (200,042) $ 8,188 Net income (loss) attributable to the investees $ 247,808 $ (200,042) $ 9,856 As of December 31, 2022 2023 (In US$ thousands) Balance sheet data: Current assets $ 904,956 $ 1,803,408 Non-current assets $ 2,417,452 $ 2,568,567 Current liabilities $ 683,626 $ 1,199,969 Long-term liabilities $ 119 $ 16,879 Non-controlling interests $ — $ (4,849) The Group recorded investment-related impairment and provision of US$106.8 million, US$71.1 million and US$23.6 million for the years ended December 31, 2021, 2022 and 2023, respectively, due to various adverse factors affecting the performance of the investees. The impairment charges in 2021 was mainly caused by a full impairment of US$75.3 million on the investment in Yixia Tech and the investment-related impairment in 2022 primarily resulted from a US$15.4 million write-off in a community software and a US$14.2 million impairment charge to a company running a business social platform. The impairment charges recorded in 2023 mainly included a US$15.9 million write-off on an online education company. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Leases | 5. Leases The Group has operating leases primarily for land-use rights and office spaces in China. The determination of whether an arrangement is or contains a lease is made at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether the Group obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. Operating lease assets and liabilities are included in operating lease right-of-use assets, operating lease liabilities, short-term, and operating lease liabilities, long-term on the Group’s consolidated balance sheets. The Group has chosen to not recognize lease assets and lease liabilities for leases with a term of twelve months or less on the consolidated balance sheets. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of lease payments over the lease terms at the lease commencement dates. The Group uses its incremental borrowing rate in determining the present value of lease payments. The incremental borrowing rate is a hypothetical rate based on the Group’s understanding of what interest the Group would pay in order to obtain a borrowing with an amount equivalent to the lease payments in a similar economic environment over the lease term on a collateralized basis from banks in China. 5. Leases (Continued) Certain lease agreements contain an option for the Group to renew a lease for a term agreed by the Group and the lessor or an option to terminate a lease earlier than the maturity dates. The Group considers these options, which may be elected at the Group’s sole discretion, in determining the lease term on a lease-by-lease basis. The Group’s lease agreements generally do not contain any residual value guarantees or material restrictive covenants. Certain of the Group’s leases contain free or escalating rent payment terms. The Group’s lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. The Group has chosen to combine payments for non-lease components with lease payments and accounted them together as a single lease component. Payments under the lease arrangements are primarily fixed. However, for arrangements accounted for as a single lease component, there may be variability in future lease payments as the amount of the non-lease components is typically revised from one period to the next. Additionally, certain lease agreements with SINA contain variable payments, which are determined based on actual SINA headquarters spaces occupied by the Group and are expensed as incurred and not included in the operating lease assets and liabilities. The lease agreements with SINA have been terminated when the Group acquired the 100% of the equity interest of Sina.com Technology (China) Co., Ltd., the owner of SINA Plaza in December 2022. The components of lease cost for the years ended December 31, 2021, 2022 and 2023 were as follows: Year Ended December 31, 2021 2022 2023 (In US$ thousands) Operating lease cost $ 7,625 $ 13,949 $ 15,824 Short-term lease cost 4,776 2,631 3,675 Variable lease cost 5,287 5,348 — Total lease cost $ 17,688 $ 21,928 $ 19,499 Other information related to leases was as follows: Year Ended December 31, 2021 2022 2023 (In US$ thousands) Supplemental Cash Flows Information: Cash paid for operating leases $ (8,948) $ (12,877) $ (12,246) Operating lease assets obtained in exchange for operating lease liabilities $ 65,459 $ 19,728 $ 1,378 Maturities of lease liabilities under operating leases as of December 31, 2023 were as follows: Year Ended December 31, (In US$ thousands) 2024 $ 13,374 2025 12,786 2026 11,399 2027 3,174 2028 2,402 Thereafter 25,028 Total future payments for recognized leasing assets 68,163 Less: leases not yet commenced — Less: imputed interest 14,918 Total lease liabilities $ 53,245 As of December 31, 2023, operating leases recognized in lease liabilities have average remaining lease terms of 10.5 years and weighted-average discount rate of 5%. As of December 31, 2023, the Group had no lease contract that has been entered into but not yet commenced. |
Goodwill, Intangible Assets and
Goodwill, Intangible Assets and Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill, Intangible Assets and Acquisitions | |
Goodwill, Intangible Assets and Acquisitions | 6. Goodwill, Intangible Assets and Acquisitions In the second quarter of 2021, the Group acquired another 51.2% equity interest of an investee operating a leading mobile photo and video application in China, Wuta application, in which the Group previously held 34.8% equity interest, with a cash consideration of US$39.5 million. The Group obtained the control and held 86% equity interest in the investee upon completion of the transaction on May 1, 2021. A third-party valuation firm was engaged by the Group to help the management determine the fair value of assets and liabilities obtained from the transaction. The identifiable intangible assets acquired on the acquisition date included user base, domain names and operating system of US$16.5 million with estimated lives ranging from three The consideration of the acquisition of the company operating Wuta application was allocated based on the fair value of the assets acquired and the liabilities assumed as follows: As of May 1, 2021 (In US$ thousands) Consideration $ 39,540 Fair value of previously held equity interest 26,875 Non-controlling interest 10,811 Total $ 77,226 Cash and short-term investments acquired $ 5,786 Other assets acquired 6,801 Identifiable intangible assets acquired 16,495 Goodwill 51,034 Liabilities assumed (2,890) Total $ 77,226 In April 2022 and July 2023, the Group acquired the remaining 14% equity interest of the company operating Wuta application through two installments of total cash payment of US$10.3 million. The Group owns 100% equity interest of the company operating Wuta application after the transaction. In August 2021, the Group acquired an E-sports team and the related assets. A third-party valuation firm was engaged by the Group to help the management determine the fair value of assets and liabilities obtained from the transaction. The identifiable intangible assets acquired on acquisition date included game related assets of US$19.3 million with estimated lives of ten years. The intangible assets were measured at fair value upon acquisition primarily using royalty savings method and multi-periods excess earning method. Key assumptions and estimates used in determining the fair value of these intangible assets include discount rates, terminal growth rate and royalty rate. The consideration of the acquisition of the E-sports team and the related assets was allocated based on the fair value of the assets acquired and the liabilities assumed as follows: As of August 1, 2021 (In US$ thousands) Consideration $ 30,953 Identifiable intangible assets acquired $ 19,274 Goodwill 14,745 Liabilities assumed (3,066) Total $ 30,953 6. Goodwill, Intangible Assets and Acquisitions (Continued) On December 23, 2022, Weibo Hong Kong Limited, the Company’s wholly owned subsidiary, entered into certain agreement for the sale and purchase of 100% of the equity interest of Sina.com Technology (China) Co., Ltd., with SINA Hong Kong Limited, a wholly owned subsidiary of SINA, pursuant to which Weibo Hong Kong Limited agrees to purchase all equity interests in Sina.com Technology (China) Co., Ltd., a wholly-owned subsidiary of SINA Hong Kong Limited and the owner of SINA Plaza in Beijing, China, for an aggregate consideration of approximately US$218.4 million (RMB1.5 billion). The acquisition date was December 31, 2022 and the Group settled the payment for the consideration in the first quarter of 2023. The Group involved a third-party appraiser to assess the fair value of assets acquired and liabilities assumed from the transaction. As more than 90% of the fair value of the gross assets acquired by the Group is concentrated in the office building, SINA Plaza, and the land-use right related to the building, the acquisition is considered an asset acquisition. Furthermore, as the Group and SINA Hong Kong Limited are under the common control of SINA, the transaction is considered an asset acquisition under common control. According to ASC 805-50, for a transfer of assets between entities under common control, the acquirer entity shall initially measure the assets and liabilities transferred at their carrying values in the accounts of the transferring entity. Therefore, the carrying values of assets of US$340.5 million and liabilities of US$281.1 million of STC was recorded in the Group’s consolidated balance sheets, and the difference between consideration paid by the Group and net assets (carrying value) of STC of US$159.0 million was recognized in additional paid-in capital as a distribution on the acquisition date. The assets recognized in the consolidated balance sheets mainly included office building and related facilities of US$170.6 million and land use right (recorded in operating lease assets) of US$125.8 million. In the fourth quarter of 2023, the Group acquired another 33.1% equity interest of an investee, Xi’an Yunrui Network Technology Co., Ltd. (“Yunrui”), operating an online interactive entertainment application “Werewolf”, in which the Group previously held 17.9% equity interest, with a cash consideration of US$30.4 million. The Group obtained the control and held 51% equity interest in the investee upon completion of the transaction on October 1, 2023. In accordance with ASC805-accounting for step-up acquisition, the 17.9% equity interest previously held by the Group was re-measured to fair value at the acquisition date and a re-measurement gain of US$3.9 million was recognized. The Group engaged a third-party valuation firm to help the management determine the fair value of assets and liabilities obtained from the transaction. The identifiable intangible assets acquired on the acquisition date mainly included trademark, software copyright and cooperation agreement with a famous third-party IT company of US$31.2 million with estimated lives ranging from five The consideration of the acquisition of Yunrui was allocated based on the fair value of the assets acquired and the liabilities assumed as follows: As of October 1, 2023 (In US$ thousands) Consideration $ 30,443 Fair value of previously held equity interest 13,545 Non-controlling interest 37,043 Total $ 81,031 Cash and short-term investments acquired $ 4,864 Other assets acquired 1,483 Identifiable intangible assets acquired 31,205 Goodwill 48,669 Liabilities assumed (5,190) Total $ 81,031 The acquisitions completed in 2021 and 2023 individually contributed immaterial amounts to revenues and net income for 2021 and 2023, respectively. Since they did not have a material impact on the Group’s consolidated financial statements, pro forma disclosures have not been presented. Apart from what have been disclosed above, there was no other acquisitions during the years ended December 31, 2021, 2022 and 2023, respectively. 6. Goodwill, Intangible Assets and Acquisitions (Continued) The following sets forth the changes in the Group’s goodwill by reporting units: Advertising & Value-added Marketing services Total (In US$ thousands) Balance as of December 31, 2020 $ 30,899 $ 30,813 $ 61,712 Acquisition of the company operating Wuta application 51,034 — 51,034 Acquisition of an E-sports team — 14,745 14,745 Currency translation adjustment 1,813 1,101 2,914 Balance as of December 31, 2021 83,746 46,659 130,405 Currency translation adjustment (6,585) (3,669) (10,254) Balance as of December 31, 2022 77,161 42,990 120,151 Acquisition of Yunrui — 48,669 48,669 Currency translation adjustment (2,331) (53) (2,384) Balance as of December 31, 2023 $ 74,830 $ 91,606 $ 166,436 The Group performs at least annually a qualitative analysis on the goodwill arising from acquisitions taking into consideration the events and circumstances, including consideration of macroeconomic factors, industry and market conditions, share price of the Group, and overall financial performance, in addition to other entity-specific factors. For the years ended December 31, 2021 and 2022, no impairment indicator was noted by performing qualitative analysis, therefore, no provision was recorded. During the year ended December 31, 2023, a sustained decrease of the share price was noted by the Group and deemed as an impairment indicator of the goodwill. The Group performed quantitative analysis as of June 30, 2023 and December 31, 2023. A third-party valuation firm was engaged to help the management determine the fair value of the two reporting units by applying income approach. Significant assumptions in estimating the fair value of reporting units included revenue growth rates and discount rates. In order to assess the impact of changes in certain significant assumptions, which could materially affect the determination of the fair value of each reporting unit, the Group also performed a sensitivity analysis by decreasing the revenue growth rates and increasing the discount rates. The analysis still resulted in the fair value of each reporting unit exceeding the carrying value by a sufficient amount. Therefore, the Group concluded that there was no impairment of goodwill as of June 30, 2023 and December 31, 2023, respectively. For the year ended December 31, 2022, the Group recognized an impairment charge of US$10.2 million for the intangible assets arising from certain acquisitions due to no more sustainable future revenues expected for the certain business. The following table summarizes the Group’s intangible assets arising from acquisitions: As of December 31, 2022 As of December 31, 2023 Accumulated Accumulated Cost Amortization Net Cost Amortization Net (In US$ thousands) (In US$ thousands) Game related $ 140,328 $ (30,029) $ 110,299 $ 136,155 $ (43,406) $ 92,749 Technology 2,808 (2,596) 212 10,596 (2,831) 7,765 Trademark and domain name 12,892 (4,280) 8,612 25,436 (5,765) 19,671 Others 13,045 (7,096) 5,949 23,898 (9,954) 13,944 Total $ 169,073 $ (44,001) $ 125,072 $ 196,085 $ (61,956) $ 134,129 6. Goodwill, Intangible Assets and Acquisitions (Continued) The amortization expense for the years ended December 31, 2021, 2022 and 2023 was US$22.2 million, US$21.5 million and US$19.3 million, respectively. As of December 31, 2023, estimated amortization expenses for future periods are expected as follows: Year Ended December 31, (In US$ thousands) 2024 $ 21,483 2025 17,980 2026 17,943 2027 17,660 2028 17,326 Thereafter 41,528 Total expected amortization expense * $ 133,920 * The table above excludes US$0.2 million of indefinite-lived intangible assets which was included in the category of others. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Stock-Based Compensation | |
Stock-Based Compensation | 7. Stock-Based Compensation In March 2014, the Company adopted the 2014 Share Incentive Plan (the “2014 Plan”), which included the remaining 4.6 million shares from the terminated 2010 Share Incentive Plan, plus an additional 1.0 million shares. On January 1, 2015, shares in the 2014 Plan, which has a term life of ten years, were allowed a one-time increase in the amount equal to 10% of the total number of Weibo shares issued and outstanding on a fully-diluted basis as of December 31, 2014. In March 2023, the Company adopted the 2023 Share Incentive Plan (the “2023 Plan”), which included the sum of 10,000,000 shares and all ordinary shares reserved but unissued as of February 28, 2023 under the 2014 Plan. Each share in the 2014 Plan pool and 2023 Plan pool allows for a grant of a restricted share unit or option share. The Company intends to use such share incentive plan to attract and retain employee talents. Stock-based compensation related to the grants is amortized generally over four years on a straight-line basis (generally one year for performance-based restricted shares). The following table sets forth the stock-based compensation included in each of the relevant accounts: Year Ended December 31, 2021* 2022* 2023* (In US$ thousands) Cost of revenues $ 8,112 $ 9,417 $ 8,933 Sales and marketing 15,292 18,910 16,528 Product development 43,622 55,294 51,441 General and administrative 20,970 28,092 24,229 $ 87,996 $ 111,713 $ 101,131 * Excluded non-cash stock-based compensation of US$7.9 million, US$9.3 million and US$8.1 million to SINA employees charged through Amount due from SINA in 2021, 2022 and 2023, respectively. 7. Stock-Based Compensation (Continued) The following table sets forth a summary of the number of shares available for issuance: Shares Available (In thousands) December 31, 2020 12,495 Addition — Granted* (5,752) Cancelled/expired/forfeited 692 December 31, 2021 7,435 Addition — Granted* (4,642) Cancelled/expired/forfeited 770 December 31, 2022 3,563 Addition 10,000 Granted* (3,971) Cancelled/expired/forfeited 351 December 31, 2023 9,943 * For the years ended December 31, 2021, 2022 and 2023, 5.8 million, 1.8 million and 1.8 million restricted share units were granted, respectively. Options of nil , 2.8 million and 2.2 million were granted during 2021, 2022 and 2023, respectively. Stock Options The following table sets forth a summary of option activities under the Company’s stock option program: Weighted Average Options Weighted Average Remaining Aggregate Outstanding Exercise Price Contractual Life Intrinsic Value (In thousands) (In US$) (In years) (In US$ thousands) December 31, 2020 551 $ 28.85 5.8 $ 6,683 Granted — $ — Exercised (105) $ 12.70 Cancelled/expired/forfeited (59) $ 32.68 December 31, 2021 387 $ 32.68 5.6 $ — Granted 2,750 $ 21.15 Exercised — $ — Cancelled/expired/forfeited (118) $ 24.12 December 31, 2022 3,019 $ 22.51 6.0 $ — Granted 2,187 $ 3.87 Exercised — $ — Cancelled/expired/forfeited (98) $ 22.07 December 31, 2023 5,108 $ 14.54 5.7 $ 15,390 Vested and expected to vest as of December 31, 2022 2,752 $ 22.54 6.0 $ — Exercisable as of December 31, 2022 172 $ 32.68 4.6 $ — Vested and expected to vest as of December 31, 2023 4,686 $ 14.68 5.7 $ 13,905 Exercisable as of December 31, 2023 1,226 $ 23.44 4.9 $ — 7. Stock-Based Compensation (Continued) Stock Options (Continued) The total intrinsic value of options exercised for the years ended December 31, 2021, 2022 and 2023 was US$4.0 million, nil and nil, respectively. The intrinsic value is calculated as the difference between the market value on the date of exercise and the exercise price of the shares. As reported by the NASDAQ Global Selected Market, the Company’s ending stock price as of December 31, 2022 and 2023 was US$19.12 and US$10.95, respectively. Cash received from the exercise of stock options during the years ended December 31, 2021, 2022 and 2023 was US$1.3 million,nil and nil, respectively. As of December 31, 2022 and 2023, unrecognized compensation cost (adjusted for estimated forfeitures), related to non-vested stock options granted to the Company’s employees and directors was US$20.5 million and US$30.5 million, respectively. As of December 31, 2023, total unrecognized compensation cost is expected to be recognized over a weighted-average period of 2.9 Information regarding stock options outstanding is summarized below: Weighted Weighted Weighted Average Options Average Options Average Remaining Range of Exercise Prices Outstanding Exercise Price Exercisable Exercise Price Contractual Life (In thousands) (In US$) (In thousands) (In US$) (In years) As of December 31, 2022 US$ 32.68 356 $ 32.68 172 $ 32.68 4.6 US$ 21.15 2,663 $ 21.15 — $ — 6.2 3,019 $ 22.51 172 $ 32.68 6.0 As of December 31, 2023 US$ 32.68 328 $ 32.68 243 $ 32.68 3.6 US$ 21.15 2,606 $ 21.15 983 $ 21.15 5.2 US$ 3.87 2,174 $ 3.87 — $ — 6.5 5,108 $ 14.54 1,226 $ 23.44 5.7 No option was granted during the year ended December 31, 2021. The fair value of the options granted during the years ended December 31, 2022 and 2023 is estimated on the measurement date using the Black-Scholes model by applying the assumptions below: For the years ended December 31, 2022 2023 Fair value of ordinary shares (US$) 21.15 11.51-13.1 Expected volatility range 53 % 54.77%-55.77 % Risk-free interest rate (per annum) 2.17 % 4.42%-4.82 % Expected dividend yield — — Expected term (in years) 4.66 4.66 The expected volatility is assumed based on the historical volatility of the Company in the period equal to the expected life of each grant. The risk-free interest rate is based on the yields of United States Treasury securities with maturities similar to the expected life of the options in effect on the measurement date. The expected term of options is based on management’s estimate on timing of exercise of options. 7. Stock-Based Compensation (Continued) Restricted Share Units Summary of Performance-Based Restricted Share Units without Market Condition The following table sets forth a summary of performance-based restricted share unit activities without market condition: Weighted-Average Grant Date Shares Granted Fair Value (In thousands) (In US$) December 31, 2020 17 $ 36.49 Awarded 15 $ 54.08 Vested (2) $ 38.78 Cancelled (19) $ 40.63 December 31, 2021 11 $ 54.17 Awarded — $ — Vested (9) $ 54.17 Cancelled (2) $ 54.17 December 31, 2022 — $ — Awarded — $ — Vested — $ — Cancelled — $ — December 31, 2023 — $ — As of December 31, 2022 and 2023, there was no unrecognized compensation cost (adjusted for estimated forfeitures), related to performance-based restricted share units without market condition granted to the Company’s employees, respectively. 7. Stock-Based Compensation (Continued) Restricted Share Units (Continued) Summary of Performance-Based Restricted Share Units with Market Condition The following table sets forth a summary of performance-based restricted share unit activities with market condition: Weighted- Average Shares Grant Date Granted Fair Value (In thousands) (In US$) December 31, 2021 — $ — Awarded 1,640 $ 8.43 Vested — $ — Cancelled — $ — December 31, 2022 1,640 $ 8.43 Awarded 1,640 $ 9.66 Vested — $ — Cancelled — $ — December 31, 2023 3,280 $ 9.04 As of December 31,2022 and 2023, unrecognized compensation cost (adjusted for estimated forfeitures) was US$4.7 million and US$1.7 million, which was related to non-vested performance-based restricted share units with market condition granted to the Company’s management. As of December 31,2022 and 2023, the cost is expected to be recognized over a weighted-average period of 0.4 years and 0.4 years, respectively. No share was vested during the year ended December 31, 2022 and 2023, respectively. Summary of Service-Based Restricted Share Units The following table sets forth a summary of service-based restricted share unit activities: Weighted- Average Shares Grant Date Granted Fair Value (In thousands) (In US$) December 31, 2020 4,324 $ 41.86 Awarded 5,737 $ 47.95 Vested (1,608) $ 45.66 Cancelled (614) $ 44.02 December 31, 2021 7,839 $ 45.37 Awarded 252 $ 20.59 Vested (2,330) $ 47.09 Cancelled (651) $ 42.69 December 31, 2022 5,110 $ 43.71 Awarded 144 $ 17.27 Vested (2,191) $ 43.04 Cancelled (253) $ 38.66 December 31, 2023 2,810 $ 43.37 As of December 31, 2022 and 2023, unrecognized compensation cost (adjusted for estimated forfeitures) was US$162.0 million and US$84.0 million, respectively, which was related to non-vested service-based restricted share units granted to the Company’s employees and directors. As of December 31,2022 and 2023, this cost is expected to be recognized over a weighted-average period of 2.5 years and 1.7 years, respectively. The total fair value based on the grant date of the restricted share units vested was US$73.4 million, US$109.7 million and US$94.3 million for the years ended December 31, 2021, 2022 and 2023, respectively. |
Other Balance Sheets Components
Other Balance Sheets Components | 12 Months Ended |
Dec. 31, 2023 | |
Other Balance Sheets Components | |
