Weibo Corp reported a fiscal third-quarter revenue growth of 5% year-on-year to $464.48 million, beating the analyst consensus estimate of $435.98 million. The Chinese microblogging social network company’s revenue grew by 3% year-on-year on a constant basis.
Adjusted EPS of 53 cents beat the analyst consensus estimate of 44 cents.
The stock price gained 7% after the results.
Weibo’s advertising and marketing revenues increased by 2% Y/Y at $398.6 million. Value-added service (VAS) revenues increased 25% Y/Y to $65.9 million.
Monthly active users (MAUs) were 587 million in September 2024 (vs. 605 million Y/Y), while Average daily active users (DAUs) were 257 million (vs. 260 million Y/Y).
The adjusted operating margin declined by 200 bps to 35% as profits remained relatively flat Y/Y.
As of September 30, 2024, Weibo held $2.2 billion in cash and equivalents and generated $124.2 million in operating cash flow during the quarter.
Weibo CEO Gaofei Wang highlighted the company’s strong quarterly performance, emphasizing efforts to attract and engage high-quality users. The advertising business showed stabilization, with significant revenue growth in key sectors fueled by ad demand during the Summer Olympics.
The value-added services segment also performed well, driven by upgraded membership offerings that enhanced users’ social interactions on the platform.
Weibo stock plunged over 19% year-to-date.
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