Financial Data and Key Metrics Changes - Revenue for the second quarter was $631.3 million, an increase of nearly 8% from the second quarter of fiscal year 2025 [10] - Adjusted Operating Income rose to $159 million, up $23.4 million or 17% year-over-year [10] - Adjusted EPS increased to $2.50, reflecting a 13% growth from the previous year [10] - Adjusted EBITDA reached $188.1 million, up 17% [10] - Capital expenditures were $16 million, up from $14.8 million last year [10] Business Line Data and Key Metrics Changes - Total enrollments for the second quarter were 248,500, up 7.8% year-over-year and slightly up from the first quarter [11] - Revenue from Career Learning programs grew 29% to $275.6 million, driven by a 17.6% increase in enrollment [11] - General Education revenue declined 3.6% to $341.4 million, with average enrollments slightly up but revenue per enrollment down 3.6% [11] Market Data and Key Metrics Changes - The company noted a generally positive state funding environment, although some impacts from state and program mix are anticipated [11] - Total revenue per enrollment across both lines was $2,437, an increase of 1.8% from last year [11] Company Strategy and Development Direction - The company is focused on stabilizing its platforms and enhancing customer experience, with plans to build proprietary solutions to maintain control over user experience [4][7] - The strategy includes a cautious approach to growth, prioritizing stability over aggressive enrollment increases [5][30] - The company aims to balance investments in organic growth and potential M&A transactions with share repurchases, maintaining financial flexibility [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the primary issues from the previous fall are resolved, with a significant reduction in customer support calls and improved social media sentiment [8] - The company believes it is well-positioned for a return to expected growth patterns next year, supported by strong demand and stable withdrawal rates [8][17] - Management reaffirmed full-year revenue guidance of $2.480 billion to $2.555 billion, with adjusted operating income expected between $485 million and $505 million [15][17] Other Important Information - Free cash flow for the quarter was $75.9 million, down from $208.6 million last year due to timing issues with payments [14] - The board authorized a share repurchase of up to $500 million, with $88.6 million repurchased during the second quarter [15] Q&A Session Summary Question: Clarification on enrollment and withdrawal trends - Management confirmed that withdrawal rates have returned to normal levels, which is positive news [20] Question: Demand characterization - Demand remains strong, with application volumes similar to last year, indicating robust organic demand [22] Question: School and program relations post-issues - Partners expressed frustration but also faith in the company's ability to resolve issues, indicating a shared mission [25] Question: In-year enrollment growth potential - Management is taking a cautious approach to growth, prioritizing long-term stability over immediate enrollment increases [30] Question: Revenue per enrollment changes - Variations in revenue per enrollment are attributed to state and program mix, with a focus on combined revenue per enrollment [36] Question: Gross margin adjustments - A long-term lease exit positively impacted gross margins, contributing approximately 200 basis points [39] Question: Operational performance of the platform - The platform is performing better, with ongoing improvements and a focus on user experience [49] Question: New partner pipeline discussions - Potential partners remain unconcerned about past issues, indicating strong macro conditions and belief in the company's mission [60]

Financial Data and Key Metrics Changes - Revenue for the second quarter was $631.3 million, an increase of nearly 8% from the second quarter of fiscal year 2025 [10] - Adjusted operating income rose to $159 million, up $23.4 million or 17% year-over-year [10] - Adjusted EPS increased to $2.50, reflecting a 13% rise from the previous year [10] - Adjusted EBITDA reached $188.1 million, up 17% [10] - Gross margin for the quarter was 41.1%, up 30 basis points from last year [12] - Free cash flow was $75.9 million, down from $208.6 million last year due to timing issues with payments [13] Business Line Data and Key Metrics Changes - Total enrollments for the second quarter were 248.5 thousand, up 7.8% year-over-year [11] - Revenue from Career Learning programs grew 29% to $275.6 million, driven by a 17.6% increase in enrollment [11] - General Education revenue declined 3.6% to $341.4 million, with average enrollments slightly up but revenue per enrollment down 3.6% [11] Market Data and Key Metrics Changes - The company noted a generally positive state funding environment, although some impacts from state and program mix are anticipated [11] - The company expects to finish the year flattish compared to last year due to these factors [11] Company Strategy and Development Direction - The company is focusing on stabilizing its platforms and enhancing customer experience, with a goal of maintaining control over user experience through proprietary solutions [4][6] - The strategy includes investing in new platforms to replace outdated systems while ensuring a degree of control over operations [6] - The company aims for stability rather than aggressive growth this year, prioritizing long-term success over short-term gains [5][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that primary issues from the previous fall are resolved, as evidenced by reduced customer support calls and improved social media sentiment [7][8] - The company is optimistic about returning to expected growth patterns next year based on current demand trends and customer experience [8] - Management reaffirmed full-year revenue guidance of $2.480-$2.555 billion, with adjusted operating income expected between $485-$505 million [14][16] Other Important Information - The board authorized a share repurchase of up to $500 million, with $88.6 million already purchased in the second quarter [13][14] - Capital expenditures for the year are expected to be between $70-$80 million, unchanged from prior guidance [16] Q&A Session Summary Question: Clarification on enrollment and attrition trends - Management confirmed that withdrawal rates have returned to historical norms, indicating stabilization in attrition [20] Question: Demand characterization - Demand remains strong, with application volumes similar to last year, despite less aggressive marketing efforts [22] Question: School and program relations post-issues - Partners expressed frustration but also faith in the company's ability to resolve issues, indicating a shared mission [25] Question: Enrollment growth potential in the third quarter - Management is taking a cautious approach to growth, prioritizing long-term stability over immediate enrollment increases [30] Question: Revenue per enrollment analysis - Variations in revenue per enrollment are attributed to state and program mix, with a focus on combined revenue metrics [36] Question: Gross margin adjustments - A long-term lease exit positively impacted gross margins by approximately 200 basis points [40]

Core Insights - Weibo is facing a structural dilemma, with declining user engagement and a shift from being a social platform to an information bulletin board for brands and events [2] - The platform has a large user base, with MAU reaching 588 million and DAU at 261 million as of June this year, indicating that the issue lies in user experience rather than traffic [2] - Weibo announced a series of systematic upgrades to its products and ecosystem at the 2025 V Influence Conference, aiming to regain its unique positioning and growth rhythm [2] Product Reconstruction - Weibo's product architecture consists of a "recommendation stream," "follow stream," and "hotspot scene," each serving different functions [4] - The recommendation stream is the core focus of the upgrade, addressing issues of content homogenization and low-quality information [6] - A new dynamic balance model combining "social + interest + hotspot" is being implemented to enhance content diversity and user engagement [7] Content Ecosystem Activation - The upgrade aims to recalibrate the definition of "influence" by incorporating metrics like "deep reading behavior" to assess creator impact [11] - The number of top-tier creators (Gold V) remains at 18,000, while the next tier (Orange V) has increased by 57% to 107,000 compared to last year [13] - UGC (User-Generated Content) is being elevated strategically, with a 20% increase in UGC production in Q3 due to algorithmic support and resource allocation [14] Video Strategy - Weibo is shifting its video distribution logic from "play count" to "watch time," focusing on deep, engaging mid-length video content [15] - Initiatives like the Vine Plan and Boiling Plan are introduced to incentivize quality video creators with cash and traffic rewards [15] Industry Perspective - The comprehensive restructuring is a complex challenge that requires balancing multiple contradictions and overcoming existing inertia [16] - Weibo's ability to confront these complexities demonstrates its capacity for self-renewal, which is crucial for its future and serves as a reference for other mature platforms facing similar challenges [16]