Other Balance Sheets Components | 8. Other Balance Sheets Components As of December 31, 2022 2023 (In US$ thousands) Accounts receivable, net: Due from third parties $ 416,125 $ 396,043 Due from Alibaba 75,347 61,094 Due from other related parties 49,151 38,188 Total gross amount 540,623 495,325 Allowance for credit losses: Balance at the beginning of the year (42,650) (38,180) Additional provision charged to expenses, net (4,440) (19,208) Write-off 4,695 1,435 Currency translation adjustment 4,215 1,396 Balance at the end of the year (38,180) (54,557) $ 502,443 $ 440,768 Prepaid expenses and other current assets: Rental and other deposits $ 1,583 $ 1,606 Deductible value-added taxes 3,865 4,860 Investment prepayment 30,938 29,055 Proceeds receivable from disposal of investments 13,371 — Loans to and interest receivable from other related parties (1) 110,000 100,000 Loans to and interest receivable from third parties (1) 136,683 137,042 Advertising prepayment 9,126 8,563 Prepayment to outsourced service providers 3,479 3,380 Amounts deposited by users (2) 52,216 50,194 Content fees 15,859 15,796 Others 14,382 9,385 $ 391,502 $ 359,881 Property and equipment, net: Office building $ 196,223 $ 190,295 Office building related facilities 3,298 3,199 Computers and equipment 228,599 213,637 Leasehold improvements 13,064 13,178 Furniture and fixtures 8,139 7,950 Others 17,733 18,644 Property and equipment, gross 467,056 446,903 Accumulated depreciation (217,503) (226,240) $ 249,553 $ 220,663 Other non-current assets Investment-related deposits (3) $ 373,252 $ 325,895 Loans to and interest receivable from other related parties (1) 454,912 349,716 Deferred tax assets 39,989 43,262 Others 30,269 36,889 $ 898,422 $ 755,762 Accrued and other liabilities (4) : Payroll and welfare $ 156,274 $ 161,579 Marketing expenses 74,093 62,267 Sales rebates 266,455 244,868 Professional fees 8,836 8,083 VAT and other tax payable 51,037 56,548 Amounts due to users (2) 52,216 50,194 Payable to SINA for the acquisition of the equity of STC (Note 6) 218,402 — Unpaid consideration for acquisitions 687 5,674 Unpaid consideration for investment 4,320 2,186 Proceeds received in advance from disposal of investment 14,496 — Interest payable for convertible senior notes, unsecured senior notes and long-term loans 28,257 28,812 Others 38,911 36,234 $ 913,984 $ 656,445 (1) Loans to related parties and third parties incurred for the years ended December 31, 2022 and 2023 were non-trade in nature. (2) Weibo wallet enables users to conduct interest-generation activities on Weibo, such as handing out “red envelopes” and coupons to users and purchase different types of products and services on Weibo, including those offered by the Group, such as marketing services and membership, and those offered by Weibo’s platform partners, such as e-commerce merchandises, financial products and virtual gifts. Amounts deposited by users primarily represent the receivable temporarily held in Weibo’s account on a third-party online payment platform for Weibo wallet users. Amounts due to users represent the balances that are payable on demand to Weibo wallet users and therefore are reflected as current liability on the consolidated balance sheets. (3) Investment-related deposits primarily included a game company amounted to US $249.4 million and US $154.0 million as of December 31, 2022 and 2023, respectively. (4) Include amounts due to third parties, employees, related parties (Note 10) and Weibo wallet users. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Income Taxes | 9. Income Taxes The Company is registered in the Cayman Islands and mainly operates in two taxable jurisdictions—the PRC and Hong Kong. The Group’s income before income taxes is as follows: Year Ended December 31, 2021 2022 2023 (In US$ thousands, except percentage) Loss from non-China operations $ (232,830) $ (422,860) $ (145,244) Income from China operations 783,548 550,946 648,026 Total income before income tax expenses $ 550,718 $ 128,086 $ 502,782 Income tax expense (benefits) applicable to non-China operations $ 1,355 $ (14,176) $ 45,441 Income tax expense applicable to China operations 137,486 44,453 99,846 Total income tax expenses $ 138,841 $ 30,277 $ 145,287 Effective tax rate for China operations 17.5 % 8.1 % 15.4 % Effective tax rate for the Group 25.2 % 23.6 % 28.9 % The Group generated the majority of its operating income from PRC operations and has recorded income tax provision for the periods presented. The Group’s loss from non-China operations primarily included stock-based compensation, fair value changes through earnings on investments, investment-related impairment and interest expenses recorded by the Group’s non-China entities. The substantial majority of these items were recognized by the Group’s non-China entities in the Cayman Islands. The Group’s non-China operations have reversed US$14.2 million deferred tax charges which were previously recognized from fair value change of investments in 2022 and recognized US$43.7 million withholding tax in connection with the dividends paid and to be paid by Weibo Technology to Weibo HK in the foreseeable future in 2023. Cayman Islands Under the current tax laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. In addition, upon payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax is required. Hong Kong Weibo HK is subject to 16.5% Hong Kong profit tax on its taxable income generated from operations in Hong Kong. Commencing from the year of assessment 2018/2019, the first HK$2 million of profits earned by entities incorporated in Hong Kong will be taxed at half the current tax rate (i.e., 8.25%) while the remaining profits will continue to be taxed at the existing 16.5% tax rate. Hong Kong does not impose a withholding tax on dividends. As of December 31, 2023, Weibo HK had a net operating loss of US$2.4 million, which can be carried forward indefinitely to offset future taxable income. 9. Income Taxes (Continued) China Effective January 1, 2008, the Enterprise Income Tax Law (the “EIT Law”) in China unifies the enterprise income tax rate for the entities incorporated in China at 25%, unless they are eligible for preferential tax treatment. Preferential tax treatments will be granted to companies conducting businesses in certain encouraged sectors and to entities qualified as “software enterprise”, “key software enterprise” (“KSE”) and/or “high and new technology enterprise” (“HNTE”). Weibo Technology, the Group’s WFOE, was granted the HNTE status for the fiscal years from 2017 to 2023, which entitled the qualified entity a preferential tax rate of 15% in 2021, 2022 and 2023. Its qualification as a HNTE is subject to annual evaluation and a three-year review by the relevant authorities in China. Upon the expiration of qualification, re-accreditation of certification from the relevant authorities is necessary for Weibo Technology to continue enjoying the preferential tax treatment. In addition, certain of the Group’s other PRC entities are also qualified as a “software enterprise”, and/or HNTE, and currently enjoy the respective preferential tax treatments. According to the relevant laws and regulations in the PRC, enterprises engaging in research and development activities were entitled to claim 150% of their research and development expenses incurred as tax deductible expenses when determining their assessable profits for that year (the “R&D Deduction”). The State Taxation Administration of the PRC (“STA”) announced in September 2018 that enterprises engaging in research and development activities would be entitled to claim 175% of their research and development expenses as R&D Deduction from January 1, 2018 to December 31, 2020. The deadline for enjoying this preferential R&D deduction policy was extended to December 31, 2023 as announced in March 2021 by STA. In March 2023, the STA announced that enterprises engaging in research and development activities would be entitled to claim 200% of their research and development expenses as R&D Deduction since January 1, 2023. The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The Implementing Rules of the EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company is located.” Based on a review of surrounding facts and circumstances, the Group does not believe that it is likely that its operations outside of the PRC be considered a resident enterprise for PRC tax purposes. However, due to limited guidance and implementation history of the EIT Law, should Weibo be treated as a resident enterprise for PRC tax purposes, the Company will be subject to PRC tax on worldwide income at a uniform tax rate of 25%. The EIT Law also imposes a withholding income tax rate of 10% on dividends distributed by a WFOE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. The Cayman Islands, where the Company incorporated, does not have such tax treaty with China. According to the arrangement between Mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006 and subsequent amendments, dividends paid by a WFOE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5% (if the foreign investor owns directly at least 25% of the shares of the WFOE). The operations of the Group’s WFOE in China are invested and held by Weibo HK. If the Company is regarded as a PRC non-resident enterprise and Weibo HK is regarded as a PRC resident enterprise, Weibo HK may be required to pay a 10% withholding tax on any dividends payable to the Company. Under such circumstances, if Weibo HK is deemed to be a “PRC resident enterprise”, the dividends distributed from Weibo Technology to Weibo HK is not subject to dividend withholding tax. Also, Weibo HK would be subject to PRC enterprise income tax on at a rate of 25%. If the Company and Weibo HK is regarded as a PRC non-resident enterprise and subject to specific conditions, Weibo Technology may be allowed to pay a 5% withholding tax for any dividends payable to Weibo HK. For the year ended December 31, 2023, Weibo HK received special cash dividend of US$406.1 million from Weibo Technology, the WFOE, and withholding tax of US$20.5 million in connection with the dividend was fully paid. Except for the withholding tax paid in 2023, Weibo HK accrued additional withholding tax of US$23.1 million on retained earnings generated in 2023 by Weibo Technology, because Weibo Technology’s earnings are to be remitted to Weibo HK in the foreseeable future to fund its demand on US dollars in business operations, payments of dividends and debts, potential investments, etc. As of December 31, 2022 and December 31, 2023, the Group had a total undistributed PRC earnings of RMB 22.4 billion and RMB 19.9 billion, respectively, which are expected to be indefinitely reinvested in the Group’s business for the foreseeable future. 9. Income Taxes (Continued) Composition of income tax expenses The following table sets forth current and deferred portion of income tax expenses of the Group: Year Ended December 31, 2021 2022 2023 (In US$ thousands) Current income tax expenses $ 151,319 $ 55,098 $ 121,249 Deferred tax expenses (benefits) (12,478) (24,821) 24,038 Income tax expenses $ 138,841 $ 30,277 $ 145,287 Reconciliation of the statutory tax rate to the effective tax rate The following table sets forth reconciliation between the PRC statutory EIT rate of 25% and the effective tax rate for the Group: Year Ended December 31, 2021 2022 2023 PRC Statutory EIT rate (1) 25.0 % 25.0 % 25.0 % Effect on tax holiday and preferential tax treatment (13.1) % (29.7) % (9.5) % Research and development super-deduction (7.5) % (21.1) % (4.4) % Non-deductible expenses and non-taxable income and others (2) 9.2 % (30.1) % (3.5) % Change in valuation allowance 0.7 % 8.2 % 5.0 % Effect of PRC withholding tax — — 8.7 % Tax rate difference from statutory rate in other jurisdictions 10.9 % 71.3 % 7.6 % Effective tax rate for the Group 25.2 % 23.6 % 28.9 % (1) The PRC statutory income tax rate is used for the reconciliation as the majority of the Group’s operations are based in the PRC. (2) The item included the impact of uncertain tax positions recognized in 2021 and the reversal of uncertain tax positions in 2022. The provision for income taxes for China operations for the years ended December 31, 2021, 2022 and 2023 differs from the amounts computed by applying the statutory EIT rate primarily due to the preferential tax treatments described above enjoyed by the WFOE, Weibo Technology, during the periods presented. Weibo Technology enjoyed a tax reduction of US$55.1 million, US$26.9 million and US$42.2 million for the HNTE status in 2021, 2022 and 2023, respectively. The WFOE recognized tax benefits of research and development super deduction of US$41.4 million, US$26.9 million and US$22.2 million in 2021, 2022 and 2023, respectively. If the Group assessed that the benefits were more-likely-than-not to be sustained in the corresponding year, it would accordingly recognize the tax benefits. The preferential tax treatments benefited by the Group during the three-year period ended December 31, 2023 amounting to US$72.3 million, US$37.9 million and US$48.0 million, resulted in an effect of US$0.32, US$0.16 and US$0.20 on basic net income per share in 2021, 2022 and 2023, respectively. 9. Income Taxes (Continued) Deferred tax assets and liabilities The following table sets forth the significant components of deferred tax assets and liabilities for the Group: As of December 31, 2022 2023 (In US$ thousands) Deferred tax assets: Net operating loss carry forwards $ 18,289 $ 49,802 Investment-related impairment 52,363 50,441 Depreciation, accounts receivable, accrued and other liabilities 73,557 72,207 Valuation allowance (104,220) (129,188) Net deferred tax assets $ 39,989 $ 43,262 Deferred tax liabilities: Acquired intangible assets $ 27,435 $ 28,528 Depreciation 1,731 1,769 Unrealized investment-related gain 12,414 12,282 Withholding tax — 23,365 Others 114 207 Total deferred tax liabilities $ 41,694 $ 66,151 Valuation allowance is provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group considered factors including (i) future reversals of existing taxable temporary differences; (ii) future taxable income exclusive of reversing temporary differences and carry forwards; and (iii) tax planning strategies. The valuation allowance on deferred tax assets as of December 31, 2022 and 2023 was US$104.2 million and US$129.2 million, respectively. The valuation allowance primarily relates to credit loss allowances and investment impairment charges, as well as net operating loss carry forwards. Historically, deferred tax assets were valued using the tax rate applicable to each entity for China operations. Net operating loss carry forwards for China operations as of December 31, 2023 will expire, if unused, in the years ending December 31, 2024 through December 31, 2028. Uncertain tax position Except for the lag recognition of preferential tax treatment of research and development super deduction and stock based related deduction, the Group did not record any liability or decrease in deferred tax asset related to uncertain tax positions as of December 31, 2022 and 2023, and thus, no interest and penalties related to uncertain tax positions were recorded. For the year ended December 31, 2021, based on interactions with the tax authorities, the Group received additional guidance regarding certain areas with heightened requirements, and updated its estimate of related tax benefit amount that is expected to be sustained upon settlement with tax authorities. Additional US$27.9 million tax liability related to the uncertain tax positions was recognized for 2021, which is based on the updated estimate of the largest amount of tax benefit that is greater than 50% likely to be realized upon settlement with the tax authorities. For the year ended December 31, 2022, the Group reversed US$21.4 million tax liability related to the uncertain tax positions based on further interactions with the tax authorities. In general, the PRC tax authorities have up to five years to review a company’s tax filings. Accordingly, tax filings of the Company’s PRC subsidiaries and VIEs for tax years 2019 through 2023 remain subject to the review by the relevant PRC tax authorities. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions | |
Related Party Transactions | 10. Related Party Transactions The following sets forth significant related parties and their relationships with the Company: Company Name Relationship with the Company SINA Parent and affiliates under common control. Alibaba Strategic partner and significant shareholder of the Company. During the years ended December 31, 2021, 2022 and 2023, the Group entered in to a series of one-year loan agreements with SINA pursuant to which SINA is entitled to borrow from the Group to facilitate SINA’s business operations. SINA has withdrawn a total of US$978.2 million, US$1,261.9 million and US$1,105.7 million from the Group and repaid US$1,058.6 million, US$1,249.5 million and US$1,071.1 million to the Group during the years ended December 31, 2021, 2022 and 2023, respectively. As of December 31, 2022 and 2023, the loans to and interest receivable from SINA were US$420.4 million and US$445.2 million, respectively. The following sets forth significant related party transactions with the Group: Year Ended December 31, 2021 2022 2023 (In US$ thousands) Transactions with SINA Revenue billed through SINA $ 68,351 $ 44,962 $ 41,557 Revenue from services provided to SINA 43,170 31,984 25,253 Total $ 111,521 $ 76,946 $ 66,810 Costs and expenses allocated from SINA (1) $ 38,270 $ 47,178 $ 36,483 Interest income on loans to SINA $ 17,943 $ 14,770 $ 14,913 Transactions with Alibaba Advertising and marketing revenues from Alibaba – as an advertiser $ 139,561 $ 106,974 $ 111,608 Advertising and marketing revenues from Alibaba – as an agent $ 41,680 $ 223 $ — Services provided by Alibaba $ 44,006 $ 33,745 $ 23,366 (1) Costs and expenses allocated from SINA represented the charges for certain services provided by SINA or SINA’s affiliates and charged to the Group using actual cost allocation based on proportional utilization (Note 1). In addition to the allocated costs and expenses, SINA also billed US $48.0 million,US $37.7 million and US $24.9 million for other costs and expenses incurred by Weibo but paid by SINA for the years ended December 31, 2021, 2022 and 2023, respectively. During the years ended December 31, 2021, 2022 and 2023, Weibo allocated US $0.8 million, US $0.6 million and US $9.9 million to SINA for costs and expenses related to certain of SINA’s activities for which Weibo made the payments, respectively. The following table sets forth the details of the revenues from SINA by advertising and marketing revenues and value-added services revenues for the periods specified. Year Ended December 31, 2021 2022 2023 (In US$ thousands) Transactions with SINA Advertising and marketing revenues $ 96,359 $ 56,206 $ 45,319 Value-added services revenues 15,162 20,740 21,491 Total $ 111,521 $ 76,946 $ 66,810 10. Related Party Transactions (Continued) The following sets forth related party outstanding balance: As of December 31, 2022 2023 (In US$ thousands) Amount due from SINA (2) $ 487,117 $ 486,397 Payable to SINA for the acquisition of the equity of STC (Note 6) $ 218,402 $ — Accounts receivable due from Alibaba $ 75,347 $ 61,094 Loans to and interest receivable from other related parties (3) (4) -Company A (an investee providing online brokerage services) $ 110,000 $ 100,000 Subtotal (included in prepaid expenses and other current assets) 110,000 100,000 -Company B (an investee in real estate business) 454,912 349,716 Subtotal (included in other non-current assets) 454,912 349,716 Total $ 564,912 $ 449,716 (2) The Group uses amount due from/to SINA to settle balances arising from costs and expenses allocated from SINA based on proportional utilization, other expenditures incurred by Weibo business but paid by SINA, transactions with third-party customers and suppliers settled through SINA, as well as business transactions between Weibo and SINA. As of December 31, 2022 and 2023, the amount due from SINA also included loans to and interest receivable from SINA of US $420.4 million and US $445.2 million at an annual interest rate ranging from 1% to 4% of maturity within one year, respectively, which are non-trade in nature. (3) The annual interest rates of the loans were ranging from 4.0% to 6.7% at both dates. These balances are non-trade in nature. The contractual terms of the loans were up to 5 years while subject to extension and the Group will determine the liquidity (current versus non-current) of the loans pursuant to the expected cash collection. In 2023, several loans were extended and the Group accounted for such extension as loan modification. (4) The Group estimates the allowance for credit losses on loans and interest receivables not sharing similar risk characteristic on an individual basis. The key factors considered when determining the above allowances for credit losses include the fair value of the assets held by the borrowers. For the years ended December 31, 2021, 2022 and 2023, the Group recognized nil , US $7.6 million credit losses and a reversal of US $2.1 million credit losses on loans to and interest receivable from other related parties based on the expected collection schedule of these loans, respectively. Other related parties mainly include investee companies on which SINA or Weibo has significant influence. These investees are generally high-tech companies operating in different internet-related business. For the years ended December 31, 2021, 2022 and 2023, the Group recognized US$70.0 million, US$40.5 million and US$32.7 million of advertising and marketing revenues, US$3.3 million, US$8.1 million and US$2.7 million of value-added services revenues, and US$62.6 million, US$32.3 million and US$33.9 million of costs and expenses from other related parties, respectively. As of December 31, 2022 and 2023, other related parties accounted for outstanding balances of net accounts receivable of US$48.6 million and US$38.2 million, accounts payable of US$21.7 million and US$36.8 million, and accrued and other liabilities of US$6.6 million and US$6.0 million, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Employee Benefit Plans | |
Employee Benefit Plans | 11. Employee Benefit Plans China Contribution Plan The Company’s subsidiaries, VIEs and VIEs’ subsidiaries in China participate in a government-mandated, multi-employer, defined contribution plan, pursuant to which certain retirement, medical, housing and other welfare benefits are provided to employees. Chinese labor laws require the entities incorporated in China to pay to the local labor and welfare authorities a monthly contribution at a stated contribution rate based on the monthly basic compensation of qualified employees. The local labor bureau is responsible for meeting all retirement benefit obligations. The Group has no further commitments beyond its monthly contribution. For the years ended December 31, 2021, 2022 and 2023, the Group’s total contribution was US$83.2 million, US$91.2 million and US$79.5 million, respectively. |
Net Income per Share
Net Income per Share | 12 Months Ended |
Dec. 31, 2023 | |
Net Income per Share | |
Net Income per Share | 12. Net Income per Share Basic net income per share is computed using the weighted average number of the ordinary shares outstanding during the period. Options and RSUs are not considered outstanding in the computation of basic earnings per share (“EPS”). Diluted EPS is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period under the treasury stock method. For the years ended December 31, 2021, 2022 and 2023, options to purchase ordinary shares and RSUs of 1.4 million, 1.2 million and 2.6 million were recognized as dilutive factors and included in the calculation of diluted net income per share, respectively. For the years ended December 31, 2021, 2022 and 2023, options and RSUs which were anti-dilutive and excluded from the calculation of diluted net income per share were 0.4 million, 6.5 million and 7.4 million, respectively. For the years ended December 31, 2021, 2022 and 2023, 6.8 million, 5.9 million and nil shares convertible from the convertible senior notes were anti-dilutive and excluded from the calculation of diluted net income per share, respectively. The following table sets forth the computation of basic and diluted net income per share for the periods presented: Year Ended December 31, 2021 2022 2023 (In US$ thousands, except share data and per share data) Basic net income per share calculation: Numerator: Net income attributable to Weibo’s shareholders $ 428,319 $ 85,555 $ 342,598 Denominator: Weighted average ordinary shares outstanding 228,814 235,164 235,560 Basic net income per share attributable to Weibo’s shareholders $ 1.87 $ 0.36 $ 1.45 Diluted net income per share calculation: Numerator: Net income attributable to Weibo $ 428,319 $ 85,555 $ 342,598 Add: Effect on interest expenses and amortized issuance cost of convertible senior notes — — 529 Net income attributable to Weibo’s shareholders for calculating diluted net income per share 428,319 85,555 343,127 Denominator: Weighted average ordinary shares outstanding 228,814 235,164 235,560 Effects of dilutive securities Stock options 68 — 14 Unvested restricted share units 1,324 1,243 2,625 Convertible senior notes — — 1,775 Shares used in computing diluted net income per share attributable to Weibo’s shareholders 230,206 236,407 239,974 Diluted net income per share attributable to Weibo’s shareholders $ 1.86 $ 0.36 $ 1.43 |
Profit Appropriation and Restri
Profit Appropriation and Restricted Net Assets | 12 Months Ended |
Dec. 31, 2023 | |
Profit Appropriation And Restricted Net Assets | |
Profit Appropriation and Restricted Net Assets | 13. Profit Appropriation and Restricted Net Assets The Company’s subsidiaries, VIEs and VIEs’ subsidiaries in China are required to make appropriations to certain non-distributable reserve funds, in accordance with the China Company Laws. They have to make appropriations from their after-tax profit (as determined under Generally Accepted Accounting Principles in the PRC (“PRC GAAP”)) to non-distributable reserve funds including (i) statutory surplus fund, and (ii) discretionary surplus fund. Statutory surplus fund is at least 10% of the after-tax profits calculated in accordance with the PRC GAAP. Appropriation is not required if the reserve fund has reached 50% of the registered capital of the respective company. Statutory surplus fund is restricted for set off against losses, expansion of production and operation or increase in registered capital of the respective companies. These reserves are not transferable to the Company in the form of cash dividends, loans or advances. These reserves are therefore not available for distribution except in liquidation. As of December 31, 2022 and 2023 the Group’s PRC subsidiaries accrued approximately US$133.6 million and US$130.4 million in the general reserve/statutory surplus funds, respectively. Under the PRC laws and regulations, the subsidiaries, VIEs and VIEs’ subsidiaries incorporated in the PRC are restricted in their ability to transfer a portion of their net assets to the Group either in the form of dividends, loans or advances of the consolidated net assets. The amounts restricted for the Group amounted to US$567.2 million, or 16.1% of the Group’s total consolidated net assets as of December 31, 2023. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurement | |
