2025-05-21 12:02Financial Data and Key Metrics Changes - Weibo's total revenues for Q1 2025 reached $396.9 million, flat year over year, or up 1% on a constant currency basis [6][26] - Total advertising revenues were $339.1 million, flat year over year, while value-added service revenues increased to $57.7 million, up 2% year over year [26][27] - Non-GAAP operating income was $129.5 million, representing a non-GAAP operating margin of 33%, with net income attributable to Weibo reaching $119.5 million, an increase of 12% [7][32] Business Line Data and Key Metrics Changes - Advertising revenues related to the Spring Festival achieved double-digit growth year over year, with a notable increase in the number of participating advertisers [12] - E-commerce, dairy products, and food and beverage sectors showed solid growth, while the online game sector faced a year-over-year decline due to a high base effect from last year [18][20] - The handset manufacturer sector saw a decline in revenue, primarily due to shifts in product launch timelines [20] Market Data and Key Metrics Changes - In March 2025, Weibo's MAUs reached 591 million, and average DAUs reached 261 million, representing a net addition of 9 million users year over year [6][24] - The automobile sector continued to deliver growth, driven by both NEV brands and traditional OEMs increasing their budget allocation to Weibo [18] - E-commerce platforms, particularly Alibaba, ramped up ad spend during the Spring Festival, contributing to robust growth in advertising revenues [27] Company Strategy and Development Direction - Weibo's strategy for 2025 focuses on enhancing user value, solidifying its position in hot trends and entertainment content, and improving recommendation and search functions through AI integration [7][10] - The company aims to increase investment in vertical and video content ecosystems to drive user engagement and scale [7][10] - Weibo is committed to leveraging AI technology across various business scenarios, including search, social interaction, and advertising [13][15] Management's Comments on Operating Environment and Future Outlook - Management noted that while advertiser budgets remain cautious, there is a gradual unlocking of ad spend based on market feedback [16] - The company expects solid growth across several industries, particularly in automotive and e-commerce, while acknowledging challenges in the gaming sector [19][53] - Management emphasized the importance of AI in enhancing advertising effectiveness and user engagement, with expectations for continued improvement in ad revenues [44][56] Other Important Information - Weibo completed the distribution of an annual cash dividend of $0.08 per ordinary share, totaling approximately $200 million [32] - The company released its first ESG report, highlighting commitments to sustainability across various key areas [33] Q&A Session Summary Question: Overall thoughts on search progressions and future strategy - Management indicated that the AI search product has shown good improvement and will remain integrated within Weibo, focusing on hot topics and entertainment content [35][41] Question: Updates on AI monetization and advertising products - Management reported a 10% improvement in click-through rates due to AI integration, with ongoing efforts to enhance advertising effectiveness [36][44] Question: Outlook for Q2 and expectations for different industry verticals - Management expects Q2 performance to mirror Q1, with strong growth anticipated in automotive and e-commerce sectors, while challenges remain in gaming [50][52]