WB(US:WB)2025-06-10 15:26Summary of Weibo's Earnings Call Company Overview - Company: Weibo - Period: Q1 2025 Key Financial Metrics - Total revenue remained flat year-over-year - Advertising business stable, with value-added services growing approximately 2% - Operating profit was $129.5 million, with an operating margin slightly increasing to 33% [2][3] AI Developments - Weibo integrated the Deepseek large model in March 2025, significantly enhancing AI search capabilities - Monthly active users of the AI search product reached 30 million, with notable increases in daily usage and query volume compared to Q4 2024 - Expected impact of AI investments on profit margin is limited to no more than 2 percentage points [2][4][5][9][20] Dividend and Share Buyback Policy - Weibo established an annual dividend policy, allocating 40%-45% of non-GAAP net profit for dividends to maintain a high dividend yield - No plans for large-scale stock buybacks due to limited market capitalization and available funds [2][6][26] Advertising Business Performance - Advertising performance was robust, with growth driven by sectors such as the automotive industry (especially new energy vehicles), high-end mobile phone promotions, and e-commerce platforms - The food and beverage sector performed well, while beauty and personal care advertising revenue decreased - The gaming industry faced challenges due to client structure and tightened budgets, but the overall industry structure remains healthy [2][7][19] 618 Shopping Festival Insights - Advertising spending during the 618 shopping festival showed positive trends, with an extended promotion period leading to more balanced inventory distribution - Major clients like Alibaba and JD.com increased their advertising investments on the platform [2][8][16] AI Search and User Engagement - AI search results are now fully integrated into hot search and general search requests, achieving a 100% penetration rate - The introduction of AI search has positively influenced user consumption behavior, with increased engagement metrics observed [11][12][13][15] Future Marketing and Advertising Strategies - The marketing demand from advertisers is expected to remain stable in the second half of the year, with a focus on new product launches and e-commerce during key shopping seasons - Weibo aims to leverage its platform advantages to maintain competitive stability despite external market conditions [19][26] Community and Content Ecosystem - Weibo focuses on vertical content areas such as entertainment, social news, sports, and specialized fields like gaming, technology, and healthcare - Engagement metrics, including active user time and interaction rates, are key indicators for community ecosystem management [17][18] AI Technology Investment and Future Directions - Investments in AI technology are primarily directed towards infrastructure and personnel, with a focus on enhancing intelligent search capabilities - The company plans to continue investing in AI to improve user experience and operational efficiency, with a projected limited impact on profit margins [20][22][23] Conclusion - Weibo's strategic focus on AI integration, stable advertising performance, and a robust dividend policy positions the company for continued growth and shareholder value enhancement in the coming years.