Chinese social network giant Weibo continues its strong comeback in the quarter ended on September 30th. The company, once touted as China’s Twitter, recorded $101.1 million net income from this period, growing 215% year-on-year. Total revenues were $320 million, out of which $276.8 had come from advertising and marketing, taking up 86% of its total revenues.

In the past few years, Alibaba’s e-commerce marketplaces have been a major source of revenues for Weibo. When the Chinese e-commerce behemoth first purchased 18% stakes in Weibo back in April 2013, it promised to bring at least $294 million in revenues to the social network. The deal was widely regarded a win-win situation for the two, for the traffic Alibaba brings to Weibo would in turn lead back to sales on Alibaba’s e-commerce. Alibaba did its job: From 2013 to 2015, Alibaba’s e-commerce advertisers brought in over $300 million in advertising and marketing revenues.

Last September, Alibaba increased its stake in Weibo to 31.5% to become the second largest shareholder after Weibo’s parent company Sina; meanwhile Weibo has gradually grown less reliant on Alibaba, whose revenue contribution dropped from 30% in 2015 to 8.8% in 2016. Taking over are small and medium-sized enterprises and key accounts, which accounted for 78.6% of Weibo’s Q3 revenues.

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Rita Liao

Telling the uncommon China stories through tech. I can be reached at ritacyliao [at] gmail [dot] com.