Q3 2020 Weibo Corp Earnings Call

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Ladies and gentlemen, thank you for standing by and welcome to the Weibo workloads that quality of Twentytwenty non Childress those conference calls a day.

This time, all participants are in listen only mode of.

The speakers presentation, there will be a question and answer session last question during the session. The only to the star one on the telephone I would now like 10 of the country in search of French speaking today as time goes on thank you the scope and.

Thank you all day welcome to liberate the corner <unk>, Oh Gee, they keep [laughter] offices, all day long and all the final for me to cancel the call.

This call is only for being Glasscock the down the internet.

The main of those two labor day IR website.

Before the management the luck I like to read the Safe Harbor statement in connection with today's conference call.

During today's conference call. We make forward looking statements statements that are not historical facts, including statements of operations, but patient.

All of the thing they evolve the human.

Risk and uncertainties.

The number of including the factors could cause actual results to differ materially from those from he and his goal of container fleet.

Sleep of assumes no obligation to update of for listen statement in this conference call and elsewhere.

For the information the borrowing base and other risks is included in the way with annual report on 10 assets and other filings with the at the C.

Oh, the information provided in the press release the occurring at the same here, though.

People assumes no obligation to update the information except as required under applicable law.

Additionally, I would like to remind you that our discussion today includes certain non-GAAP measures.

Which excludes stock based compensation and certain other expenses.

We use non-GAAP financial measures the being a better understanding of rebirth of comparative operating performance and future prospects on the.

Non-GAAP financials exclude the consensus in the losses and other items that are not expected to without infusion of cash payments or non recurring in nature, one of indicative of of core operating results and the all look Blake.

Please refer to our press release for more information about our non-GAAP measures.

Slowly mentioned in prepared remarks.

Open the line for brief turn the session with this I would like to turn the call over to of C. O Gaofei while [noise].

The GAAP claim the glass for now they will have all of your hobby.

Thank you Hello, everyone and welcome to wait for the quarter 20 times the earnings conference call.

The kind of where we're going down teachers on essentially the legal.

I mean, you sign up on the Latina the June.

In Asia, Tony Lewis from Oh.

On today's call I will share with you highlight on the way, but you still product and monetization as well as progress we made our key initiatives in Twentytwenty was intentionally what kind of funny to tell the Russia.

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For two you should kind of fit really matter in any new intrusion true from claims of the type of snow you chiming in any internal revenue.

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Let me start with no so could the financial results in the third quarter. Our total revenue reached 465.7 million flattish year over year, but of.

Hi thing and marketing revenue reached 416.7 million an increase of 1% the of years, 90% of for our revenue came from mobile payable from him.

Is this going to be more from the year for into I know you don't need any internal medicine true.

Moving on to our fee revenue going up at the suit.

Bill for career, we will let me try the on them.

Fungible, they because they feel free to maybe you didn't diabetes with average or so.

On the use of from Robert any you grew 3% year for years to 511 mailing in September of Twentytwenty and average day, you grew 4% year of year to 224 million in September Twentytwenty, both representing a decrease of 2% of the quarter over quarter non.

84% of leap of any you came from mobile.

Thank you too for new tissue portion of the agreement of an income.

If you look we are reducing the time you could he 22.

Tony charge from the would actually usually Sean the chicken with the who know Tony So no sorry.

This quarter, we screwed use the pace of steady pace and the same for using teach many of these patients as our key strategies for you for the product operations. He put more emphasis on increasing consumption deficiency of the when he was this the social interaction.

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Sales of agreement from me Jim.

Revenue from cheap by the hope for that.

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Total revenue.

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Due to the Oh poor box shows from consumer for GAAP.

That said on the use of skill from post the sum of breaking all that we perceive the number of decrease in September of compared with June.

We have faced in the Convento has been in terms of use of growth for the second half of the year Neely.

Mainly due to net if you had some cutbacks and investments for variety shows and entertain the industry as well the back to school seasonality.

In addition on the engagement from are you seeing each man I'm sorry, the also not because of the impact impacted influenced the by the intense competition in the U.S the market actually the telephone I see aggressively investing the acquisition.

As such for one thing we have piece of our investment in social attribute of the BD Vito area from those part of an operations perspective to solidify on much of the company I'm proud of Smith and use of gross leverage of wave of the least platform positioning for another day, we have total desktop out.

Efforts in channel and strategic partnership since the fourth quarter, hoping to see all the wider use of accomplish.

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On the line to be Frank we have for the emphasize strength cost performance at offerings, among <unk> and other types of from key industries and reinforce our competitiveness in the market through pieces of the structure of the chart determining factors for our business recovery post the pandemic.

As a result of top pay in the industrial sector as we turn to the growth trajectory in the quarter underpinned by the notable growth in the number of runs out of the types of which contributed to the stabilization of the AD business finished the quarter of yield the year basis.

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They're facing the increasing the intense market competition for the second half of the year in response to the it's crucial for us to push it is crucial that we optimize our use the product to for the he can't wait for the uniqueness and of course pump at competitiveness in the social media sector and the Meanwhile, the.

Net of all investment the beauty and use the commodity vertical areas aiming to enhance the just the acquisition capabilities to cultivating Houston habit of content consumption is every day.

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Okay. So true to live the ordinarily my top line should call it free shopping [laughter].

Topic product, it's of course function to sort of the public, especially non discussion around topics, which helped to bring you used the enhance user engagement on the trough for <unk>.

Does the capital investment in the accounts in generation of discovery and discussion around topics as well as extend the related accounts in consumption.

In the third quarter he used to consume topic continues to grow double digit year over year and use the discussion around topics the nicely as well.

