WEIBO CORP(9898.HK)：1Q25 BEAT;ACCELERATED AI FOR DIFFERENTIATED AND ENHANCED CORE SOCIAL COMPETENCIES

Core Insights - The company reported a 1% year-over-year increase in topline and core ad revenue for Q1 2025, primarily driven by a significant 89% year-over-year surge in Alibaba ad spending related to CNY festival promotions and AI product marketing [1][5] - The adjusted net profit margin (NPM) reached 30.1%, exceeding consensus expectations of 24.0% [1][5] - The company is focusing on accelerating AI investments and integrations within its social ecosystem to enhance ad monetization opportunities [1][3] Revenue Performance - Total revenue for Q1 2025 was US$397 million, which was flat year-over-year but 1% above consensus estimates [5] - Core online ad revenue remained flat year-over-year, while non-Alibaba ad revenue declined by 6% year-over-year, impacted by the online game and handset sectors [5] - Alibaba ad revenue's substantial growth was attributed to strong promotional demand, particularly from the Spring Festival Gala and AI-related products [5] Strategic Focus - The company aims to explore AI integrations across various scenarios, including search, social interaction, content ecosystems, and commercial advertising, to strengthen existing products and drive user engagement [2][3] - The forecast for FY2025 ad revenue has been raised by 2% due to increased spending on Alibaba ads [3][4] Financial Forecast - The adjusted earnings per share (EPADS) forecast for FY2025 has been raised, reflecting the company's disciplined approach to selling, general, and administrative expenses despite increased AI-related investments [4]