BRIEF: Weibo profit doubles as AI search gains traction
Social media platform Weibo Corp. (WB.US; 9898.HK) on Wednesday reported first-quarter revenue of $396.9 million, flat year-on-year, while its net profit surged 116% to $107 million. On a non-GAAP basis, its net profit reached $120 million.
Weibo said that revenue from its main source, advertising and marketing, totaled $339.1 million during the quarter, unchanged from a year earlier. But its ad revenue from Alibaba (BABA.US; 9988.HK) jumped 89% to $42.6 million, driven by strong promotional spending during the Lunar New Year and from new ad placements to promote its AI-related products. As of March, Weibo had 591 million monthly active users and 261 million average daily active users.
The company said its Weibo Intelligent Search AI-powered search function became fully accessible to all of its users in the first quarter. Both the user base and daily search queries for the feature saw notable sequential growth. “We are pleased with the progress made on the AI product front,” said CEO Wang Gaofei.
Weibo’s U.S.-listed shares rose 4.28% on Wednesday to close at $8.78.
By Lee Shih Ta
To subscribe to Bamboo Works weekly free newsletter, click here
