Weibo Corp. Q1 FY2025 earnings call

• User growth: In March 2025, MAU reached 591 million and average DAU was 261 million. Focused on integrating social products and upgrading recommendation systems, enhancing social stickiness between creators and fans.
• Content ecosystem: Strengthened hot trend and entertainment content ecosystem, leveraged Spring Festival content for user growth and interaction, with Spring Festival Gala-related topics seeing over 60 billion impressions and 500 million discussions.
• AI integration: Integrated large language models in search, with Zhisou MAU surpassing 30 million in March. Piloting AI in social and ad products, improving search capabilities and ad consumption user experience.

In the first quarter of 2025, Weibo's total revenues reached $396.9 million, flat year-over-year or up 1% on a constant currency basis. Ad revenues were $339.1 million, flat year-over-year, and VAS revenues were $57.7 million, up 2% year-over-year. By industry: E-commerce, automobile, dairy, and food & beverage contributed to growth; online game faced a sharp decline due to lack of blockbuster releases, and handset manufacturing saw a year-over-year decrease due to seasonal slowdown in product launches. Ad product categories: Promoted feed ad was the largest, followed by social display and topic/search. Alibaba's ad revenues grew robustly by 89% in Q1.

• Q2 expectations: Positive for e-commerce, automobile, and headset verticals; gaming remains challenging; healthcare is promising. Headset industry to rebound in Q2 due to marketing cycle adjustment. Healthcare expected to grow due to aging society and increased demand for cosmetic surgery.
• Ad product focus: Continue to focus on new product marketing, performance-based ads, and leverage AI integration to penetrate broader client base and fulfill advertiser needs.

• Industry-specific: Online game sector faces pressure due to lack of blockbuster releases; handset manufacturing has seasonal slowdown; beauty/personal care recovery is gradual.
• Market uncertainties: Advertiser budget caution, competitive pressures in certain industries affecting revenue growth.

Q: How do you think about search progressions, will AI search remain within Weibo or become a separate product, and how has AI improved ad product?

A: AI search will remain within Weibo. In Q1, integrated DeepSeek and saw MAU of intelligent search surpass 30 million. AI has improved CTR by about 10% for information-based feed ads but limited overall ad revenue boost so far.

Q: Comment on Q2 ad spending sentiment, industry verticals outlook, and ad product updates?

A: Q2 expected to be similar to Q1 in positive verticals like e-commerce, automotive, headset. Healthcare promising. Ad products focus on new product marketing, performance-based ads, and leveraging AI to enhance competitiveness