Fair Value Measurement | 14. Fair Value Measurement The following table summarizes, for assets measured at fair value on a recurring basis, the respective fair value and the classification by level of input within the fair value hierarchy as of December 31, 2022 and 2023: Fair Value Measurements Quoted Prices in Active Market Significant Other Significant for Identical Assets Observable Inputs Unobservable Inputs Total (Level 1) (Level 2) (Level 3) (In US$ thousands) As of December 31, 2022: Wealth management products (1) $ 212,195 $ — $ 212,195 $ — Equity securities with readily determinable market value (2) 239,550 239,550 — — Total $ 451,745 $ 239,550 $ 212,195 $ — As of December 31, 2023: Wealth management products (1) $ 24,535 $ — $ 24,535 $ — Equity securities with readily determinable market value (2) 118,268 118,268 — — Total $ 142,803 $ 118,268 $ 24,535 $ — (1) Included in short-term investments on the Group’s consolidated balance sheets. (2) Included in long-term investments on the Group’s consolidated balance sheets. Recurring The Group measures short-term investments and equity securities with readily determinable fair values at fair value on a recurring basis. The fair values of the Group’s equity securities with readily determinable fair values are determined based on the quoted market price (Level 1). The fair values of the Group’s short-term investments are determined based on the quoted market price for similar products (Level 2). The fair value of certain wealth management products was determined based on market approach using unobservable inputs including selection of comparable debt securities and lack of marketability discounts. The fair value of these wealth management products was both nil as of December 31, 2022 and 2023, respectively, with US$47.0 million fair value change loss recognized for these wealth management products for the year ended December 31, 2022. The Group recorded US$196.6 million fair value change loss and US$32.1 million fair value change gain for equity securities with readily determinable fair values for the year ended December 31, 2022 and 2023, respectively. 14. Fair Value Measurement (Continued) Non-recurring For those equity investments without readily determinable fair value, the Group measures them at market value when observable price changes are identified or impairment charges are recognized. The market values of the Group’s privately held investments as disclosed are determined based on the discounted cash flow model using the discount curve of market interest rates or based on the similar transaction price in the market directly. The Group classifies the valuation techniques on those investments that use similar identifiable transaction prices as Level 2 of fair value measurements. The Group measures equity method investments at fair value on a non-recurring basis only if an impairment charge is recognized. Certain privately held investments were measured using significant unobservable inputs (Level 3) and written down from their respective carrying values to fair values, considering the investees’ financial performance, assumptions about future growth, and future financing plan, with impairment charges incurred and recorded in earnings for the period then ended. For the years ended December 31, 2021, 2022 and 2023, US$106.8 million, US$63.5 million and US$25.7 million impairment charges were recorded for those equity investments without readily determinable fair values. As of December 31, 2022 and 2023, the carrying value of these impaired investments measured at Level 3 inputs were US$17.8 million and nil, respectively. The fair value of the privately held investments was measured either based on discounted cash flow market interest rates The Group’s non-financial assets, such as intangible assets, goodwill, fixed assets and operating lease assets, are measured at fair value only if they were determined to be impaired. In accordance with the Group’s policy to perform an impairment assessment of its goodwill on an annual basis as of the balance sheets date or when facts and circumstances warrant a review, the Group performed an impairment assessment on its goodwill by reporting unit at least annually. The Group recognized no impairment charge of goodwill arising from previous acquisitions for the years ended December 31, 2021, 2022 and 2023, respectively. The carrying amount of cash and cash equivalents, short-term investments, accounts receivable due from third parties, accounts receivable due from Alibaba, accounts receivable due from other related parties, amount due from SINA, accounts payable, accrued and other liabilities approximates fair values because of their short-term nature. The Group determines the fair value of its unsecured senior notes using quoted prices in less active markets, and accordingly the Group categorizes the unsecured senior notes and convertible senior notes as Level 2 in the fair value hierarchy. The fair value of unsecured senior notes amounted to US$1,355.6 million and US$1,438.2 million as of December 31, 2022 and 2023, respectively. The fair value of convertible senior notes amounted to US$356.0 million as of December 31, 2023. |
Convertible Senior Notes, Unsec
Convertible Senior Notes, Unsecured Senior Notes and Long-term Loans | 12 Months Ended |
Dec. 31, 2023 | |
Convertible Senior Notes, Unsecured Senior Notes and Long-term Loans | |
Convertible Senior Notes, Unsecured Senior Notes and Long-term Loans | 15. Convertible Senior Notes, Unsecured Senior Notes and Long-term Loans Convertible Senior Notes due 2022 In October 2017, the Company issued US$900 million in aggregate principal amount of 1.25% coupon interest convertible senior notes due on November 15, 2022 (“2022 Convertible Notes”) at par. The net proceeds received by the Company from the issuance of the 2022 Convertible Notes were US$879.3 million, net of issuance cost of US$20.7 million. The Company pays cash interest at an annual rate of 1.25%, payable semiannually in arrears on May 15 and November 15 of each year, beginning May 15, 2018. The issuance costs of the 2022 Convertible Notes are being amortized to interest expenses over the contractual life. The 2022 Convertible Notes related interest expenses were US$15.4 million and US$13.2 million for each of the years ended December 31, 2021 and 2022, respectively. The Company has repaid all outstanding principal amount and accrued interest expenses of 2022 Convertible Notes in November 2022. Unsecured Senior Notes due 2024 In July 2019, the Company issued US$800 million in aggregate principal amount of unsecured senior notes due on July 5, 2024 (“2024 Senior Notes”), unless previously repurchased or redeemed in accordance with the terms prior to maturity. The 2024 Senior Notes were issued at par value and bear an annual interest rate of 3.50%, payable semiannually in arrears on January 5 and July 5 of each year, beginning on January 5, 2020. The net proceeds to the Company from the issuance of the 2024 Senior Notes were US$793.3 million, net of issuance cost of US$6.7 million. The issuance costs of the 2024 Senior Notes are being amortized to interest expenses over the contractual life. The 2024 Senior Notes related interest expenses were US$29.3 million for each of the three years ended December 31, 2023. 15. Convertible Senior Notes, Unsecured Senior Notes and Long-term Loans (Continued) Unsecured Senior Notes due 2030 In July 2020, the Company issued US$750 million in aggregate principal amount of unsecured senior notes due on July 8, 2030 (“2030 Senior Notes”), unless previously repurchased or redeemed in accordance with the terms prior to maturity. The 2030 Senior Notes bear an annual interest rate of 3.375%, payable semiannually in arrears on January 8 and July 8 of each year, beginning on January 8, 2021. The net proceeds to the Company from the issuance of the 2030 Notes were US$740.3 million, net of issuance cost of US$9.7 million. The issuance costs of the 2030 Senior Notes are being amortized to interest expenses over the contractual life. For each of the three years ended December 31, 2023, the Group recognized US$26.3 million interest expenses from the 2030 Notes. Term and revolving facilities agreement due 2027 On August 22, 2022, the Company signed a five-year US$1.2 billion term and revolving facilities agreement with a group of 23 arrangers. The facilities consist of a US$900 million five-year bullet maturity term loan and a US$300 million five-year revolving facility. The term and revolving loans under this facility are priced at 128 basis points over Term SOFR (the applicable reference rate). As of December 31, 2023, the Company has fully withdrawn the US$900 million term loan and partially withdrawn US$5 million revolving facility (“2027 Loans”) and repaid US$100 million term loan in the fourth quarter of 2023. The Company used the proceeds from the term loan to refinance of existing indebtedness, general corporate purposes and payment of transaction related fees and expenses. For the years ended December 31, 2022 and 2023, the Group recognized US$2.8 million and US$63.9 million interest expenses from the 2027 Loans, respectively. Convertible Senior Notes due 2030 In December 2023, the Company issued US$330 million in aggregate principal amount of 1.375% coupon interest convertible senior notes due on December 1, 2030 (“2030 Convertible Notes”) at par. The net proceeds received by the Company from the issuance of the 2030 Convertible Notes were approximately US$317.4 million, net of issuance cost of US$12.6 million. The Company pays cash interest at an annual rate of 1.375%, payable semiannually in arrears on June 1 and December 1 of each year, beginning June 1, 2024. The holders may require the Company to repurchase all or part of the notes for cash on December 6, 2027 at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date. The issuance cost related to the notes was recorded in the consolidated balance sheet as a direct deduction from the principal amount of the notes, and amortized over the period from December 4, 2023, the date of issuance, to December 6, 2027, the first put date of the notes, using the effective interest method. ADS Lending Agreement in connection with Convertible Senior Notes due 2030 Concurrent with the offering of the 2030 Convertible Notes, the Company entered into an ADS lending agreement with an affiliate of the initial purchaser of the 2030 Convertible Notes (the “ADS Borrower”), pursuant to which the Company lent to the ADS Borrower 6,233,785 ADSs (the “Borrowed ADSs”) for loan processing fees of $0.00025 per Borrowed ADS (“ADS lending arrangement”). The purpose of the ADS lending arrangement is to facilitate short sales and/or privately negotiated derivative transactions by which some investors in the 2030 Convertible Notes may hedge their exposure to the 2030 Convertible Notes. As of December 31, 2023, the outstanding number of the Borrowed ADSs was 6,233,785. Subject to the terms of the ADS lending agreement, the Borrowed ADSs must generally be returned to the Company as soon as practicable after the termination of the ADS lending facility and in any event no later than the twenty-fifth trading day following the earliest of (a) the date on which the Company notifies the ADS Borrower in writing of its intention to terminate the ADS lending agreement at any time after the date on which the entire principal amount of the 2030 Convertible Notes ceases to be outstanding, whether as a result of conversion, repurchase, redemption, cancellation or otherwise, and (b) the date on which the ADS Lending Agreement terminates in accordance with its terms. The Company is not required to make any payment to the initial purchaser or the ADS Borrower upon the return of the Borrowed ADSs. 15. Convertible Senior Notes, Unsecured Senior Notes and Long-term Loans (Continued) ADS Lending Agreement in connection with Convertible Senior Notes due 2030 (Continued) No collateral is required to be posted for the Borrowed ADSs. The ADS Borrower is required to remit to the Company any dividends paid to the holders of the Borrowed ADSs (net of any fees, costs or tax withholdings and deductions). The ADS Borrower is not entitled to vote on the Borrowed ADSs. In accordance with ASC 815-40 and ASC 470-20, the Company has accounted for the ADS lending arrangement as equity, initially measured at fair value and recognized it as an issuance cost associated with the 2030 Convertible Notes. As a result, additional issuance cost of US$2 million was recorded on the issuance date with a corresponding increase to additional paid-in-capital. This issuance cost has also been amortized from the date of issuance to the put date of notes, using the effective interest method. For the year ended December 31, 2023, the Group recognized US$0.5 million interest expense from the 2030 Convertible Senior Notes. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | 16. Commitments and Contingencies Operating lease commitments include the commitments under the lease agreements for the Group’s office premises. The Group leases its office facilities under non-cancelable operating leases with various expiration dates. For the years ended December 31, 2021, 2022 and 2023, the Group recorded US$17.7 million, US$21.9 million and US$19.5 million lease expenses, respectively. Based on the current rental lease agreements, future minimum lease payments commitments as of December 31, 2023 were as follows: Less than One One to Three to More than Operating lease commitments Total Year Three Years Five Years Five Years (In US$ thousands) As of December 31, 2023 $ 68,163 $ 13,374 $ 24,185 $ 5,576 $ 25,028 Purchase commitments mainly include minimum commitments for marketing activities and internet connection. Purchase commitments as of December 31, 2023 were as follows: Less than One One to Three to More than Purchase commitments Total Year Three Years Five Years Five Years (In US$ thousands) As of December 31, 2023 $ 705,536 $ 687,853 $ 15,622 $ 1,988 $ 73 2024 Senior Notes represent future maximum commitment relating to the principal amount and interests in connection with the issuance of US$800 million in aggregate principal amount of unsecured senior notes bearing an annual interest rate of 3.50%, which will mature on July 5, 2024. 2030 Senior Notes represent future maximum commitment relating to the principal amount and interests in connection with the issuance of US$750 million in aggregate principal amount of unsecured senior notes bearing an annual interest rate of 3.375%, which will mature on July 8, 2030. 2027 Loans represent future estimated commitment relating to the principal amount and interests in connection with the issuance of US$900 million term loan (US$100 million repaid in the fourth quarter of 2023) and US$5 million revolving facility bearing annual rate at 128 basis points over Term SOFR as of December 31, 2023, which will mature on August 22, 2027. 2030 Convertible Notes represent future maximum commitment relating to the principal amount and interests in connection with the issuance of US$330 million in aggregate principal amount of convertible senior notes bearing an annual interest rate of 1.375%, which will mature on December 1, 2030. Other commitments as of December 31, 2023 were as follows: Less than One One to Three to More than Other commitments Total Year Three Years Five Years Five Years (In US$ thousands) 2024 Senior Notes $ 828,000 $ 828,000 $ — $ — $ — 2030 Senior Notes 927,188 25,313 50,625 50,625 800,625 2030 Convertible Notes 361,746 4,538 9,075 9,075 339,058 2027 Loans 1,002,698 53,650 107,301 841,747 — Total $ 3,119,632 $ 911,501 $ 167,001 $ 901,447 $ 1,139,683 16. Commitments and Contingencies (Continued) There are uncertainties regarding the legal basis of the Group’s ability to operate an Internet business in China. Although China has implemented a wide range of market-oriented economic reforms, the telecommunication, information and media industries remain highly regulated. Not only are such restrictions currently in place, the existing regulations are unclear as to which specific segments of these industries companies with foreign investors, including the Company, may operate. Therefore, the Group may be required to limit the scope of its operations in China, and this could have a material adverse effect on its financial position, results of operations and cash flows. There are no claims, lawsuits, investigations or proceedings, including unasserted claims that are probable to be assessed, that have in the recent past had, or to the Group’s knowledge, are reasonably possible to have, a material impact on the Group’s financial statements. |
Redeemable Non-controlling Inte
Redeemable Non-controlling Interests | 12 Months Ended |
Dec. 31, 2023 | |
Redeemable Non-controlling Interests | |
Redeemable Non-controlling Interests | 17. Redeemable Non-controlling Interests In the fourth quarter of 2020, the Group entered into a series of share purchase agreements with then existing shareholders of Shanghai Jiamian Information Technology Co., Ltd. (“JM Tech”) to acquire the majority of the company’s equity interest. The Group agreed to redeem the non-controlling interests held by the founder and CEO of the company under certain circumstances during the following years subsequent to the acquisition (“redemption period”). The Group determined that the non-controlling interest with redemption rights should be classified as redeemable non-controlling interest since they are contingently redeemable upon the occurrence of certain conditional events, which are not solely within the control of the Group. The redemption price will be established by applying a predetermined multiple to adjusted earnings and could be higher if the founder and CEO of JM Tech is still under employment during the redemption period. The difference of redemption price caused by whether the founder and CEO is still employed is deemed as compensation cost to the founder and CEO with a credit to redeemable non-controlling interests. The redeemable non-controlling interests is recognized at fair value on the acquisition date. The Group records accretion on the redeemable non-controlling interests to the redemption value over the period from the date of the acquisition to the date of earliest redemption. The accretion using the effective interest method, is recorded as deemed dividends to preferred shareholders, which reduce retained earnings and equity classified non-controlling interests, and earnings available to common shareholders in calculating basic and diluted earnings per share. The process of adjusting redeemable non-controlling interests to its redemption value (the “Mezzanine Adjustment”) should be performed after attribution of the subsidiary’s net income or loss pursuant to ASC 810, Consolidation. The carrying amount of redeemable non-controlling interests will equal the higher of the amount resulting from application of ASC 810 or the amount resulting from the Mezzanine Adjustment. As the expected redemption value is less than the carrying value of redeemable non-controlling interests, there is nil mezzanine adjustment recognized for the years ended December 31, 2021 and 2022. Pursuant to the agreements between the Group and the founder and CEO who is also an employee of JM Tech, the founder and CEO is required to be incumbent and JM Tech should meet certain performance conditions during the following two years till December 31, 2022 for the founder and CEO to be entitled to his proportionate share in JM Tech’s existing and future retained earnings during the period. Such entitlement will automatically be forfeited upon the termination of his employment during the period. The Company considered this arrangement as certain economic interests associated with the founder and CEO’s non-controlling interests in JM Tech till December 31, 2022. Therefore, the Company recognized compensation costs for the founder and CEO’s share of JM Tech’s retained earnings with the credit increasing non-controlling interests and redeemable non-controlling interests. During the year ended December 31, 2021, US$23.2 million compensation costs were recognized, of which US$20.0 million was recorded to increase redeemable non-controlling interests. As of December 31, 2022, the management of the Company had assessed the performance of JM Tech since the acquisition date and concluded that JM Tech did not meet the performance conditions defined in the share purchase agreements, which entitles the founder and CEO of JM Tech his proportionate share in the retained earnings during the period. Thus, the Group has reversed the accumulated US$36.2 million compensation costs related to JM Tech’s retained earnings recognized during the period, of which US$31.9 million was recorded to reduce redeemable non-controlling interests and US$4.3 million was recorded to reduce non-controlling interests. The reduction recorded in 2022 in redeemable non-controlling interests led to the carrying value below the redemption amount; therefore, accretion to redeemable non-controlling interests amounting US$12.8 million was recorded for the year ended December 31, 2023. For the year ended December 31, 2023, US$11.5 million of compensation costs was recognized with the founder and CEO’s incumbency. |
Secondary Listing in Hong Kong
Secondary Listing in Hong Kong | 12 Months Ended |
Dec. 31, 2023 | |
Secondary Listing in Hong Kong | |
Secondary Listing in Hong Kong | 18. Secondary Listing in Hong Kong On December 8, 2021, the Company completed its global offering and its shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited (“HKEX”). Weibo offered 5,500,000 Class A ordinary shares of the Company and Sina Corporation (the “Selling Shareholder”) offered 5,500,000 Class A ordinary shares of the Company, which were converted from the same number of Class B ordinary shares of the Company prior to the listing of Weibo’s Class A ordinary shares on the HKEX. Net proceeds from the global offering, after deducting estimated underwriting fees and other offering expenses, were US$178.4 million. The Company did not receive any proceeds from the sale of the Class A ordinary shares offered by the Selling Shareholder. In addition, the Selling Shareholder granted an over-allotment option to the underwriters, to require the Selling Shareholder to sell up to an aggregate of 1,650,000 additional Class A ordinary shares of the Company (converted from the same number of Class B ordinary shares). The Selling Shareholder sold 1,453,620 shares to the underwriters for the option granted. The underwriters borrowed 1,650,000 shares, which were included in the Company’s total outstanding shares as of December 31, 2021, from WB HZGS Estate (Hong Kong) Limited (a wholly-owned subsidiary of Weibo) to facilitate the settlement of over-allocations. The borrowed shares were returned to WB HZGS Estate (Hong Kong) Limited in the first quarter of 2022. |
Special Cash Dividend
Special Cash Dividend | 12 Months Ended |
Dec. 31, 2023 | |
Special Cash Dividend | |
Special Cash Dividend | 19. Special Cash Dividend In May 2023, the Company’s board of directors approved a special cash dividend of US$0.85 per ordinary share and ADS to the holders of its ordinary shares and ADSs as of the close of business on June 26, 2023. The aggregate amount of the special cash dividend was US$200.1 million and paid in July, 2023. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events | |
Subsequent Events | 20. Subsequent Events In March 2024, the Company’s board of directors has approved a special cash dividend of US$0.82 per ordinary share and ADS to holders of its ordinary shares and ADSs as of the close of business on April 12, 2024. The aggregate amount of the dividend will be approximately US$200 million and expected to be paid in May 2024. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Significant Accounting Policies | |
Basis of presentation | Basis of presentation The preparation of the Group’s consolidated financial statements is in conformity with U.S. GAAP. The consolidated financial statements include the accounts of Weibo, its wholly owned subsidiaries, VIEs, and VIEs’ subsidiaries. All significant intercompany balances and transactions have been eliminated. |
Use of estimates | Use of estimates Conformity with U.S. GAAP requires the use of estimates and judgments that affect the reported amounts in the consolidated financial statements and accompanying notes. These estimates form the basis for judgments the management makes about the carrying values of the assets and liabilities, which are not readily apparent from other sources. U.S. GAAP requires making estimates and judgments in several areas, including, but not limited to, the basis of consolidation, revenue recognition, fair value accounting, income taxes, long-term investments, goodwill and other long-lived assets, allowances for credit losses, stock-based compensation, the estimated useful lives of assets, convertible senior notes, business combination, and foreign currency. The management bases the estimates and judgments on historical information and on various other assumptions that management believes are reasonable under the circumstances. Actual results could differ materially from such estimates. |
