SINA Corporation (NASDAQ:SINA) Q1 2020 Earnings Conference Call - Final Transcript

May 19, 2020 • 08:10 am ET

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SINA Corporation (NASDAQ:SINA) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Thank you for standing by and welcome to the SINA First Quarter of 2020 Earnings Conference Call.

[Operator Instructions]

I would now like to hand the conference over to Sandra Zhang. Please go ahead.

Executive
Sandra Zhang

Thanks, operator, and hello, everyone. Thank you for your patience. Welcome to SINA's earnings conference call for the first quarter 2020. Joining us today are Chairman and CEO, Charles Chao; and our CFO, Bonnie Zhang. This call is also being broadcast on Internet and is available through our IR website at ir.sina.com.

Now, let me read you the safe harbor statement in connection with today's conference call. Our discussion today will contain forward-looking statements, which involve inherent risks and uncertainties that may cause actual results to differ materially from our current expectations. SINA assumes no obligation to update the forward-looking statements in this call and elsewhere. For detailed discussion of these risks and uncertainties, please refer to our latest annual report on Form 20-F and other filings with the SEC. In addition, I would like to remind you that our discussion today includes non-GAAP measures, which may exclude stock-based compensation and certain other items. We use non-GAAP measure to gain a better understanding of SINA's comparative operating results and future prospects. Please refer to our earnings release for more detailed information on the reconciliation of GAAP to non-GAAP measures.

During the call, we may discuss non-GAAP measures for Weibo, which applied the same methodologies we use to calculate non-GAAP measures at the SINA group level. After management remarks, we'll open your lines for a brief Q&A session.

With that, I would like to turn the call over to our CFO, Bonnie.

Executive
Bonnie Yi Zhang

Thank you, Sandra, and thank you all for joining our conference call today. Let me walk you through the operational and financial highlights for the first quarter 2020. Before the detailed financial review, I would like to remind you that my prepared remarks would focus on non-GAAP results and all the comparisons are on a year-over-year basis, unless otherwise noted.

Let's start with an overview of the first 2020 results. SINA's net revenue for the first quarter was $432.4 million, a decrease of 8% or 4% on a constant currency basis. Operating income was $57.1 million, representing an operating margin of 13%. Net income attributable to SINA was $17 million, and the diluted EPS was $0.26.

Now let's turn to key financial items. SINA's advertising revenue for the first quarter were $310 million, a decrease of 20% or 16% on a constant currency basis, primarily due to the adverse impact of the coronavirus pandemic on the overall advertising demand as well as negative currency translation impact. Let me first give you some color on Weibo's business. Amid this unprecedented coronavirus pandemic, Weibo has demonstrated its indispensible value as China's leading social media platform to keep the public informed, connected, and engaged. In March, Weibo's MAU reached 515 million adding approximately 85 million users year-over-year, average DAU reached 241 million, adding approximately 30 million [Phonetic]. The record