2023-05-25 19:04Financial Data and Key Metrics Changes - Weibo's total revenues for Q1 2023 were $413.8 million, a decrease of 15% year-over-year or 7% on a constant currency basis [22][6] - Total advertising revenues reached $355.3 million, with mobile ad revenues contributing approximately 95% [5][23] - Non-GAAP operating income was $128.6 million, representing a non-GAAP operating margin of 31% [6][28] - Net income attributable to Weibo was $111.2 million, with a net margin of 27% [22][28] - Diluted EPS was $0.47 compared to $0.56 last year [22] Business Line Data and Key Metrics Changes - Non-ad revenues increased by 2% year-over-year to $58.5 million, or 10% on a constant currency basis [6][27] - The average daily active users (DAUs) reached 255 million, with a net addition of 3 million users year-over-year [5][21] - The average monthly active users (MAUs) reached 593 million, adding approximately 11 million users year-over-year [5][21] Market Data and Key Metrics Changes - The advertising market showed a gradual recovery post-pandemic, with certain sectors like automotive and luxury goods demonstrating strong confidence and increased investment [18][20] - The number of new car releases in the automotive sector increased by 40% compared to the same period last year [18] - The luxury goods sector saw a significant number of shows, achieving nearly 90% coverage of business cooperation in Q1 [18] Company Strategy and Development Direction - Weibo's strategy focuses on user scale growth and improving operating efficiency to enhance traffic growth and strengthen competitive advantage [7][16] - The company aims to optimize product mechanisms and algorithms to enhance user engagement and content consumption [9][10] - Investment in key content verticals is prioritized to meet changing user demands, particularly in entertainment, digital, and automotive sectors [11][12] Management's Comments on Operating Environment and Future Outlook - Management noted that the advertising demand was relatively low due to macro uncertainties and seasonal factors, but a recovery is expected as offline consumption picks up [5][20] - The company anticipates a more meaningful recovery in advertising demand in the second half of the year, driven by ongoing recovery in various consumer markets [20] - Management expressed confidence in the gradual recovery of the advertising business, particularly in sectors like automotive and e-commerce [39][41] Other Important Information - Weibo announced a total cash dividend of approximately $200 million, reflecting its commitment to returning value to shareholders [29][30] - The company is exploring applications for AITC technology to enhance content creation efficiency and improve operational capabilities [15][36] Q&A Session Summary Question: Can you elaborate more on your plan for the AITC area? - Management discussed the application of AITC in enhancing content creation efficiency for top media accounts and optimizing content generation for long-tail accounts [32][33] Question: What is the outlook for the advertising market recovery? - Management indicated that while Q1 showed weak growth due to seasonal factors, there has been a positive trend since March, with expectations for stronger growth in Q2 [39][40] Question: What is the margin outlook for this year? - Management expects stable development in margins with a slight increase, supported by cost reduction initiatives and a focus on operational efficiency [50][51]