Weibo Corporation Q4 FY2025 earnings call

1. User growth and engagement: Completed structural upgrade of core homepage infrastructure in late July, launched new homepage with interest-based feed. Focused on refining recommendation, improving recommendation efficiency by leveraging real-time user behavior, rolling out algorithm-driven audience segmentation strategy, and revamping new homepage for new users. 2. Video business: Focused on improving video performance and content construction in the second half of 2025, AI video model reduced video creation threshold, both average daily video view time and producer video view time on video playback page achieved double-digit growth. 3. Search product: Continued to optimize AI capabilities, upgraded product form from single-round Q&A model to multi-round conversational system, expanded implementation of intelligence to more key scenarios, leading to growth in intelligent search user skills and engagement. 4. Monetization: Focused on promoting Weibo's unique content marketing positioning across all industries, systematically improving ad performance and conversion capabilities by leveraging AI technologies, with ad revenues growing in certain industries like e-commerce, local service, etc.

Fourth quarter, total revenue reached $1.073 billion, an increase of 4% year-over-year. Mass advertising revenue reached $400 million, an increase of 5% year-over-year. Value-added service revenue reached $69.5 million, a decrease of 2% year-over-year. Non-GAAP operating income in the fourth quarter reached $100.4 million, with an operating margin of 21%. For the full year 2025, total revenue reached $1.76 billion, relatively flat year-over-year. Total ad revenue reached $1.5 billion, relatively flat year-over-year. Value-added service revenue reached $25.56 million, relatively flat year-over-year. Non-GAAP operating income for the full year 2025 reached $60 million, with a non-GAAP operating margin of 30%. In December 2025, Weibo's MAUs reached 567 million, and average DAUs reached 252 million.

2026 will continue to use Weibo as the core to enhance user experience and long-term growth. In terms of user growth and engagement, will prioritize retention of quality users, upgrade full lifecycle operation framework, continue to optimize algorithm and strengthen user engagement with homepage information feeds, step up investment in video and leverage AI technologies to enhance video understanding and recommendation efficiency. In content ecosystem, will focus on hot topics, social products, and search product, explore synchronization of feed distribution and hot trend charts, beef up investment in super topic products, and cultivate differentiating of search product. In monetization, will capture ad-volume share in the brand and market, upgrade full-service IT marketing framework, maintain steady operations in performance-based advertising and aim for steady growth in value-added service by refining privileged system for paid users.

Involves forward-looking statements with heavy risks and uncertainties where actual results may differ materially. A number of factors can cause actual results to differ from those in forward-looking statements. Risks are included in Weibo's annual report on Form 20F and other filings with the SEC. Non-GAAP financial measures have associated risks in their use.

Q: About the AI strategy, including Weibo's position in the AI era, main investments in AI application direction in 2026 and how to combine AI technology with platform operation.

A: For Weibo as a product, has been doing product planning and reserves related to AI capabilities, with directions like AI improvement of self-search. For Weibo as a platform, is actively disseminating AI knowledge, promoting AI-related content, and connecting with major models.

Q: About advertising business, including management's view on embracing AI movements for advertising growth, advertiser budget sentiment, growth expectation for 2026 and advertising strategy.

A: Fourth quarter ad revenue had certain growth, Q1 had single-digit growth. Traffic growth, especially AI-related, brought new customers. E-commerce and alternatives expected to grow in 2026, handset and gaming industries have uncertainties. Will upgrade marketing service system, focus on celebrity marketing, content-based marketing, and optimize performance-based advertising through algorithm optimization.