WB - Earnings call transcript Q1 2022

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Operator

Good day and thank you for standing by. Welcome to Weibo First Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]. to call like to I'd now, turn over the Ms. And from Weibo Zhang IR Sandra team. you. Thank ahead. go Please

Yunyun Zhang

Thank to operator. you, Welcome conference XXXX call. earnings Weibo's fourth quarter

and through Fei today Chief on is the me are is Executive website. broadcasted Gaofei Joining also and available Chief also being Financial IR The Cao. Wang, Officer, Internet conference Weibo's call Officer, our

conference to statement in Harbor the Before call. the review management remarks, I Safe with would today's like connection

historical facts, today's statements not During call, that and beliefs make we statements statements, forward-looking including expectations. conference may our of are

and included Forward-looking assumes obligation of in Weibo information statements All and SEC. annual this those applicable occurring actual as differ date Weibo's with A required as Form of to this involve press inherent elsewhere. is statements. risks call forward-looking law. report from such no the assumes and results filings other Further important under uncertainties. XX-F number the release information contained materially forward-looking no in risks the other update to cause regarding Weibo is update factors and information, any obligation in the except could provided this statements to in on hereof. conference

remind operating non-GAAP performance our use and future compensation comparative you like today includes measures discussion to certain financial non-GAAP would I certain other Additionally, understanding better measures, Weibo's of to stock-based excludes We which that and expenses. gain a prospects.

and losses, our to that of for and financials indicative in about payments non-GAAP items operating or not non-recurring and refer non-GAAP our more to expenses, core future other nature gains our Please release result cash are measures. Our information results or exclude certain press expected are in outlook. not

over lines brief will our this, remarks, to open session. call CEO, like to up we With prepared turn Wang. management's Gaofei for the a the I would Q&A Following

Gaofei Wang

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our ad have total further advertisers for $XXX.X In X% $XXX.X year-over-year and year-over-year, differentiated quarter, XX% XX% revenues revenue operation. We user up well reached and reached million, mobile. integrates our and first from the content that ad our our with market solution revenue gained our product up came among of million, recognition

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marketing also campaigns negatively our impacted. were channel of Some

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Fei Cao

to conference Weibo’s XXXX Gaofei. earnings you, Thank hello, And Welcome first everyone. call. quarter

on Let's respectively, users, March respectively start DAUs In million MAUs million XX year-over-year. a Weibo’s average million with user and XXX metrics. and and XXX representing XXXX, net addition of million a XX reached

user We marketing [indiscernible] spend. are delighted momentum growth to achieve solid

financials. to Turning

As US on the focus while basis are non-GAAP monetary and all a dollar otherwise comparisons results, term my unless a in are amounts prepared year-over-year noted. on would remarks reminder,

Diluted $XXX.X walk highlights of me let income million, was for X%. to the quarter quarter $XXX.X revenues compared margin attributable net our million, last Weibo’s through operating XX%. first Weibo a an reached net representing EPS you to of financial of $X.XX income XX%. first XXXX. increase were million, $XXX.X margin XXXX Operating year. $X.XX Net of Now, representing was

a on first $XXX.X contributing XXXX for let XXXX. more of growth million, the Weibo ad first delivered the revenues an had increase a resilient relatively overall approximately Weibo’s Now, though ad off quarter solid We Mobile marketing revenue. of lockdown even you quarter, give in COVID-XX was capping reached start and advertising of of and XX% market million, resurgence the advertising revenues. amid total uncertainties, in disruptions. ad me were color XX%. $XXX.X revenues macro

FMCG, ad contributions XC first revenue For terms of in our quarter leading were and gaming. products verticals XXXX,

that FMCG of on the ad relatively XC among Games. to and and and Despite resonated performance Winter the growth, major cross gaming and demonstrated macro brand events, customers luxury, terms [indiscernible] build demand around them sectors weighing were Olympic major sectors Weibo’s greatly growing regulatory ones. fastest set, enabled as in verticals resilient these with performance product of In challenges offerings such the

major search sector, as [indiscernible]. education and the restrictions with wide The the Ecommerce, lockdown gaming FMCG vertical such lingering For suspended descending to well also demand and followed wallet consumption of regulatory display Shanghai, areas budget as offering. part the be also improvement which as originally into for disruption we and due restriction consumption quarter, in Omicron topic content sector the of ad measures lockdown negatively in seats sluggish has due high our and and booked industries and China, data impacted especially advertising in trend cultivation significantly quarter activities for campaigns social production. ad categories ad performance gaming us for scheduled exposures offline and industries share the national accordingly. ad to impact. subsequently and promoted such product second to and suspension ad outbreaks largest ads ecommerce, cut of [indiscernible] to and market boded and ad as budget of cut ad well disrupted by set, as tap mid-March [indiscernible] entertainment sector and sectors, has From and the higher offline continued entered perspective,

the to ad sales lockdown in major campaign and Additionally, due Shanghai. challenges also faced execution we

on potential even in impact more is the logistics, quarter we second activities, rapidly business material production, on observation lockdown estimate, the evolved than our impact on business and COVID-XX XXXX. economic and current in severe our consumption, our offline based national and As the COVID-XX including activities, resurgence restriction best expect disrupt advertising wide and and

