Weibo up 2.5% after strong earnings announcement
The Chinese social media platform is up although numbers are not convincing.
Weibo (Nasdaq: WB) reports that FQ2 revenue is down 7% on a constant currency basis. Advertising and marketing revenues decreased 8% to $ 340.6 million and WSU revenues decreased 23% to $ 46.8 million. Net DAU additions were ~ 18 million, compared to 21 million in the year-ago quarter. MAU net additions were ~ 37 million compared to ~ 55 million in the previous year. Adjusted EBITDA decreased 46% to $ 75.8 million. The company expects third-quarter revenue to decline 5% -7% year over year on a constant currency basis. "With the Covid-19 pandemic in China largely under control, we are excited about the solid rebound in our branded advertising business in the second quarter, with more brands using our differentiated social marketing solutions to reach a wider audience on Weibo," said Gaofei Wang, CEO of Weibo. "In the performance advertising business, we focused on improving ad performance and efficiency by improving the advertising system and product optimization with the aim of gaining a higher share of the performance advertising market. Share before the market increased by 2.5%.