Revenue recognition | Revenue recognition The Group does not believe that significant management judgments are involved in revenue recognition, but the amount and timing of the Group’s revenues could be different for any period if management made different judgments. Certain customers may receive sales rebates, which are accounted for as variable consideration. The Group estimates annual expected revenue volume of each individual agent with reference to their historical results. The Group recognizes revenue for the amount of fees it receives from its customers, after deducting estimated sales rebates and net of value-added tax (“VAT”) under ASC 606. The Group believes that there will not be significant changes to its estimates of variable consideration. The Group considers the ultimate beneficiary of its online advertising services as an “advertiser,” meaning the party whose products, brand awareness or marketing activities benefited from the execution of advertisement. The Group considers a party that it enters into an advertisement service contract with as its “customer” from accounting perspective. As such, the Group treats an advertising agency who enters into an advertisement service contract with it as a customer, and such advertising agency may represent and serve multiple advertisers. If an advertiser directly enters into an advertisement service contract with the Group, it will treat such advertiser also as a customer. Revenue disaggregated by revenue source for the years ended December 31, 2021, 2022 and 2023 consists of the following: Year Ended December 31, 2021 2022 2023 (In US$ thousands) Advertising and marketing revenues Revenues from advertisers signing contracts with the Group directly $ 478,874 $ 356,503 $ 437,276 Revenues from advertising agencies 1,501,921 1,240,147 1,096,738 1,980,795 1,596,650 1,534,014 Value-added services revenues 276,288 239,682 225,822 Total revenues $ 2,257,083 $ 1,836,332 $ 1,759,836 The Group enters into contracts with its customers, which may give rise to contract assets (unbilled revenue) or contract liabilities (deferred revenue). The payment terms and conditions within the Group’s contracts vary by the type and location of its customers and products or services purchased, the substantial majority of which are due in less than one year. Deferred revenues related to unsatisfied performance obligations at the end of the period are mainly from the customer advance of the advertising and marketing services and the sales of the fee-based services, such as membership, and virtual currency or in-game virtual items sold for game related services. The deferred revenues are recognized based on customers’ consumption or amortized on a straight-line basis through the service period for different products/services. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following reporting period. The amount of revenue recognized that was included in the deferred revenue balance at the beginning of the period was US$126.5 million, US$56.1 million and US$49.9 million for the years ended December 31, 2021, 2022 and 2023, respectively. Practical Expedients and Exemptions The Group generally expenses sales commissions when incurred because the amortization period is generally one year or less. These costs are recorded within sales and marketing expenses. Advertising and marketing revenues Advertising and marketing revenues are derived principally from online advertising, including social display ads and promoted marketing. Social display ad arrangements allow customers to place advertisements on particular areas of the Group’s platform or website in particular formats and over particular periods of time, which is typically no more than three months. The Group enters into cost per mille (“CPM”), or cost per thousand impressions, advertising arrangements with the customers, under which the Group recognizes revenues based on the number of times that the advertisement has been displayed. The Group also enters into cost per day (“CPD”) advertising arrangements with customers, under which the Group recognizes revenues ratably over the contract periods. Promoted marketing arrangements are primarily priced based on CPM. Under the CPM model, customers are obligated to pay when the advertisement is displayed. The Group’s majority revenue transactions are based on standard business terms and conditions, which are recognized net of agency rebates. The agency rebates are accounted for as variable consideration and are estimated during interim periods based on estimated annual revenue volume of each individual agent with reference to their historical results, which involves accounting judgment. The Group believes its estimation approach in variable consideration results in revenue recognition in a manner consistent with the underlying economics of the transaction. The Group’s contracts with customers may include multiple performance obligations, which primarily consist of combinations of service to allow customers to place advertisements on different areas of its platform or website. For such arrangements, advertising arrangements involving multiple deliverables are broken down into single-element arrangements based on their stand-alone selling price for revenue recognition purposes. The estimation of stand-alone selling price involves significant judgment, especially for the deliverables that have not been sold separately. For those deliverables, the Group determines best estimate of the stand-alone selling price by taking into consideration of the pricing of advertising areas of the Group’s platform or website with similar popularities and advertisements with similar formats and quoted prices from competitors and other market conditions. The Group believes the estimation approach in stand-alone selling price and allocation of the transaction price on a relative stand-alone selling price to each performance obligation results in revenue recognition in a manner consistent with the underlying economics of the transaction and the allocation principle included in ASC 606. Revenues recognized with reference to best estimation of selling price were immaterial for all periods presented. Most of such contracts have all performance obligations completed within one year. Changes in judgments on these assumptions and estimates could materially impact the timing or amount of revenue recognition. Contracts with customers of online advertising may require cooperation from third parties. The Group pays a predetermined portion of revenues earned from advertising contracts to the third parties such as key opinion leaders who participate in advertising and promotion activities by monetizing their social assets. The Group has determined that it is the principal in these transactions, as it has primary responsibility for fulfilling all the obligations related to advertising contracts. The Group has discretion in establishing pricing of the contracts and controls the advertising inventory before the delivery to customers. The Group records revenues derived from such contracts on a gross basis and the portion paid to the third parties is recognized as cost of revenues. Value-added services revenues The Group generates value-added services revenues principally from fee-based services, mainly including membership, and game-related services. Revenues from these services are recognized when control of the promised services is transferred to customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those services. Membership. Game-related services. |
Cost of revenues | Cost of revenues Cost of revenues consists mainly of costs associated with the maintenance of platform, which primarily include bandwidth and other infrastructure costs, revenue-share cost, advertisement production cost, labor cost and turnover taxes levied on the revenues, part of which were allocated from SINA. The Group is subject to 3% cultural business construction fees for its advertising and marketing revenues, which is included in cost of revenues. Starting from July 1 2019, the 3% cultural business construction fees was reduced to 1.5%, valid until December 31, 2024. Moreover, as part of the measures taken by the government to ease the negative impact from COVID-19 pandemic, the cultural business construction fees were exempted for the fiscal years of 2021 and restored to 1.5% since the fiscal year of 2022. |
Sales and marketing expenses | Sales and marketing expenses Sales and marketing expenses consist mainly of online and offline advertising and promotional expenses, salary, benefits and commission expenses, and facility expenses. Advertising and promotional expenses generally represent the expenses of promotions of corporate image and product marketing. The Group expenses all advertising and promotional expenses as incurred and classifies these expenses under sales and marketing expenses. For the years ended December 31, 2021, 2022 and 2023, the advertising and promotional expenses were US$418.0 million, US$310.4 million and US$302.3 million, respectively. |
Product development expenses | Product development expenses Product development expenses consist mainly of payroll-related expenses and infrastructure costs incurred for enhancement to and maintenance of the Group’s platform, as well as costs associated with new product development and product enhancements, part of which were allocated from SINA. The Group expenses all costs incurred for the planning, post implementation phases of development and costs associated with repair or maintenance of the existing site or the development of platform content. Since inception, the amount of costs qualifying for capitalization has been immaterial and, as a result, all product development costs have been expensed as incurred. |
Stock-based compensation | Stock-based compensation All stock-based awards to employees and directors, such as stock options and restricted share units (“RSUs”), are measured at the grant date based on the fair value of the awards. Stock-based compensation, net of forfeitures, is recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. The Group uses the Black-Scholes option pricing model to estimate the fair value of stock options. The determination of estimated fair value of stock-based payment awards on the grant date using an option pricing model is affected by the fair value of the Company’s ordinary shares as well as assumptions regarding a number of complex and subjective variables. These variables include the expected value volatility of the Company over the expected term of the awards, actual and projected employee stock option exercise behaviors, a risk-free interest rate and expected dividends, if any. Options granted generally vest over four years. The Group recognizes the estimated compensation cost of restricted share units based on the fair value of its ordinary shares on the date of the grant. The Group recognizes the compensation cost, net of estimated forfeitures, over a vesting term of generally four years for service-based restricted share units. The Group uses Monte Carlo simulation model to estimate the fair value of restricted share units with market conditions on the date of the grant and recognizes the estimated compensation cost, net of estimated forfeitures, over the estimated requisite service period. The Group also recognizes the compensation cost of performance-based restricted share units, net of estimated forfeitures, if it is probable that the performance condition will be achieved at the end of each reporting period. Forfeitures are estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. The Group uses historical data to estimate pre-vesting option and records stock-based compensation expense only for those awards that are expected to vest. See Note 7 Stock-based Compensation |
Taxation | Taxation Income taxes Uncertain tax positions. |
Short-term investments | Short-term investments Short-term investments represent bank time deposits whose original maturities are of greater than three months but less than one year and wealth management products which are certain deposits with variable interest rates or principal not-guaranteed with certain financial institutions. In accordance with ASC 825, Financial Instruments |
Credit losses | Credit losses Pursuant to ASC 326, the Group makes estimates of expected credit and collectability trends for the allowance for credit losses based upon assessment of various factors, including historical experience, the age of the accounts receivable balances, credit-worthiness of the customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from the customers. The Group also provides specific provisions for allowance when facts and circumstances indicate that the receivable is unlikely to be collected. Expected credit losses for accounts receivable are recorded as general and administrative expenses on the consolidated statements of comprehensive income. ASC Topic 326 is also applicable to the loans to and interest receivable from other related parties included in the prepaid expenses and other current assets and other non-current assets on the consolidated balance sheets. Management estimates the allowance for credit losses on loans and interest receivable not sharing similar risk characteristics on an individual basis. The key factors considered when determining the above allowances for credit losses include the fair value of the assets held by the borrowers. |
Fair value measurements | Fair value measurements Financial instruments All financial assets and liabilities are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The Group measures the equity method investments at fair value on a non-recurring basis only if an impairment charge were to be recognized. For those investments without readily determinable fair value, the Group measures them at fair value when observable price changes are identified or impairment charge was recognized. The fair values of the Group’s privately held investments as disclosed are determined based on the discounted cash flow model using the discount curve of market interest rates or based on the similar transaction price in the market directly. The fair values of the Group’s long-term investments in the equity securities of publicly listed companies are measured using quoted market prices. The Group’s non-financial assets, such as intangible assets, goodwill, fixed assets and operating lease assets, are measured at fair value only if they are determined to be impaired. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value: ● Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. ● Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. ● Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The carrying amount of cash and cash equivalents, short-term investments, accounts receivable due from third parties, accounts receivable due from Alibaba, accounts receivable due from other related parties, amount due from SINA, accounts payable, accrued and other liabilities approximates fair value because of their short-term nature. See Note 14 Fair Value Measurement |
Long-term investments | Long-term investments Long-term investments are comprised of investments in publicly traded companies, privately held companies, and limited partnerships. The Group uses the equity method to account for common shares or in-substance common shares investments on which it has significant influence but does not own a majority equity interest or otherwise control. Under the equity method, the Group initially records its investments at cost and the difference between the cost of the equity investee and the fair value of the underlying equity in the net assets of the equity investee is recognized as equity method goodwill, which is included in the equity method investment on the consolidated balance sheets. The Group subsequently adjusts the carrying amount of the investments to recognize the Group’s proportionate share of each equity investee’s net income or loss into earnings after the date of investment. The Group evaluates the equity method investments for impairment under ASC 323. An impairment loss on the equity method investments is recognized in earnings when the decline in value is determined to be other-than-temporary. The Group measures investments in equity securities, other than equity method investments, at fair value through earnings. For those investments without readily determinable fair values, the Group elects to record these investments at cost, less impairment, plus or minus subsequent adjustments for observable price changes (referred to as the measurement alternative). Under this measurement alternative, changes in the carrying value of the investments will be recognized in consolidated statement of comprehensive income, whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. Pursuant to ASC 321, for equity investments measured at fair value with changes in fair value recorded in earnings, the Group does not assess whether those securities are impaired. For equity investments without readily determinable fair value for which the Group has elected to use the measurement alternative, the Group makes a qualitative assessment of whether the investment is impaired at each reporting date, applying significant judgement in considering various factors and events including a) adverse performances and business prospects of investees; b) adverse changes in the general market condition affecting investees; c) adverse changes in regulatory, economic or technological environment of the investees and d) adverse changes in cash flow forecasts of investees. If a qualitative assessment indicates that the investment is impaired, the Group estimates the investment’s fair value in accordance with the principles of ASC 820-Fair Value Measurement. If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss in net income equal to the difference between the carrying value and fair value. Significant judgement is applied by the Group in estimating the fair value to determine if an impairment exists, and if so, to measure the impairment losses for these equity security investments. These judgements include the selection of valuation methods in estimating fair value and the determination of key valuation assumptions used, which are related to selection of comparable companies, valuation mutiples, revenue growth rate of investees, scenario probability estimates and lack of marketability discounts. |
Business combination | Business combination Business combinations are recorded using the purchase method of accounting, and the cost of an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of the (i) the total of consideration paid, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the subsidiary acquired over (ii) the fair value of the identifiable net assets of the subsidiary acquired is recorded as goodwill. If the consideration of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive income. |
Leases | Leases The Group determines if an arrangement is a lease at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether the Group obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. Operating lease assets and liabilities are included in operating lease right-of-use assets, operating lease liabilities, short-term, and operating lease liabilities, long-term on the Group’s consolidated balance sheets. The Group has chosen to not recognize lease assets and lease liabilities for leases with a term of twelve months or less on the consolidated balance sheets. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of lease payments over the lease terms at the lease commencement dates. The Group uses its incremental borrowing rate in determining the present value of lease payments. The incremental borrowing rate is a hypothetical rate based on the Group’s understanding of what interest the Group would pay in order to obtain a borrowing with an amount equivalent to the lease payments in a similar economic environment over the lease term on a collateralized basis from banks in China. Certain lease agreements contain an option for the Group to renew a lease for a term agreed by the Group and the lessor or an option to terminate a lease earlier than the maturity dates. The Group considers these options, which may be elected at the Group’s sole discretion, in determining the lease term on a lease-by-lease basis. The Group’s lease agreements generally do not contain any residual value guarantees or material restrictive covenants. Certain of the Group’s leases contain free or escalating rent payment terms. The Group’s lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. The Group has chosen to combine payments for non-lease components with lease payments and accounted them together as a single lease component. Payments under the lease arrangements are primarily fixed. However, for arrangements accounted for as a single lease component, there may be variability in future lease payments as the amount of the non-lease components is typically revised from one period to the next. |
Long-lived assets | Long-lived assets Property and equipment Property and equipment are stated at cost less accumulated depreciation, amortization and impairment, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally from three Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Group’s acquisitions of interests in its subsidiaries, consolidated VIEs and VIEs’ subsidiaries. The Group assesses goodwill for impairment in accordance with ASC Subtopic 350-20 (“ASC 350-20”), Intangibles-Goodwill and Other: Goodwill Intangible assets other than goodwill Intangible assets arising from acquisitions are recognized at fair value upon acquisition and amortized on a straight-line basis over their estimated useful lives, generally from three |
Convertible senior notes and unsecured senior notes | Convertible senior notes and unsecured senior notes The Group determines the appropriate accounting treatment of its convertible senior notes in accordance with the terms in relation to the conversion feature. After considering the impact of such features, the Group may account for such instrument as a liability in its entirety, or separate the instrument into debt and equity components following the respective guidance described under ASC 815 Derivatives and Hedging Debt The debt discount, if any, together with related issuance cost are subsequently amortized as interest expense over the contractual life. The Group presented the issuance costs of debt as a direct deduction from the related debt during the periods presented. The unsecured senior notes are recognized initially at fair value, net of debt discounts or premiums, if any, issuance costs and other incidental fees, all of which are recorded as a direct deduction of the proceeds received from issuing the unsecured senior notes and the related accretion is recorded as interest expense in the consolidated statement of comprehensive income over the estimated term using the effective interest method. |
Deferred revenues | Deferred revenues Deferred revenues consist of contractual billings in excess of recognized revenue and payments received in advance of revenue recognition, which are mainly from the customer advance of the advertising and marketing services and the sales of the fee-based services, such as membership, and virtual currency or in-game virtual items sold for game related services. |
Non-controlling interests | Non-controlling interests For the Company’s majority-owned subsidiaries and VIE, non-controlling interests are recognized to reflect the portion of their equity that is not attributable, directly or indirectly, to the Company as the controlling shareholder. To reflect the economic interest held by non-controlling shareholders, net income/loss attributable to the non-controlling ordinary shareholders is recorded as non-controlling interests in the Company’s consolidated statements of comprehensive income. Non-controlling interests are classified as a separate line item in the equity section of the Company’s consolidated balance sheets and have been separately disclosed in the Company’s consolidated financial statements to distinguish the interests from that of the Company. |
Foreign currency | Foreign currency The Company’s reporting currency and functional currency is the U.S. dollar. The Group’s operations in China and in international regions use their respective currencies as their functional currencies. The financial statements of these subsidiaries are translated into U.S. dollars using period-end rates of exchange for assets and liabilities and average rates of exchange in the period for revenues, costs and expenses. Translation gains and losses are recorded in accumulated other comprehensive income (loss) as a component of shareholders’ equity. Translation gains or losses are not released to net income unless the associated net investment has been sold, liquidated, or substantially liquidated. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rate prevailing on the transactions dates. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheets dates. Net gains and losses resulting from foreign exchange transactions are included in other income, net. Foreign currency translation adjustments included in the Group’s consolidated statements of comprehensive income for the years ended December 31, 2021, 2022 and 2023 were a gain of US$78.2 million, a loss of US$261.7 million and a loss of US$114.7 million, respectively. Net foreign currency transaction gains or losses arise from transacting in a currency other than the functional currency of the entity and the amounts recorded were immaterial for 2021, a loss of US$67.0 million for the year ended 2022 and a loss of US$9.1 million for the year ended 2023, respectively. |
Net income per share | Net income per share Basic net income per share is computed using the weighted average number of ordinary shares outstanding during the period. Options and RSUs are not considered outstanding in the computation of basic earnings per share. Diluted net income per share is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period, which include options to purchase ordinary shares, restricted share units and conversion of the convertible senior notes. The computation of diluted net income per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect (i.e. an increase in earnings per share amounts or a decrease in loss per share amounts) on net income per share. The Group uses the two-class method to calculate net income per share though both classes share the same rights in dividends. Therefore, basic and diluted earnings per share are the same for both classes of ordinary shares. |
Segment reporting | Segment reporting In accordance with ASC 280, Segment Reporting |
Concentration of risks | Concentration of risks Concentration of credit risk. As of December 31, 2022 and 2023, the Group had US$2.5 billion and US$2.6 billion, respectively, in cash and cash equivalents and short-term investments, such as bank time deposits with large domestic banks in China. The terms of these deposits are, in general, up to twelve months. China promulgated a Bankruptcy Law that came into effect on June 1, 2007, which contains a separate article expressly stating that the State Council may promulgate implementation measures for the bankruptcy of Chinese banks based on the Bankruptcy Law. Under the Bankruptcy Law, a Chinese bank may go bankrupt. In addition, since China’s concession to WTO, foreign banks have been gradually permitted to operate in China and have become significant competitors to Chinese banks in many aspects, especially since the opening of RMB business to foreign banks in late 2006. Therefore, the risk of bankruptcy on Chinese banks in which the Group holds cash and bank deposits has increased. In the event that a Chinese bank that holds the Group’s deposits goes bankrupt, the Group is unlikely to claim its deposits back in full, since it is unlikely to be classified as a secured creditor to the bank under the PRC laws. The Group’s total cash and cash equivalents and short-term investments held at two financial institutions in mainland China, representing 35% and 25% of the Group’s total cash and cash equivalents and short-term investments as of December 31, 2023. As of December 31, 2023, an immaterial amount of cash was restricted under certain foreign currency purchase contracts. Alibaba, as an advertiser, accounted for 6%, 6% and 6% of the Group’s total revenues for the years ended December 31, 2021, 2022 and 2023, respectively. No customer nor advertising agency accounted for 10% or more of the Group’s revenues. The Group’s top 10 advertising agencies contributed to 35%, 42% and 37% of the Group’s revenues for the years ended December 31, 2021, 2022 and 2023, respectively. As of December 31, 2022 and 2023, substantially all accounts receivable were derived from the Group’s China operations. Excluding accounts receivable due from Alibaba and other related parties, accounts receivable primarily consist of amounts due from advertising agencies and direct customers. Alibaba accounted for 15% and 14% of the Group’s net accounts receivable as of December 31, 2022 and 2023, respectively. Concentration of foreign currency risks. |
Recent accounting pronouncements | Recent accounting pronouncements In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280)-Improvements to Reportable Segment Disclosures to address improvements to reportable segment disclosures. ASU No. 2023-07 requires an enhanced disclosure of significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss, on an annual and interim basis. This guidance is effective for fiscal years beginning after December 15, 2023 and applies retrospectively unless impracticable, with early adoption permitted. The Group is currently evaluating the impact of the new guidance on its consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740)-Improvements to Income Tax Disclosures. ASU No. 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The guidance is effective for annual periods beginning after December 15, 2024 on a prospective basis, with early adoption permitted. The Group is currently evaluating the impact of the new guidance on its consolidated financial statements. |
