Social media

China’s Weibo second-quarter earnings beat estimates

the company is projecting its third quarter revenue to rise between US$290 million to US$300 million

PUBLISHED : Wednesday, 09 August, 2017, 9:30pm
UPDATED : Wednesday, 09 August, 2017, 9:30pm

Weibo Corp, the Chinese Twitter-like social media, posted a 184-per cent surge in second-quarter net income to US$73.5 million, the company said on Wednesday night.

The diluted earnings per share was US$0.33, compared to US$0.12 for the same period last year.The results surpassed market expectation of a US$65.9 million in net income based on a Bloomberg survey of analysts’ forecasts.

The company said its revenue for the quarter rose 72 per cent to US$253 million, as active monthly users reached new high.

“We continue to see great momentum in our business,” said Gaofei Wang, CEO of Weibo in a company statement.

He said revenues from SMEs, key accounts and non-advertising segments saw robust growth, while the company’s profit and user base reached new highs.

The company’s monthly active users (MAUs) reached 361 million in June, a 28 per cent year-on-year growth. Among them, 92 per cent were mobile users.

Gao said the company will continue to focus on launching engaging features like Weibo Stories, and attracting KOLs, celebrities and other influencers to increase the social and viral nature of Weibo.

Riding on the strong results, the social media platform projected that its third quarter revenue would rise between US$290 million to US$300 million.

Only a day earlier, the platform announced that it blocked or deleted a total of 118,000 politics-related posts that had breached rules in July.

Internet portal giant Sina Corp is the controlling shareholder of Weibo, which it spun off on the Nasdaq in April 2014.

Weibo shares slid 3.6 per cent to US$82.69 before the opening bell on the stock market on Wednesday.