Weibo Corp. Q4 FY2024 earnings call

Product and Monetization Progress: In Q4, on social attributes, maintained relationship-based feed strategy, enhanced content consumption, and initiated social product integration plan. On content ecosystem, seized AI trends, invested in vertical content, and started transforming the vertical operating system. 2024 Performance Recap: Despite some industry revenue shortfalls, effective cost management sustained stable operating income. 2025 Strategies: Focus on user growth (integrate social products, revamp recommendation system), content ecosystem (strengthen hot trends, vertical/video content), and operating efficiency (optimize ad sales, leverage AI in monetization, deepen VIP member engagement). Also, leveraging AI for search, social interaction, and content recommendation, with plans to roll out new intelligent search function powered by DeepSeek.

Fourth Quarter 2024: Total revenue was USD 456.8 million, a 1% decrease year-over-year (flat on constant currency). Ad revenue was USD 385.9 million, a 4% decrease YOY. Value-added service revenues were USD 71 million, a 18% increase YOY. Non-GAAP operating income was USD 136.2 million, with a 30% non-GAAP operating margin. Full Year 2024: Total revenue was USD 1.75 billion (flat or 1% increase on constant currency). Ad revenue was USD 1.5 billion, a 2% decrease YOY. Value-added service revenue was USD 256 million, a 13% increase YOY. Non-GAAP operating income was USD 584.1 million, with a 33% non-GAAP operating margin. In December, MAU reached 590 million and average DAUs were 260 million.

2025 Plans: Continue to focus on user value, solidify content ecosystem and social products, beef up AI investments. On user front, integrate social products and revamp recommendation system. On content, reinforce hot trends and vertical/video content. On operating efficiency, optimize ad sales and products, leverage AI for monetization. Also, expect to see full rollout of improved intelligent search and further AI applications in social and advertising products.

Risks: Industry performance variability across verticals, macroeconomic uncertainties impacting consumer spending, uncertain pipeline of large mobile games in the gaming industry, and challenges in monetizing certain discretionary categories like cosmetics and luxury goods.

Q: Can management elaborate more on future strategy of AI applications?

A: Gaofei Wang mentioned past integration of multiple AI models, progress in AI-based products like intelligent search, and plans to further invest in AI technologies, including full rollout of enhanced search capabilities and integration of new models to boost efficiency.

Q: How does management see 2025 ad outlook and strategies?

A: Gaofei Wang noted mixed impacts of macro policies, positive effects on automotive and handset sectors, uncertainty in gaming industry, and emphasis on AI investments to improve monetization efficiency.

Q: Share more on shareholder return policy?

A: Fei Cao stated Weibo has a balanced capital allocation strategy, including annual dividend policy, and remains open to measures like buyback, focusing on long-term value creation while investing in growth.