Moving forward from the products from US we optimized hoots featured putting close use the two.

And really for the discovery and the topic distribution mechanisms to improve the efficiency of content generation of.

Appreciate the front wheel for the encouragingly, the Ali and the Q2 create topics and participate in public discussion within reach of the offering around topics.

Content consumption side, we will for the intent user consumption and discussion around hot topic to more quality content offering within the discovery zone.

He is a cheap to optimize the ugly the mechanism of hot topic chart, and the how search function and the collaboration with platform, including handset manufacturer.

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Moving onto the social it's our focus for he has the product social features took five content offerings and the social interaction for.

Adjusted for relationship based of speech, we have for the upgrade the distribution mechanism and launched a new features to facilitate the interaction in the fees.

For instance, we reinforce the elective content distribution in the relationship with the feat to be for social content offerings, such as the handsome traffic social to to post leases might cause it to to host the use of might have missed and post that was heating the discussed among USIS you follow.

Additionally, on top of our commentary on the post the features the we added social features to enhance the rack interactions among users such as enabling users to lease message of others, maybe take the second for community products, such as fast food and stupid topic.

We have further enhanced the social activity and promoted dense social relationship build up and their interactions of as long as interest, which in turn drives usage social stickiness in the relationship based the speed.

As the result in the support he views of due for the topic and the number of true interaction and relationship Buda in Super topic of grew double digit year over year and nearly 60% of the top came out of the creative is super topics.

With the with the pools like the free made two cents when compared to the actual from I mean, the products will enable us to tap into growth of the overall self media market attracting more self media is to wait for underwriting user engagement you show now from the [laughter] and increase the kinda design okay.

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[noise] Bascome free style, we must have a hockey fan from social actually the as reported core competitiveness next let me share some color on the pullback of media accounts pullback since the launch of the program into line, we have been focusing on optimizing our past the mechanism to better facilitate traffic is the.

You shouldnt affect accumulation around video accounts.

Well as Benson of blends that the nation among the two pay wealth and use the.

As of November we had over 750000 content creators participating to video accounts program away for a more wage over the t. cell. The it already had 10 days over a million taking the November match, the its assets and pulled the number of daily video of the mission M.D.V. the viewership.

The increase over 30% year over year for those monthly active active video accounts.

We are encouraged to see a notable strength among the weight was top contemplated for ship to what we do now reaching the introduction of of of the do account programs and Meanwhile, video outcome program or a CEB talent. The video content creators from other profit to join the and accumulate social assets on way for which the.

Okay, and then our core in the case of network and enrich our content ecosystem going forward for one thing the lower the entry barrier for opening of the do a video of accounts, enabling more cable else to join the benefit from traffic support from the two account program for another will leave for three to come.

The distribution based on social recommendation within the video community, hoping to nurture use the mindset to visit the beat of commodity and both for the drive video content consumption as lumpy due accounts.

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To sum up on a couple of channel investment I made one smoky competition for school solidify our advantage from topic and social media function to grow our user base and recruit using cases, so as to enhance our competitiveness in the U.S the acquisition.

Second we will focus on increasing use the content and stuff and see maybe two interesting of companies the consumption of events of meetings and the community products and the intense our competitiveness in the market.

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On the monetization from we continue to reinforce our competitiveness in the other case the market and the teams like over the had the man the carpet to tunneling and solid progress on the line sedation system before internally as a result, we force advertising revenue has to have almost the between for the same level last year.

Or increasing 20, 22% quarter over quarter.

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Okay and revenue increased 12% yield the year was 33% of quarter over quarter, the robust growth with nearly two of them by end of the increase in the number of brand the customers, which reached historical high this quarter from the industry perspective, the FMCG category so of growth.

Celebration benefiting from a considerable increase in the number of customers.

Of note and hence the industry disputing bothers transaction owes the group the solid double digit growth.

Entertainment previously hit hard by Pandemics started to come back this quarter of those you flow short short of the same level last year.

On top of the overall at the NAND recovery, we also a tip of the such mobile flow through our differentiated value proposition took when customers maybe on two fronts for leveraging our unique strength in the distribution and discussion around the top IP such as the blockbuster shows and force.

The debt, we managed to open up incremental AD inventories by two rating constant around the Iraqis IP.

IP based marketing it would enable us to tap into or for other customer base as well as drive monetization through content operations.

Second we focus on all of the integrated brand price performance solution to Kay customers to capture higher average.

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Moving on to SMB.

As an AD revenue decreased 15% year over year, and the increased 20% quarter over quarter notwithstanding the tax to the overall revenue level last year. We are pleased to see any and all the education sector become the corp for several of our SMB business. This year, we have a chick flicks.

To this day to sector as we build up our efforts to drive conversion an enhanced the operation of capability.

Consequently, as revenue from bidding and all the education sector continue to the triple digit growth on an annual basis for.

For example, we do a lot of industry specific solutions for these two sectors. Most of the specifically at kind of close this day to serve customers you can the lease Marty as well as I solution Pocketing, a high school and the college examination for on the adaptation customers assets.

Products like a product like this in fact, the people feel customers must be neat.

Around product launch and the T. tiny leading to broader customer coverage and the higher of wallet for us in the term we.

Leases at two other sector, we continue to focus on top of demise of the mice in cost from mix expand the customer base and improved quality of this year.

During this quarter, we took steps to optimize on areas, where weve quickly, we see not confuse the feedback that setting higher at quality standard.

Despite the short term revenue losses, we believe it includes the of the overall asset quality would benefit us in expanding our customer base and optimizing add performance in the longer term.

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Well she she gave on the kind of June interest, our teaching jungle too for the commercial showing the from them.

