58.com Inc (NYSE: WUBA) shares up more than 14% Thursday, after tech company reported quarterly earnings. For the 2nd quarter 2017 the company reported total revenues were RMB2,593.3 million (US$382.8 million), a 33.3% increase from the same quarter of 2016 in Renminbi amounts, exceeding the higher end of the Company's guidance of RMB2,350 million.
"We are excited to report that revenues significantly exceeded the higher end of our guidance during the quarter," commented Mr. Michael Yao, Chairman and Chief Executive Officer of 58.com. "Among all our categories, jobs continued to deliver the fastest year-over-year growth and increasingly accounts for a larger proportion of total revenues. While the housing market in tier one and two cities remains relatively soft, revenues from our housing category continue to show resilience by performing better than expected. We are making solid progress in developing new and innovative products across various categories. Our mobile app traffic continues to grow rapidly and is accounting for a larger portion of our total traffic."
The company’s net income was RMB517.8 million (US$76.4 million), compared with net loss attributable to 58.com Inc. of RMB446.4 million during the same period of last year. Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB3.57 (US$0.53) and RMB3.53(US$0.52), respectively. One ADS represents two Class A ordinary shares.
Mr. Hao Zhou, Chief Financial Officer of 58.com added, "We continued to see strong growth in revenue, traffic and margins during the quarter. We also recorded our highest ever quarterly operating margin, net margin and cash flow. This is directly attributable to our continuing focus on improving operational and marketing efficiencies. We continue to create new synergies as Ganji is further integrated and expect to see further opportunities to improve efficiency emerge as these synergies take hold."