Chinese microblog portal Weibo Corporation (NASDAQ: WB) reported better-than-expected first-quarter earnings on Tuesday, boosted by strong advertising and marketing sales, sending shares up more than 20%.
Beijing-based Weibo said first-quarter profits surged 254% to $57.8 million, or $0.26 per share, compared with $0.07 per share a year earlier.
Revenue rose 67% to $199.2 million in the quarter ending March 31, the company said on Tuesday.
"Our relentless focus to build the best social media experience in China is reflected in Weibo's strong performance in the first quarter of 2017, with revenues growing 67% year over year, or 76% on a constant currency basis, adjusted EBITDA margin reaching 35% and MAUs reaching 340 million," said Gaofei Wang, Weibo's CEO. "Looking ahead, we continue to see strong momentum, as we further optimize Weibo to share, discover and consume information, especially for the mobile, social and video environment."
Weibo’s shares jumped 20.62% to $75.84 in the early trading hours. The stock has been up 87% this year.
Growing interest in using mobile and social networking continued to attract more users in Weibo. The company said monthly active users in March 2017 rose 30% year over year to 340 million, 91% of which were mobile users.