Chinese social media company Weibo Corp. reported better-than-expected second-quarter earnings Monday before the market opened, pushing the stock up more than 14%.
The microblogging site operator reported adjusted earnings of 68 cents a share on revenue of $431.8 million, beating Wall Street’s expected earnings of 59 cents on revenue of $429.2 million.
Revenue increased 1% from the year-ago period while earnings were the same as last year.
Advertising and marketing income, the major source of the company’s revenue, were flat over the same period last year at $370.7 million. The total revenue gain was mostly driven by an 8% increase in revenue from its value-added services, mainly derived from the live streaming business acquired in the fourth quarter of 2018.
Monthly active users were 486 million as of June, a net increase of 55 million over last year.
For the third quarter, Weibo projected revenue will increase 6% to 9%, more optimistic than Wall Street estimates of a 5% gain.
China internet portal provider Sina Corp. owns a majority stake in Weibo. Sina also reported second-quarter earnings Monday morning, with earnings of 76 cents a share, beating the average analyst estimate of 47 cents.
Weibo’s shares closed Monday at $42.31, up 14.01% from Friday. Sina’s shares also jumped more than 15% to $43.45.