Chinese technology company Sina Corporation (SINA) reported a 64% plunge in earnings for the fourth quarter due to higher operating expenses as well as non-operating losses. However, the results exceeded analysts’ expectations. The company guided full-year 2019 revenue in line with the consensus estimates.
Net income plunged 64% to $16.4 million and earnings fell by 63% to $0.22 per share. Adjusted earnings increased by 1.3% to $0.80 per share.
Net revenue increased 14% to $573 million, helped by a 14% increase in advertising revenues. The 25% jump in Weibo advertising and marketing revenues drove advertising revenues higher.
Non-advertising revenues were $88.7 million, 12% higher than $79 million reported during the fourth quarter of 2017. This was mainly attributable to the newly acquired live broadcasting business by Weibo in the fourth quarter of 2018.
Gross margin rose to 79% from 75% in the prior year quarter as revenue reporting changed from gross basis to net basis drove advertising gross margin higher.
Looking ahead into the full year 2019, the company expects net revenues in the range of $2.44 billion to $2.59 billion, representing an annual growth rate of 18% to 25% on a constant currency basis. This includes the recognition of $10.4 million in deferred license revenues related to the license granted to Leju.
Weibo’s monthly active users were 462 million in December 2018, a net addition of about 70 million users on a year-over-year basis. Weibo’s mobile MAUs represented 93% of Weibo’s MAUs. Weibo’s average daily active users were 200 million in December 2018, a net addition of about 28 million users on a year-over-year basis.
Shares of Sina ended Monday’s regular session down 0.16% at $67.24 on the Nasdaq. Following the earnings announcement, the stock fell over 5% in the premarket session.
Get access to timely and accurate verbatim transcripts that are published within hours of the event.
Most Popular
Hormel Foods (HRL) to report Q4 2024 earnings results, a look at what to expect
Shares of Hormel Foods Corporation (NYSE: HRL) rose over 1% on Friday. The stock has gained over 5% in the past one month. The branded food company is slated to
What to look for when Hewlett Packard (HPE) reports Q4 2024 results
Information technology company Hewlett Packard Enterprise (NYSE: HPE) is actively innovating its product portfolio to better align with the AI-driven transformation currently sweeping the industry. In recent quarters, the company's
What to expect when Dollar General (DG) reports Q3 2024 earnings
Shares of Dollar General Corporation (NYSE: DG) rose over 1% on Wednesday. The stock has dropped 38% over the past three months. The discount retailer is slated to report its earnings