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income expense million of Turning year. net $XX.X GAAP quarter first for a Net attributable XX% compared was to last income measure, the tax, year. $XXX.X last XX% was million a margin income Weibo the first to million, in $XX.X tax quarter representing to compared to

XX, compared March provided Turning totaled me session. activities term depreciation turn that, of to of totaled cash the XXXX. as quarter XXXX. XXXX, Capital and $X.X billion to billion of $XX the let million. the Q&A December and $XXX.X $X.X items million. by amounted our And sheet as to In you. Thank flow the cash million. equivalents now cash, was balance and operator for With cash to expenditures amortization operating investments first Weibo’s XX, call over $X.X short expenses

Operator

Instructions]. [Operator

the comes Citi. of from question first Your from Yap line Alicia

Alicia Yap

questions Language] [Foreign My impact the second quarter. in related is COVID the to

more So year? and is decline once reopening for in for June the if that their and direction fill April detail management past we back see spending budget half magnitude second you we seeing color that in Which the the our terms actually bigger industries of and terms this what of seeing can bit the of give May, the are will also the that this then the vertical what think kind of expectation see of into few little which a online is actually ad rebound industry and a in vertical biggest happening? months or actually

Gaofei Wang

all, of situation since to First Language] the of talk [Foreign you COVID. because QX like about would to I

can policies ad, you as a especially kept Language] and if the that we're this also performance the campaigns of we quite we about mid-March example, China, have talking well. impacting this QX, volume. of in as ad, seeing COVID, about the to terms those lot to talking as for customers due budget due stable the here in the as well offline as of information been ad, of [Foreign well ads flow the COVID see in And different our China, control that is the escalation the So can see the marketing

March, the brand those we so the this However, of see about due of driving been the And the so talking also, a impacted in the down to late bit has And [Foreign the logistics also, in COVID. pricing talking that Language] majority driven this advertisement. been seen that of think March. budget, all, have down to lot been soon. second little was that April, I the since talking in situation trend because And terms China, agents here are And wise, used to of has can the we projects located advertisement, recover you And talking reduced. about a the to of the very the a we'll been well the a have as about the the also, terms level execution actually, in impact about seeing of May, of it we well China, brand believe the because of as of East booking. very trend East recovered

– in saw after also it still, originally, that June, we However, will be fully recovered.

However, area, COVID Shanghai resumed in a of broke because also lot Shanghai seeing half. performance in the the things X some here in of our another terms also, of and performance And out of the of of second Beijing fluctuation work we've all and kind June just there also been is uncertainty there. kind because lifestyle and

the that well minimized. going because the slower So, industry also as going resume about particular that be budget the be focusing to marketing bit industrial QX, as still will impact also, the be the the of had could for Language] expect going has category ad, because [Foreign also, kind you talking [Foreign unavailability which to industry, also, cetera, been not customers as businesses automotive want impacted to impact but of process budget customers so they followed advertisements because license, April of in that then believe the COVID. least to the also, products, because controlled. see recover as we to performance. so are plans impact of performance also, et our trend if we verticals, of gaming luxury allocation heavily the course, Language] these XX% of in be the a are the well in be the talking the and And whole execution, than to as And and they impacted. in terms we been can resume effectiveness of gaming a is all, brand optimistic that little as in of three going about first that, we And used And FMCG, is there are brand And they've about have the upward. May, verticals, May. of or we also a kind upward And however, an talking of particular on

recovery very a when these bit However, there in May, COVID quick of verticals. was of control of rebound a the and three also the also we've little and containment seen robust

a the So, going is future, categories of Beijing, we've the by see And, auto or organized to COVID in more good we're And could we're us. of customers in their got be to course, contained, budget that, to for verticals, say going and to recovery of that if those in rebound the see, allocation. does the cancellation impact very show. the budget campaigns better did those example, this or marketing

event offline that of up offline XXXX also new now the industry, publish and move the also us of people in the it launch moving from their future this smartphone their So, has However, right? OEMs same of are lot in models a to online. is experienced and terms from exactly we mobile And campaign brough with more opportunities the the to to because most online. the of their

vertical experienced still, this if then very industries, also of in bit the industry also, for QX, so customers, also be and, activity will that, have offline a receive big talking us a the down budget, of the also especially And a especially So, Shanghai more us confidence for got about to other oriented for little mobile OTO the driven reopening increase automotive particular now QX sales a talking wasn't example, and aesthetic to impact impact good going next, the to smartphone [Foreign say industry. they see [ph] the industry, a about even those will this even. we've And like impact. verticals, give the we there of of medicine is I industry. Language] of after would And there course, to the or smartphone

have, However, but do the not channel we this marketing going talking and also be really also regarded the course, And to believe us to as should this we're that, in negatively. be about if ad. impacted for the only we customer the of future, the smartphone, this that is is

and So of saving expenses in terms positive actually with has the this brought fee us saving, impact.