Finally, let me share some color on the pull the space of our products and technologies for the two could talk the approach to improve at alcoholism and shop distribution strategy. A. Good example is the game like the kingdom of blockbuster blockbuster day yeah.

View of customers go to we should talk the user group rapidly upon release, we refined our AD attribution backend system to accommodate the session Martini, allowing this customer true to reach incremental targets. The use of beyond the origin of boots and income higher conversions as the result.

We could back of for feel the customer sweeping the lease the old while helping the customer he has the marketing efficiency significantly.

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But the can significantly enable us to capture incremental at budget beauty.

The it upon such success success story, our next step is to put together an industry specific solutions and make the standard at offering for the in the industry.

Second we will focus on tax optimization around our flow Spano marketing in the next few quarters for example, with the Internet the receptor we advanced our technology to deliver better app download the average and the completion rate to optimization on the download and a range.

Completion process, we successfully lowered the apt acquisition cost by over 50%.

Third to address customer lead generation, the especially with adaptation E Commerce, a cosmetic surgery in the fifth et cetera, we facilitate the easy Buda of landing page.

Using our own CMS crew.

Currently customers, who use of T.N.S. So the of the conversion rate improved improving by over 50% upon the adoption.

We saw the execution of the Abbas initiative, we are well positioned to capture higher performance at wallet in the market you.

You know I don't I mean, how features of hundreds of which.

With that plenty for look for over the sales how for financial review.

Thank you for Gulf pay and the Hello, everyone. Welcome to live for third quarter 20 times the earnings conference call.

Let's start with you as the metrics in September attend the Dundee sleep with any of you use for 500 of 11 million you have done the unless the patient approximately 14 million users a year over year basis.

We of course I like to do this for the 220 for meeting we presented a net addition of approximately 8 million users on the every year basis [noise].

Let's turn to financials I.

As a reminder, my prepared remarks, what for some non-GAAP results.

The other compares as of the flat year over year basis of I life otherwise noted.

Now, let me walk you through our financial highlights for the third quarter of the 2020.

Well the first prototype many times the lack of revenues were 455.7 million for.

That Oh, a decrease of 4% of constant currency basis.

The exceeding the high end of our guidance.

Operating income for that kind of the 79.4 million, representing an operating margin of 39%.

Net income attributable to report was rone hundred of 52.9 million.

On the diluted EPS was 56 cents.

Now, let me give you more color on revenue.

We bought advertising and the marketing revenue for the first for the public multi <unk> real quick 1% to 400, the 16.7 of them.

Mobile ad revenue.

What's the final assembly fix for one minute comfortability approximately 19% of total AD revenue up from 87% of last year.

Moving on to page eight.

In the third quarter Weibos cash add the revenue with the 221.2 of media.

The increase of Coke the sand you every year and the 33% of quarter over quarter.

Now they do a nice rebound in the domestic consumption and the ongoing digital transformation, our kids business demonstrated clear the recovery momentum with the number of brand advertisers spending with us this quarter hitting a record high.

Let the allied here to see a growing number of brands recognize the wait was the unique value proposition in connected to the younger generation.

Average NPL L three's losses, as well as delivering our brand the flat for from the soles.

This quarter on top of traditional brand the budget cake.

Hey, customers, notably I located higher budget.

Two pro form S. Three of them products, such as speed and the kill our marketing offerings to drive of user of old the way down the funnel, which surprised us this opportunity to catch the incremental add the war of the it in the long run.

Yeah, that's true why.

The strength in our kids business was relatively flat for all the pay for this quarter.

The schools sales by key sectors, such as FMCG, all from mobile and the luxury category et cetera.

I'm pleased sad entertainment travel and the real estate sector remained on the map the growth trajectory for us.

For the way I see it early signs of recovery for the east up of the fiction, our theaters and tourism.

Hi, Nate I families.

In the third quarter wait what I found the AD revenue, which for the <unk> hundred the 66 point for meeting.

A decrease of 15% and the increase of 20% of the quarter over quarter.

But the ascending trend of our SMB business was mainly attributable to two factors.

For.

The credit pace of off line work has continued to lack of the handed over the life any sector on the way down the growth of the us on the AD revenue.

And the second at the election, the last quarter.

The initiative to clear out of low quality customers and add accretive also electrically impacted the hour I 70 revenue [noise].

[noise] Oh asset sales.

Okay, and education sectors continued to for the triple digit growth year over year, both tired of by far the improvement around the day, they listen to the end pro Formas.

The September we officially launched our revamped the admitting sets from filter for kind of free featuring a series of day optimize the stick at the deal on the table out at all things yeah.

The whole of of driving our of for customers. So most of the rapid response the feature.

To add the relevancy and the higher AD placement inefficiencies.

Add the I've noticed from on the buyback for the third quarter real quick the 52% to 29.2 made at the.

The momentum of AD spend from Ali top line reflects our strength and cooperation in driving value for brands and the more channel to achieve the branding platform from its purpose for integrated AD the pump head of both platforms.

That's the.

As bad the from Alibaba highly correlated the two is all business operations its price related master strategy as.

The next may change from time to time.

As such we cannot assure the fact robot the growth will be sustainable in the future.

Value added the surveys last family of the price of the 11% for 49.1 million of the third quarter, primarily due to the day place of lot of straining the revenue.

Partially offset by the increase in membership revenue.

Turning to costs and expenses total cost the expenses for the third quarter to quit the 3% to 286.4 million.

The increase was primarily due to the higher bad debt provision and the put the nowadays in the past.

Partially offset by big credit the marketing spend.

Oh for the income in the third quarter was that kind of 17 nice for for me with the.