Operations (Tables)
Operations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Operations | |
Schedule of the Company's major subsidiaries and major VIEs | Percentage of Direct/ Indirect Date of Place of Economic Company Incorporation Incorporation Interest Major Subsidiaries Weibo Hong Kong Limited (“Weibo HK”) July 19, 2010 Hong Kong 100 % Weibo Internet Technology (China) Co., Ltd. (“Weibo Technology” or “the WFOE”) October 11, 2010 PRC 100 % WB Online Investment Limited (“WB Online”) June 5, 2014 Cayman Islands 100 % Hangzhou Weishichangmeng Advertising Co., Ltd. (“Weishichangmeng”) September 25, 2018 PRC 100 % Major VIEs Beijing Weimeng Technology Co., Ltd (“Weimeng”) August 9, 2010 PRC 99 % Beijing Weimeng Chuangke Investment Management Co., Ltd. (“Weimeng Chuangke”) April 9, 2014 PRC 100 % |
Schedule of total costs and expenses allocated from SINA | Year Ended December 31, 2021 2022 2023 (In US$ thousands) Cost of revenues $ 14,749 $ 17,255 $ 12,313 Sales and marketing 3,319 1,953 — Product development 10,083 12,192 6,850 General and administrative 10,119 15,778 17,320 $ 38,270 $ 47,178 $ 36,483 |
Schedule of assets, liabilities, results of operations and cash flows of the VIE and the VIE's subsidiaries taken as a whole. | The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and VIEs’ subsidiaries taken as a whole, which are included in the Group’s consolidated balance sheets and consolidated statements of comprehensive income: As of December 31, 2022 2023 (In US$ thousands) Cash and cash equivalents $ 657,578 $ 625,486 Short-term investments 53,822 35,870 Accounts receivable 467,083 426,420 Prepaid expenses and other current assets 179,516 165,557 Amount due from SINA 17,908 12,919 Property and equipment, net 1,641 1,721 Operating lease assets 25,776 23,082 Intangible assets, net 124,856 133,920 Goodwill 120,151 166,436 Long-term investments 327,423 266,718 Other non-current assets 295,500 202,695 Total assets $ 2,271,254 $ 2,060,824 Accounts payable $ 97,269 $ 118,773 Accrued and other liabilities 405,979 380,810 Income taxes payable 25,055 31,987 Deferred revenues 45,433 42,254 Amount due to the subsidiaries of the Group 1,676,499 1,393,967 Operating lease liability 26,756 25,791 Deferred tax liability 28,665 29,732 Other non-current liabilities — 3,422 Total liabilities 2,305,656 2,026,736 Redeemable non-controlling interests 45,795 68,728 Total shareholders’ equity (80,197) (34,640) Total liabilities, redeemable non-controlling interests and shareholders’ equity $ 2,271,254 $ 2,060,824 Year Ended December 31, 2021 2022 2023 (In US$ thousands) Total revenues $ 1,821,294 $ 1,540,585 $ 1,531,675 Net income (loss) $ (36,406) $ (18,356) $ 25,343 Year Ended December 31, 2021 2022 2023 (In US$ thousands) Net cash provided by (used in) operating activities $ 335,940 $ (136,442) $ 159,891 Net cash provided by (used in) investing activities $ (583,397) $ 410,164 $ 88,119 Net cash provided by (used in) financing activities $ 156,997 $ 226,938 $ (260,289) |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Significant Accounting Policies | |
Schedule of revenue disaggregated by revenue source | Year Ended December 31, 2021 2022 2023 (In US$ thousands) Advertising and marketing revenues Revenues from advertisers signing contracts with the Group directly $ 478,874 $ 356,503 $ 437,276 Revenues from advertising agencies 1,501,921 1,240,147 1,096,738 1,980,795 1,596,650 1,534,014 Value-added services revenues 276,288 239,682 225,822 Total revenues $ 2,257,083 $ 1,836,332 $ 1,759,836 |
Cash, Cash Equivalents and Sh_2
Cash, Cash Equivalents and Short-term Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash, Cash Equivalents and Short-term Investments | |
Schedule of cash, cash equivalents and short-term investments | As of December 31, 2022 2023 (In US$ thousands) Cash and cash equivalents: $ 2,690,768 $ 2,584,635 Short-term investments: Bank time deposits 268,233 616,500 Wealth management products 212,195 24,535 Subtotal 480,428 641,035 Total cash, cash equivalents and short-term investments $ 3,171,196 $ 3,225,670 |
Long-term Investments (Tables)
Long-term Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Long-term Investments | |
Schedule of changes in the Group's long-term investments | Equity Securities Without Readily Equity Securities With Determinable Fair Readily Determinable Values Equity Method Fair Values Total (In US$ thousands) Balance at December 31, 2020 $ 579,084 $ 311,161 $ 289,221 $ 1,179,466 Investments made/transfers from prepayments 96,768 182,200 — 278,968 Income from equity method investments, net — 14,217 — 14,217 Dividend declared from equity method investments — (11,695) — (11,695) Disposal of investments (75,667) — (4,946) (80,613) Changes from measurement alternative to consolidation (Note 6) (66,415) — — (66,415) Reclassification of equity investment without readily determinable fair values to those with readily determinable fair values (142,000) — 142,000 — Impairment on investments (106,800) — — (106,800) Fair value change through earnings (23,316) — 9,877 (13,439) Currency translation adjustment 7,062 6,900 — 13,962 Balance at December 31, 2021 268,716 502,783 436,152 1,207,651 Investments made/transfers from prepayments 36,423 114,909 — 151,332 Loss from equity method investments, net — (24,069) — (24,069) Dividend declared from equity method investments — (5,772) — (5,772) Disposal of investments (29,974) (6,293) — (36,267) Impairment on investments (63,515) — — (63,515) Fair value change through earnings — — (196,602) (196,602) Currency translation adjustment (15,071) (24,057) — (39,128) Balance at December 31, 2022 196,579 557,501 239,550 993,630 Investments made/transfers from prepayments/other non-current assets 70,864 303,845 — 374,709 Income from equity method investments, net — 13,392 — 13,392 Dividend declared from equity method investments — (4,683) — (4,683) Disposal of investments (3,463) (14,250) — (17,713) Changes from measurement alternative to consolidation (Note 6) (43,988) — — (43,988) Reclassification of equity investment with readily determinable fair value to equity-method investment — 153,407 (153,407) — Impairment on investments (25,706) — — (25,706) Fair value change through earnings 10,877 — 32,125 43,002 Currency translation adjustment (3,873) (8,384) — (12,257) Balance at December 31, 2023 $ 201,290 $ 1,000,828 $ 118,268 $ 1,320,386 |
Schedule of the total carrying value of the equity investments accounted for under the measurement alternative | The following table summarizes the total carrying value of the equity investments accounted for under the measurement alternative as of December 31, 2022 and 2023, respectively, including cumulative upward and downward adjustments made to the initial cost basis of the securities. Cumulative Results (In US$ thousands) Initial cost basis $ 662,460 Upward adjustments 85,710 Downward adjustments (554,013) Foreign currency translation 2,422 Total carrying value at December 31, 2022 $ 196,579 Initial cost basis $ 689,724 Upward adjustments 92,736 Downward adjustments (579,719) Foreign currency translation (1,451) Total carrying value at December 31, 2023 $ 201,290 |
Schedule of the carrying amount and fair value of the marketable security | Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Value (In US$ thousands) INMYSHOW $ 81,385 $ 62,952 $ — $ 144,337 Didi 142,000 — (46,787) 95,213 December 31, 2022 $ 223,385 $ 62,952 $ (46,787) $ 239,550 Didi $ 142,000 $ — $ (23,732) $ 118,268 December 31, 2023 $ 142,000 $ — $ (23,732) $ 118,268 |
Summary of condensed financial information on equity method investments | Year ended December 31, 2021 2022 2023 (In US$ thousands) Operating data: Revenue $ 225,356 $ 158,110 $ 850,102 Gross profit $ 206,457 $ 129,393 $ 298,736 Income (loss) from operations $ 243,516 $ (195,636) $ 12,153 Net income (loss) $ 247,808 $ (200,042) $ 8,188 Net income (loss) attributable to the investees $ 247,808 $ (200,042) $ 9,856 As of December 31, 2022 2023 (In US$ thousands) Balance sheet data: Current assets $ 904,956 $ 1,803,408 Non-current assets $ 2,417,452 $ 2,568,567 Current liabilities $ 683,626 $ 1,199,969 Long-term liabilities $ 119 $ 16,879 Non-controlling interests $ — $ (4,849) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Schedule of components of lease cost | Year Ended December 31, 2021 2022 2023 (In US$ thousands) Operating lease cost $ 7,625 $ 13,949 $ 15,824 Short-term lease cost 4,776 2,631 3,675 Variable lease cost 5,287 5,348 — Total lease cost $ 17,688 $ 21,928 $ 19,499 |
Schedule of other information related to leases | Year Ended December 31, 2021 2022 2023 (In US$ thousands) Supplemental Cash Flows Information: Cash paid for operating leases $ (8,948) $ (12,877) $ (12,246) Operating lease assets obtained in exchange for operating lease liabilities $ 65,459 $ 19,728 $ 1,378 |
Schedule of maturities of lease liabilities under operating leases | Year Ended December 31, (In US$ thousands) 2024 $ 13,374 2025 12,786 2026 11,399 2027 3,174 2028 2,402 Thereafter 25,028 Total future payments for recognized leasing assets 68,163 Less: leases not yet commenced — Less: imputed interest 14,918 Total lease liabilities $ 53,245 |
Goodwill, Intangible Assets a_2
Goodwill, Intangible Assets and Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill, Intangible Assets and Acquisitions | |
Schedule of the changes in the Group's goodwill by segment | Advertising & Value-added Marketing services Total (In US$ thousands) Balance as of December 31, 2020 $ 30,899 $ 30,813 $ 61,712 Acquisition of the company operating Wuta application 51,034 — 51,034 Acquisition of an E-sports team — 14,745 14,745 Currency translation adjustment 1,813 1,101 2,914 Balance as of December 31, 2021 83,746 46,659 130,405 Currency translation adjustment (6,585) (3,669) (10,254) Balance as of December 31, 2022 77,161 42,990 120,151 Acquisition of Yunrui — 48,669 48,669 Currency translation adjustment (2,331) (53) (2,384) Balance as of December 31, 2023 $ 74,830 $ 91,606 $ 166,436 |
Summary of the Group's intangible assets arising from acquisitions | As of December 31, 2022 As of December 31, 2023 Accumulated Accumulated Cost Amortization Net Cost Amortization Net (In US$ thousands) (In US$ thousands) Game related $ 140,328 $ (30,029) $ 110,299 $ 136,155 $ (43,406) $ 92,749 Technology 2,808 (2,596) 212 10,596 (2,831) 7,765 Trademark and domain name 12,892 (4,280) 8,612 25,436 (5,765) 19,671 Others 13,045 (7,096) 5,949 23,898 (9,954) 13,944 Total $ 169,073 $ (44,001) $ 125,072 $ 196,085 $ (61,956) $ 134,129 |
Schedule of estimated amortization expenses | Year Ended December 31, (In US$ thousands) 2024 $ 21,483 2025 17,980 2026 17,943 2027 17,660 2028 17,326 Thereafter 41,528 Total expected amortization expense * $ 133,920 * The table above excludes US$0.2 million of indefinite-lived intangible assets which was included in the category of others. |
Wuta application | |
Goodwill, Intangible Assets and Acquisitions | |
Schedule of consideration of acquisition was allocated based on their fair value of the assets acquired and the liabilities assumed | As of May 1, 2021 (In US$ thousands) Consideration $ 39,540 Fair value of previously held equity interest 26,875 Non-controlling interest 10,811 Total $ 77,226 Cash and short-term investments acquired $ 5,786 Other assets acquired 6,801 Identifiable intangible assets acquired 16,495 Goodwill 51,034 Liabilities assumed (2,890) Total $ 77,226 |
E-sports team | |
Goodwill, Intangible Assets and Acquisitions | |
Schedule of consideration of acquisition was allocated based on their fair value of the assets acquired and the liabilities assumed | As of August 1, 2021 (In US$ thousands) Consideration $ 30,953 Identifiable intangible assets acquired $ 19,274 Goodwill 14,745 Liabilities assumed (3,066) Total $ 30,953 |
Yunrui | |
Goodwill, Intangible Assets and Acquisitions | |
Schedule of consideration of acquisition was allocated based on their fair value of the assets acquired and the liabilities assumed | As of October 1, 2023 (In US$ thousands) Consideration $ 30,443 Fair value of previously held equity interest 13,545 Non-controlling interest 37,043 Total $ 81,031 Cash and short-term investments acquired $ 4,864 Other assets acquired 1,483 Identifiable intangible assets acquired 31,205 Goodwill 48,669 Liabilities assumed (5,190) Total $ 81,031 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stock-Based Compensation | |
Schedule of the stock-based compensation | Year Ended December 31, 2021* 2022* 2023* (In US$ thousands) Cost of revenues $ 8,112 $ 9,417 $ 8,933 Sales and marketing 15,292 18,910 16,528 Product development 43,622 55,294 51,441 General and administrative 20,970 28,092 24,229 $ 87,996 $ 111,713 $ 101,131 * Excluded non-cash stock-based compensation of US$7.9 million, US$9.3 million and US$8.1 million to SINA employees charged through Amount due from SINA in 2021, 2022 and 2023, respectively. |
Summary of the number of shares available for issuance | Shares Available (In thousands) December 31, 2020 12,495 Addition — Granted* (5,752) Cancelled/expired/forfeited 692 December 31, 2021 7,435 Addition — Granted* (4,642) Cancelled/expired/forfeited 770 December 31, 2022 3,563 Addition 10,000 Granted* (3,971) Cancelled/expired/forfeited 351 December 31, 2023 9,943 * For the years ended December 31, 2021, 2022 and 2023, 5.8 million, 1.8 million and 1.8 million restricted share units were granted, respectively. Options of nil , 2.8 million and 2.2 million were granted during 2021, 2022 and 2023, respectively. |
Summary of option activities under the Company's stock option program | Weighted Average Options Weighted Average Remaining Aggregate Outstanding Exercise Price Contractual Life Intrinsic Value (In thousands) (In US$) (In years) (In US$ thousands) December 31, 2020 551 $ 28.85 5.8 $ 6,683 Granted — $ — Exercised (105) $ 12.70 Cancelled/expired/forfeited (59) $ 32.68 December 31, 2021 387 $ 32.68 5.6 $ — Granted 2,750 $ 21.15 Exercised — $ — Cancelled/expired/forfeited (118) $ 24.12 December 31, 2022 3,019 $ 22.51 6.0 $ — Granted 2,187 $ 3.87 Exercised — $ — Cancelled/expired/forfeited (98) $ 22.07 December 31, 2023 5,108 $ 14.54 5.7 $ 15,390 Vested and expected to vest as of December 31, 2022 2,752 $ 22.54 6.0 $ — Exercisable as of December 31, 2022 172 $ 32.68 4.6 $ — Vested and expected to vest as of December 31, 2023 4,686 $ 14.68 5.7 $ 13,905 Exercisable as of December 31, 2023 1,226 $ 23.44 4.9 $ — |
Schedule of stock options outstanding | Weighted Weighted Weighted Average Options Average Options Average Remaining Range of Exercise Prices Outstanding Exercise Price Exercisable Exercise Price Contractual Life (In thousands) (In US$) (In thousands) (In US$) (In years) As of December 31, 2022 US$ 32.68 356 $ 32.68 172 $ 32.68 4.6 US$ 21.15 2,663 $ 21.15 — $ — 6.2 3,019 $ 22.51 172 $ 32.68 6.0 As of December 31, 2023 US$ 32.68 328 $ 32.68 243 $ 32.68 3.6 US$ 21.15 2,606 $ 21.15 983 $ 21.15 5.2 US$ 3.87 2,174 $ 3.87 — $ — 6.5 5,108 $ 14.54 1,226 $ 23.44 5.7 |
Schedule of fair value of the options granted | For the years ended December 31, 2022 2023 Fair value of ordinary shares (US$) 21.15 11.51-13.1 Expected volatility range 53 % 54.77%-55.77 % Risk-free interest rate (per annum) 2.17 % 4.42%-4.82 % Expected dividend yield — — Expected term (in years) 4.66 4.66 |
Performance-Based Restricted Share Units without Market Condition | |
Stock-Based Compensation | |
Summary of restricted share unit activities | Weighted-Average Grant Date Shares Granted Fair Value (In thousands) (In US$) December 31, 2020 17 $ 36.49 Awarded 15 $ 54.08 Vested (2) $ 38.78 Cancelled (19) $ 40.63 December 31, 2021 11 $ 54.17 Awarded — $ — Vested (9) $ 54.17 Cancelled (2) $ 54.17 December 31, 2022 — $ — Awarded — $ — Vested — $ — Cancelled — $ — December 31, 2023 — $ — |
Performance-Based Restricted Share Units with Market Condition | |
Stock-Based Compensation | |
Summary of restricted share unit activities | Weighted- Average Shares Grant Date Granted Fair Value (In thousands) (In US$) December 31, 2021 — $ — Awarded 1,640 $ 8.43 Vested — $ — Cancelled — $ — December 31, 2022 1,640 $ 8.43 Awarded 1,640 $ 9.66 Vested — $ — Cancelled — $ — December 31, 2023 3,280 $ 9.04 |
Service Based Restricted Stock Units RSU | |
Stock-Based Compensation | |
Summary of restricted share unit activities | Weighted- Average Shares Grant Date Granted Fair Value (In thousands) (In US$) December 31, 2020 4,324 $ 41.86 Awarded 5,737 $ 47.95 Vested (1,608) $ 45.66 Cancelled (614) $ 44.02 December 31, 2021 7,839 $ 45.37 Awarded 252 $ 20.59 Vested (2,330) $ 47.09 Cancelled (651) $ 42.69 December 31, 2022 5,110 $ 43.71 Awarded 144 $ 17.27 Vested (2,191) $ 43.04 Cancelled (253) $ 38.66 December 31, 2023 2,810 $ 43.37 |
Other Balance Sheets Componen_2
Other Balance Sheets Components (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Balance Sheets Components | |
Schedule of other balance sheet components | As of December 31, 2022 2023 (In US$ thousands) Accounts receivable, net: Due from third parties $ 416,125 $ 396,043 Due from Alibaba 75,347 61,094 Due from other related parties 49,151 38,188 Total gross amount 540,623 495,325 Allowance for credit losses: Balance at the beginning of the year (42,650) (38,180) Additional provision charged to expenses, net (4,440) (19,208) Write-off 4,695 1,435 Currency translation adjustment 4,215 1,396 Balance at the end of the year (38,180) (54,557) $ 502,443 $ 440,768 Prepaid expenses and other current assets: Rental and other deposits $ 1,583 $ 1,606 Deductible value-added taxes 3,865 4,860 Investment prepayment 30,938 29,055 Proceeds receivable from disposal of investments 13,371 — Loans to and interest receivable from other related parties (1) 110,000 100,000 Loans to and interest receivable from third parties (1) 136,683 137,042 Advertising prepayment 9,126 8,563 Prepayment to outsourced service providers 3,479 3,380 Amounts deposited by users (2) 52,216 50,194 Content fees 15,859 15,796 Others 14,382 9,385 $ 391,502 $ 359,881 Property and equipment, net: Office building $ 196,223 $ 190,295 Office building related facilities 3,298 3,199 Computers and equipment 228,599 213,637 Leasehold improvements 13,064 13,178 Furniture and fixtures 8,139 7,950 Others 17,733 18,644 Property and equipment, gross 467,056 446,903 Accumulated depreciation (217,503) (226,240) $ 249,553 $ 220,663 Other non-current assets Investment-related deposits (3) $ 373,252 $ 325,895 Loans to and interest receivable from other related parties (1) 454,912 349,716 Deferred tax assets 39,989 43,262 Others 30,269 36,889 $ 898,422 $ 755,762 Accrued and other liabilities (4) : Payroll and welfare $ 156,274 $ 161,579 Marketing expenses 74,093 62,267 Sales rebates 266,455 244,868 Professional fees 8,836 8,083 VAT and other tax payable 51,037 56,548 Amounts due to users (2) 52,216 50,194 Payable to SINA for the acquisition of the equity of STC (Note 6) 218,402 — Unpaid consideration for acquisitions 687 5,674 Unpaid consideration for investment 4,320 2,186 Proceeds received in advance from disposal of investment 14,496 — Interest payable for convertible senior notes, unsecured senior notes and long-term loans 28,257 28,812 Others 38,911 36,234 $ 913,984 $ 656,445 (1) Loans to related parties and third parties incurred for the years ended December 31, 2022 and 2023 were non-trade in nature. (2) Weibo wallet enables users to conduct interest-generation activities on Weibo, such as handing out “red envelopes” and coupons to users and purchase different types of products and services on Weibo, including those offered by the Group, such as marketing services and membership, and those offered by Weibo’s platform partners, such as e-commerce merchandises, financial products and virtual gifts. Amounts deposited by users primarily represent the receivable temporarily held in Weibo’s account on a third-party online payment platform for Weibo wallet users. Amounts due to users represent the balances that are payable on demand to Weibo wallet users and therefore are reflected as current liability on the consolidated balance sheets. (3) Investment-related deposits primarily included a game company amounted to US $249.4 million and US $154.0 million as of December 31, 2022 and 2023, respectively. (4) Include amounts due to third parties, employees, related parties (Note 10) and Weibo wallet users. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Schedule of income before income taxes | Year Ended December 31, 2021 2022 2023 (In US$ thousands, except percentage) Loss from non-China operations $ (232,830) $ (422,860) $ (145,244) Income from China operations 783,548 550,946 648,026 Total income before income tax expenses $ 550,718 $ 128,086 $ 502,782 Income tax expense (benefits) applicable to non-China operations $ 1,355 $ (14,176) $ 45,441 Income tax expense applicable to China operations 137,486 44,453 99,846 Total income tax expenses $ 138,841 $ 30,277 $ 145,287 Effective tax rate for China operations 17.5 % 8.1 % 15.4 % Effective tax rate for the Group 25.2 % 23.6 % 28.9 % |
Schedule of current and deferred portion of income tax expenses | Year Ended December 31, 2021 2022 2023 (In US$ thousands) Current income tax expenses $ 151,319 $ 55,098 $ 121,249 Deferred tax expenses (benefits) (12,478) (24,821) 24,038 Income tax expenses $ 138,841 $ 30,277 $ 145,287 |
Schedule of reconciliation between the statutory EIT rate and the effective tax rate for China operations | Year Ended December 31, 2021 2022 2023 PRC Statutory EIT rate (1) 25.0 % 25.0 % 25.0 % Effect on tax holiday and preferential tax treatment (13.1) % (29.7) % (9.5) % Research and development super-deduction (7.5) % (21.1) % (4.4) % Non-deductible expenses and non-taxable income and others (2) 9.2 % (30.1) % (3.5) % Change in valuation allowance 0.7 % 8.2 % 5.0 % Effect of PRC withholding tax — — 8.7 % Tax rate difference from statutory rate in other jurisdictions 10.9 % 71.3 % 7.6 % Effective tax rate for the Group 25.2 % 23.6 % 28.9 % (1) The PRC statutory income tax rate is used for the reconciliation as the majority of the Group’s operations are based in the PRC. (2) The item included the impact of uncertain tax positions recognized in 2021 and the reversal of uncertain tax positions in 2022. |
Schedule of significant components of deferred tax assets and liabilities for China operations | As of December 31, 2022 2023 (In US$ thousands) Deferred tax assets: Net operating loss carry forwards $ 18,289 $ 49,802 Investment-related impairment 52,363 50,441 Depreciation, accounts receivable, accrued and other liabilities 73,557 72,207 Valuation allowance (104,220) (129,188) Net deferred tax assets $ 39,989 $ 43,262 Deferred tax liabilities: Acquired intangible assets $ 27,435 $ 28,528 Depreciation 1,731 1,769 Unrealized investment-related gain 12,414 12,282 Withholding tax — 23,365 Others 114 207 Total deferred tax liabilities $ 41,694 $ 66,151 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions | |
Schedule of significant related parties and their relationships with the company | Company Name Relationship with the Company SINA Parent and affiliates under common control. Alibaba Strategic partner and significant shareholder of the Company. |
Schedule of significant related party transactions with the group | Year Ended December 31, 2021 2022 2023 (In US$ thousands) Transactions with SINA Revenue billed through SINA $ 68,351 $ 44,962 $ 41,557 Revenue from services provided to SINA 43,170 31,984 25,253 Total $ 111,521 $ 76,946 $ 66,810 Costs and expenses allocated from SINA (1) $ 38,270 $ 47,178 $ 36,483 Interest income on loans to SINA $ 17,943 $ 14,770 $ 14,913 Transactions with Alibaba Advertising and marketing revenues from Alibaba – as an advertiser $ 139,561 $ 106,974 $ 111,608 Advertising and marketing revenues from Alibaba – as an agent $ 41,680 $ 223 $ — Services provided by Alibaba $ 44,006 $ 33,745 $ 23,366 (1) Costs and expenses allocated from SINA represented the charges for certain services provided by SINA or SINA’s affiliates and charged to the Group using actual cost allocation based on proportional utilization (Note 1). In addition to the allocated costs and expenses, SINA also billed US $48.0 million,US $37.7 million and US $24.9 million for other costs and expenses incurred by Weibo but paid by SINA for the years ended December 31, 2021, 2022 and 2023, respectively. During the years ended December 31, 2021, 2022 and 2023, Weibo allocated US $0.8 million, US $0.6 million and US $9.9 million to SINA for costs and expenses related to certain of SINA’s activities for which Weibo made the payments, respectively. |
Schedule of related party outstanding balance | As of December 31, 2022 2023 (In US$ thousands) Amount due from SINA (2) $ 487,117 $ 486,397 Payable to SINA for the acquisition of the equity of STC (Note 6) $ 218,402 $ — Accounts receivable due from Alibaba $ 75,347 $ 61,094 Loans to and interest receivable from other related parties (3) (4) -Company A (an investee providing online brokerage services) $ 110,000 $ 100,000 Subtotal (included in prepaid expenses and other current assets) 110,000 100,000 -Company B (an investee in real estate business) 454,912 349,716 Subtotal (included in other non-current assets) 454,912 349,716 Total $ 564,912 $ 449,716 (2) The Group uses amount due from/to SINA to settle balances arising from costs and expenses allocated from SINA based on proportional utilization, other expenditures incurred by Weibo business but paid by SINA, transactions with third-party customers and suppliers settled through SINA, as well as business transactions between Weibo and SINA. As of December 31, 2022 and 2023, the amount due from SINA also included loans to and interest receivable from SINA of US $420.4 million and US $445.2 million at an annual interest rate ranging from 1% to 4% of maturity within one year, respectively, which are non-trade in nature. (3) The annual interest rates of the loans were ranging from 4.0% to 6.7% at both dates. These balances are non-trade in nature. The contractual terms of the loans were up to 5 years while subject to extension and the Group will determine the liquidity (current versus non-current) of the loans pursuant to the expected cash collection. In 2023, several loans were extended and the Group accounted for such extension as loan modification. (4) The Group estimates the allowance for credit losses on loans and interest receivables not sharing similar risk characteristic on an individual basis. The key factors considered when determining the above allowances for credit losses include the fair value of the assets held by the borrowers. For the years ended December 31, 2021, 2022 and 2023, the Group recognized nil , US $7.6 million credit losses and a reversal of US $2.1 million credit losses on loans to and interest receivable from other related parties based on the expected collection schedule of these loans, respectively. |