because are of also, lasting talking And the think also, also, June margin. month Beijing, there about of I having big home is two also, people QX, to offsetting our say QX about still. And in have process And are in these about we also months. to we would of [Foreign also that to would from agents. they're expectation half the month parts, collaboration talking of Shanghai and for we year, impact and this in this having more lastly, the areas closely longer been And certain than one just and also, impact if I X our customers, still are larger two like restart impact that, working itself their this and publishers business profit between So, and seeing a to than Language] required follow impact. half not to a particular also the brand reboot had about the reopened in because

second half. than going to recovery So, the our have June expectation slower of in we really think a that and we're also our business

Operator

from Our question comes Jefferies. next Thomas from Chong

Thomas Chong

of trend regarding the remainder and in question [indiscernible] I the our cost expenses Language] a margin [Foreign year? in our outlook have operating control the

Gaofei Wang

Language] of control. about First the cost [Foreign all, talking

COVID, terms the related And So, months, decreasing as not rules of And point tax to the the preservative QX, the already channels could or expenses. keeping the due second quite or first months a talking the X.X%. terms a activities and within the planned. however, of to returns control the cancel activity-related the about purchasing us example. channel. different of talking had – a to required going lot provide stricter also, we channel, of are feeds, of And And policy in stricter of the we collaboration QX, also, also and the appraisal second terms six a good three the about of having still been also are and have as that for performance stricter result, ROI about example, especially also, and all, also with for all, margin in could placement in we ROI And we cancellation as QX. on among if quite is we of with organize not by [indiscernible] it we in in also of seeing are

activities this the also has and relating of to So, campaigns. costs saved some the

also profit kind of making. activities those are However,

impact So, revenue this the at did time. same our

Fei Cao

add I Maybe the margin. some color on can

as margin, business of maintained mentioned And of good better into terms in we a higher level. of So, Weibo negative on impact And monetization, of XXXX, as expect earlier, material. historically, last achieved business a a in leverage, operating profit first quarter heading result we second the always healthy margin scale is Gaofei larger the advertising year. margin half and

of So, sports environment the investment certain amid construction in contract we of the difficult in market such IP Beijing some Olympics and numbers effect tax as of and [indiscernible] expiration as and have true the the Winter other factors combined fee NBA. such business

structure is optimize and with to to in has operating priority last our management disciplined strategy. other the more list compared cost here consensus investment year. margin But the [indiscernible] So, spending highest channel that a reached

know, a has style. always conservative you As Weibo maintained

and leverage overall operating Our healthy ROI for to goal metric. ultimately decline higher financial mitigate is keep assessment and our to as stricter our efficiency as striving spending operating the control improving more with margin possible,

Operator

Tian from question comes Capital. from Next Hou TH

Tian Hou

Language] It’s user. about the [Foreign

level what for activity XXXX new is to number the company retentions on and to how what's the in operation platform? China plan also acquire users company's accomplish the to the And the also, in use of content goal regarding and user to user the improve total So eventual MAU/DAUs?

Gaofei Wang

that think Hong this company while in answered Kong question our last did previously been year. also were secondary roadshow I Language] the we and [Foreign has listing

and media the only were social we media social network. we not or will and the upper XXXX. related That limit strategies then saying be of XX% any also of that social about content that So video were operating if was the of

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than So media the to more in is well going driving to bigger video, as social be only. business the actually forces going the terms of and social than are the media impact the also be

video a of to had still the that's that area, why as invest lot the we're as as headwinds, if well trying even So content competition we've in possible. as many market

data, So, we traffic of a of also the terms and believe total about the the the and others. traffic video area we number and parts in the now now have. uplift for further then very and video And positioning key of the positioning accounted in that important we have limit also to are going we one-third the users upper total of

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of launch For hot example, as the trends topics community, and as the well super etc.

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also going to us are strategy making sustainable the and long in strategies the future. these be term So,

Operator

Ladies we hand you. now and I'll thank the right, back question-and-answer for remarks. Ms. have gentlemen, to session. call the Zhang All Sandra reached the closing end of

Yunyun Zhang

conference us. you quarter. next see Thanks, our concludes you for We'll joining all operator. And thank call. This

Operator

today. That participating. our for for Thank you. does you conclude Thank conference

You may disconnect. all

Weibo (WB) 1 Jun 222022 Q1 Earnings call transcript