Yes, it down to the operating margin of 39% compared to 41% lots of here on the 31% in the second the quarter.

Turning to income taxes.

And the GAAP measure the income tax expense for the third quarter was certainly there compared to 31 part for me last year.

Net income attributable to the they bought in the first quarter was.

With that kind of the truth point Ninemillion. This advantage of a nice margin of the.

The fed per cent compared to 38% of last year I'm the 30% the in the second the quarter.

Turning to our balance sheet and the type of items as of September circuit printed one day rate for cash cash equivalents and the slow tell me last night total the 3.2 billion cash.

Compared to 2.4 billion as of December 30 for us and the lighter [noise].

Mainly due to the nice to see it.

Of the 740 of sponsor of made and see if the from a way of was the senior note offering into line interest Monday.

In the third quarter of 2020 cash provided by operating activities was 235 onto the made it kept the is plenty of her total the 10.7 million and depreciation and amortization expenses amounted to 7.7 million.

Now, let me turn to financial all of it.

We anticipate our fourth quarter Twentytwenty net revenue to increase by 1% for third for side the year over year of constant price it basis.

This forecast includes the revenue estimate of that in the active entertainment the company, which was acquired on the consolidate the to our company in the run by the Twentytwenty.

And the precise approximately 2% of our revenue estimate and this quarter.

This forecast reflects where both current and the preliminary view on the subject to change with that let me now turn the call over to the operator for the coalition.

Exactly.

Ladies and gentlemen.

I'll now begin the question and answer session. Just ask the question. Please press star one of the telephone keypad wait for your name to the amount.

We have the first question from the line of are we said Yep from Citigroup. Please go ahead.

Oh. Thank you why the time, a bunch of hot see Teekay for what she was well yes of course.

Oh the once.

Eager to sure no GAAP, well know what God your GAAP T shirts, Michigan for interacting with the situation Yale.

Yeah, Hi, John the true ventures usual uptick interest sure. She gets her d. So another huge hi sooner in the true sure uses offshore why did the country that some girls line called the trouble quick sort of.

She called for.

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So the I should eat lunch in CEOC I'm not sure I'm Jewish it seems oncology.

For sure two shoes like shipping for the entire disease and reach the Sheila you want to shoot the I'm not sure. If the dollar she was for Oh Gosh seems oncology care took a channel how quick tweet a true freedom. We end the has used for she says the woman. He didn't have the door kind of just the swap bottom for for the Goldman Sachs.

You see for no GAAP, you quantify down tissue woman, the goodness, which I guess of at the home Godri joint Whats the I find it.

Good evening management of thanks for taking my questions I have two questions today, the true advertising a number one is related to the of the overall act of budget of sentiments and recovery trend in China.

It seems to US you know China is on track for a decent recovery of but given the seriousness of the pandemic outbreaks in other countries do you have you seen or do you think it will affect the AD budget you know on on true the worries comes off the the the operating out of cash.

Countries in terms of the assets at sentiments and then second it should relate that to.

The competition. It seems that management continued to mentioned the intensified competition from the shop videos companies in comes off the assets such as application so not too sure. The beach a intense competition of continue into net.

Sure or the thing people, we bought a proxy for the coverings. Other it's you know improving should the she they'll come packaged this landscape the actually a moderate and improving over time. Thank you.

Okay, but it was.

Adjusted ideas on the T. not just for two to some of those from quantum leap from the own from Kim I will show you highlight for the Huh yeah.

Switching from total for me and I don't want the way the teaching the Unittranche for two woman in Guy some of it.

Well the internal goals for his group of came back on wealth manager for the only real time value from the surveys show of angle I mean, he told me I think we kind of I do from manner for the of the accounting charges. You may one gum line the cocoa till now with the auto the your line is easier chalet that for all of the told of <unk>.

Generally though of course.

Oh, no pay laid back in a moment to other people thought of shows on it all of that many of you can go other shines you show the cohorts you five of them do for children Sally folklore Yoshi from within show the Jinyan here for you got such a bunch of.

So let me give you the answer for the very first question. So let's talk about the data of Q3, that's divided into the brand and also at the meat first of all the talking about the brand that you can see that because weibo is a very large company. So I don't think of pandemic is impacting the assets the AD revenue or budget of the bribes.

So far but talking about the EPS I mean, I think that in the first half of the 2020, we really had a big impact because previously Rs EMEA budget previously focused on offline primary speaking the especially those kind of the industries like Oh and also for them. So I think that we made some cash.

Interest on the SMB side. So this year, we move further to the online business and especially the online education E commerce, and gaining the et cetera.

Okay.

The kiddies option for me answered all your of people article from.

The two downtime from quarter don't go losses on range from right now.

Charlotte for do you just sort of to the Oh, you know how many of the political season that we cannot Jim hi, the.

Line coming on I don't Bauma, the cool pool range it crews from the Hong in which the hypoxic of what sort of do not know to Darren our union. The army of fully share selling the charge of Neutrolin problem. The choosing the usage of Cotwo local issue what other people kind of on the amount with all of them were jumping into for the cool you can't cope ponder the from them.

Hi, reinsurance I realize you probably on the filling it up and pushing the for the right on the and the all of the come I come from a credit women's of good volume. So pension you talk of one of them though.

So second of all I would like to say that in some of the bus strategy of focusing on the brand customers. You know kind of speaking of brand of EM revenue or out at a revenue from the brand customers is relatively small compared with the other big companies. So because previously and also as of now we pretty much focus on the.

Top companies and also top brands. So you can see that of course, we have a very steady growth of our number of customers, especially the brand customers and also from 20 to 21, we have some kind of the changes and also adjustment of our strategy. For example, now we are going to enlarge and expand the name most of those.

