BEIJING - Weibo Corporation (NASDAQ: NASDAQ:WB), a prominent social media platform in China, reported its fourth-quarter earnings, which revealed a revenue beat that sent its shares soaring by 7.32%. The company announced a fourth-quarter adjusted EPS of $0.31, falling short of the analyst consensus of $0.50. Still, the revenue for the quarter was $463.7 million, exceeding the consensus estimate of $457.45 million.
The company's revenue increase of 3% compared to the same quarter last year demonstrates its resilience in a challenging market. Gaofei Wang, CEO of Weibo, attributed the solid performance to improved product competitiveness and operating efficiency.
"Our user community expanded this year, as we have reinforced our content ecosystem and enhanced core competitiveness of our products," Wang said. The advertising business, in particular, showed robust growth, contributing to the company's overall positive financial results.
Despite the EPS miss, investors reacted positively to the revenue beat, as evidenced by the significant uptick in the stock price. The company's focus on monetization and operating efficiency has paid off, leading to decent profitability and solid growth in operating cash flow for the fiscal year.
Weibo's net revenues for the fiscal year 2023 were $1.76 billion, a decrease of 4% year-over-year, or an increase of 1% on a constant currency basis. The company's operating margin stood at 27%, reflecting a steady business model amidst market fluctuations.
Looking ahead, Weibo's management remains committed to driving shareholder value, as highlighted by the approval of a special cash dividend of $200 million to shareholders. This move, along with the company's financial discipline, positions Weibo favorably as it continues to navigate the evolving social media landscape in China.
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