Related Parties [Member] | SINA | |
Related Party Transactions | |
Schedule of significant related party transactions with the group | Year Ended December 31, 2021 2022 2023 (In US$ thousands) Transactions with SINA Advertising and marketing revenues $ 96,359 $ 56,206 $ 45,319 Value-added services revenues 15,162 20,740 21,491 Total $ 111,521 $ 76,946 $ 66,810 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Net Income per Share | |
Schedule of basic and diluted net income per share | Year Ended December 31, 2021 2022 2023 (In US$ thousands, except share data and per share data) Basic net income per share calculation: Numerator: Net income attributable to Weibo’s shareholders $ 428,319 $ 85,555 $ 342,598 Denominator: Weighted average ordinary shares outstanding 228,814 235,164 235,560 Basic net income per share attributable to Weibo’s shareholders $ 1.87 $ 0.36 $ 1.45 Diluted net income per share calculation: Numerator: Net income attributable to Weibo $ 428,319 $ 85,555 $ 342,598 Add: Effect on interest expenses and amortized issuance cost of convertible senior notes — — 529 Net income attributable to Weibo’s shareholders for calculating diluted net income per share 428,319 85,555 343,127 Denominator: Weighted average ordinary shares outstanding 228,814 235,164 235,560 Effects of dilutive securities Stock options 68 — 14 Unvested restricted share units 1,324 1,243 2,625 Convertible senior notes — — 1,775 Shares used in computing diluted net income per share attributable to Weibo’s shareholders 230,206 236,407 239,974 Diluted net income per share attributable to Weibo’s shareholders $ 1.86 $ 0.36 $ 1.43 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurement | |
Schedule of assets measured at fair value on a recurring basis, the respective fair value and the classification by level of input within the fair value hierarchy | Fair Value Measurements Quoted Prices in Active Market Significant Other Significant for Identical Assets Observable Inputs Unobservable Inputs Total (Level 1) (Level 2) (Level 3) (In US$ thousands) As of December 31, 2022: Wealth management products (1) $ 212,195 $ — $ 212,195 $ — Equity securities with readily determinable market value (2) 239,550 239,550 — — Total $ 451,745 $ 239,550 $ 212,195 $ — As of December 31, 2023: Wealth management products (1) $ 24,535 $ — $ 24,535 $ — Equity securities with readily determinable market value (2) 118,268 118,268 — — Total $ 142,803 $ 118,268 $ 24,535 $ — (1) Included in short-term investments on the Group’s consolidated balance sheets. (2) Included in long-term investments on the Group’s consolidated balance sheets. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Schedule of future minimum lease payments commitments | Less than One One to Three to More than Operating lease commitments Total Year Three Years Five Years Five Years (In US$ thousands) As of December 31, 2023 $ 68,163 $ 13,374 $ 24,185 $ 5,576 $ 25,028 |
Schedule of purchase commitments | Less than One One to Three to More than Purchase commitments Total Year Three Years Five Years Five Years (In US$ thousands) As of December 31, 2023 $ 705,536 $ 687,853 $ 15,622 $ 1,988 $ 73 |
Schedule of other commitments | Less than One One to Three to More than Other commitments Total Year Three Years Five Years Five Years (In US$ thousands) 2024 Senior Notes $ 828,000 $ 828,000 $ — $ — $ — 2030 Senior Notes 927,188 25,313 50,625 50,625 800,625 2030 Convertible Notes 361,746 4,538 9,075 9,075 339,058 2027 Loans 1,002,698 53,650 107,301 841,747 — Total $ 3,119,632 $ 911,501 $ 167,001 $ 901,447 $ 1,139,683 |
Operations (Details)
Operations (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2021 USD ($) | Apr. 30, 2014 USD ($) | Dec. 31, 2023 Vote | |
Operations | |||
Net proceeds from Offering | $ | $ 178.4 | ||
Class A Ordinary shares | |||
Operations | |||
Number of votes each share is entitled to | Vote | 1 | ||
Number of Class A shares converted from Class B shares | 1 | ||
Class B ordinary shares | |||
Operations | |||
Number of votes each share is entitled to | Vote | 3 | ||
IPO | Class A Ordinary shares | |||
Operations | |||
Proceeds from IPO | $ | $ 306.5 | ||
Weimeng | |||
Operations | |||
Percentage of Direct/Indirect Economic Interest in VIEs | 99% | ||
Weimeng Chuangke | |||
Operations | |||
Percentage of Direct/Indirect Economic Interest in VIEs | 100% | ||
Weibo HK | |||
Operations | |||
Percentage of Direct/Indirect Economic Interest | 100% | ||
Weibo Technology | |||
Operations | |||
Percentage of Direct/Indirect Economic Interest | 100% | ||
Wb Online | |||
Operations | |||
Percentage of Direct/Indirect Economic Interest | 100% | ||
Weishichangmeng | |||
Operations | |||
Percentage of Direct/Indirect Economic Interest | 100% |
Operations - Assets, Liabilitie
Operations - Assets, Liabilities, Statement of Operations and Cash Flows (Details) $ in Thousands, ¥ in Millions | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2020 CNY (¥) director | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Operations | |||||
Costs and expenses allocated from SINA | $ 36,483 | $ 47,178 | $ 38,270 | ||
Interest-free loans to the VIE's shareholders | 82,200 | 84,800 | |||
VIEs and VIEs' subsidiaries accumulated deficit | (125,500) | (150,800) | |||
Assets and liabilities of the VIEs and their subsidiaries | |||||
Cash and cash equivalents | 2,584,635 | 2,690,768 | |||
Short-Term Investments | 641,035 | 480,428 | |||
Accounts receivable | 440,768 | 502,443 | |||
Prepaid expenses and other current assets | 359,881 | 391,502 | |||
Property and equipment, net | 220,663 | 249,553 | |||
Operating lease assets | 170,266 | 190,368 | |||
Intangible assets, net | 133,920 | ||||
Goodwill | 166,436 | 120,151 | 130,405 | $ 61,712 | |
Long-term investments | 1,320,386 | 993,630 | 1,207,651 | 1,179,466 | |
Other non-current assets | 36,889 | 30,269 | |||
Total assets | 7,280,358 | 7,129,454 | |||
Accounts payable | 161,493 | 161,029 | |||
Accrued and other liabilities | 656,445 | 913,984 | |||
Income taxes payable | 94,507 | 55,282 | |||
Deferred revenues | $ 75,187 | $ 79,949 | |||
Other Liability, Current, Related Party, Type [Extensible Enumeration] | srt:SubsidiariesMember | srt:SubsidiariesMember | |||
Operating lease liability | $ 53,245 | ||||
Deferred tax liability | 66,151 | $ 41,694 | |||
Other non-current liabilities | 3,422 | ||||
Total liabilities | 3,762,742 | 3,738,914 | |||
Redeemable non-controlling interests | 50,153 | 14,495 | |||
Total shareholders' equity | 3,448,888 | 3,344,745 | 3,621,398 | $ 2,828,616 | |
Total liabilities, redeemable non-controlling interests and shareholders' equity | 7,280,358 | 7,129,454 | |||
Results of operations of the VIEs and their subsidiaries | |||||
Total revenues | 1,759,836 | 1,836,332 | 2,257,083 | ||
Net income (loss) | 342,598 | 85,555 | 428,319 | ||
Cash flows of the VIE and its subsidiary | |||||
Net cash provided by (used in) operating activities | 672,820 | 564,104 | 814,020 | ||
Net Cash Provided by (Used in) Investing Activities | (736,846) | (33,014) | (423,960) | ||
Net cash provided by (used in) financing activities | 21,690 | (91,141) | 189,442 | ||
Contractual Arrangements with the VIE | |||||
Assets, except for registered capital of VIEs, that can only be used to settle obligations of the respective VIEs | 0 | ||||
Registered capital and non-distributable reserve funds of VIE and its subsidiaries | $ 209,300 | 228,000 | |||
Term of loan agreements | 10 years | ||||
Term of trademark license agreements | 1 year | ||||
Service fees revenue charged to VIE | $ 714,800 | 745,100 | 1,026,200 | ||
Revenues From Advertising Agencies [Member] | |||||
Results of operations of the VIEs and their subsidiaries | |||||
Total revenues | 1,096,738 | 1,240,147 | 1,501,921 | ||
Revenues from advertisers signing contracts with company directly | |||||
Results of operations of the VIEs and their subsidiaries | |||||
Total revenues | 437,276 | 356,503 | 478,874 | ||
Third parties | |||||
Assets and liabilities of the VIEs and their subsidiaries | |||||
Accounts receivable | 341,486 | 378,500 | |||
Other related parties | |||||
Assets and liabilities of the VIEs and their subsidiaries | |||||
Accounts receivable | $ 38,188 | 48,596 | |||
Weimeng | |||||
Contractual Arrangements with the VIE | |||||
Equity interest | 99% | ||||
New Weimeng Shareholder | |||||
Minority Investment In Weimeng | |||||
Sale of subsidiaries' shares to non-controlling interests | ¥ | ¥ 10.7 | ||||
Percentage of enlarged registered capital invested | 1% | ||||
Number of member of board of directors the entity has right to appoint | director | 3 | ||||
Consolidated VIEs | |||||
Assets and liabilities of the VIEs and their subsidiaries | |||||
Cash and cash equivalents | $ 625,486 | 657,578 | |||
Short-Term Investments | 35,870 | 53,822 | |||
Prepaid expenses and other current assets | 165,557 | 179,516 | |||
Property and equipment, net | 1,721 | 1,641 | |||
Operating lease assets | 23,082 | 25,776 | |||
Intangible assets, net | 133,920 | 124,856 | |||
Goodwill | 166,436 | 120,151 | |||
Long-term investments | 266,718 | 327,423 | |||
Other non-current assets | 202,695 | 295,500 | |||
Total assets | 2,060,824 | 2,271,254 | |||
Accounts payable | 118,773 | 97,269 | |||
Accrued and other liabilities | 380,810 | 405,979 | |||
Income taxes payable | 31,987 | 25,055 | |||
Deferred revenues | 42,254 | 45,433 | |||
Amount due to the subsidiaries of the Group | 1,393,967 | 1,676,499 | |||
Operating lease liability | 25,791 | 26,756 | |||
Deferred tax liability | 29,732 | 28,665 | |||
Other non-current liabilities | 3,422 | ||||
Total liabilities | 2,026,736 | 2,305,656 | |||
Redeemable non-controlling interests | 68,728 | 45,795 | |||
Total shareholders' equity | (34,640) | (80,197) | |||
Total liabilities, redeemable non-controlling interests and shareholders' equity | 2,060,824 | 2,271,254 | |||
Results of operations of the VIEs and their subsidiaries | |||||
Total revenues | 1,531,675 | 1,540,585 | 1,821,294 | ||
Net income (loss) | 25,343 | (18,356) | (36,406) | ||
Cash flows of the VIE and its subsidiary | |||||
Net cash provided by (used in) operating activities | 159,891 | (136,442) | 335,940 | ||
Net Cash Provided by (Used in) Investing Activities | 88,119 | 410,164 | (583,397) | ||
Net cash provided by (used in) financing activities | (260,289) | 226,938 | 156,997 | ||
Contractual Arrangements with the VIE | |||||
Costs and expenses | 6,600 | 4,200 | 3,400 | ||
Consolidated VIEs | Third parties | |||||
Assets and liabilities of the VIEs and their subsidiaries | |||||
Accounts receivable | $ 426,420 | 467,083 | |||
Weimeng | |||||
Minority Investment In Weimeng | |||||
Percentage of equity interests the entity will not be able to purchase or have the New Weimeng Shareholder pledge | 1% | ||||
Percentage of equity interests for which the authorization of voting rights will not be granted to entity | 1% | ||||
Percentage of equity interests issued | 1% | ||||
SINA | Related Parties [Member] | |||||
Contractual Arrangements with the VIE | |||||
Costs and expenses | $ 36,483 | 47,178 | 38,270 | ||
SINA | Consolidated VIEs | Related Parties [Member] | |||||
Assets and liabilities of the VIEs and their subsidiaries | |||||
Accounts receivable | 12,919 | 17,908 | |||
Costs of revenues | |||||
Operations | |||||
Costs and expenses allocated from SINA | 12,313 | 17,255 | 14,749 | ||
Sales and marketing | |||||
Operations | |||||
Costs and expenses allocated from SINA | 0 | 1,953 | 3,319 | ||
Product development | |||||
Operations | |||||
Costs and expenses allocated from SINA | 6,850 | 12,192 | 10,083 | ||
General and administrative | |||||
Operations | |||||
Costs and expenses allocated from SINA | $ 17,320 | $ 15,778 | $ 10,119 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||||||
Total revenues | $ 1,759,836 | $ 1,836,332 | $ 2,257,083 | ||||
Revenue recognized that was included in the deferred revenue | 49,900 | 56,100 | 126,500 | ||||
Sales and Marketing Expenses | |||||||
Advertising and promotional expenses | $ 302,300 | 310,400 | 418,000 | ||||
Options | |||||||
Stock-based compensation | |||||||
Vesting period | 4 years | ||||||
Service-based restricted share units | |||||||
Stock-based compensation | |||||||
Vesting period | 4 years | ||||||
Advertising and marketing revenues | |||||||
Revenues: | |||||||
Total revenues | $ 1,534,014 | $ 1,596,650 | $ 1,980,795 | ||||
Costs and Expenses | |||||||
Cultural business construction fees (as a percent) | 1.50% | 3% | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% |
Advertising and marketing revenues | Maximum | |||||||
Revenues: | |||||||
Period over social display ad arrangements allow customers to place advertisements on particular areas of the Group's platform in particular formats | 3 months | ||||||
Revenues from advertisers signing contracts with company directly | |||||||
Revenues: | |||||||
Total revenues | $ 437,276 | $ 356,503 | $ 478,874 | ||||
Revenues From Advertising Agencies | |||||||
Revenues: | |||||||
Total revenues | 1,096,738 | 1,240,147 | 1,501,921 | ||||
Value-added services revenues | |||||||
Revenues: | |||||||
Total revenues | $ 225,822 | $ 239,682 | $ 276,288 |
Significant Accounting Polici_5
Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Significant Accounting Policies | |||
Depreciation expenses | $ 39.2 | $ 33.2 | $ 32.8 |
Office building | |||
Significant Accounting Policies | |||
Estimated useful lives of assets | 45 years | ||
Office building related facilities | |||
Significant Accounting Policies | |||
Estimated useful lives of assets | 20 years | ||
Computers and equipment | Minimum | |||
Significant Accounting Policies | |||
Estimated useful lives of assets | 3 years | ||
Computers and equipment | Maximum | |||
Significant Accounting Policies | |||
Estimated useful lives of assets | 4 years | ||
Furniture and fixtures | |||
Significant Accounting Policies | |||
Estimated useful lives of assets | 5 years |
Significant Accounting Polici_6
Significant Accounting Policies - Intangible Assets Other Than Goodwill, Foreign Currency and Segment Reporting (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Foreign currency | |||
Currency translation adjustments | $ (114,683) | $ (261,729) | $ 78,196 |
Net foreign currency transaction loss | $ (9,100) | $ (67,000) | |
Segment reporting | |||
Number of principal business segments | segment | 2 | ||
Minimum | |||
Intangible assets other than goodwill | |||
Estimated useful lives of intangible assets | 3 years | ||
Maximum | |||
Intangible assets other than goodwill | |||
Estimated useful lives of intangible assets | 10 years |
Significant Accounting Polici_7
Significant Accounting Policies - Concentration of Risks (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Agency customer | Dec. 31, 2022 USD ($) | Dec. 31, 2021 | |
Significant Accounting Policies | |||
Cash, cash equivalents and short-term investments | $ 3,225,670 | $ 3,171,196 | |
Percentage Of Cash And Cash Equivalents Held Financial Institution | 35% | ||
Percentage Of Short Term Investments Held Financial Institution | 25% | ||
Accounts receivable | $ 440,768 | 502,443 | |
Current liabilities denominated in RMB | 1,797,345 | 1,219,938 | |
Cash Cash Equivalents And Short Term Investments | Concentration of credit risk | China | |||
Significant Accounting Policies | |||
Cash, cash equivalents and short-term investments | 2,600,000 | 2,500,000 | |
Cash Cash Equivalents And Short Term Investments | Concentration of foreign currency risks | RMB | |||
Significant Accounting Policies | |||
Cash, cash equivalents and short-term investments | $ 1,878,900 | $ 1,816,800 | |
Percentage of benchmark derived from specified source | 58% | 57% | |
Consolidated net revenues benchmark | Customer concentration risk | |||
Significant Accounting Policies | |||
Other customers or advertising agencies accounting for 10% or more of the Group's revenues | customer | 0 | ||
Consolidated net revenues benchmark | Customer concentration risk | Alibaba | |||
Significant Accounting Policies | |||
Percentage of benchmark derived from specified source | 6% | 6% | 6% |
Consolidated net accounts receivables benchmark | Concentration of credit risk | Alibaba | |||
Significant Accounting Policies | |||
Percentage of benchmark derived from specified source | 14% | 15% | |
Consolidated net accounts receivables benchmark | Concentration of foreign currency risks | RMB | |||
Significant Accounting Policies | |||
Accounts receivable | $ 440,800 | $ 502,400 | |
Current liabilities | Concentration of foreign currency risks | RMB | |||
Significant Accounting Policies | |||
Percentage of benchmark derived from specified source | 54% | 80% | |
Current liabilities denominated in RMB | $ 964,700 | $ 971,600 | |
Current liabilities | Concentration of foreign currency risks | RMB | Convertible notes | |||
Significant Accounting Policies | |||
Current liabilities denominated in RMB | $ 800,000 | ||
Advertising and marketing revenues | Consolidated net revenues benchmark | Customer concentration risk | Top 10 advertising agencies | China | |||
Significant Accounting Policies | |||
Percentage of benchmark derived from specified source | 37% | 42% | 35% |
Number of advertising agencies | Agency | 10 |
Cash, Cash Equivalents and Sh_3
Cash, Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Cash and cash equivalents: | ||
Cash and cash equivalents: | $ 2,584,635 | $ 2,690,768 |
Short-term investments: | ||
Bank time deposits | 616,500 | 268,233 |
Wealth management products | 24,535 | 212,195 |
Subtotal | 641,035 | 480,428 |
Total cash, cash equivalents and short-term investments | $ 3,225,670 | $ 3,171,196 |
Long-term Investments - Changes
Long-term Investments - Changes in Long-term Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Long-term investments | |||
Balance at the beginning of the year | $ 993,630 | $ 1,207,651 | $ 1,179,466 |
Investments made/transfers from prepayments | 374,709 | 151,332 | 278,968 |
Income from equity method investments, net | 13,392 | (24,069) | 14,217 |
Dividend declared from equity method investments | (4,683) | (5,772) | (11,695) |
Disposal of investments | (17,713) | (36,267) | (80,613) |
Changes from measurement alternative to consolidation (Note 6) | (43,988) | (66,415) | |
Impairment on investments | (25,706) | (63,515) | (106,800) |
Fair value change through earnings | 43,002 | (196,602) | (13,439) |
Currency translation adjustment | (12,257) | (39,128) | 13,962 |
Balance at the end of year | 1,320,386 | 993,630 | 1,207,651 |
Equity Securities Without Readily Determinable Fair Values | |||
Long-term investments | |||
Balance at the beginning of the year | 196,579 | 268,716 | 579,084 |
Investments made/transfers from prepayments | 70,864 | 36,423 | 96,768 |
Disposal of investments | (3,463) | (29,974) | (75,667) |
Changes from measurement alternative to consolidation (Note 6) | (43,988) | (66,415) | |
Reclassification of equity investment without readily determinable fair values to those with readily determinable fair values | (142,000) | ||
Impairment on investments | (25,706) | (63,515) | (106,800) |
Fair value change through earnings | 10,877 | (23,316) | |
Currency translation adjustment | (3,873) | (15,071) | 7,062 |
Balance at the end of year | 201,290 | 196,579 | 268,716 |
Equity Method Investment | |||
Long-term investments | |||
Balance at the beginning of the year | 557,501 | 502,783 | 311,161 |
Investments made/transfers from prepayments | 303,845 | 114,909 | 182,200 |
Income from equity method investments, net | 13,392 | (24,069) | 14,217 |
Dividend declared from equity method investments | (4,683) | (5,772) | (11,695) |
Disposal of investments | (14,250) | (6,293) | |
Reclassification of equity investment without readily determinable fair values to those with readily determinable fair values | 153,407 | ||
Currency translation adjustment | (8,384) | (24,057) | 6,900 |
Balance at the end of year | 1,000,828 | 557,501 | 502,783 |
Equity Securities With Readily Determinable Fair Values | |||
Long-term investments | |||
Balance at the beginning of the year | 239,550 | 436,152 | 289,221 |
Disposal of investments | (4,946) | ||
Reclassification of equity investment without readily determinable fair values to those with readily determinable fair values | (153,407) | 142,000 | |
Fair value change through earnings | 32,125 | (196,602) | 9,877 |
Balance at the end of year | $ 118,268 | $ 239,550 | $ 436,152 |
Long-term Investments (Details)
Long-term Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Long-term Investments | ||||
Investments made/transferred from prepayments | $ 374,709 | $ 151,332 | $ 278,968 | |
Long-term investments | 1,320,386 | 993,630 | 1,207,651 | $ 1,179,466 |
INMYSHOW | ||||
Long-term Investments | ||||
Investments made/transferred from prepayments | 230,800 | |||
Long-term investments | $ 230,800 | |||
INMYSHOW | ||||
Long-term Investments | ||||
Percentage of interest in total issued shares | 26.57% | |||
Cost Method Or Without Readily Determinable Fair Values | ||||
Long-term Investments | ||||
Investments made/transferred from prepayments | $ 70,864 | 36,423 | 96,768 | |
Long-term investments | 201,290 | 196,579 | 268,716 | 579,084 |
Cost Method Or Without Readily Determinable Fair Values | Private companies | ||||
Long-term Investments | ||||
Investments made/transferred from prepayments | 70,900 | 36,400 | 96,800 | |
Cost Method Or Without Readily Determinable Fair Values | Wuta application | ||||
Long-term Investments | ||||
Investment fund invested | 39,500 | |||
Fair value change loss for equity interest previously held by Group immediately before step acquisition | 27,600 | |||
Cost Method Or Without Readily Determinable Fair Values | A company providing consumer finance services | ||||
Long-term Investments | ||||
Investments made/transferred from prepayments | 40,000 | 20,000 | ||
Equity Method Investment | ||||
Long-term Investments | ||||
Investments made/transferred from prepayments | 303,845 | 114,909 | 182,200 | |
Long-term investments | $ 1,000,828 | $ 557,501 | $ 502,783 | $ 311,161 |
Long-term Investments - Carryin
Long-term Investments - Carrying Value of Equity Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Total carrying value of the equity securities | ||
Initial cost basis | $ 689,724 | $ 662,460 |
Upward adjustments | 92,736 | 85,710 |
Downward adjustments | (579,719) | (554,013) |
Impairment charges | 14,200 | |
Foreign currency translation | (1,451) | 2,422 |
Total carrying value at the end of the period | 201,290 | $ 196,579 |
Online education company | ||
Total carrying value of the equity securities | ||
Impairment charges | $ 15,900 |
Long-term Investments - Additio
Long-term Investments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2021 | |
Long-term Investments | |||
Fair Value | $ 118,268 | $ 239,550 | |
INMYSHOW | |||
Long-term Investments | |||
Fair value change gain (loss) | 9,100 | (142,700) | |
Didi | |||
Long-term Investments | |||
Fair Value | 118,268 | 95,213 | $ 142,000 |
Showworld | |||
Long-term Investments | |||
Fair Value | 144,337 | ||
Equity Securities Without Readily Determinable Fair Values | |||
Long-term Investments | |||
Impairment | 25,700 | 63,500 | |
Equity Method Investment | |||
Long-term Investments | |||
Fair Value | $ 23,100 | $ 53,900 |
Long-term Investments - Carry_2
Long-term Investments - Carrying Amount and Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2021 |
Carrying amount and fair value of the marketable security | |||
Cost Basis | $ 142,000 | $ 223,385 | |
Gross Unrealized Gains | 62,952 | ||
Gross Unrealized Losses | (23,732) | (46,787) | |
Fair Value | 118,268 | 239,550 | |
Showworld | |||
Carrying amount and fair value of the marketable security | |||
Cost Basis | 81,385 | ||
Gross Unrealized Gains | 62,952 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | 144,337 | ||
Didi | |||
Carrying amount and fair value of the marketable security | |||
Cost Basis | 142,000 | 142,000 | |
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | (23,732) | (46,787) | |
Fair Value | $ 118,268 | $ 95,213 | $ 142,000 |
Long-term Investments - Equity
Long-term Investments - Equity method investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating data: | |||
Net income (loss) before accretion to redeemable non-controlling interests | $ 357,495 | $ 97,809 | $ 411,877 |
Net income attributable to Weibo's shareholders | 342,598 | 85,555 | 428,319 |
Balance sheet data: | |||
Current assets | 4,512,716 | 4,552,258 | |
Current liabilities | 1,797,345 | 1,219,938 | |
Long-term Liabilities | 1,965,397 | 2,518,976 | |
Non-controlling interests | 50,153 | 14,495 | |
Equity Method Investment | |||
Operating data: | |||
Revenue | 850,102 | 158,110 | 225,356 |
Gross profit | 298,736 | 129,393 | 206,457 |
Income (loss) from operations | 12,153 | (195,636) | 243,516 |
Net income (loss) before accretion to redeemable non-controlling interests | 8,188 | (200,042) | 247,808 |
Net income attributable to Weibo's shareholders | 9,856 | (200,042) | $ 247,808 |
Balance sheet data: | |||
Current assets | 1,803,408 | 904,956 | |
Non-current assets | 2,568,567 | 2,417,452 | |
Current liabilities | 1,199,969 | 683,626 | |
Long-term Liabilities | 16,879 | $ 119 | |
Non-controlling interests | $ (4,849) |
Long-term Investments - Impairm
Long-term Investments - Impairment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Long-term Investments | |||
Investment related impairment | $ 23,642 | $ 71,081 | $ 106,800 |
Intangible assets writeoff | 15,400 | 15,400 | |
Impairment charges | $ 14,200 | ||
Online education company | |||
Long-term Investments | |||
Impairment charges | $ 15,900 | ||
Yixia Tech | |||
Long-term Investments | |||
Investment related impairment | $ 75,300 |
Leases (Details)
Leases (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Components of lease cost | |||
Operating lease cost | $ 15,824,000 | $ 13,949,000 | $ 7,625,000 |
Short-term lease cost | 3,675,000 | 2,631,000 | 4,776,000 |
Variable lease cost | 0 | 5,348,000 | 5,287,000 |
Total lease cost | 19,499,000 | 21,928,000 | 17,688,000 |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Cash paid for operating leases | (12,246,000) | (12,877,000) | (8,948,000) |
Operating lease assets obtained in exchange for operating lease liabilities | 1,378,000 | $ 19,728,000 | $ 65,459,000 |
Maturities of lease liabilities under operating leases as of December 31, 2023 | |||
2024 | 13,374,000 | ||
2025 | 12,786,000 | ||
2026 | 11,399,000 | ||
2027 | 3,174,000 | ||
2028 | 2,402,000 | ||
Thereafter | 25,028,000 | ||
