UPDATE: SINA Q4 Profit Tops Views, Shares Rise

Shares of

surged 2.9% in after-hours trading after the company reported better-than-expected earnings for the fourth quarter. Net income attributable to SINA surged to $59.8 million in the fourth quarter, up from $44.5 million, in the year-ago period. Diluted net income per share surged to $0.90 from $0.59 last year. Non-GAAP diluted net income slipped to $0.24 from $0.47. Its net revenue climbed 7% y/y to $211.1 million, while non-GAAP net revenue gained 8% to $208.5 million. However, analysts were expecting earnings of $0.18 per share on revenue of $207.61 million. Advertising revenue surged 14% to $181.9 million, while non-advertising revenue came in at $29.2 million during the quarter. Gross margin widened to 65% for the fourth quarter from 64% in the year-ago period, while advertising gross margin rose to 65% from 64%. Operating expenses increased to $132.9 million, versus $99.5 million. As of December 31, 2014, SINA had $2.2 billion in cash, cash equivalents and short-term investments, versus $1.9 billion as of December 31, 2013. Charles Chao, Chairman and CEO of SINA said, "As we enter into 2015, we are excited about the various opportunities unfolding ahead of us on both Weibo and portal sides. We are also confident that our initiatives in revamping our legacy business will start to take shape and form the foundation for longer term growth." Sina named Bonnie Yi Zhang as CFO of the company. The company's CFO Herman Yu will assume a new role as CFO of Weibo Corporation. Sina shares gained 2.9% to $37.25 in the after-hours trading session.