Weibo Corp (NASDAQ: WB) reported a fiscal second-quarter revenue decline of 1% year-on-year to $437.87 million, beating the analyst consensus estimate of $436.95 million. The Chinese microblogging social network company’s revenue grew by 1% year-on-year on a constant basis.
Adjusted EPS of $0.48 beat the analyst consensus estimate of $0.41. The stock price gained after the results.
Weibo's advertising and marketing revenues declined by 3% Y/Y at $375.3 million. Value-added service (VAS) revenues increased 15% Y/Y to $62.6 million.
Monthly active users (MAUs) were 583 million in June 2024 (vs 599 million Y/Y), while Average daily active users (DAUs) was 256 million (vs 258 million Y/Y).
The adjusted operating margin improved by 100 bps to 36% as profits rose by 2.5% Y/Y.
Weibo held $2.8 billion in cash and equivalents as of June 30, 2024, and generated $132.1 million in operating cash flow during the quarter.
"Our user engagement and operating efficiency have further improved this quarter," said Gaofei Wang, CEO of Weibo. "On the user front, we emphasized on the acquisition and engagement of high quality users and saw improved user engagement this quarter. On the content front, we further optimized our content ecosystem through reinforcement of our core strength and solid execution of our vertical content strategy. On the monetization front, we are encouraged to see Weibo's strength in hot trends and vertical content ecosystem has become the key driver of topline recovery."
Weibo stock has plunged over 40% in the last 12 months as it battled a weak domestic economy.
Price Action: WB shares traded higher by 2.28% at $8.07 premarket at the last check on Thursday.
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