58.com Soars 14% on Strong Third Quarter
58.com shares skyrocketed on Tuesday after the company said its revenue grew 17% year-over-year despite challenges in the market.
The stock in 58.com Inc. (NYSE: WUBA) skyrocketed nearly 14% to $57.20 per American depositary share on Tuesday after the company announced strong market service revenues in the third quarter.
The Beijing-based online marketplace said in a statement on Monday after the markets closed that in the three months through September its revenue reached $602 million, up 17% year-over-year. Net income was $117.9 million, or 74 cents per ADS, compared with $110.4 million, or 70 cents per ADS, a year ago.
58.com attributed the growth to its marketing service revenues, which reached $395.5 million, up 20% from the same period last year. Other services, including real-time bidding, priority listings and various other online marketing tools, helped drive the results, it said.
"We continue to solidify and expand our leading market position in all our core categories, especially for primary housing and other local services," Michael Yao, the chairman and chief executive officer of 58.com, said in the statement.
He added, "Secondary housing and jobs continue to show substantial resilience despite challenging market conditions."
Operating as China's largest online market place, 58.com provides classifieds through Anjuke, a real estate platform, and ChinaHR, an HR services provider. As of September, the company had around 3.6 million paying business users, according to its statement.
In September, 58.com announced plans to launch a one-click home decoration service through an artificial intelligence-powered app before the end of the year with its subsidiary Anjuke.
According to its earnings slides, 58.com ranked first in terms classifieds revenue against key competitors, including ebay Inc. (Nasdaq: EBAY) and Zillow Group Inc. (Nasdaq: ZG) in the global marketplace, as of June.
Going forward, 58.com said it expects to generate revenue in the range of $576.4 million to $590.5 million in the fourth quarter, representing year-over-year growth of between 12% to 15%.