WB(US:WB)2022-09-01 15:51Financial Data and Key Metrics Changes - Weibo's total revenues for Q2 2022 were $450.2 million, a decrease of 22% year-over-year or 19% on a constant currency basis [11] - Advertising revenues reached $385.6 million, down 23% year-over-year, with 95% of ad revenues coming from mobile [11][48] - Non-GAAP operating income was $145.3 million, representing a non-GAAP operating margin of 32%, up from 29% in the prior quarter [11][42] - Net income attributable to Weibo was $109.7 million, with a net margin of 24%, compared to 32% last year [57] Business Line Data and Key Metrics Changes - The gaming, food and beverage, and electronic vehicle sectors continued to trend upward despite tough market conditions [50] - Value-added service (VAS) revenues were $64.6 million, a decrease of 10%, mainly due to less revenue from membership and game-related services [55] Market Data and Key Metrics Changes - The advertising market faced significant headwinds due to COVID-related disruptions, particularly affecting e-commerce and cosmetics industries [28][49] - The automotive and luxury sectors showed signs of recovery, with advertisers gradually increasing their budgets [35][36] Company Strategy and Development Direction - The company is focusing on enhancing competitiveness, improving operating efficiency, and maintaining user engagement [12][27] - Weibo aims to strengthen its brand performance ad offerings and integrate them with content operations to capture higher ad value share [27][40] - Cost optimization initiatives have led to a 27% reduction in sales and marketing expenses year-over-year [42][56] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are signs of economic recovery, the speed of recovery varies across industries [62] - The company remains confident in its long-term monetization opportunities, leveraging its unique value proposition and diversified content ecosystem [54] Other Important Information - Weibo's cash, cash equivalents, and short-term investments totaled $3 billion as of June 30, 2022 [58] - The company released its first ESG report in August, highlighting its commitment to sustainable development and social responsibility [59] Q&A Session Summary Question: Can you share more color on outlook for the ad spend in the second half? - Management indicated that two-thirds of revenue is related to consumption-related industries, which are expected to recover with stimulus policies [62] - There is a shift from offline to online advertising strategies, particularly in the automotive and luxury sectors [64][66] Question: What types of measures would be in place for second half regarding efficiency optimization and cost control? - Management highlighted a 27% reduction in marketing fees and improved user acquisition costs, focusing on core business scenarios [78][80] - The company aims to maintain high-quality growth and a steady gross margin while enhancing operational efficiency [88]