WB(US:WB)2023-03-05 09:58Financial Data and Key Metrics Changes - In Q4 2022, total revenue reached $448 million, a decrease of 27% year-over-year and 1% quarter-over-quarter [6][30] - Advertising and marketing revenues were $390.5 million, with mobile contributing 94% of total revenue [7][31] - Non-GAAP operating income was $152 million, representing a non-GAAP operating margin of 34% [7][30] - For full-year 2022, total revenue was $1.84 billion, a decrease of 19% year-over-year [7][30] - Non-GAAP net income attributable to Weibo was $540.1 million, with a net margin of 29% [30][38] Business Line Data and Key Metrics Changes - Advertising and marketing revenue for full-year 2022 was $1.6 billion, a decrease of 19% year-over-year [7][31] - Value-added service (VAS) revenues in Q4 were $57.5 million, a decrease of 12% year-over-year [35] - The number of video accounts and effective video views grew double-digit year-over-year, with effective use of video feed increasing over 50% year-over-year [14] Market Data and Key Metrics Changes - In December 2022, Weibo's MAUs reached 586 million, with a net addition of approximately 13 million users year-over-year [8][29] - Average DAUs reached 252 million, with a net addition of approximately 3 million users year-over-year [8][29] - The advertising revenue from the automobile industry showed year-over-year growth, benefiting from better recognition of new car launches [21][32] Company Strategy and Development Direction - The company plans to focus on user growth, operational efficiency, and strengthening core competitiveness in 2023 [19][28] - Emphasis on enhancing marketing capabilities for top KOLs and improving monetization strategies for content creators [17][28] - Continued investment in hot trends and entertainment verticals to drive user engagement and traffic growth [18][19] Management Comments on Operating Environment and Future Outlook - Management noted that the advertising market faced challenges due to macroeconomic conditions and COVID disruptions, but expressed optimism for recovery in 2023 [26][35] - The company anticipates a gradual recovery in advertising demand, particularly in the automobile and luxury sectors [27][35] - Management highlighted the importance of operational efficiency and cost control measures implemented in 2022 to stabilize earnings [36][52] Other Important Information - The company achieved a significant increase in ad revenue during the World Cup season, surpassing that of the Beijing Winter Olympics [21] - The annual GMV for the aesthetic medicine e-commerce business on Weibo doubled from the previous year, indicating potential for future growth in e-commerce [24] Q&A Session Summary Question: Can management share more detailed color around the monthly trend of ad revenue recovery and year-on-year growth trend? - Management indicated that Q4 faced negative impacts from political issues and COVID, affecting operations and customer budgets. They expect a clearer evaluation of recovery speed by late March or early April [41][44] Question: What are the plans for efficient improvement and cost control in 2023? - Management stated that they aim to reduce marketing-related expenses by 20% and continue restructuring to enhance operational efficiency [50][52] Question: What is the strategy for the VAS business in 2023, particularly regarding social e-commerce? - Management plans to leverage KOL live streaming and enhance traffic monetization through social e-commerce, aiming to increase market share and revenue from membership services [55][58]