2020-12-28 19:18Financial Data and Key Metrics Changes - Total revenue for Q3 2020 reached $465.7 million, flat year-over-year, with advertising and marketing revenues increasing by 1% to $416.7 million [6][25] - Operating income was $179.4 million, representing an operating margin of 39%, compared to 41% last year [30] - Net income attributable to Weibo was $152.9 million, with a diluted EPS of $0.56 [25][30] Business Line Data and Key Metrics Changes - Mobile advertising revenues accounted for approximately 90% of total ad revenue, increasing from 87% the previous year [26] - Key Accounts (KA) revenue reached $221.2 million, up 12% year-over-year and 33% quarter-over-quarter, driven by a notable increase in brand advertisers [26][18] - Small and Medium Enterprises (SME) ad revenue decreased by 15% year-over-year but increased by 20% quarter-over-quarter, with gaming and online education sectors showing triple-digit growth [28][20] Market Data and Key Metrics Changes - Monthly Active Users (MAUs) grew 3% year-over-year to 511 million, while Daily Active Users (DAUs) increased by 4% year-over-year to 224 million [6][25] - The FMCG category saw growth acceleration, benefiting from an increase in the number of customers, while entertainment and travel sectors remained on a negative growth trajectory [18][27] Company Strategy and Development Direction - The company plans to enhance its competitiveness by investing in social attributes and video areas, focusing on user engagement and retention [8][10] - There is a strategic shift towards online business for SMEs, particularly in online education and gaming, to optimize services provided to these sectors [38][36] - The company aims to solidify its advantage in public and social media functions to grow its user base and improve user engagement [17][10] Management's Comments on Operating Environment and Future Outlook - Management noted that the pandemic has not significantly impacted brand ad revenue, but SMEs have faced challenges due to a focus on offline businesses [35][36] - The competitive landscape is expected to remain intense, particularly from short video platforms, but management believes that Weibo's unique offerings will help mitigate this [39][42] - The company anticipates a modest revenue increase of 1% to 3% year-over-year for Q4 2020, reflecting ongoing recovery trends [31] Other Important Information - Cash, cash equivalents, and short-term investments totaled $3.2 billion as of September 30, 2020, up from $2.4 billion at the end of 2019 [31] - The company has over 750,000 content creators participating in its video account program, with significant growth in daily video submissions and viewership [15][16] Q&A Session Summary Question: Advertising budget sentiments and recovery trends in China - Management indicated that the pandemic has not significantly impacted brand ad revenue, while SMEs have shifted focus to online business due to pandemic effects [35][36] Question: Competition from short video companies - Management acknowledged the intense competition but emphasized that Weibo's unique offerings and investments in video content will help maintain its market position [39][42] Question: Short video account growth and advertising revenue expectations - Over 700,000 video accounts have been opened, with 13,000 having over 1 million followers, and management expects continued growth in this area [44][45] Question: Preliminary outlook for the advertising business next year - Management plans to focus on both KA and SME sectors, with an emphasis on verticals like gaming and FMCG to drive future growth [52][53]