Chinese social media platform Weibo Corp. reported a 19% revenue decline in the first quarter amid the coronavirus pandemic, despite strong growth in new users. The company said a recovery is underway.
Weibo’s revenue for the quarter ended March 31 fell to $323.4 million, reflecting a decline in advertising and marketing affected by the Covid-19 pandemic, the company said Tuesday in its earnings report. Net income attributable to Weibo was $52.1 million, compared with $150.4 million a year ago.
In March, Weibo delivered its strongest user growth in terms of net additions of monthly active users (MAUs) and daily active users (DAUs) on a year-over-year basis, said Wang Gaofei, CEO of Weibo.
The platform’s MAUs were 550 million in March, a net addition of 85 million from a year ago. Mobile MAUs represented about 94% of the total. DAUs were 241 million in March, a net increase of 38 million year-on-year.
“We are satisfied with our first-quarter result amid the coronavirus pandemic,” Wang said. “We have seen a gradual recovery trend since March for most brands and merchants from the trough in February, although there are still uncertainties brought forth by the pandemic,” Wang said.
Weibo’s parent, leading internet portal provider Sina Corp., also reported first-quarter results Tuesday, with an 8% decline in revenue reflecting a drop in advertising.
Sina’s advertising revenue fell 20% year-over-year to $310.0 million for the quarter ended March 31, while nonadvertising revenue rose 44% to $125.1 million, the Nasdaq-listed company said Tuesday. Net income was $82.4 million, compared with $33.1 million a year ago.
– This article originally appeared on Caixin Global.