Weibo Corporation (NASDAQ: WB) surpassed analysts’ expectations for revenue and earnings in the second quarter of 2019, sending shares climbing 5.9% in premarket hours on Monday.
Total revenues inched up 1% year-over-year to $431.8 million, beating estimates of $429 million.
GAAP net income dropped to $103 million, or $0.46 per share, from $140.9 million, or $0.62 per share, in the prior-year period. Adjusted net income stayed flat at $156.4 million, or $0.68 per share, versus last year but surpassed forecasts of $0.56 per share.
Advertising and marketing revenues remained relatively unchanged year-over-year at $370.7 million. Advertising revenues from small and medium-sized enterprises and key accounts increased 2% to $346.5 million.
Value-added service revenues increased 8% year-over-year to $61.2 million, mainly driven by revenues from the live streaming business, partially offset by a decline in gaming revenues.
Monthly active users (MAUs) totaled 486 million in June, a net addition of approx. 55 million users year-over-year. Mobile MAUs represented approx. 94% of MAUs. Average daily active users (DAUs) were 211 million in June, a net addition of approx. 21 million users year-over-year.
Gaofei Wang, CEO, said, “Weibo delivered strong user performance this quarter. We are delighted to see a notable acceleration in user growth from prior quarter and robust user engagement trends, underpinned by our strengthened social network effect as well as the consistent efforts in user product upgrade and optimization. On monetization, we continued to showcase unique value proposition to advertisers, leveraging the ongoing ad product evolution to mobile, social and video.”
Costs and expenses increased to $280.6 million, from $271.7 million in the same period last year. As of June 30, 2019, Weibo had cash, cash equivalents and short-term investments of $1.56 billion.
For the third quarter of 2019, Weibo estimates net revenues to increase 6-9% year-over-year on a constant currency basis.