Weibo Corp. (NASDAQ: WB) shares rose 3% in pre-market trading on Wednesday after the Chinese social media company reported second-quarter earnings that exceeded analyst expectations.
The Beijing-based firm posted adjusted earnings per share of $0.38, topping the $0.36 estimate. Revenue totaled $453.8 million, a 2% year-over-year increase and above the consensus forecast of $442.44 million. Monthly active users stood at 561 million as of June 2026, while daily active users reached 254 million.
Advertising and marketing revenues declined 1% year-over-year to $381.0 million, reflecting softer demand from handset and online game advertisers. However, value-added services revenue surged 19% to $72.9 million, driven by one-off ticket proceeds from offline activities and growth in membership services. Alibaba-related advertising revenue increased 10% to $39.2 million, while non-Alibaba ad revenue fell 2% to $341.8 million.
Non-GAAP operating margin narrowed to 28% from 36% in the prior-year period, as costs and expenses rose 12% year-over-year to $335.0 million, primarily due to higher ad production and marketing spending. Non-GAAP net income attributable to shareholders totaled $102.7 million, down from $143.2 million a year earlier. Cash, cash equivalents, and short-term investments amounted to $2.64 billion as of June 30, 2026.
CEO Gaofei Wang highlighted solid user engagement, stating the company improved user quality and retention through feed revamps, which supported core user consumption in information feeds.
