Financial Data and Key Metrics Changes - Weibo's total revenues for Q2 2023 reached 385.7 million, flat year-over-year, or up 7% on a constant currency basis, with 94% of ad revenues coming from mobile [21][22] - Non-GAAP operating income was 126.4 million, with a net margin of 29% compared to 24% last year [21][26] Business Line Data and Key Metrics Changes - The entertainment vertical saw over 20% year-over-year growth in traffic and user engagement, driven by offline activities [12][18] - The online gaming vertical experienced over 50% growth in traffic and 40% growth in engaged users, with significant user engagement growth exceeding 100% [12][13] - The healthcare vertical grew nearly 30% in traffic, leading to over 30% year-over-year revenue growth [18] Market Data and Key Metrics Changes - The automobile and digital product sectors showed strong recovery, with ad revenues from the automobile sector growing by 40% year-over-year [17][33] - The luxury sector experienced rapid year-over-year revenue growth due to increased marketing budgets and a rebound in the entertainment sector [17][18] - The cosmetics and personal care sector continued to show slower-than-expected recovery, impacting overall ad revenue growth [19][35] Company Strategy and Development Direction - The company is focusing on improving user acquisition capabilities and enhancing user engagement through targeted marketing and content distribution [9][10] - Weibo is increasing investment in vertical content, particularly in entertainment, online gaming, and anime, to drive user engagement and traffic recovery [11][12] - The company aims to support verticals like food and travel to regain traffic contributions that have declined due to COVID-19 [36][42] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery pace for the second half of the year, despite some macroeconomic challenges [30][32] - The company anticipates a better recovery in August compared to July, with a focus on traffic support for key verticals [31][32] - Management highlighted the importance of adapting strategies to support verticals facing headwinds, such as cosmetics and travel [35][42] Other Important Information - Weibo completed a special dividend distribution of 200 million [27] - The company reported cash and short-term investments totaling $2.83 billion as of June 30, 2023 [27] Q&A Session Summary Question: Outlook for the second half of the year and ad revenue growth - Management noted a positive growth trajectory in Q2, with a 13% quarter-over-quarter growth and 7% year-over-year growth, driven by holidays and increased ad placements [30] - For July and August, growth rates were slightly down compared to June, but management remains confident in recovery for the second half [31][32] Question: User growth outlook and operational strategies - Management emphasized the need to increase traffic efficiency and focus on high ARPU clients, particularly among iPhone and Huawei users [38] - The company plans to support traffic recovery in culture and entertainment, with significant growth in interactive users [39][40] Question: AIGC deployment and application scenarios - Management discussed AIGC's role in enhancing content production for key accounts and improving engagement for medium to long-tail accounts [45][46] - AIGC is expected to supplement vertical traffic and content, particularly in travel and food sectors [46][48]
WB(WB) - 2023 Q2 - Earnings Call Transcript