Skip to main content
Publish date:

Weibo Shares Slump on Earnings Miss

The Chinese microblogging platform did beat third-quarter revenue estimates, however.

U.S.-listed shares of Weibo  (WB) - Get Weibo Corp Sponsored ADR Class A Report dropped Monday after the Chinese social media firm reported weaker than expected third-quarter earnings but exceeded Wall Street's revenue target.

Shares of the Beijing company were falling 11.35% to $39.28 on Monday afternoon.

Weibo reported third-quarter earnings of $33.8 million, or 15 cents a share, on revenue of $465.7 million, compared to analyst estimates of earnings of 51 cents a share and revenue of $451.4 million. Revenue fell 0.4% from $467.7 million in the year-ago period.

"We are pleased with Weibo's recovery trend, [which] despite challenges still persisted," said Cheif Executive Gaofei Wang in a statement.

TheStreet Recommends

Weibo reported monthly active users of 511 million at the end of September, a net addition of close to 14 million users on a year-over-year basis.

Costs and expenses for the three months to September increased 3% to $295.2 million due to higher provisions for bad debt and personnel-related costs, the company said.

For the next quarter, the Chinese microblog expects revenue to rise between 1% to 3%.

Weibo's cash, cash equivalents and short-term investments totaled $3.18 billion at the end of September.