Image source: Inc.

What: Shares of Inc. (ADR) (NYSE:WUBA) were down 13% as of 11:00 a.m. EDT Thursday after the Chinese online classified ad specialist released mixed second-quarter 2016 results and followed with a disappointing outlook.

So what: Quarterly revenue grew 86.7% year over year, to $297.8 million, near the lower end of's guidance for revenue of $296 million to $303 million. That translated to adjusted net income of $21.7 million, or $0.15 per American depositary share (ADS), compared to an adjusted net loss of $20.8 million, or $0.19 per ADS in last year's second quarter. 

Analysts, on average, were looking for an adjusted net loss of $0.11 per ADS but on higher revenue of $303.2 million.

Now what: In addition, for the third quarter, anticipates revenue between $304 million and $311 million, marking a decelerated year-over-year increase of 52% to 56%. Here again, analysts were modeling significantly higher Q3 revenue of $343.3 million.

"Despite the slowdown in China's economy, we continue to see overall growth in user and merchant numbers as well as revenues," added CEO Mr. Michael Yao. "We believe there is still significant room for growth as businesses shift from offline to online, whether it be consumers searching for information or merchants using the internet to market their services and attract potential customers." CFO Mr. Hao Zhou also noted revenue and paying customers hit record highs in the second quarter, with the former growing faster than costs "demonstrating the scalability of our business."

Nonetheless, it's evident is feeling the pressure of China's macroeconomic woes. And given the company's impending deceleration in top-line growth, it's no surprise to see investors taking a step back today.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.