Weibo (NasdaqGS:WB) Q3 2025 Earnings Call November 18, 2025 06:00 AM ET Company ParticipantsLiu Yu - Associate DirectorGaofei Wang - CEOFei Cao - CFOSandra Zhang - Head of Investor RelationsConference Call ParticipantsAlicia Yap - AnalystOperatorGood day, and thank you for standing by. Welcome to Weibo Reports' third quarter 2025 financial results. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question duri ...

Weibo (NasdaqGS:WB) Q3 2025 Earnings Call November 18, 2025 06:00 AM ET Speaker3Good day, and thank you for standing by. Welcome to Weibo Reports' third quarter 2025 financial results. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. Please be advised that today's conf ...

Financial Data and Key Metrics Changes - Weibo's total revenues for Q2 2025 reached $444.8 million, up 2% year over year [8][28] - Total advertising revenues were $383.4 million, also up 2% year over year [8][29] - Non-GAAP operating income was $161.8 million, representing a non-GAAP operating margin of 36% [9][28] - Net income attributable to Weibo was $133.2 million, an increase of 13% [28][34] Business Line Data and Key Metrics Changes - Advertising and marketing revenues were $383.4 million, reflecting a slight uptick driven by mixed performance across major ad verticals [29] - Value-added service revenues were $61.4 million, also up 2% year over year [29] - The top three verticals for advertising were FMCG, e-commerce, and automotive products [29] Market Data and Key Metrics Changes - E-commerce platforms showed solid year-over-year revenue growth, particularly benefiting from partnerships during the June shopping festival [20][29] - The automobile sector maintained healthy growth, with Weibo being a key discussion hub for new energy vehicles [21][29] - The FMCG sector experienced a year-over-year decline but showed early signs of gradual recovery [29][30] Company Strategy and Development Direction - Weibo's strategy focuses on enhancing user value, maintaining leadership in trending topics and entertainment, and improving recommendation and search functions through large language models [9][19] - The company aims to transition content operation from an influencer-based model to a vertical content-based model, attracting creators from various verticals [16] - The interest-based feed will become the primary content distribution method, enhancing content competitiveness and user engagement [14][16] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth of intelligent search and its impact on user engagement and monetization [18][45] - The company anticipates challenges in the FMCG sector due to prior year comparisons and ongoing budget constraints in certain industries [60] - There is a focus on increasing the supply of quality content and enhancing user experience through AI integration [24][65] Other Important Information - The average content views per user remained stable, with the proportion of recommended content consumed increasing to 43%, a 17% improvement [14] - Cash and short-term investments totaled $2.11 billion as of June 30, 2025, down from $2.35 billion at the end of 2024 [35] Q&A Session Summary Question: Can management elaborate on the product strategy and future plan for commercialization of Weibo Smart Search? - Management highlighted that the intelligent search product has seen significant user growth, with MAUs surpassing 50 million and query growth of 60% [40][41] - Future commercialization may involve bundled cooperation with brands or traditional ad placements, but the focus is currently on expanding the user base [46] Question: What are the expectations for ad revenue growth in Q3 and the second half of the year? - Management expects strong growth in e-commerce and automotive sectors, while FMCG may face pressure due to prior year comparisons [58][60] - Information feed ads are anticipated to have the highest growth rate, with a shift towards performance-based ads [61]