58.com Inc. (NYSE: WUBA), China's largest online marketplace for classifieds, reported its unaudited financial results for the second quarter ended June 30, 2018. Total revenues were RMB3,430.5 million (US$518.5 million), a 32.3% increase from RMB2,593.3 million in the same quarter of 2017, exceeding the high end of the Company's guidance of RMB3,200 million.
Gross margin was 90.0% compared with 90.9% in the same quarter of 2017. Income from operations was RMB742.9 million (US$112.3 million), a 27.6% increase from RMB582.4 million in the same quarter of 2017.
"We delivered solid financial and operational results for the second quarter with revenues exceeding the high end of our guidance," commented Mr. Michael Yao, Chairman and Chief Executive Officer of 58.com, "Traffic from our apps continued to grow rapidly. We continued to be the biggest online recruitment platform in China as defined by revenues. Job category revenues continue to grow faster than most other major online recruitment companies in China. Revenue from our housing category remained resilient by delivering better-than-expected growth despite tightened government policies and low transaction volumes, especially in tier one and two cities. Our two early-stage businesses continue to generate record high traffic. Zhuan Zhuan, our C2C used goods transaction platform, has gained significant growth momentum from its branding campaign and Wechat Wallet access. 58 Town, a version of 58 specifically designed for rural areas, continues to expand the number of towns it covers and increase user engagement. We will continue to invest in both our new and core classifieds businesses in order to best position ourselves over the long term."
Mr. Hao Zhou, Chief Financial Officer of 58.com added, "We are pleased to see revenues increase by 32.3% year-over-year. Having increased our investments in Zhuan Zhuan and 58 Town sequentially, non-GAAP net and operating profit during the second quarter still grew a solid 24% year-over-year. We continue to see a lot of opportunities for us to generate long-term revenues growth and higher margins as our business further grows and operational efficiency improves."