2025-08-14 12:02Financial 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% year over year [28][33] - Diluted EPS was $0.54 [28] Business Line Data and Key Metrics Changes - Advertising and marketing revenues were $383.4 million, a 2% increase, with key verticals being FMCG, e-commerce, and automotive [29] - Value-added service revenues were $61.4 million, also up 2% [29] - E-commerce and automotive sectors showed strong growth, while FMCG faced a year-over-year decline but showed signs of recovery [30][32] Market Data and Key Metrics Changes - In June 2025, Weibo's MAUs reached 588 million, and average DAUs reached 261 million, representing a net addition of 5 million users year over year [8][27] - The proportion of recommended content consumed by users increased to 43%, a 17% improvement [13] - Intelligent Search MAUs surpassed 50 million in June, with a 60% increase in queries and over 100% growth in DAU [18][39] Company Strategy and Development Direction - The company's strategy focuses on enhancing user value, maintaining leadership in trending topics and entertainment, and improving recommendation and search functions through AI [9][19] - The transition to an interest-based content distribution model aims to enhance content competitiveness and user engagement [12][15] - Weibo is prioritizing the integration of AI in both user engagement and monetization strategies [19][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth of intelligent search and its potential to change user behavior [40][42] - The company anticipates challenges in the FMCG sector due to prior year comparisons and ongoing macroeconomic uncertainties [56] - There is a focus on increasing user stickiness and traffic through enhanced search capabilities and ad product offerings [43][61] Other Important Information - The company completed a product and technical framework upgrade in early July 2025, which has been rolled out to nearly all users [13] - The advertising strategy includes leveraging trending topics and celebrity resources to broaden industry reach [20][22] Q&A Session Summary Question: Can management elaborate on Weibo Smart Search's product strategy and future commercialization plans? - Management highlighted the growth of intelligent search, with MAUs over 50 million and significant increases in user queries and traffic [39][40] - Future commercialization may involve bundled cooperation with brands and potential ad placements in search results, but the focus is currently on expanding the user base [42][43] 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 [54][56] - Information feed ads are anticipated to have the highest growth rate, with a shift towards performance-based advertising [57][58]