The customers, especially focusing on the inclusion of regional brand and also those national National brands as well. So you can see the in the next one two years were going to see that more revenues for women to see more revenues coming from those the middle and brand customers.

Okay.

It was the two nice N easy from engineered here for you know talk I mean me each own back from the you know who the United using the CEO total industrial yes, Shawn hi, bulky should accumulate the coupon or the equivalent she is true semenya you each and every day, you're sort of got lot of thought you do for the show to the cohorts.

Sure. He only one so do you think of the try them trading for southeast call yet from them.

Moving to new clients, who are too big for what you have made of teenagers truly ship channel tissue shut down for a little too.

Got you shipped from the and identify has I mean on the sort of hard to the unit you want a part of the it to the ones on the time, the Sean shipped from the due to the cool imagine you view for Joe Nucor the your.

She said uncle Physics Union turned down.

The the internal the toys are being non him I kind of on the cooking on the crushing and true shown on the shuffled around the 2 million Jewish simple we show in Chicago for bulk lump there from Oklahoma.

Not for the long forget room, which he says Wow HM.

The answer to your he or she has the what's you know it's a whole range of element for you off for if you. Each other later you know for one of the your total of after the children. The now quickly told him the true to put a function.

<unk>.

And also next I would like to say that talking about the S and the pot. So because I think that at the need is really a kind of the sector in our business that is a heavily impacted by the pandemic because previously we pretty much focused on the outdoor business and also does the.

The wedding dress of for.

The graphing and also E commerce or financial industry. So you can see that the ultra low because of the and then the impact. This was heavily like dropped and decline and also second of all we willingly dropped out of some of the customers for example, in the financial industry or cosmetic surgery industries.

So the at the meat side, we have a strategy that we are going to leverage the ability of the existing team to focus more on volume, especially online education than on the also gaming as well. So that is the reason why we are seeing a very good result of growth and also next year of focus will be using.

The same SMB team to further optimize the and the online business and also to prioritize our services provided to those on line, but the customers and especially focusing on the network from service apps downloading service for example, and also because that this year, we have big growth on the game.

The industry. So that's why we are now pretty much more focused on the professional services to those of downloading and other relevant areas.

Judy complexity of gene Doman integral component on the two you know sales routine.

No I kind of how would you go.

The who pay the 10 years from now that you might need to agree to learn from the incentives I'm not sure. It comes from you want.

No the timing on LNG and downtime in the opening of the behind it from good or total charge offs on timing on turned on the OEM shutdowns. The whole, it's usually because in the cooler came back are you sort of quickly where the you unpack the shop people. All of these are what are some who the leader for young he can price so too and the fish on your eye on your related net.

So second talking about the impact from the competition landscape of the short video. So you kind of see that we have first of all of the indirect impact from those particular competition.

For the brand customers in such that the old Brian add if you like so he for talking about this competition. We are talking about the indirect competition for the ball from the long video side are you kind of see that a this year because of the spend that make and also the lower down that's been going to the entertainment sector, we kind of see that those.

Line are now preferring to invest their money into making videos on weibo BBB or that instead of those traditional platforms of making long videos. So I think that is the favorable trend toward the us.

[laughter], thanks for being in kind of the you want to show of 'em launchers from Chile, and Argentina Aegis is the kind of got going on she and the other sometimes you make that maybe non tack on call shovels for me to be the won't be able to do to the United in the use of that really can't ramp kind of losses a woman. He was the element of on all the rules.

I do not much of the one component of modern down non core somebody you.

Can't tell you she Richard on the from Russia, William total certainly for Htwo Cregan permitting Archie channel you suck.

Moving on I know I think she other convenient easy along for of course, the me from quoting the Trunking. My name is one of the was Shimon for your tone from Indiana and non interest for Sean Thanks for.

Many of the laptop and she didn't seem to matter of happening. The now show me the pulling back the showing the ideal to the user.

And also I want to say that in the SMB sector, we still feel a little bit stressful.

Couldn't confronting the competition from the show video platform because the comparison with the test and also the image like Weibo, we do see of the advantages maintaining in the short video platform for so what we have to do is that we want to focus on the service provision as well as the of optimization of our.

The reason for the AD as well so you kind of see the this year, we're doing a very good job on gaming, especially kids free. So you can see that interest hope for for us to get more budget. Some of those of brands and also customers also next year, we're going to focus on getting more budget from the other famous.

By the customers in those cosmetic surgery area of comedies or Internet service et cetera. So that it is very much hope for for us to get more budget from those short video platforms as well, but overall speaking in the short run I still believe that sort of you know platform is very much of about changes in terms of.

The making ads.

Over the Texan image oriented platform like Weibo.

Mm three of those assets so how much in the financing going on here the from here the China. Other operating from there of course work on the highway kind of not they're shipping from leases that were done the teaching total.

[noise] the ciccone own elements from an outcome for Sichuan made oh from the Communists show on the to sort of two so must be okay. Now the mine when she's in the Atlantic the on leases, we bought the shanker what you want to each other for free model could you sort of talked about the was much operating you know who knows about king pine cutback on shot one of the top.

Actually woman, she shops to GAAP, United Kingdom Usone, what's the other DAVA and change the senior notes onto non can magic of digital not to pursue the ecommerce.

So and also I have to say that I'm talking about the specific competition.

With the show so video platform from.

On the semi side first of all we are going to further invest into making more high quality short videos on our side. So you can see the we have the always focusing on investment on this area. So this year. We are also building up more inventories of the advertisement as well at the same time.

