Weibo Corporation (NASDAQ: WB) reported its third quarter financial results on Thursday morning. The Company topped earnings estimates, but missed revenue projections, causing shares to slide by as much as 17%.
For the quarter, Weibo reported earnings of USD 0.77 per share on revenue of USD 467.8 Million. Analysts expected earnings of USD 0.73 per share on revenue of USD 471.84 Million.
Weibo reported that net revenues increased by 2%, primarily driven by a 1% increase in advertising and marketing revenues. The segment reported total revenues of USD 412.5 Million.
Value-added services delivered revenues of USD 55.3 Million, increasing by 9% year-over-year.
Monthly active users (MAUs) surpassed 497 million in September 2019, representing a net addition of 51 million users year-over-year. Mobile MAUs represent approximately 94% of Weibo’s MAUs.
Average daily active users (DAUs) reached 216 million in the quarter, increasing by 21 million users year-over-year.
"We are pleased with the sustained momentum in our user and engagement growth," said Gaofei Wang, Chief Executive Officer of Weibo. "Leveraging stronger network effect, ongoing product innovation and robust content ecosystem, Weibo continued to reinforce its leadership as a social media platform and further explore opportunities to deliver value to our community. On monetization, despite market competition and macro headwinds, we continued to tap into customers' social ad wallet with differentiated ad products and KOL's rising influence."
As for the fourth quarter, Weibo is anticipating revenue to either remain flat or grow by 3% year-over-year on a constant currency basis.