Ge Long Hui·2025-08-21 19:44Core Viewpoints - The preliminary guidance for 2025 indicates a conservative profit margin expectation of 30% Non-GAAP OPM, with growth guidance deemed reasonable. Key variables for 2025 include AI efficiency improvements, changes in customer acquisition strategies, and macroeconomic recovery [1][3] - The recent quarter's profit exceeded expectations primarily due to a one-time recovery of bad debts, while the revenue outlook for the second half of the year remains cautious, indicating a phase of waiting for catalysts [1][3] Financial Performance - In Q2 2025, the company reported revenue of $445 million, a year-on-year increase of 2% and a quarter-on-quarter increase of 12%, outperforming seasonal trends. Advertising revenue reached $380 million, also up 2% year-on-year and 13% quarter-on-quarter. Value-added services (VAS) revenue was $60 million, down 2% year-on-year but up 14% quarter-on-quarter [1] - The company's MAU for Q2 2025 was 588 million, a year-on-year increase of 0.9% and a quarter-on-quarter decrease of 0.5%, slightly above market expectations. DAU stood at 261 million, up 2.0% year-on-year and flat quarter-on-quarter [1] - Non-GAAP operating profit for Q2 2025 was $162 million, a year-on-year increase of 2.6%, with a Non-GAAP operating profit margin of 36.4%. Non-GAAP net profit attributable to shareholders was $143 million, up 14.5% year-on-year, with a net profit margin of 32.2% [1] Market Outlook - The management's outlook for the second half of the year indicates pressure on the 3C digital, gaming, and FMCG sectors, primarily due to extended replacement cycles and high base effects from the upcoming 2024 Olympics. Overall revenue may see a slight decline, but the company maintains its full-year profit margin guidance of 30% Non-GAAP OPM due to cost control [2] - AI is beginning to show effects on advertising, with contributions already factored into the guidance. AI has contributed to 10% of the platform's advertising materials and has slightly improved eCPM by less than 10% [2] - The AI tool "Robert" enhances user interaction, increasing the interaction rate per thousand views, which supports the health of the content ecosystem. The AI smart search MAU has surpassed 50 million, up 67% quarter-on-quarter, which is expected to gradually improve user penetration in the coming quarters [2]