Total future payments for recognized leasing assets | $ 68,163,000 | ||
Less: leases not yet commenced | 0 | ||
Less: imputed interest | $ 14,918,000 | ||
Total lease liabilities | $ 53,245,000 | ||
Average remaining lease term | 10 years 6 months | ||
Weighted-average discount rate (as a percent) | 5% |
Goodwill, Intangible Assets a_3
Goodwill, Intangible Assets and Acquisitions - Allocation of Consideration (Details) $ in Thousands, ¥ in Billions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Oct. 01, 2023 USD ($) | Dec. 23, 2022 USD ($) | Dec. 23, 2022 CNY (¥) | Aug. 01, 2021 USD ($) | May 01, 2021 USD ($) | Jul. 31, 2023 USD ($) installment | Apr. 30, 2022 USD ($) installment | Aug. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Business combination allocated based on fair value of the assets and the liabilities | |||||||||||||
Goodwill | $ 166,436 | $ 120,151 | $ 130,405 | $ 61,712 | |||||||||
Identifiable intangible assets acquired on acquisition date | 200 | ||||||||||||
Assets | 7,280,358 | 7,129,454 | |||||||||||
Liabilities | 3,762,742 | 3,738,914 | |||||||||||
Operating lease asset | 170,266 | 190,368 | |||||||||||
Sina.com Technology China Co., Ltd. | |||||||||||||
Business combination allocated based on fair value of the assets and the liabilities | |||||||||||||
Assets | 340,500 | ||||||||||||
Liabilities | 281,100 | ||||||||||||
Additional paid in capital | 159,000 | ||||||||||||
Sina.com Technology China Co., Ltd. | Land | |||||||||||||
Business combination allocated based on fair value of the assets and the liabilities | |||||||||||||
Operating lease asset | 125,800 | ||||||||||||
Sina.com Technology China Co., Ltd. | Office building | |||||||||||||
Business combination allocated based on fair value of the assets and the liabilities | |||||||||||||
Assets | $ 170,600 | ||||||||||||
Wuta application | |||||||||||||
Goodwill, Intangible Assets and Acquisitions | |||||||||||||
Aggregate consideration | $ 39,540 | ||||||||||||
Business combination allocated based on fair value of the assets and the liabilities | |||||||||||||
Consideration | 39,540 | ||||||||||||
Fair value of previously held equity interest | 26,875 | ||||||||||||
Non-controlling interest | 10,811 | ||||||||||||
Cash and short-term investments acquired | 5,786 | ||||||||||||
Other assets acquired | 6,801 | ||||||||||||
Goodwill | 51,034 | ||||||||||||
Liabilities assumed | (2,890) | ||||||||||||
Total | 77,226 | ||||||||||||
Number of installments | installment | 2 | 2 | |||||||||||
Cash consideration | $ 10,300 | $ 10,300 | $ 39,500 | ||||||||||
Equity interest, percentage | 100% | 100% | |||||||||||
Equity interest acquired (in percent) | 14% | 14% | 51.20% | ||||||||||
Equity interest held | 34.80% | ||||||||||||
Identifiable intangible assets acquired on acquisition date | $ 16,495 | $ 16,500 | |||||||||||
Wuta application | Minimum | |||||||||||||
Business combination allocated based on fair value of the assets and the liabilities | |||||||||||||
Identifiable intangible assets acquired, estimated lives | 3 years | ||||||||||||
Wuta application | Maximum | |||||||||||||
Business combination allocated based on fair value of the assets and the liabilities | |||||||||||||
Identifiable intangible assets acquired, estimated lives | 10 years | ||||||||||||
E-sports team | |||||||||||||
Goodwill, Intangible Assets and Acquisitions | |||||||||||||
Aggregate consideration | $ 30,953 | ||||||||||||
Business combination allocated based on fair value of the assets and the liabilities | |||||||||||||
Consideration | 30,953 | ||||||||||||
Goodwill | 14,745 | ||||||||||||
Liabilities assumed | (3,066) | ||||||||||||
Total | 30,953 | ||||||||||||
Identifiable intangible assets acquired on acquisition date | $ 19,274 | $ 19,300 | |||||||||||
Identifiable intangible assets acquired, estimated lives | 10 years | ||||||||||||
Sina.com Technology (China) Co., Ltd | |||||||||||||
Goodwill, Intangible Assets and Acquisitions | |||||||||||||
Aggregate consideration | $ 218,400 | ¥ 1.5 | |||||||||||
Business combination allocated based on fair value of the assets and the liabilities | |||||||||||||
Consideration | $ 218,400 | ¥ 1.5 | |||||||||||
Equity interest acquired (in percent) | 100% | 100% | 100% | ||||||||||
Percentage of fair value of the gross assets acquired | 90% | 90% | |||||||||||
Xi'an Yunrui Network Technology Co Ltd | |||||||||||||
Goodwill, Intangible Assets and Acquisitions | |||||||||||||
Aggregate consideration | $ 30,443 | ||||||||||||
Business combination allocated based on fair value of the assets and the liabilities | |||||||||||||
Consideration | 30,443 | ||||||||||||
Fair value of previously held equity interest | 13,545 | ||||||||||||
Non-controlling interest | 37,043 | ||||||||||||
Cash and short-term investments acquired | 4,864 | ||||||||||||
Other assets acquired | 1,483 | ||||||||||||
Goodwill | 48,669 | ||||||||||||
Liabilities assumed | (5,190) | ||||||||||||
Total | 81,031 | ||||||||||||
Cash consideration | $ 30,400 | ||||||||||||
Equity interest acquired (in percent) | 33.10% | ||||||||||||
Equity interest held | 17.90% | ||||||||||||
Re - measurement gain | $ 3,900 | ||||||||||||
Identifiable intangible assets acquired on acquisition date | $ 31,205 | $ 31,200 | |||||||||||
Xi'an Yunrui Network Technology Co Ltd | Minimum | |||||||||||||
Business combination allocated based on fair value of the assets and the liabilities | |||||||||||||
Identifiable intangible assets acquired, estimated lives | 5 years | ||||||||||||
Xi'an Yunrui Network Technology Co Ltd | Maximum | |||||||||||||
Business combination allocated based on fair value of the assets and the liabilities | |||||||||||||
Identifiable intangible assets acquired, estimated lives | 10 years | ||||||||||||
Wuta application | |||||||||||||
Business combination allocated based on fair value of the assets and the liabilities | |||||||||||||
Total equity interest | 86% | ||||||||||||
Weibo Technology | |||||||||||||
Business combination allocated based on fair value of the assets and the liabilities | |||||||||||||
Total equity interest | 100% | ||||||||||||
Weibo Technology | Xi'an Yunrui Network Technology Co Ltd | |||||||||||||
Business combination allocated based on fair value of the assets and the liabilities | |||||||||||||
Total equity interest | 51% |
Goodwill, Intangible Assets a_4
Goodwill, Intangible Assets and Acquisitions - Changes in the Group's Goodwill (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Changes in the Group's goodwill by segment | ||||
Balance at the beginning of the year | $ 120,151 | $ 120,151 | $ 130,405 | $ 61,712 |
Currency translation adjustment | (2,384) | (10,254) | 2,914 | |
Balance at the end of the year | $ 166,436 | 120,151 | 130,405 | |
Number of reporting units | item | 2 | |||
Impairment charge of goodwill recognized | 0 | $ 0 | ||
Wuta application | ||||
Changes in the Group's goodwill by segment | ||||
Acquisition | 51,034 | |||
E-sports team | ||||
Changes in the Group's goodwill by segment | ||||
Acquisition | 14,745 | |||
Xi'an Yunrui Network Technology Co Ltd | ||||
Changes in the Group's goodwill by segment | ||||
Acquisition | 48,669 | |||
Advertising and marketing revenues | ||||
Changes in the Group's goodwill by segment | ||||
Balance at the beginning of the year | 77,161 | 77,161 | 83,746 | 30,899 |
Currency translation adjustment | (2,331) | (6,585) | 1,813 | |
Balance at the end of the year | 74,830 | 77,161 | 83,746 | |
Advertising and marketing revenues | Wuta application | ||||
Changes in the Group's goodwill by segment | ||||
Acquisition | 51,034 | |||
Advertising and marketing revenues | E-sports team | ||||
Changes in the Group's goodwill by segment | ||||
Acquisition | 0 | |||
Advertising and marketing revenues | Xi'an Yunrui Network Technology Co Ltd | ||||
Changes in the Group's goodwill by segment | ||||
Acquisition | 0 | |||
Value-added services revenues | ||||
Changes in the Group's goodwill by segment | ||||
Balance at the beginning of the year | $ 42,990 | 42,990 | 46,659 | 30,813 |
Currency translation adjustment | (53) | (3,669) | 1,101 | |
Balance at the end of the year | 91,606 | $ 42,990 | 46,659 | |
Value-added services revenues | Wuta application | ||||
Changes in the Group's goodwill by segment | ||||
Acquisition | 0 | |||
Value-added services revenues | E-sports team | ||||
Changes in the Group's goodwill by segment | ||||
Acquisition | $ 14,745 | |||
Value-added services revenues | Xi'an Yunrui Network Technology Co Ltd | ||||
Changes in the Group's goodwill by segment | ||||
Acquisition | $ 48,669 |
Goodwill, Intangible Assets a_5
Goodwill, Intangible Assets and Acquisitions - Intangible assets arising from acquisitions (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill, Intangible Assets and Acquisitions | ||
Cost | $ 196,085 | $ 169,073 |
Accumulated Amortization | (61,956) | (44,001) |
Intangible assets, net | 134,129 | 125,072 |
Game related | ||
Goodwill, Intangible Assets and Acquisitions | ||
Cost | 136,155 | 140,328 |
Accumulated Amortization | (43,406) | (30,029) |
Intangible assets, net | 92,749 | 110,299 |
Technology | ||
Goodwill, Intangible Assets and Acquisitions | ||
Cost | 10,596 | 2,808 |
Accumulated Amortization | (2,831) | (2,596) |
Intangible assets, net | 7,765 | 212 |
Trademark and domain name | ||
Goodwill, Intangible Assets and Acquisitions | ||
Cost | 25,436 | 12,892 |
Accumulated Amortization | (5,765) | (4,280) |
Intangible assets, net | 19,671 | 8,612 |
Others | ||
Goodwill, Intangible Assets and Acquisitions | ||
Cost | 23,898 | 13,045 |
Accumulated Amortization | (9,954) | (7,096) |
Intangible assets, net | $ 13,944 | $ 5,949 |
Goodwill, Intangible Assets a_6
Goodwill, Intangible Assets and Acquisitions - Future Amortization Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill, Intangible Assets and Acquisitions | |||
Amortization expense | $ 19,300 | $ 21,500 | $ 22,200 |
Future estimated amortization expenses | |||
2024 | 21,483 | ||
2025 | 17,980 | ||
2026 | 17,943 | ||
2027 | 17,660 | ||
2028 | 17,326 | ||
Thereafter | 41,528 | ||
Total expected amortization expense | 133,920 | ||
Identifiable intangible assets acquired | $ 200 |
Stock-Based Compensation - Ince
Stock-Based Compensation - Incentive Plan Details (Details) - shares | 1 Months Ended | 12 Months Ended | ||||
Jan. 01, 2015 | Mar. 31, 2014 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2023 | |
Stock-Based Compensation | ||||||
Number of additional shares for the plan | 10,000,000 | 0 | 0 | |||
Stock based compensation, amortization period | 4 years | |||||
Performance-based restricted shares | ||||||
Stock-Based Compensation | ||||||
Stock based compensation, amortization period | 1 year | |||||
2014 Plan | ||||||
Stock-Based Compensation | ||||||
Ordinary shares reserved for issuance | 4,600,000 | |||||
Number of additional shares for the plan | 1,000,000 | |||||
Term of share incentive plan | 10 years | |||||
One-time percentage increase on January 1, 2015 for maximum aggregate number of shares which may be issued (as a percent) | 10% | |||||
2023 Plan | ||||||
Stock-Based Compensation | ||||||
Ordinary shares reserved for issuance | 10,000,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock-based compensation | |||
Total | $ 101,131 | $ 111,713 | $ 87,996 |
Non-cash stock-based compensation charged through Amount due from SINA | 8,100 | 9,300 | 7,900 |
Costs of revenues | |||
Stock-based compensation | |||
Total | 8,933 | 9,417 | 8,112 |
Sales and marketing | |||
Stock-based compensation | |||
Total | 16,528 | 18,910 | 15,292 |
Product development | |||
Stock-based compensation | |||
Total | 51,441 | 55,294 | 43,622 |
General and administrative | |||
Stock-based compensation | |||
Total | $ 24,229 | $ 28,092 | $ 20,970 |
Stock-Based Compensation - Numb
Stock-Based Compensation - Number of Shares Available for Issuance (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2014 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of shares available for issuance | |||||
Number of shares available for issuance, beginning | 3,563,000 | 7,435,000 | 12,495,000 | ||
Addition (in shares) | 10,000,000 | 0 | 0 | ||
Granted (in shares) | (3,971,000) | (4,642,000) | (5,752,000) | ||
Cancelled/expired/forfeited (in shares) | 351,000 | 770,000 | 692,000 | ||
Number of shares available for issuance, ending | 9,943,000 | 3,563,000 | 7,435,000 | 12,495,000 | |
Aggregate Intrinsic Value | |||||
Fair value per ordinary share (in dollars per share) | $ 21.15 | ||||
Cash received from the exercise of stock option | $ 1,000 | $ 0 | $ 1,313,000 | ||
2014 Plan | |||||
Number of shares available for issuance | |||||
Addition (in shares) | 1,000,000 | ||||
Employee and Non-Employee stock options | |||||
Options Outstanding | |||||
Outstanding at the beginning of the year (in shares) | 3,019,000 | 387,000 | 551,000 | ||
Granted (in shares) | 2,187,000 | 2,750,000 | 0 | ||
Exercised (in shares) | (105,000) | ||||
Cancelled/expired/forfeited (in shares) | (98,000) | (118,000) | (59,000) | ||
Outstanding at the end of the year (in shares) | 5,108,000 | 3,019,000 | 387,000 | 551,000 | |
Vested and expected to vest at the end of the year (in shares) | 4,686,000 | 2,752,000 | |||
Exercisable at the end of the year (in shares) | 1,226,000 | 172,000 | |||
Weighted Average Exercise Price | |||||
Outstanding at the beginning of the year (in dollars per share) | $ 22.51 | $ 32.68 | $ 28.85 | ||
Granted (in dollars per share) | 3.87 | 21.15 | |||
Exercised (in dollars per share) | 12.70 | ||||
Cancelled/expired/forfeited (in dollars per share) | 22.07 | 24.12 | 32.68 | ||
Outstanding at the end of the year (in dollars per share) | 14.54 | 22.51 | $ 32.68 | $ 28.85 | |
Vested and expected to vest at the end of the year (in dollars per share) | 14.68 | 22.54 | |||
Exercisable at the end of the year (in dollars per share) | $ 23.44 | $ 32.68 | |||
Weighted Average Remaining Contractual Life (In years) | |||||
Outstanding at the end of the year | 5 years 8 months 12 days | 6 years | 5 years 7 months 6 days | 5 years 9 months 18 days | |
Vested and expected to vest at the end of the year | 5 years 8 months 12 days | 6 years | |||
Exercisable at the end of the year | 4 years 10 months 24 days | 4 years 7 months 6 days | |||
Aggregate Intrinsic Value | |||||
Outstanding at the end of the year | $ 15,390,000 | $ 6,683,000 | |||
Vested and expected to vest at the end of the year | 13,905,000 | ||||
Total intrinsic value of options exercised | $ 0 | $ 0 | $ 4,000,000 | ||
Fair value per ordinary share (in dollars per share) | $ 10.95 | $ 19.12 | |||
Cash received from the exercise of stock option | $ 0 | $ 0 | $ 1,300,000 | ||
Unrecognized compensation cost | $ 30,500,000 | $ 20,500,000 | |||
Expected weighted-average recognition period for unrecognized compensation cost | 3 years 1 month 6 days | ||||
Restricted share units | |||||
Aggregate Intrinsic Value | |||||
Restricted shares units granted (in shares) | 1,800,000 | 1,800,000 | 5,800,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Option Activities (Details) - Employee and Non-Employee stock options - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Range of Exercise Prices | ||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | $ 3.87 | |
Options Outstanding (in shares) | 5,108 | 3,019 |
Weighted Average Exercise Price (in dollars per share) | $ 14.54 | $ 22.51 |
Options Exercisable (in shares) | 1,226 | 172 |
Weighted Average Exercise Price (in dollars per share) | $ 23.44 | $ 32.68 |
Weighted Average Remaining Contractual Life (In years) | 5 years 8 months 12 days | 6 years |
$32.68 | ||
Range of Exercise Prices | ||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 32.68 | $ 32.68 |
Options Outstanding (in shares) | 328 | 356 |
Weighted Average Exercise Price (in dollars per share) | $ 32.68 | $ 32.68 |
Options Exercisable (in shares) | 243 | 172 |
Weighted Average Exercise Price (in dollars per share) | $ 32.68 | $ 32.68 |
Weighted Average Remaining Contractual Life (In years) | 3 years 7 months 6 days | 4 years 7 months 6 days |
$21.15 | ||
Range of Exercise Prices | ||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | $ 21.15 | $ 21.15 |
Options Outstanding (in shares) | 2,606 | 2,663 |
Weighted Average Exercise Price (in dollars per share) | $ 21.15 | $ 21.15 |
Options Exercisable (in shares) | 983 | 0 |
Weighted Average Exercise Price (in dollars per share) | $ 21.15 | |
Weighted Average Remaining Contractual Life (In years) | 5 years 2 months 12 days | 6 years 2 months 12 days |
$3.87 | ||
Range of Exercise Prices | ||
Options Outstanding (in shares) | 2,174 | |
Weighted Average Exercise Price (in dollars per share) | $ 3.87 | |
Options Exercisable (in shares) | 0 | |
Weighted Average Remaining Contractual Life (In years) | 6 years 6 months |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair value of the options granted (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of ordinary shares (US$) | $ 21.15 | |
Expected volatility range | 53% | |
Risk-free interest rate (per annum) | 2.17% | |
Expected term (in years) | 4 years 7 months 28 days | 4 years 7 months 28 days |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of ordinary shares (US$) | $ 11.51 | |
Expected volatility range | 54.77% | |
Risk-free interest rate (per annum) | 4.42% | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of ordinary shares (US$) | $ 13.1 | |
Expected volatility range | 55.77% | |
Risk-free interest rate (per annum) | 4.82% | |
Employee and Non-Employee stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of ordinary shares (US$) | $ 10.95 | $ 19.12 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Share Units (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Performance-Based Restricted Share Units without Market Condition | |||
Shares Granted | |||
Outstanding at the beginning of the period (in shares) | 11,000 | 17,000 | |
Awarded (in shares) | 0 | 15,000 | |
Vested (in shares) | (9,000) | (2,000) | |
Cancelled (in shares) | (2,000) | (19,000) | |
Outstanding at the end of the period (in shares) | 0 | 11,000 | |
Weighted-Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 54.17 | $ 36.49 | |
Awarded (in dollars per share) | $ 0 | 54.08 | |
Vested (in dollars per share) | 54.17 | 38.78 | |
Cancelled (in dollars per share) | $ 54.17 | 40.63 | |
Outstanding at the end of the period (in dollars per share) | $ 0 | $ 54.17 | |
Unrecognized compensation cost | $ 0 | $ 0 | |
Number of shares vested | 9,000 | 2,000 | |
Performance-Based Restricted Share Units with Market Condition | |||
Shares Granted | |||
Outstanding at the beginning of the period (in shares) | 1,640,000 | 0 | |
Awarded (in shares) | 1,640,000 | 1,640,000 | |
Vested (in shares) | 0 | 0 | |
Cancelled (in shares) | 0 | 0 | |
Outstanding at the end of the period (in shares) | 3,280,000 | 1,640,000 | 0 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 8.43 | ||
Awarded (in dollars per share) | 9.66 | $ 8.43 | |
Outstanding at the end of the period (in dollars per share) | $ 9.04 | $ 8.43 | |
Unrecognized compensation cost | $ 1.7 | $ 4.7 | |
Expected weighted-average recognition period for unrecognized compensation cost | 4 months 24 days | 4 months 24 days | |
Number of shares vested | 0 | 0 | |
Service Based Restricted Stock Units RSU | |||
Shares Granted | |||
Outstanding at the beginning of the period (in shares) | 5,110,000 | 7,839,000 | 4,324,000 |
Awarded (in shares) | 144,000 | 252,000 | 5,737,000 |
Vested (in shares) | (2,191,000) | (2,330,000) | (1,608,000) |
Cancelled (in shares) | (253,000) | (651,000) | (614,000) |
Outstanding at the end of the period (in shares) | 2,810,000 | 5,110,000 | 7,839,000 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 43.71 | $ 45.37 | $ 41.86 |
Awarded (in dollars per share) | 17.27 | 20.59 | 47.95 |
Vested (in dollars per share) | 43.04 | 47.09 | 45.66 |
Cancelled (in dollars per share) | 38.66 | 42.69 | 44.02 |
Outstanding at the end of the period (in dollars per share) | $ 43.37 | $ 43.71 | $ 45.37 |
Unrecognized compensation cost | $ 84 | $ 162 | |
Expected weighted-average recognition period for unrecognized compensation cost | 1 year 8 months 12 days | 2 years 6 months | |
Number of shares vested | 2,191,000 | 2,330,000 | 1,608,000 |
Total fair value vested | $ 94.3 | $ 109.7 | $ 73.4 |
Other Balance Sheets Componen_3
Other Balance Sheets Components - Accounts Receivable (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts receivable, net: | ||
Total gross amount | $ 495,325,000 | $ 540,623,000 |
Allowance for credit losses: | ||
Balance at the beginning of the year | (38,180,000) | (42,650,000) |
Additional provision charged to expenses, net | (19,208,000) | (4,440,000) |
Write-off | 1,435,000 | 4,695,000 |
Currency translation adjustment | 1,396,000 | 4,215,000 |
Balance at the end of the year | (54,557,000) | (38,180,000) |
Accounts receivable, net | 440,768,000 | 502,443,000 |
Third parties | ||
Accounts receivable, net: | ||
Total gross amount | 396,043,000 | 416,125,000 |
Allowance for credit losses: | ||
Balance at the beginning of the year | (37,625,000) | |
Balance at the end of the year | (54,557,000) | (37,625,000) |
Accounts receivable, net | 341,486,000 | 378,500,000 |
Related Parties [Member] | Alibaba | ||
Accounts receivable, net: | ||
Total gross amount | 61,094,000 | 75,347,000 |
Allowance for credit losses: | ||
Balance at the beginning of the year | 0 | |
Balance at the end of the year | 0 | 0 |
Accounts receivable, net | 61,094,000 | 75,347,000 |
Related Parties [Member] | Other related parties | ||
Accounts receivable, net: | ||
Total gross amount | 38,188,000 | 49,151,000 |
Other related parties | ||
Allowance for credit losses: | ||
Balance at the beginning of the year | (555,000) | |
Balance at the end of the year | 0 | (555,000) |
Accounts receivable, net | $ 38,188,000 | $ 48,596,000 |
Other Balance Sheets Componen_4
Other Balance Sheets Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Prepaid expenses and other current assets: | ||
Rental and other deposits | $ 1,606 | $ 1,583 |
Deductible value-added taxes | 4,860 | 3,865 |
Investment prepayment | 29,055 | 30,938 |
Proceeds receivable from disposal of investments | 0 | 13,371 |
Advertising prepayment | 8,563 | 9,126 |
Prepayment to outsourced service providers | 3,380 | 3,479 |
Amounts deposited by users | 50,194 | 52,216 |
Content fees | 15,796 | 15,859 |
Others | 9,385 | 14,382 |
Prepaid expenses and other current assets | 359,881 | 391,502 |
Related Parties [Member] | Other related parties | ||
Prepaid expenses and other current assets: | ||
Loans to and interest receivable | 100,000 | 110,000 |
Other related parties | ||
Prepaid expenses and other current assets: | ||
Loans to and interest receivable | 100,000 | 110,000 |
Third parties | ||
Prepaid expenses and other current assets: | ||
Loans to and interest receivable | $ 137,042 | $ 136,683 |
Other Balance Sheets Componen_5
Other Balance Sheets Components - Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property and equipment, net: | ||
Property and equipment, gross | $ 446,903 | $ 467,056 |
Accumulated depreciation | (226,240) | (217,503) |
Property and equipment, net | 220,663 | 249,553 |
Office building | ||
Property and equipment, net: | ||
Property and equipment, gross | 190,295 | 196,223 |
Office building related facilities | ||
Property and equipment, net: | ||
Property and equipment, gross | 3,199 | 3,298 |
Computers and equipment | ||
Property and equipment, net: | ||
Property and equipment, gross | 213,637 | 228,599 |
Leasehold improvements | ||
Property and equipment, net: | ||
Property and equipment, gross | 13,178 | 13,064 |
Furniture and fixtures | ||
Property and equipment, net: | ||
Property and equipment, gross | 7,950 | 8,139 |
Others | ||
Property and equipment, net: | ||
Property and equipment, gross | $ 18,644 | $ 17,733 |
Other Balance Sheets Componen_6
Other Balance Sheets Components - Other non-current assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Investment-related deposits | $ 325,895 | $ 373,252 |
Loans to and interest receivable from other related parties | 755,762 | 898,422 |
Deferred tax assets | 43,262 | 39,989 |
Others | 36,889 | 30,269 |
Related party | Loans to and interest receivable | ||
Loans to and interest receivable from other related parties | $ 349,716 | $ 454,912 |
Other Balance Sheets Componen_7
Other Balance Sheets Components - Accrued and other liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued and other liabilities: | ||
Payroll and welfare | $ 161,579 | $ 156,274 |
Marketing expenses | 62,267 | 74,093 |
Sales rebates | 244,868 | 266,455 |
Professional fees | 8,083 | 8,836 |
VAT and other tax payable | 56,548 | 51,037 |
Amounts due to users | 50,194 | 52,216 |
Payable to SINA for the acquisition of the equity of STC (5) (Note 6) | 0 | 218,402 |
Unpaid consideration for acquisitions | 5,674 | 687 |
Unpaid consideration for investment | 2,186 | 4,320 |
Proceeds received in advance from disposal of investment | 0 | 14,496 |
Interest payable for convertible senior notes, unsecured senior notes and long-term loans | 28,812 | 28,257 |
Others | 36,234 | 38,911 |
Total accrued and other liabilities | 656,445 | 913,984 |
Investment-related deposits | 325,895 | 373,252 |
Related Parties [Member] | SINA | ||
Accrued and other liabilities: | ||
Payable to SINA for the acquisition of the equity of STC (5) (Note 6) | 0 | 218,402 |
Game company | ||
Accrued and other liabilities: | ||
Investment-related deposits | $ 154,000 | $ 249,400 |
Income Taxes (Details)
Income Taxes (Details) $ / shares in Units, $ in Millions, ¥ in Billions | 1 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2023 | Dec. 31, 2023 USD ($) jurisdiction $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2020 | Dec. 31, 2019 HKD ($) | Dec. 31, 2018 HKD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | |
Income taxes | |||||||||
Number of taxable jurisdictions | jurisdiction | 2 | ||||||||
Components of income before income taxes | |||||||||
Loss from non-China operations | $ (145,244,000) | $ (422,860,000) | $ (232,830,000) | ||||||
Income from China operations | 648,026,000 | 550,946,000 | 783,548,000 | ||||||
Income before income tax expenses | 502,782,000 | 128,086,000 | 550,718,000 | ||||||
Total income tax expenses | $ 145,287,000 | $ 30,277,000 | $ 138,841,000 | ||||||
Effective tax rate | 28.90% | 23.60% | 25.20% | ||||||
Income tax rate (as a percent) | 25% | 25% | 25% | ||||||
Percentage research and development expenses | 200% | 150% | 175% | 175% | 175% | ||||
Composition of income tax expenses for China operations | |||||||||
Current income tax expenses | $ 121,249,000 | $ 55,098,000 | $ 151,319,000 | ||||||
Deferred tax expenses (benefits) | 24,038,000 | (24,821,000) | (12,478,000) | ||||||
Income tax expenses | $ 145,287,000 | $ 30,277,000 | $ 138,841,000 | ||||||
Reconciliation of the statutory tax rate to the effective tax rate | |||||||||
