Weibo Corporation (NASDAQ:WB) delivered fourth-quarter results that narrowly topped revenue expectations, but ongoing weakness in advertising tempered overall growth. Following the release, the company’s stock saw a 2% drop intra-day today.
The company reported $456.8 million in revenue, slightly surpassing analyst projections of $453.11 million. Adjusted earnings per share came in at $0.40, aligning with expectations.
Advertising and marketing revenue—Weibo’s primary revenue driver—declined 4% year-over-year to $385.9 million, weighed down by softer demand in the online gaming sector. However, value-added services proved to be a bright spot, rising 18% to $71 million, fueled by stronger membership services and game-related revenue.
User engagement remained robust, with monthly active users (MAUs) reaching 590 million in December 2024, while daily active users (DAUs) hit 260 million, reinforcing Weibo’s position as a dominant player in China’s social media space.
While the company wrapped up the year with steady performance, advertising headwinds remain a challenge. Investors will be closely watching whether Weibo can further capitalize on its growing value-added services segment to drive more balanced revenue growth in the coming quarters.