WB(US:WB)2022-11-17 18:23Financial Data and Key Metrics Changes - Weibo's total revenues for Q3 2022 reached $453.6 million, a decrease of 25% year-over-year and an increase of 1% quarter-over-quarter [9][40] - Non-GAAP operating income was $162.1 million, representing a non-GAAP operating margin of 36%, up from 32% in the previous quarter [9][34] - Net income attributable to Weibo was approximately $519 million, with a net margin of 36% [40][48] Business Line Data and Key Metrics Changes - Advertising and marketing revenues were $383.4 million, a decrease of 27% year-over-year [41] - Mobile ad revenues accounted for approximately 95% of total ad revenues, amounting to $372 million [41] - The online gaming sector showed resilience, with a significant increase in traffic and interactions, particularly during eSports events [23][28] Market Data and Key Metrics Changes - The luxury and automobile sectors exhibited a solid recovery trend, with double-digit growth both year-over-year and sequentially [42] - The FMCG and e-commerce sectors continued to face challenges due to weak consumption sentiment and COVID-19 control measures [29][42] - Ad revenues from Alibaba decreased by 28%, aligning with the overall advertising business performance [45] Company Strategy and Development Direction - The company is focusing on improving operating efficiency and enhancing user engagement through product optimization and community investments [10][35] - Weibo aims to deepen cooperation with handset manufacturers to expand user scale and improve content distribution [14][35] - The strategy includes diversifying revenue streams beyond advertising, with a focus on e-commerce and membership systems [70][75] Management Comments on Operating Environment and Future Outlook - Management noted that the advertising market remains uncertain, but there are positive signals from certain industries, particularly during the Double 11 shopping festival [30][56] - The company anticipates a stable trend in e-commerce advertising and expects to capture advertising budgets related to the World Cup [32][56] - Management emphasized the importance of cost optimization and operational efficiency in navigating the uncertain macro environment [33][60] Other Important Information - Weibo's cash, cash equivalents, and short-term investments totaled $3 billion as of September 30, 2022 [49] - The company repurchased approximately 3.1 million ADS for a total cost of $157.7 million as part of its share repurchase program [50] Q&A Session Summary Question: Advertising outlook and sentiment in Q4 and 2023 - Management indicated that the recovery is closely tied to macroeconomic conditions, with expectations for a quarter-over-quarter improvement in Q4 [52][53] - The company anticipates a stable trend in e-commerce advertising during the Double 11 shopping festival [56][57] Question: Cost optimization strategies and margin outlook - Management confirmed ongoing cost optimization efforts, particularly in marketing and operational expenses, with expectations for a stable margin in Q4 [62][64] - The focus will remain on improving core competencies and operational efficiency [64][66] Question: Diversifying revenue streams beyond advertising - Management acknowledged the need to diversify monetization methods, with VAS currently accounting for about 13% of total revenue [70][75] - The company is investing in e-commerce and membership systems to enhance monetization opportunities [71][73]