American depositary receipts of Chinese social media company Weibo (WB) - Get Weibo Corporation Report gained on Monday after the company reported second-quarter earnings that beat analysts' forecasts, thanks to a "notable acceleration" in user growth.
Weibo ADRs gained more than 9%, or $3.48 a piece, to $40.56 in early trading in New York on Monday after the Beijing company posted second-quarter net income of $103 million, or 46 cents a share, vs. $140.9 million or 62 cents, in the comparable year-ago quarter.
On a non-GAAP basis, Weibo posted per-share earnings of 68 cents, matching last year's results and beating the 60-cent estimate of analysts polled by FactSet.
"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," CEO Gaofei Wang said in a statement.
Revenue came in at $431.8 million, an increase of 1% from $426.6 million for the same period last year though below the $434 million expected by analysts polled by FactSet.
For the third quarter, Weibo said it expects net revenue to increase between 6% and 9% year over year on a constant currency basis. While Weibo whiffed earlier this year on its first-quarter results, analysts including Real Money Pro's Tim Collins are positive on the company's prospects for the remainder of the year.