WB(US:WB)2021-11-11 19:23Financial Data and Key Metrics Changes - Weibo's net revenue for Q3 2021 was $607.4 million, representing a 30% year-over-year increase [33] - Operating income increased by 39% to $248.7 million, with an operating margin of 41% [33][37] - Net income attributable to Weibo was $209.6 million, a 37% increase, resulting in a net margin of 34% [33][38] - Diluted EPS rose to $0.90 from $0.66 in Q3 2020 [33] Business Line Data and Key Metrics Changes - Advertising and marketing revenues reached $537.6 million, up 29% year-over-year, with mobile ad revenue contributing approximately 92% [33][34] - Value-added service revenues increased by 42% to $69.8 million, primarily due to revenue from an interactive entertainment company acquired in November 2020 [37] Market Data and Key Metrics Changes - Monthly Active Users (MAUs) reached 573 million, with Daily Active Users (DAUs) at 248 million, marking an increase of 62 million and 23 million year-over-year, respectively [7][31] - 94% of Weibo's MAUs came from mobile in September 2021 [7] Company Strategy and Development Direction - Weibo is focusing on enhancing its competitive edge in social features and core functionalities to drive user engagement [13] - The company is investing in the gaming and eSports sectors, which have become significant content verticals, alongside traditional entertainment [19][62] - Weibo aims to adapt to regulatory changes by diversifying content offerings and enhancing compliance measures [27][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by regulatory headwinds but expressed confidence in Weibo's ability to navigate these changes [29] - The company anticipates Q4 2021 revenue growth of 15% to 20% year-over-year on a constant currency basis [39] - Management emphasized the importance of maintaining strong relationships with government authorities to ensure compliance and operational stability [45] Other Important Information - Weibo's advertising revenue growth was supported by strong engagement during the Tokyo Olympics, with over 400 billion views and 170 million discussions related to Olympic topics [14] - The company is actively adjusting its advertising strategies in response to regulatory changes affecting various industries, particularly education and entertainment [22][23] Q&A Session Summary Question: Changes in Weibo's behavior post-implementation of the personal information protection law - Management noted that the law represents a megatrend affecting the industry, requiring adjustments in operations and compliance [41][43] Question: Advertising industry performance amidst macro and regulatory challenges - Management highlighted that Weibo maintained double-digit growth in ad revenue due to optimized ad sector structure and diversified coverage [42][47] Question: Impact of entertainment sector regulations on user engagement and monetization - Management stated that proactive measures taken prior to regulations helped minimize traffic impact, and they are focusing on diversifying content to mitigate risks [55][58] Question: Progress in eSports and gaming-related content - Management confirmed significant investments in the gaming sector, which is now one of the largest verticals for Weibo, and plans to continue expanding in this area [62][63] Question: Latest observations on advertising regulations and their impact - Management indicated that while regulations have affected the industry, Weibo's social media nature allows it to adapt and maintain ad revenue through alternative strategies [66][70]