Based on short videos and second of all not only with the trying to focus on the content, but also we would like to focus more on the customer's conversion rate by putting that on budget over our platform. So you can see on the education side, we're pretty much focusing on the only doing add but also making.

For the conversion rate increase for them. So this is actually a kind of the hybrid way for us to contact for for us to overcome the challenges from the short video platforms.

Okay decision.

Thank you.

Thank you.

Next question comes from the line of 10, how from Th capital. Please ask your question.

The other so I don't.

Well I can I get into the <unk> okay.

I do the what does the south range of claim you take a lot of things should the change.

Ah Tony.

Okay sure. So she can.

Cash flow.

The whole Oh.

She had and you don't make the dishes.

Well since the fills the shot you take a short moving [laughter].

All of my sense of more of the shuffle interest from the other side that the.

The hotel the meeting in Chicago.

Let's see you show a woman of cash from hospitals for short of shop.

Bush coming out of the.

More non Thomas was triggered the on GAAP that it is for us.

Sure so the phone.

Yes from the Chad.

Uh huh.

Good day.

Now see signs.

So [laughter] it's continued.

As of the shortly.

The company has made great progress on the short for the last quarter of a we mentioned the company has about a half million Oh for already Oh pardon for shortly.

So I wonder how many of them opened a accounts.

By the fans.

And today in the <unk>.

Sales for instance, the plan what is the company's goal in terms of how many Uh huh.

The plan you know for work on so open the answer for the advertising revenue.

Thanks for free.

What's the percentage of total of the.

We expect to see that's my question. Thank you.

[noise], Oh, well contained to the assertion on this the screening the potentially I'm sure that you've gone from each vendor should be her critically the agreement that day, she's still run the on the margin Badlands and see some of the money. The you talked to them and go to the to scrutinize.

For the acquired.

The financing is who can be booked the movie for there too easy to heart of Kumar each line to your hires from the like no other shots on goal.

So first of all in our previous presentation I mentioned, the little bit about it so let's just recap from.

So first of all overall speaking we have over 700000 accounts already opened on the video comps and also talking about those accounts having of the 1 million followers. We have 13000 of them already so the growth rate is very good and glass so of course that I'm having.

But that that is still relatively way smaller comparing with the number of media that we have for self media that we have on weibo.

The the so income to come out of them you know total non.

But I don't pull not one of the use of you know tones in the lubys outside of traditional two quickies I didn't highlight of Uh huh.

Interest income of legal 20, so to me because the other PD.

So given the fact that creating the content of video is way more difficult that batch of creating a patch the image like we traditionally did the in weibo. So in the future I think the number of video accounts will be still remain relatively small against the total number of accounts that we have.

Huh.

There's a lot of neutrolin she for someone like many of you know tissue order the game, Jim other free shop true.

Uhhuh suzman non I know from pushing hard inventory of course integration even on the booming energy on the heat treat her shipping the it was sort of a kind of contingent on kind of touch oxygen live from the Mi cheap.

Okay and she also the who wish him the actually on the source of Encore shown is only the not the utilization of lead. The proceed on my.

The common keyboards down each of the only the keeps the decrease for the people that into line you could put a woman like the liana.

Non-GAAP onto for quick from all the time each of them to work with the major showing them timing from interest rate on the math you come out of the.

Sure well into the Tony the truly appreciate the time and that somebody the other thing I should influence of the will be done the she buyback image of the gel rig was no to your children. She who go live of shown how the bottom of the Cabo should the need to see net [laughter], obviously from a lot of who really don't make on bulk of consensus I know, who don't know too.

The the settlement with the recently hurts the whole we've kind of hit the genius im not required for from the.

So given the who kind of pilot.

A lot of Pan out the gym Ludovico for that they don't them from us.

And second of all the let's talk about our strategy, which is very clear already enough group. So first of all in terms of production first of course, we are going to emphasize more of encouraging those the capable assets to create more high quality videos on our side. So by those are capable of sort of.

I mean, the media or pay allows for those who don't delicious food.

Accounts and also those fashionable brands or the fashionable accounts or those cosmetic payable out as well so not only the can get the traffic from the video itself, but also the campaign and extensive subtract the ore feed from the way for cell from those the Texan energy users and second of all of.

The strategy is that we are going to attract more external accounts or other external creators to join weibo to publish their short videos at the same time for.

For example, on our track those people from BBB or watermelon or the tick tock et cetera. So at the same time not only of the can generate videos on weibo videotel, but also they kind of actually are the same time publish some type of an image and to show their attitude and sometimes interact with the followers.

By commenting et cetera. So you can see that this particular part of the hybrid model is the one that we enjoy the most gross or the biggest growth this year.

And she says we should focus on the pull in the we kind of you from him the tool which was done in the shipping harder to some of the governor we both have move should be nearly of how we should humanaone no equipment going to for taking sequentially. The issue will become part of the you know who come the Peugeot peak shaving some good people who were the way too.

Some of the book really some simple from young Ku at Sebree shopping for me.

From the Chicago for Chinese who know me from kind of turned out they were for simple for you for the team will create momentum down from the will go for it.

The down I know some of it kind of ownership the show impact the humane religion, I do a credit reporting is not only the two liter should be something of the new publish of each of the continued okay from in terms of any shift to read on shipping the new reality for to get involved between the two easy line nothing of shows on the you could see line.

So I'm also talking about the consumption side of the first thing is that for those creators of videos not only they are publishing the videos, but also at the same time test of images as well. So you were talking about the followers of those of Coelce you can see that the average time kind of spending is.

Like the two times higher than that of the time spent on tax and image only so this kind of the average time spending can help us to improve our activities and also the second thing is that we can see that in weibo. We can create such kind of the independent states for the advertisement and also for the V.

