Weibo Corp. Q3 FY2024 earnings call

• User Front: Adjusted user acquisition and growth strategy to attract higher-quality users, leading to improved DAU vs MAU ratio. - Monetization: Total revenue grew by 5% y-o-y; ad revenue up 2% y-o-y; VAS revenue up 25% y-o-y. - Product and Content Operations: Enhanced channel strategy, focused on social attributes to increase user interaction, and strengthened content ecosystem across verticals. Leveraged Olympic hot trends, with Olympic-related topics on Weibo surpassing 400 billion views and over 400 million user discussions. - VAS Growth: Driven by membership and games-related services, with improved ARPU for membership services and growth in Big Vs services.

In the third quarter of 2024, Weibo's total revenue reached $464.5 million, up 5% year-over-year. Ad revenue was $398.6 million, up 2% year-over-year, contributing approximately 85.8% of the total revenue. VAS revenue was $65.9 million, up 25% year-over-year, accounting for about 14.2% of the total revenue. User metrics in September showed MAU at approximately 587 million and average DAUs at around 257 million, with an improved DAU versus MAU ratio.

• Fourth Quarter Ad Outlook: Despite macro uncertainties, expected some sectors like 3C and consumer electronics to see double-digit y-o-y growth due to government subsidy policies. Anticipate continued impact from Double 11 shopping festival. - VAS Outlook: Expect VAS revenue to keep a high growth rate in Q4.

No detailed specific risks discussed, but mention of challenging macro conditions and uncertainties in consumer market affecting ad revenue in some sectors.

Q: About the fourth quarter advertisement outlook and impact of recent macro stimulus by industry verticals.

A: Gaofei Wang mentioned Q3 had slight decrease in consumption-related indexes due to weak economy. Q4 has uncertainties but government policies boosting 3C and consumer electronics with expected double-digit y-o-y growth in Q4. Also, Double 11 shopping festival expected to have effect, and verticals like FMCG, automotive showing growth.

Q: Regarding the VAS segment drivers and Q4 outlook.

A: Gaofei Wang stated VAS growth due to high-value users' strong demand for value-added services, R&D of new products for these users, growth in Big Vs services. Expect VAS revenue to keep high growth rate in Q4.

Q: About AI progress in H2 in content production, commercialization, and operational efficiencies.

A: Gaofei Wang talked about AI-based intelligent search functions with growth in DAUs using them. AI assistant for Big Vs with increased trial users and high retain rate. Also, AI used in R&D and V-code for coding efficiency, with more stats expected in future quarters.