Financial Data and Key Metrics Changes - Weibo's total revenues for Q1 2024 reached 339 million, reflecting a decrease of 5% year-over-year, also flat on a constant currency basis [30] - Non-GAAP operating income was 106.6 million, with a net margin of 27%, flat compared to the same period last year [29][33] Business Line Data and Key Metrics Changes - Mobile ad revenue accounted for approximately 95% of total ad revenue, amounting to 56.5 million, a decrease of 3% year-over-year, but an increase of 1% on a constant currency basis [32] Market Data and Key Metrics Changes - The handset online game industry sustained double-digit growth year-over-year, while the cosmetic and beauty sector continued to decline year-over-year [23][24] - Ad revenues from domestic beauty brands grew over 50% year-over-year, although this growth did not fully offset the decline from international brands [24] - The food and beverage and apparel sectors returned to positive growth, while the FMCG category continued to face challenges [31][32] Company Strategy and Development Direction - Weibo's strategic objectives for 2024 include growing user scale and engagement, enhancing content ecosystem competitiveness, and improving operating efficiency [8][28] - The company is focusing on high-quality user acquisition and engagement, optimizing channel collaboration, and enhancing social and hot-trend products [9][10] - Weibo aims to strengthen its monetization capabilities by leveraging its strengths in hot-trends and IPs, while also driving vertical content ecosystems [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the recovery of advertiser sentiment in Q2 and the second half of the year, with expectations for improved performance in various sectors [36][39] - The company noted that while the cosmetic and beauty sector faced challenges, there was a positive trend in domestic brands, and they plan to strengthen cooperation with e-commerce platforms [24][25] - Management highlighted the importance of focusing on high ARPU users and enhancing user engagement to drive overall performance [55][59] Other Important Information - Weibo completed the distribution of a special dividend of 200 million [33] - The company released its third ESG report, detailing initiatives in areas such as cybersecurity, content quality, and social responsibility [34][35] Q&A Session Summary Question: Outlook for advertisement business in Q2 and second half - Management expects a cautious recovery in advertiser sentiment, with positive trends noted in various industries except for cosmetics [36][37] - Focus will be on effective-based advertising and leveraging hot topics and IPs for marketing campaigns [39][40] Question: User base adjustments and forecasts - Management confirmed a focus on acquiring high-quality users with higher ARPU, expecting stable or slight increases in DAU [52][55] - The strategy includes prioritizing user engagement and content generation capabilities to enhance overall performance [57][59]
WB(WB) - 2024 Q1 - Earnings Call Transcript