The second quarter result of Weibo Corp, the Chinese equivalent of Twitter, has beaten market estimates. The company announced on Monday that its net profit grew five folds in the second-quarter, South China Morning Post reported.

Weibo Corp's second quarter net profit increased to $25.9 million, which is a whopping increase of 516 percent on a year-on-year basis. This marks Weibo's highest increase in yearly net profit for a single quarter since it got listed on Nasdaq in April 2014.    

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The social media giant's revenue surged by 36 per cent to reach US$146.9 million from US$107.8 million a year earlier. Buoyed by its good second quarter result, Weibo expects its third-quarter revenue to be between $168 million and $173 million.

Weibo's better-than-expected second quarter result was fueled by strong advertising revenue growth and increased adoption by mobile phone users and small businesses.  "User growth continues to be robust, especially coming from mobile, where we are seeing short video and live video taking off," Weibo Chief Executive Officer Wang Gaofei said.  

Gaofei added that company sees a lot of potential for growth in second, third and fourth-tier cities, while more video-related contents from various industries will be used to further increase its user base in first tier cities.

Talking specifically about content, Herman Yu, Weibo's chief financial officer said, "Our biggest differentiation is that our content are all user-generated. There's not much associated costs with it."

As of June 30, Weibo had 282 million active users, an impressive 33 percent increase on a yearly basis. Comparatively, Weibo's closest competitor WeChat boasts of 700 million active users.

Tagsweibo, china, Chinese Equivalent of Twitter, Weibo China