Weibo Corp. (WB:NASDAQ), a leading Chinese social media platform company with nearly 500 million monthly active users, today announced its unaudited financial results for the second quarter ended June 30, 2019.
In the report, the firm reported total net revenues were $431.8 million in Q2/19, an increase of 1% compared to $426.6 million for in Q2/18. Advertising and marketing revenues for the Q2/19 were $370.7 million, compared to $369.9 million for Q2/18. The largest component, advertising and marketing revenues from small and medium-sized enterprises and key accounts, was $346.5 million, a 2% increase over $338.7 in Q2/18. Value added services revenues for Q2/19 were $61.2 million, an increase of 8% over $56.6 million in Q2/18. The increase was mainly attributable to the revenues derived from the live streaming business acquired in Q4/18, but was partially offset by the decrease in gaming revenues.
Weibo reported net income of $103.0 million for Q2/19, compared to $140.9 million in Q2/18. Diluted net income per share was $0.46 in Q2/19, compared to $0.62 in Q2/18. Non-GAAP Net income in Q2/19 was $156.4 million, compared to $156.1 million for Q2/18. Non-GAAP diluted net income per share was $0.68 in Q2/19, compared to $0.68 in Q2/18.
Monthly active users (MAUs) were 486 million in June 2019, a net addition of approximately 55 million users year-over-year. Mobile MAUs represented approximately 94% of MAUs. Average daily active users (DAUs) were 211 million in June 2019, a net addition of approximately 21 million users year-over-year.
The company's CEO Gaofei Wang commented, "Weibo delivered strong user performance this quarter...We are delighted to see a notable acceleration in user growth from prior quarter and robust user engagement trends, underpinned by our strengthened social network effect as well as the consistent efforts in user product upgrade and optimization. On monetization, we continued to showcase unique value proposition to advertisers, leveraging the ongoing ad product evolution to mobile, social and video."
Weibo also updated it business outlook indicating that for Q3/19 it estimates its net revenues to increase 6-9% year-over-year on a constant currency basis.
Weibo defines itself as a leading social media for people to create, share and discover content online. Through Weibo's platform, any user can create and post a feed and attach multi-media and long-form content. User relationships on Weibo may be asymmetric; any user can follow any other user and add comments to a feed while reposting. The asymmetric and distributed nature of Weibo allows an original feed to become a live viral conversation stream. The firm enables its advertising and marketing customers to companies of all sizes to promote their brands, products and services to users. The company generates a substantial majority of its revenues from the sale of advertising and marketing services, including the sale of social display advertisement and promoted marketing offerings.
WB shares opened today at $39.66 (+$2.58, +6.96%) over Friday's close of $37.08. Since the open shares have traded between $38.65 and $42.78 and are currently trading at $42.72 (+$5.64, +15.21%).
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