The other based of consumption behavior as well. So this is very helpful for us the gain more budget and being more revenue from the airport and also we can build up a very good inventory of high quality video and also advertisement as well.

The to determine the only kind of home and thinking on Yankee I see total into a useful when people feel so definitely the true good increase the boarding assets creature she the killing the teach out of the.

It was from the total show count on some of the orders.

Coming out of the on time sort of English Uncooled read on the total paid day, who don't rebuilding of Asia palito towards the Josh for cheap or the accrete tissue continues on the room the magnitude of for China should not be machines for them I don't need for to finish for many many on your financing should move from other call you couldn't zone you the.

The attention the selling of lesser three of people tend to be should I mean, and the time you want to make sure. She doesn't they were on track for her.

The the attempt to Tokyo comes from Asia.

Yeah the.

Finally, let's talk about the objective that we have of course in the short run whereas on the focus on the investment driven strategy, which is to say the we're not saying, we're not saying that all of the creators of the videos should actually know give us more consumption the payback higher than our investment non.

The story speaking so that's the say it's pretty much the case that in the short run we're going to invest more than the revenue coming from those Ah creators. So we have actually of course true AIDS. The first is that we are going to encourage more checks and image creators to convert to the high court.

The G. video creators and second of all we're going to attract more external creators from other platforms to arrive on Weibo account of video accounts to create more videos and at the same time interactive content based on images and tests. So that is a very good strategy for us to further differentiate weibo.

From other platforms and also give us a sustainable revenue contribution from the at POS and video side as well.

Assertion [noise].

Thank you.

Thank you.

My last question comes from the line of Merit from.

Bank of America. Please ask your question.

Thank you all take a of course.

Management, Thanks for taking my question.

Can you please share with us feel pretty good outlook for the advertising business next year I, particularly the Aspen sentiment of your advertisers as average industries.

Thank you Oh, if I use actually she's just for what it's then Uh huh.

Well the Satish, hoping for.

Got the began the true are you able to easily <unk>.

Tissue damage you know to go put on much of the here the other.

Or to other somebody in the go to sort of she she says that she just kind of.

The <unk> would you need to look on the other some of whom to leave the routine and the talent I kinda on any kind of month prison jumble. That's the case. So those are kind of timing the women in I woman the.

Ooh Ooh yeah.

That's easy, but you should probably not a bunch of the hip shouldn't go shop for you know for sure.

On the coaching on who's out one line in shop on his own some good day Uh huh.

[laughter].

So overall speaking talking about the industrial outlook, so and continuous the we're not going to only focus on K for also as many of the same time and also we are now trying to focus more on each different verticals and also second combine the brands together with the effectiveness of.

Version of that they're going to add so this is a very comprehensive and holistic strategy for this business.

Oh, the permission to assume sort of the horseshoe onto the Amish on coal for the shop. The you know I know her initial.

Shovel of document she told the hip.

As much of a youre. She is kind of show fishing tools from national Jewish or for the fine you want to know how true told me the handyman channel one she's interest for the cohort you finish your channel shopper she's sort of course it will keep the she was the coke Israel shooting the entry homogeneous rather than on the cohort so the shingles shipments to come from.

On the you'll see the pictures on the shift cope with the show on from a total of Bitauto the yourself Sheetal Shah while your total like in the future actually true.

HM Okay. So you can see that in the future. We can see the by doing that we are going to increase the increase the branding and also increase the semi side as well or effectiveness as well. So you can see that we are going to focus more on the budget goes like Automotives gaming and also FMCG as well.

So for example gaming this year, we pretty much focused on those new games published this year and also they can and they have a huge demand of getting the very good effectiveness of.

For games, and also high quality content of games as well.

No. So those ones Union you would sit out between the two what kind of food on the cohorts you should realize there is the highlight of Hopper. Your line was kind of that filing and the huh.

Cook, who the change of a cohort of your sort of your leverage from.

He was not shy of Yoshimi of alone for the cohorts each on the this the bulk or audio she Bulker Commission of the opposite of comes out of Michel each of nothing on change the along leadership of concrete. He was he talks and the Charlotte for college.

There wasn't much of my sheet here the couple of contamination DAF for teaching them beyond 92 adult on the go down.

And to make and I kind of like the only show didn't sort of the holiday shifts from one of your line is you can either.

No the amount of toward the share financing on top of the who's on the block and all of the geometry for where we can.

Mm.

Also let's talk about the industry of the.

Gaming for example, so because of that now we are trying to focus on.

The quality of the quality oriented customers. So that is the say on the gaming side now we can see that the up primarily very much I'm very well collaborated with the Allegheny health and all the business for example, and they are making high quality the games at the same time, so they're put.

The much gaining more traffic from weibo, but if you're a continuously making some of the games like the web page game et cetera, which does not necessarily the need to build up the brand.

But the only focusing on the effectiveness of kind of an advertisement I don't think that they are going to get outside of the traffic from weibo. So that is to say that we are going to see a very good growth from those concentrated the verticals, the especially those top brands concentrated areas, but not bad debts to be.

Did it or.

Scottrade area.

<unk>.

So much of that the.

Fishing sign for the two non telecom and the so called for the kind of from really none of those who share creep officially the walking into the from yes, you got that financing yet the when patients and the share type the hotel on top of your hurdle at Twangiza all for selling sample of can I use on the cohort that for them the background.

For the tone change here and the China kind of on the line identify liquidity on the chart.

Yeah. So overall speaking, while we finish our monetization strategy implementation, we're going to see that in the future. We are going to continue to see focusing on those customers and that of investing more into the they're high quality area, so, especially in the future.

