Chinese social media giant Weibo Corp.’s shares fell more than 4% after the company reported disappointing fourth-quarter earnings and downgraded its first-quarter guidance.
The operator of a microblogging website similar to Twitter reported fourth-quarter earnings of $95.1 million, or 42 cents a share, down 43% from $166.5 million, or 74 cents a share, in the same period a year ago. Analysts expected earnings of 66 cents a share.
Adjusted for items, earnings were 77 cents a share. Analysts expected adjusted earnings of 72 cents a share. Revenue declined by 3% to $468.1 million.
Net Profit Is Expected To Suffer From The Coronavirus Outbreak In 2020
The company said that its business in the first quarter has been hurt significantly by the coronavirus outbreak in China. Weibo said it sees first-quarter revenue down 15% to 20% year-over-year.
Weibo had 516 million monthly active users at the end of December, a net addition of about 54 million from the previous year, and down 23% from 70 million users added in the fourth quarter of 2018 from the previous year.