PRC Statutory EIT rate | 25% | 25% | 25% | ||||||
Effect on tax holiday and preferential tax treatment (as a percent) | (9.50%) | (29.70%) | (13.10%) | ||||||
Research and development super-deduction (as a percent) | (4.40%) | (21.10%) | (7.50%) | ||||||
Non-deductible expenses and non-taxable income and others (as a percent) | (3.50%) | (30.10%) | 9.20% | ||||||
Change in valuation allowance (as a percent) | 5% | 8.20% | 0.70% | ||||||
Effect of PRC withholding tax | 8.70% | ||||||||
Tax rate difference from statutory rate in other jurisdictions (as percent) | 7.60% | 71.30% | 10.90% | ||||||
Effective tax rate for the Group (as a percent) | 28.90% | 23.60% | 25.20% | ||||||
Deferred tax assets: | |||||||||
Net operating loss carry forwards | $ 49,802,000 | $ 18,289,000 | |||||||
Investment-related impairment | 50,441,000 | 52,363,000 | |||||||
Depreciation, accounts receivable, accrued and other liabilities | 72,207,000 | 73,557,000 | |||||||
Valuation allowance | (129,188,000) | (104,220,000) | |||||||
Net deferred tax assets | 43,262,000 | 39,989,000 | |||||||
Deferred tax liabilities: | |||||||||
Acquired intangible assets | 28,528,000 | 27,435,000 | |||||||
Depreciation | 1,769,000 | 1,731,000 | |||||||
Unrealized investment-related gain | 12,282,000 | 12,414,000 | |||||||
Withholding tax | 23,365,000 | ||||||||
Others | 207,000 | 114,000 | |||||||
Total deferred tax liabilities | 66,151,000 | 41,694,000 | |||||||
Valuation allowance on deferred tax assets | 129,200,000 | 104,200,000 | |||||||
Interest and penalties related to uncertain tax positions | $ 0 | 0 | |||||||
Liability related to uncertain tax positions expected to be recognized | $ 27,900,000 | ||||||||
Tax liability related to the uncertain tax positions | 21,400,000 | ||||||||
State Administration of Taxation, China | |||||||||
Components of income before income taxes | |||||||||
Income tax rate (as a percent) | 25% | ||||||||
Reconciliation of the statutory tax rate to the effective tax rate | |||||||||
PRC Statutory EIT rate | 25% | ||||||||
Non-China | |||||||||
Components of income before income taxes | |||||||||
Total income tax expenses | $ 45,441,000 | (14,176,000) | 1,355,000 | ||||||
Deferred tax charges from fair value change of investments | 14,200,000 | ||||||||
Composition of income tax expenses for China operations | |||||||||
Income tax expenses | 45,441,000 | $ (14,176,000) | $ 1,355,000 | ||||||
Deferred tax liabilities: | |||||||||
Withholding tax in connection with the dividends paid and to be paid | $ 43,700,000 | ||||||||
Cayman Islands | |||||||||
Components of income before income taxes | |||||||||
Withholding income tax on dividends distributed by subsidiaries to its immediate holding entity outside China (as a percent) | 0% | ||||||||
Hong Kong | |||||||||
Components of income before income taxes | |||||||||
Withholding income tax on dividends distributed by subsidiaries to its immediate holding entity outside China (as a percent) | 0% | ||||||||
Income tax rate (as a percent) | 16.50% | 16.50% | 16.50% | 16.50% | 16.50% | 16.50% | |||
Withholding profits earned | $ 2 | $ 2 | |||||||
Withholding income tax rate for dividend paid to foreign tax resident investors (as a percentage) | 8.25% | 8.25% | |||||||
Net operating loss carry forwards | $ 2,400,000 | ||||||||
Reconciliation of the statutory tax rate to the effective tax rate | |||||||||
PRC Statutory EIT rate | 16.50% | 16.50% | 16.50% | 16.50% | 16.50% | 16.50% | |||
China | |||||||||
Components of income before income taxes | |||||||||
Total income tax expenses | $ 99,846,000 | $ 44,453,000 | $ 137,486,000 | ||||||
Effective tax rate | 15.40% | 8.10% | 17.50% | ||||||
Withholding income tax on dividends distributed by subsidiaries to its immediate holding entity outside China (as a percent) | 10% | ||||||||
Income tax rate (as a percent) | 25% | ||||||||
Maximum percentage of withholding income tax on dividends distributed by subsidiaries to its immediate holding entity in Hong Kong | 5% | ||||||||
Percentage of ownership interests held by foreign investors | 25% | 25% | |||||||
Composition of income tax expenses for China operations | |||||||||
Income tax expenses | $ 99,846,000 | $ 44,453,000 | $ 137,486,000 | ||||||
Reconciliation of the statutory tax rate to the effective tax rate | |||||||||
PRC Statutory EIT rate | 25% | ||||||||
Effective tax rate for the Group (as a percent) | 15.40% | 8.10% | 17.50% | ||||||
Deferred tax liabilities: | |||||||||
Percentage of withholding income tax on dividends distributed by PRC subsidiaries to its immediate holding company in Hong Kong | 5% | ||||||||
China | High and New Technology Enterprises | |||||||||
Components of income before income taxes | |||||||||
Preferential tax rate | 15% | 15% | 15% | ||||||
Weibo Technology | |||||||||
Reconciliation of the statutory tax rate to the effective tax rate | |||||||||
Preferential tax treatment recognized | $ 48,000,000 | $ 37,900,000 | $ 72,300,000 | ||||||
Effect of tax exemption and preferential tax on basic net income per share (USD per share) | $ / shares | $ 0.20 | $ 0.16 | $ 0.32 | ||||||
Weibo Technology | Weibo HK | |||||||||
Components of income before income taxes | |||||||||
Proceeds from dividends received | $ 406,100,000 | ||||||||
Withholding tax In connection with dividends received | 20,500,000 | ||||||||
Accrued additional withholding tax on retained earnings | 23,100,000 | ||||||||
Deferred tax liabilities: | |||||||||
Total undistributed PRC earnings | ¥ | ¥ 19.9 | ¥ 22.4 | |||||||
Weibo Technology | Research and development | |||||||||
Components of income before income taxes | |||||||||
Total income tax expenses | (22,200,000) | $ 26,900,000 | $ 41,400,000 | ||||||
Composition of income tax expenses for China operations | |||||||||
Income tax expenses | (22,200,000) | 26,900,000 | 41,400,000 | ||||||
Weibo Technology | High and New Technology Enterprises | |||||||||
Reconciliation of the statutory tax rate to the effective tax rate | |||||||||
Effect of preferential tax treatment | $ 42,200,000 | $ 26,900,000 | $ 55,100,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transactions | |||
Interest income | $ 118,209,000 | $ 105,434,000 | $ 77,280,000 |
Related party outstanding balance: | |||
Payable to SINA for the acquisition of the equity of STC (Note 6) | 0 | 218,402,000 | |
Accounts receivable | 440,768,000 | 502,443,000 | |
Prepaid expenses and other current assets | 359,881,000 | 391,502,000 | |
Other non-current assets | 755,762,000 | 898,422,000 | |
Accounts receivable | 440,768,000 | 502,443,000 | |
Accounts payable | 161,493,000 | 161,029,000 | |
Accrued and other liabilities | $ 656,445,000 | 913,984,000 | |
Related Parties [Member] | Loans to and interest receivable | |||
Related Party Transactions | |||
Loan agreement term | 5 years | ||
Related party outstanding balance: | |||
Other non-current assets | $ 349,716,000 | 454,912,000 | |
Total of expenses | 449,716,000 | 564,912,000 | |
Other related parties | |||
Related Party Transactions | |||
Costs and expenses | 33,900,000 | 32,300,000 | 62,600,000 |
Related party outstanding balance: | |||
Accounts receivable | 38,200,000 | 48,600,000 | |
Accounts receivable | 38,200,000 | 48,600,000 | |
Accounts payable | 36,800,000 | 21,700,000 | |
Accrued and other liabilities | 6,000,000 | 6,600,000 | |
Other related parties | Loans to and interest receivable | |||
Related party outstanding balance: | |||
Prepaid expenses and other current assets | 100,000,000 | 110,000,000 | |
Credit losses recognized (reversal) | $ 2,100,000 | $ 7,600,000 | $ 0 |
SINA | Related Parties [Member] | |||
Related Party Transactions | |||
Loan agreement term | 1 year | 1 year | 1 year |
Loan to SINA | $ 1,105,700,000 | $ 1,261,900,000 | $ 978,200,000 |
Loan repaid by SINA | 1,071,100,000 | 1,249,476,000 | 1,058,574,000 |
Revenue | 66,810,000 | 76,946,000 | 111,521,000 |
Costs and expenses | 36,483,000 | 47,178,000 | 38,270,000 |
Interest Income, Operating | 14,913,000 | 14,770,000 | 17,943,000 |
Related party outstanding balance: | |||
Amount due from SINA | 486,397,000 | 487,117,000 | |
Payable to SINA for the acquisition of the equity of STC (Note 6) | 0 | 218,402,000 | |
SINA | Related Parties [Member] | Loans to and interest receivable | |||
Related party outstanding balance: | |||
Amount due from SINA | 445,200,000 | 420,400,000 | |
SINA | Related Parties [Member] | Revenue billed through | |||
Related Party Transactions | |||
Revenue | 41,557,000 | 44,962,000 | 68,351,000 |
SINA | Related Parties [Member] | Revenue from services provided to | |||
Related Party Transactions | |||
Revenue | 25,253,000 | 31,984,000 | 43,170,000 |
SINA | Related Parties [Member] | Costs and expenses incurred by Weibo but paid by SINA | |||
Related Party Transactions | |||
Costs and expenses | 24,900,000 | 37,700,000 | 48,000,000 |
SINA | Related Parties [Member] | Costs and expenses related to certain of SINA's activities for which Weibo made the payments | |||
Related Party Transactions | |||
Costs and expenses | 9,900,000 | 600,000 | 800,000 |
Alibaba | Related Parties [Member] | |||
Related Party Transactions | |||
Services provided by Alibaba | 23,366,000 | 33,745,000 | 44,006,000 |
Related party outstanding balance: | |||
Accounts receivable | 61,094,000 | 75,347,000 | |
Accounts receivable | 61,094,000 | 75,347,000 | |
Alibaba | Related Parties [Member] | Advertising and marketing revenues as an advertiser | |||
Related Party Transactions | |||
Revenue | 111,608,000 | 106,974,000 | 139,561,000 |
Alibaba | Related Parties [Member] | Advertising and marketing revenues as an agent | |||
Related Party Transactions | |||
Revenue | 223,000 | 41,680,000 | |
Company A | Other related parties | Loans to and interest receivable | |||
Related party outstanding balance: | |||
Prepaid expenses and other current assets | 100,000,000 | 110,000,000 | |
Company B | Other related parties | Loans to and interest receivable | |||
Related party outstanding balance: | |||
Other non-current assets | $ 349,716,000 | $ 454,912,000 | |
Minimum | Loans to and interest receivable | |||
Related party outstanding balance: | |||
Annual interest rate | 4% | 4% | |
Minimum | SINA | Related Parties [Member] | Loans to and interest receivable | |||
Related party outstanding balance: | |||
Annual interest rate | 1% | ||
Maximum | Related Parties [Member] | Loans to and interest receivable | |||
Related party outstanding balance: | |||
Annual interest rate | 6.70% | 6.70% | |
Maximum | SINA | Related Parties [Member] | Loans to and interest receivable | |||
Related party outstanding balance: | |||
Annual interest rate | 4% | ||
Advertising and marketing revenues | Other related parties | |||
Related Party Transactions | |||
Revenue | $ 32,700,000 | $ 40,500,000 | 70,000,000 |
Advertising and marketing revenues | SINA | Related Parties [Member] | |||
Related Party Transactions | |||
Revenue | 45,319,000 | 56,206,000 | 96,359,000 |
Value-added services revenues | Other related parties | |||
Related Party Transactions | |||
Revenue | 2,700,000 | 8,100,000 | 3,300,000 |
Value-added services revenues | SINA | Related Parties [Member] | |||
Related Party Transactions | |||
Revenue | $ 21,491,000 | $ 20,740,000 | $ 15,162,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
China Contribution Plan | |||
Employee Benefit Plans | |||
Employer contribution under China contribution plan | $ 79.5 | $ 91.2 | $ 83.2 |
Net Income per Share (Details)
Net Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net income attributable to Weibo's shareholders | $ 342,598 | $ 85,555 | $ 428,319 |
Denominator: | |||
Weighted average ordinary shares outstanding | 235,560 | 235,164 | 228,814 |
Basic net income (loss) per share attributable to Weibo's shareholders (in dollars per share) | $ 1.45 | $ 0.36 | $ 1.87 |
Numerator: | |||
Net income attributable to Weibo's shareholders | $ 342,598 | $ 85,555 | $ 428,319 |
Add: Effect on interest expenses and amortized issuance cost of convertible senior notes | 529 | ||
Net income attributable to Weibo's shareholders for calculating diluted net income per share | $ 343,127 | $ 85,555 | $ 428,319 |
Denominator: | |||
Weighted average ordinary shares outstanding | 235,560 | 235,164 | 228,814 |
Shares used in computing diluted net income per share attributable to Weibo's shareholders | 239,974 | 236,407 | 230,206 |
Diluted net income (loss) per share attributable to Weibo's shareholders (in dollars per share) | $ 1.43 | $ 0.36 | $ 1.86 |
Options and RSUs | |||
Anti-dilutive share | |||
Effects of dilutive securities | 2,600,000 | 1,200,000 | 1,400,000 |
Anti-dilutive share excluded from the calculation of diluted net income per share | 7,400,000 | 6,500,000 | 400,000 |
Employee and Non-Employee stock options | |||
Denominator: | |||
Effects of dilutive securities | 14 | 68 | |
Restricted share units | |||
Denominator: | |||
Effects of dilutive securities | 2,625 | 1,243 | 1,324 |
Convertible Debt [Member] | |||
Anti-dilutive share | |||
Anti-dilutive share excluded from the calculation of diluted net income per share | 0 | 5,900,000 | 6,800,000 |
Denominator: | |||
Effects of dilutive securities | 1,775 |
Profit Appropriation and Rest_2
Profit Appropriation and Restricted Net Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Profit Appropriation And Restricted Net Assets | ||
Minimum percentage of after-tax profit transferred by VIEs to statutory reserve fund | 10% | |
Maximum percentage criteria for in appropriation of after-tax profit by VIEs to certain statutory reserve funds | 50% | |
Reserves made to non-distributable general reserve/statutory surplus funds (in dollars) | $ 130.4 | $ 133.6 |
Net assets subject to restriction for the Group (in dollars) | $ 567.2 | |
Percent of restricted net assets of total consolidated net assets | 16.10% |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Measurement | ||
Wealth management products | $ 24,535 | $ 212,195 |
Equity securities with readily determinable market value | 118,268 | 239,550 |
Financial instruments measured on a recurring basis | ||
Fair Value Measurement | ||
Wealth management products | 24,535 | 212,195 |
Equity securities with readily determinable market value | 118,268 | 239,550 |
Total | 142,803 | 451,745 |
Financial instruments measured on a recurring basis | Quoted Prices in Active Market for Identical Assets (Level 1) | ||
Fair Value Measurement | ||
Wealth management products | 0 | 0 |
Equity securities with readily determinable market value | 118,268 | 239,550 |
Total | 118,268 | 239,550 |
Financial instruments measured on a recurring basis | Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurement | ||
Wealth management products | 24,535 | 212,195 |
Equity securities with readily determinable market value | 0 | 0 |
Total | 24,535 | 212,195 |
Financial instruments measured on a recurring basis | Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement | ||
Wealth management products | 0 | 0 |
Equity securities with readily determinable market value | 0 | 0 |
Total | $ 0 | $ 0 |
Fair Value Measurement - Recurr
Fair Value Measurement - Recurring and Non-recurring Basis (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Measurement | ||||
Fair value wealth management | $ 0 | $ 0 | ||
Impairment charge of goodwill recognized | $ 0 | 0 | ||
Impairment charge of intangible assets recognized | 10,200,000 | |||
Recurring | ||||
Fair Value Measurement | ||||
Fair value change loss for equity securities with readily determinable fair values | 196,600,000 | |||
Fair value change gain for equity securities with readily determinable fair values | 32,100,000 | |||
Recurring | Wealth Management Products | ||||
Fair Value Measurement | ||||
Fair value loss | 47,000,000 | |||
Non-recurring | ||||
Fair Value Measurement | ||||
Impairment charge of goodwill recognized | $ 0 | 0 | $ 0 | |
Significant Unobservable Inputs (Level 3) | ||||
Fair Value Measurement | ||||
Valuation technique | us-gaap:ValuationTechniqueDiscountedCashFlowMember | |||
Measurement input | wb:MeasurementInputDiscountCurveOfMarketInterestRatesMember | |||
Significant Unobservable Inputs (Level 3) | Non-recurring | ||||
Fair Value Measurement | ||||
Carrying value of impaired investments | $ 0 | $ 17,800,000 | ||
Investment, Type [Extensible Enumeration] | wb:CertainInvestmentsUnderCostMethodAndEquityMethodUsingUnobservableInputsMember | wb:CertainInvestmentsUnderCostMethodAndEquityMethodUsingUnobservableInputsMember | wb:CertainInvestmentsUnderCostMethodAndEquityMethodUsingUnobservableInputsMember | |
Impairment | $ 25,700,000 | $ 63,500,000 | $ 106,800,000 | |
Significant Other Observable Inputs (Level 2) | Recurring | Unsecured senior notes | ||||
Fair Value Measurement | ||||
Fair value debt amount | 1,438,200,000 | $ 1,355,600,000 | ||
Significant Other Observable Inputs (Level 2) | Recurring | Convertible notes | ||||
Fair Value Measurement | ||||
Fair value debt amount | $ 356,000,000 |
Convertible Debt, Unsecured Sen
Convertible Debt, Unsecured Senior Notes and Long-term Loans (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Aug. 22, 2022 USD ($) item | Jul. 31, 2020 USD ($) | Jul. 31, 2019 USD ($) | Oct. 31, 2017 USD ($) | Dec. 31, 2023 USD ($) shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Convertible Debt and Unsecured Senior Notes | |||||||||
Amount withdrawn | $ 4,982,000 | $ 880,353,000 | |||||||
Laons repaid | 100,000,000 | ||||||||
Net proceeds from issuance of the Notes | 321,707,000 | ||||||||
Unsecured senior notes | 2024 Senior Notes | |||||||||
Convertible Debt and Unsecured Senior Notes | |||||||||
Aggregate principal amount | $ 800,000,000 | $ 800,000,000 | $ 800,000,000 | ||||||
Coupon interest (as a percent) | 3.50% | 3.50% | 3.50% | ||||||
Net proceeds to the company from the issuance | $ 793,300,000 | ||||||||
Issuance costs | $ 6,700,000 | ||||||||
Interest expense | $ 29,300,000 | ||||||||
Unsecured senior notes | 2030 Unsecured Senior Notes | |||||||||
Convertible Debt and Unsecured Senior Notes | |||||||||
Aggregate principal amount | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | ||||||
Coupon interest (as a percent) | 3.375% | 3.375% | 3.375% | ||||||
Net proceeds to the company from the issuance | $ 740,300,000 | ||||||||
Issuance costs | $ 9,700,000 | ||||||||
Interest expense | $ 26,300,000 | 26,300,000 | $ 26,300,000 | ||||||
Convertible Debt [Member] | |||||||||
Convertible Debt and Unsecured Senior Notes | |||||||||
Coupon interest (as a percent) | 1.375% | 1.375% | |||||||
Convertible Debt [Member] | 2022 Convertible Notes | |||||||||
Convertible Debt and Unsecured Senior Notes | |||||||||
Aggregate principal amount | $ 900,000,000 | ||||||||
Coupon interest (as a percent) | 1.25% | ||||||||
Due date of the Notes | Nov. 15, 2022 | ||||||||
Net proceeds to the company from the issuance | $ 879,300,000 | ||||||||
Issuance costs | $ 20,700,000 | ||||||||
Interest expense | 13,200,000 | $ 15,400,000 | |||||||
Convertible Debt [Member] | 2030 Unsecured Senior Notes | |||||||||
Convertible Debt and Unsecured Senior Notes | |||||||||
Aggregate principal amount | $ 330,000,000 | $ 330,000,000 | |||||||
Convertible Debt [Member] | Convertible Senior 2030 Notes | |||||||||
Convertible Debt and Unsecured Senior Notes | |||||||||
Aggregate principal amount | $ 330,000,000 | $ 330,000,000 | |||||||
Coupon interest (as a percent) | 1.375% | 1.375% | |||||||
Repurchase price | 100% | ||||||||
Net proceeds to the company from the issuance | $ 317,400,000 | ||||||||
Issuance costs | 12,600,000 | ||||||||
Interest expense | 500,000 | ||||||||
Convertible Debt [Member] | ADS | 2030 Unsecured Senior Notes | |||||||||
Convertible Debt and Unsecured Senior Notes | |||||||||
Collateral posted | $ 0 | $ 0 | |||||||
Convertible Debt [Member] | ADS | Convertible Senior 2030 Notes | |||||||||
Convertible Debt and Unsecured Senior Notes | |||||||||
Company lent | shares | 6,233,785 | 6,233,785 | |||||||
Loan processing fee per share | $ / shares | $ 0.00025 | ||||||||
Outstanding number of borrowed | shares | 6,233,785 | 6,233,785 | |||||||
Additional issuance cost | $ 2,000,000 | ||||||||
Term and revolving facilities agreement | |||||||||
Convertible Debt and Unsecured Senior Notes | |||||||||
Aggregate principal amount | $ 1,200,000,000 | ||||||||
Number of arrangers | item | 23 | ||||||||
Maturity term (in years) | 5 years | ||||||||
Laons repaid | $ 100,000,000 | ||||||||
Term and revolving facilities agreement | SOFR | |||||||||
Convertible Debt and Unsecured Senior Notes | |||||||||
Margin rate | 1.28% | ||||||||
Term and revolving facilities agreement | 2027 Loans | |||||||||
Convertible Debt and Unsecured Senior Notes | |||||||||
Aggregate principal amount | $ 900,000,000 | ||||||||
Interest expense | $ 63,900,000 | $ 2,800,000 | |||||||
Maturity term (in years) | 5 years | ||||||||
Amount withdrawn | 900,000,000 | ||||||||
Term and revolving facilities agreement | Revolving facility | |||||||||
Convertible Debt and Unsecured Senior Notes | |||||||||
Aggregate principal amount | $ 300,000,000 | ||||||||
Maturity term (in years) | 5 years | ||||||||
Amount withdrawn | $ 5,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Aug. 22, 2022 | Jul. 31, 2020 | Jul. 31, 2019 | |
Commitments and Contingencies | |||||||
Operating lease expense | $ 19,500 | $ 21,900 | $ 17,700 | ||||
Operating lease commitments | |||||||
Total | $ 68,163 | 68,163 | |||||
Less than One Year | 13,374 | 13,374 | |||||
One to Three Years | 24,185 | 24,185 | |||||
Three to Five Years | 5,576 | 5,576 | |||||
More than Five Years | 25,028 | 25,028 | |||||
Purchase commitments | |||||||
Total | 705,536 | 705,536 | |||||
Less than One Year | 687,853 | 687,853 | |||||
One to Three Years | 15,622 | 15,622 | |||||
Three to Five Years | 1,988 | 1,988 | |||||
More than Five Years | 73 | 73 | |||||
2022, 2024 and 2030 Senior Notes | |||||||
Laons repaid | 100,000 | ||||||
2027 Notes | Revolving facility | |||||||
2022, 2024 and 2030 Senior Notes | |||||||
Aggregate principal amount | 5,000 | 5,000 | |||||
Unsecured senior notes | Unsecured Senior Notes 2024 Notes [Member] | |||||||
2022, 2024 and 2030 Senior Notes | |||||||
Aggregate principal amount | $ 800,000 | $ 800,000 | $ 800,000 | ||||
Interest rate (as a percent) | 3.50% | 3.50% | 3.50% | ||||
Unsecured senior notes | Unsecured Senior 2030 Notes [Member] | |||||||
2022, 2024 and 2030 Senior Notes | |||||||
Aggregate principal amount | $ 750,000 | $ 750,000 | $ 750,000 | ||||
Interest rate (as a percent) | 3.375% | 3.375% | 3.375% | ||||
Unsecured senior notes | 2027 Notes | |||||||
2022, 2024 and 2030 Senior Notes | |||||||
Aggregate principal amount | $ 900,000 | $ 900,000 | |||||
Margin rate | 1.28% | ||||||
Convertible Debt [Member] | |||||||
2022, 2024 and 2030 Senior Notes | |||||||
Interest rate (as a percent) | 1.375% | 1.375% | |||||
Total | $ 3,119,632 | $ 3,119,632 | |||||
Less than One Year | 911,501 | 911,501 | |||||
One to Three Years | 167,001 | 167,001 | |||||
Three to Five Years | 901,447 | 901,447 | |||||
More than Five Years | 1,139,683 | 1,139,683 | |||||
Convertible Debt [Member] | Unsecured Senior Notes 2024 Notes [Member] | |||||||
2022, 2024 and 2030 Senior Notes | |||||||
Total | 828,000 | 828,000 | |||||
Less than One Year | 828,000 | 828,000 | |||||
One to Three Years | 0 | 0 | |||||
Three to Five Years | 0 | 0 | |||||
More than Five Years | 0 | 0 | |||||
Convertible Debt [Member] | Unsecured Senior 2030 Notes [Member] | |||||||
2022, 2024 and 2030 Senior Notes | |||||||
Aggregate principal amount | 330,000 | 330,000 | |||||
Total | 927,188 | 927,188 | |||||
Less than One Year | 25,313 | 25,313 | |||||
One to Three Years | 50,625 | 50,625 | |||||
Three to Five Years | 50,625 | 50,625 | |||||
More than Five Years | 800,625 | 800,625 | |||||
Convertible Debt [Member] | 2030 Convertible Notes | |||||||
2022, 2024 and 2030 Senior Notes | |||||||
Total | 361,746 | 361,746 | |||||
Less than One Year | 4,538 | 4,538 | |||||
One to Three Years | 9,075 | 9,075 | |||||
Three to Five Years | 9,075 | 9,075 | |||||
More than Five Years | 339,058 | 339,058 | |||||
Convertible Debt [Member] | 2027 Notes | |||||||
2022, 2024 and 2030 Senior Notes | |||||||
Total | 1,002,698 | 1,002,698 | |||||
Less than One Year | 53,650 | 53,650 | |||||
One to Three Years | 107,301 | 107,301 | |||||
Three to Five Years | 841,747 | 841,747 | |||||
More than Five Years | 0 | $ 0 | |||||
Term and revolving facilities agreement | |||||||
2022, 2024 and 2030 Senior Notes | |||||||
Laons repaid | $ 100,000 | ||||||
Aggregate principal amount | $ 1,200,000 |
Redeemable Non-controlling In_2
Redeemable Non-controlling Interests (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Redeemable Non-controlling Interests | |||
Mezzanine adjustment recognized | $ 0 | $ 0 | |
Compensation costs recognized | $ 101,131,000 | 111,713,000 | 87,996,000 |
Redeemable non-controlling interest increased | 1,368,000 | 3,215,000 | |
Redeemable non-controlling interest decreased | $ 4,274,000 | ||
Accretion to redeemable non-controlling interests | $ 12,802,000 | ||
JM Tech | |||
Redeemable Non-controlling Interests | |||
Term for employment required by founders to be entitled to their proportionate share in existing and future retained earnings | 2 years | ||
Compensation costs recognized | $ 11,500,000 | 23,200,000 | |
Redeemable non-controlling interest increased | $ 20,000,000 | ||
Amount of accumulated compensation costs reversed | 36,200,000 | ||
Redeemable non-controlling interest decreased | 31,900,000 | ||
Reduction in non-controlling interest | $ 4,300,000 |
Secondary Listing in Hong Kong
Secondary Listing in Hong Kong (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 08, 2021 | Dec. 31, 2021 | |
Secondary Listing in Hong Kong | ||
Underwriters borrowed (in shares) | 1,650,000 | |
Over-allotment option | ||
Secondary Listing in Hong Kong | ||
Shares lent to underwriters for settlement of over-allocations | 1,453,620 | |
Class A ordinary shares | Over-allotment option | ||
Secondary Listing in Hong Kong | ||
Shares lent to underwriters for settlement of over-allocations | 1,650,000 | |
Class A ordinary shares | HKEX | ||
Secondary Listing in Hong Kong | ||
Issuance of shares - global offering | 5,500,000 | |
Net proceeds from the global offering | $ 178.4 | |
Related Parties [Member] | SINA | Class A ordinary shares | HKEX | ||
Secondary Listing in Hong Kong | ||
Issuance of shares - global offering | 5,500,000 |
Special Cash Dividend (Details)
Special Cash Dividend (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2023 | May 31, 2023 | Dec. 31, 2023 | |
Special Cash Dividend | |||
Cash dividend | $ 0.85 | ||
Dividends paid | $ 200,100 | $ 200,131 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent events $ / shares in Units, $ in Millions | Mar. 31, 2024 USD ($) $ / shares |
Subsequent events | |
Special cash dividend per share | $ / shares | $ 0.82 |
Aggregate amount of dividend payable | $ | $ 200 |