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Weibo Gross Margin %

: 79.14% (As of Dec. 2021)
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Gross Margin % is calculated as gross profit divided by its revenue. Weibo's Gross Profit for the three months ended in Dec. 2021 was $488 Mil. Weibo's Revenue for the three months ended in Dec. 2021 was $616 Mil. Therefore, Weibo's Gross Margin % for the quarter that ended in Dec. 2021 was 79.14%.


The historical rank and industry rank for Weibo's Gross Margin % or its related term are showing as below:

WB' s Gross Margin % Range Over the Past 10 Years
Min: 29.58   Med: 77.44   Max: 83.84
Current: 82.11


During the past 11 years, the highest Gross Margin % of Weibo was 83.84%. The lowest was 29.58%. And the median was 77.44%.

WB's Gross Margin % is ranked better than
73.27% of 535 companies
in the Interactive Media industry
Industry Median: 59.36 vs WB: 82.11

Weibo had a gross margin of 79.14% for the quarter that ended in Dec. 2021 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Weibo was 1.70% per year.


Weibo Gross Margin % Historical Data

The historical data trend for Weibo's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Weibo Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 79.89 83.84 81.39 82.12 82.11

Weibo Quarterly Data
Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 83.00 82.62 83.89 83.05 79.14

Competitive Comparison

For the Internet Content & Information subindustry, Weibo's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Weibo Gross Margin % Distribution

For the Interactive Media industry and Communication Services sector, Weibo's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Weibo's Gross Margin % falls into.



Weibo Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Weibo's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=1853.2 / 2257.083
=(Revenue - Cost of Goods Sold) / Revenue
=(2257.083 - 403.841) / 2257.083
=82.11 %

Weibo's Gross Margin for the quarter that ended in Dec. 2021 is calculated as


Gross Margin % (Q: Dec. 2021 )=Gross Profit (Q: Dec. 2021 ) / Revenue (Q: Dec. 2021 )
=487.7 / 616.287
=(Revenue - Cost of Goods Sold) / Revenue
=(616.287 - 128.545) / 616.287
=79.14 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Weibo  (NAS:WB) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Weibo had a gross margin of 79.14% for the quarter that ended in Dec. 2021 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Weibo Gross Margin % Related Terms

Thank you for viewing the detailed overview of Weibo's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Weibo Business Description

Weibo logo
Industry
Address
No. 8 Xinyuan S. Road, 8th Floor, QIHAO Plaza, Chaoyang District, Beijing, CHN, 100027
Weibo is the largest social media platform in China. As of 2020, Weibo had 521 million monthly active users and 225 million daily active users, many of whom are drawn there by the millions of key opinion leaders in entertainment, sports, and business circles. Sina is the major shareholder, holding 44.7% of shares and with 70.8% voting power; Alibaba holds 29.8% of shares and 15.7% voting power.

Weibo Headlines

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