Weibo reports robust Q2 user growth

2019-08-20 07:02:27 GMT2019-08-20 15:02:27(Beijing Time) Xinhua English

BEIJING, Aug. 20 (Xinhua) -- Chinese social media giant Weibo reported strong user performance in the second quarter (Q2) of this year as the company continues to upgrade and optimize its user products.

Weibo's monthly active users stood at 486 million by the end of June, a net addition of about 55 million users over a year ago, according to its unaudited financial results released Monday.

Average daily active users reached 211 million as of the end of Q2, increasing by some 21 million users compared with Q2 2018.

Weibo CEO Wang Gaofei attributed the robust Q2 user growth to a strengthened social network effect as well as the company's consistent efforts in user product upgrade and optimization.

The tech firm raked in net revenue of about 431.8 million U.S. dollars, up 1 percent year on year.

Advertising and marketing revenues remained the major source of income, bringing in 370.7 million U.S. dollars in Q2.

Weibo estimated its net revenue would grow 6 percent to 9 percent year on year on a constant currency basis for the third quarter of 2019. Enditem

Weibo Corporation ("Weibo" or the "Company"), a leading social media firm in China, today announced its unaudited financial results for the second quarter ended June 30, 2019.

"Weibo delivered strong user performance this quarter," said Gaofei Wang, CEO of Weibo. "We are delighted to see a notable acceleration in user growth from the 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," said Wang.

Second Quarter 2019 Highlights

Net revenue increased 1% year on year to $431.8 million, representing an increase of 7% on a constant currency basis.

Advertising and marketing revenue was $370.7 million, flattish year on year.

Value-added service ("VAS") revenue increased 8% year on year to $61.2 million.

Net income attributable to Weibo was $103 million, compared to $140.9 million for the same period last year, and diluted net income per share was $0.46, compared to $0.62 for the same period last year.

Non-GAAP net income attributable to Weibo was $156.4 million, and non-GAAP diluted net income per share was $0.68, both flat year on year.

Monthly active users ("MAUs") were 486 million in June 2019, a net addition of approximately 55 million users year on 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 on year.

Business Outlook

For the third quarter of 2019, Weibo estimates its net revenue will increase 6% to 9% year on year on a constant currency basis. This forecast reflects Weibo's current and preliminary view, which are subject to change.

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