2025-11-18 12:00Financial Data and Key Metrics Changes - In Q3 2025, Weibo's total revenues reached $442.3 million, a decrease of 5% year over year [7][31] - Total ad revenues were $375.4 million, down 6% year over year [7][31] - Non-GAAP operating income was $132 million, representing a non-GAAP operating margin of 30% [7][31] - Net income attributable to Weibo was $110.7 million, with a diluted EPS of $0.42 [31][36] Business Line Data and Key Metrics Changes - Advertising and marketing revenue decreased by 6% to $375.4 million, while value-added service revenues increased by 2% to $66.9 million [31][35] - E-commerce sector ad revenues grew over 50% year over year, driven by stimulus policies [31][32] - The automobile sector maintained year-over-year growth, supported by Weibo's content ecosystem [32][33] Market Data and Key Metrics Changes - The e-commerce sector showed notable growth, while food and beverage, dairy products, and footwear and apparel sectors experienced revenue declines due to high base effects from last year's Olympics [22][33] - Ad revenues from the automobile sector remained stable, while online games and smartphones saw declines due to budget contractions [22][33] Company Strategy and Development Direction - Weibo's strategy focuses on enhancing user value and maintaining its leading position in hot topics and the entertainment content ecosystem [8][30] - The company is leveraging large language models to improve recommendation feeds and search products, aiming to increase user engagement [8][30] - The restructuring of the information feed is seen as strategically significant, comparable to past transitions from chronological to algorithm-based sorting [12][30] Management's Comments on Operating Environment and Future Outlook - Management noted that the advertising revenue decline was primarily due to a high base effect from the previous year's Olympics [39][41] - Looking ahead, management anticipates challenges in the headset and automotive industries due to subsidy policy changes [40][41] - The company expects significant events in 2026, such as the Winter Olympics and World Cup, to positively impact advertising placements [41][42] Other Important Information - Weibo's intelligent search product MAUs exceeded 70 million, with DAU and search queries increasing over 50% quarter over quarter [17][30] - AI technology is being integrated across the advertising lifecycle to enhance efficiency and targeting precision [24][27] Q&A Session Summary Question: Overall advertising outlook for Q4 and 2026 - Management indicated that Q4 may see a continuation of the ad revenue decline due to high base effects and uncertainties in consumer spending [39][40] - They expect significant events in 2026 to improve advertising placements, particularly in consumer goods [41][42] Question: Strategy and progress of intelligent search - Management reported strong growth in intelligent search, with a 20% increase in queries quarter over quarter, and anticipates future monetization opportunities [53][54] Question: Feedback on information feed revamp - Initial feedback on the revamped information feed has been positive, with expectations of improved user engagement and retention over time [56][59]