Chinese microblog portal Weibo Corporation (NASDAQ: WB) on Wednesday reported better-than-expected fourth-quarter earnings, boosted by strong advertising and marketing sales. However, the stock fell more than 12 percent in the early trading.
Beijing-based Weibo said fourth-quarter profit surged 125 percent to $43 million, or $0.19 per share, compared with $0.9 per share a year earlier. Excluding certain items, earning was $0.34 per share, topping analysts’ estimate of $0.28 cents per share.
Revenue rose 42.7 percent to $212.7 million in the quarter ended December, beating the US$208 million consensus estimate of analysts surveyed by Bloomberg.
Growing interest in using mobile and social networking continued to attract more users in Weibo. The company said monthly active users inDecember 2016 rose 33% year over year to 313 million, 90% of which were mobile users.
Weibo CEO Gaofei Wang: "Our growth in the fourth quarter was exceptional, with ad revenue from key accounts and SMEs doubling year over year. Weibo's user scale, breadth of ad offering and leadership as a social media platform in China put us in a unique position to take advantage of the marketing budget shift toward mobile, social and video. Our focus to grow scale in users, content creators, customers on our platform is translating into significant operating leverage."
However, investors seem not attracted by the result. Weibo shares fell as much as 13 percent to $50.59 in the early trading. The stock has gained 24% this year.