Weibo (NASDAQ: WB) reported Q2 EPS of $0.50, $0.04 better than the analyst estimate of $0.46. Revenue for the quarter came in at $387.4 million versus the consensus estimate of $380.35 million.

Second Quarter 2020 Highlights

• Net revenues were $387.4 million, a decrease of 10% year-over-year or 7% year-over-year on a constant currency basis [1].
• Advertising and marketing revenues were $340.6 million, a decrease of 8% year-over-year.
• Value-added service ("VAS") revenues were $46.8 million, a decrease of 23% year-over-year.
• Net income attributable to Weibo was $198.4 million and diluted net income per share was $0.86.
• Non-GAAP net income attributable to Weibo was $114.5 million and non-GAAP diluted net income per share was $0.50.
• Monthly active users ("MAUs") were 523 million in June 2020, a net addition of approximately 37 million users on year-over-year basis. Mobile MAUs represented approximately 94% of MAUs.
• Average daily active users ("DAUs") were 229 million in June 2020, a net addition of approximately 18 million users on year-over-year basis.

"With the Covid-19 pandemic situation in China largely brought under control, we are glad to see the solid recovery of our brand advertising business in the second quarter, with more brands embracing our differentiated social marketing solutions to connect with broader audience on Weibo," said Gaofei Wang, CEO of Weibo. "For performance ad business, we focused on enhancing ad performance and efficiency through upgrade of advertising system and product optimization, aiming to capture higher wallet share in the performance ad market," said Mr. Wang.

Business Outlook

For the third quarter of 2020, Weibo estimates its net revenues to decrease by 5% to 7% year-over-year on a constant currency basis. This forecast reflects Weibo's current and preliminary view, which is subject to change.

For earnings history and earnings-related data on Weibo (WB) click here.