China’s social media Weibo Corporation (NASDAQ: WB) on Wednesday announced first quarter financial results that beat analysts’ estimate, but the company’s shares tumbles more than 14 percent in the early trading.
The Beijing-based company said net revenue jumped 76 percent to $349.9 million in the quarter ended March 31, 2018. Analysts had estimated first quarter revenue of $342.5 million, according to Thomson Reuters I/B/E/S.
First quarter net income per share was $0.50, compared to $0.26 per share a year earlier. Analysts had projected net income of $0.47 per share.
The strong growth in revenue was driven by its advertising and marketing business. Revenue in advertising and marketing rose 79 percent to $302.9 million year-over-year.
"We continue to see great momentum in our business with advertising and marketing revenue growing 79% year over year in the first quarter. With ad budget shifting toward mobile, social and video, we are seeing our revenues benefiting from this secular trend." said Gaofei Wang, Weibo's CEO. "Our focus to grow users scale, deepen the collaboration with top IP content providers, media, celebrities and KOLs on content, strengthen platform effect and social impact will further help attracting more advertisers to increase their ad spending on Weibo."
However, the company’s stock tumbled nearly 14 percent to $110 in the early trading on Wednesday.
For the second quarter, Weibo now forecast net revenue to be between $420 million and $430 million.