What Is Driving Weibo’s Net Margins?

Weibo’s (WB) net income increased by 167% and 121% in 2016 and 2017, respectively. The company’s remarkable revenue and operating income growth played a crucial role in driving net income growth. Weibo succeeded in reducing its cost of revenue and operating expense margins, leading to higher net income margins. The company saw net income of $183.5 million and $405.7 million in 2016 and 2017, respectively. The net margin expanded from 14% in 2015 to 35% in 2017. Improved gross and operating margins drove the growth in net margin. ...