SINA Corporation (NASDAQ: SINA), an online media company and MVAS provider in the People’s Republic of China, released its quarterly results on Wednesday. The company’s shares surged on Wednesday as investors digested better-than-expected quarterly results.
SINA shares ended nearly 11% higher on Wednesday.
SINA, which runs the microblogging site Weibo in China, reported net revenue of $106.2 million for the quarter ended March 31, 2012, up 6% over the same period in the previous year. The company’s non-GAAP net revenue rose 6% to $101.5 million, in-line with company’s guidance of $101-$104 million. Analysts were expected non-GAAP net revenue to come in at $105.6 million.
Advertising revenue for the quarter rose an impressive 9% to $78.5 million, in-line with company’s guidance of $78-$80 million.
SINA reported net loss of $13.7 million, or $0.21 per diluted share for the quarter. On a non-GAAP basis, the company reported net loss of $14 million.
Charles Chao, CEO of SINA Corp., noted that SINA’s brand advertising business got off to a relatively slow start in the first quarter due to the softening of macroeconomic conditions in China. Chao said that although SINA expects macroeconomic headwinds to continue into the second quarter, the company has begun test trials of Weibo brand advertising, which is powered by a social interest graph recommendation engine, and expects the new product offering to have a meaningful impact on brand advertising business in the second half of the year.
Fawne Jiang, analyst at Brean Murray, Carret & Co., noted that SINA is figuring out how to make money off Weibo. Jiang expects an improving ad market in China and the summer’s Olympics to help SINA. However, he believes Weibo wont bring SINA substantial revenue this year.
For the second quarter, SINA expects revenue to come in between $126 million and $129 million. Advertising revenue is expected to come in between $103 million and $105 million.
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