The if the brand not only the brand customers, but also for the need the if they have more budgets focusing on the online for the various names, whereas line. She no collaborate and also attract those assets.

I see okay.

Thank you appreciate it.

Thank you ladies.

Ladies and gentlemen.

That does come from the top.

French for today, Thank you for participating Chile discounting.

[music].

[music].

[music].

[music].

Ladies and gentlemen, thank you for standing by and welcome to the we bought the workload the Cuattro Twentytwenty non <unk> GAAP.

At this time, well get the shipping the listen only mode of to speak.

This presentation, there will be a question and all the time.

Last question during the session.

The star one on each of the show.

I would now like kind of the country interest you for speaker today Sandoz true.

The <unk>.

Thank you operator, welcome to wait for the quarter Twentytwenty only hoping for coal during the day of Chief Executive Officer called the long and the VP of finance the interest AD for detail.

The conference call is also being broadcasted on the Internet and the debate about the way the I hope website.

Before the nature of the Bucks.

The next two weeks the Safe Harbor statement in connection with today's conference call June.

During today's conference call, we make forward looking statements statements.

They've been stuff at non historical facts, including statements on top of the thing that patient.

For the P. thing, they evolve and other risks and uncertainties.

The of important factors could cause actual results could differ materially from dose from teams and other forward looking statements.

We assume no obligation to update the forward looking statement interest conference call and elsewhere.

For the inflammation of the body. The other which is included in a way for the annual report on the assets and other filings with the at the C.

Oh, the information provided in the press release is occurring as the bid here, though.

People of seems the obligations of piece of information.

That's actually quite under the applicable law.

Additionally, I would like to remind you that our discussion today includes the.

Certain non-GAAP measures.

[laughter] Celtics compensation I said the other financing.

We used the look at the financial measures the bidding up at the understanding of sleep with the compel the kids operating performance.

Do you feel close that.

Oh, no that's been nice you'll see the crude moving that into the losses and other items that are not expected to lease out infusion of cash payment.

I'm not really cool nature for anything big piece of our core operating results of the all the lead.

Please refer to all the press release from boys from nation up all the non-GAAP measures.

No. He mentioned the prepared remarks, we'll open the line what we feel in the session.

There's a lot of could turn the call over to off the old golf the wall.

[noise], but all claimed by the <unk> for now the boards have all of your hobby.

Thank you Hello, everyone and welcome to wait for the quarter 20 times the earnings conference call.

The the culprit for somebody else on the interest all Sunshine to the people.

I mean, you sign of on the of the teams.

The are you running into Tony's, although the team.

On todays call I will share with you I like a wave of usone product and monetization as well the cool, but the bait all key initiatives in Twentytwenty, which infringe I'll leave the what the somebody doing the television.

Part of our Union the subject.

The working you should not off of that really me then.

The any new interest you shoot for you.

I don't know you achieved in the into non backed in the Golden Med D. The one of the beauty of them have enjoyed true.

Let me start we felt the court of financial without interest the quarter Oh total revenue reached 465, when you sell the mellon flattish year over year out of time.

Hi thing and walking revenue reached 416.7 million, an increase of 1% the opiates Nike percentage <unk> of <unk> AD revenue came from mobile sales.

Good day.

The soon to be more when they feel free.

We don't need any into nobody's come true.

Other you're going to hurt the union.

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Well clearly the beach I don't.

Some of the weather you always want to maybe even done the BT Weve had the Georgia.

[laughter] on the use of from Labor day, and they used to meet the exact year for you to 511 nearly September 2020, and average day you grew 4% yield for you to 220 for mailing the September Twentytwenty, both representing a decrease of 2% what over the quarter.

94% of legal entity pins on mobile.

Well the G box meals agreement the landing zone.

She can.

When do.

The time, you know you Tony Tony.

The only Josh you would actually enjoy the show me Sean.

She from within the.

Oh no sorry.

This quarter with going use the pace of steady pace and we think the using the each month of the patient that's the all key strategies for use of the product population.

The more emphasis on the increase in consumption of deficiency.

And he is the social interaction.

The lease sales.

Sales of Gramophone of June.

Julien for when she buys the hope.

For not Union for me real kind of code, which I guess you go channel take each of the engine.

People, who Greenwood of Godaddy from Doug.

For the.

Louisan between shots.

She took the <unk>.

Genius part of the economy interest.

She she was in Chile.

The report the unit.

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Interest.

One of the shot the if.

On the annual Chunky range for me it sounded like you for Jones for Pinnacle.

What chalabi for the timing.

A portion of the tone GAAP, because you're not using the <unk>.

[laughter] touches all of the tonnage.

Yeah, I mean, that's what you do azure.

Yeah, well of course.

Sure.

[noise] these assets on the use of skills from post the summer break in all of that we've refused the members decreased in September of compared with June.

We had the <unk> the conventional happened in terms of you support for the second half of year maybe.

Mainly due to lack of impact some cutbacks and investments for the life the show and entertainment industry as well as a back to school the seasonality.

In addition on the engagement from Oh, you think each man I sat for the also and that's because of the impact.

That impacted equally for by the has the competition in the use of the market actually to top line I see aggressively investing for acquisition.

As such for one thing we have baseballs, all investing in social actually be on the BD Vito area for those products on outpatient perspective to solidify on lots of the company I'm kind of snake a use of blips now the two illegally unique platform provision for another day, we have both of that pop out.

Efforts, which handle and strategic partnership since the fourth quarter, hoping to see a wider use of college.

Selling of off on the of junior come to the show from North of 20 audience.

The treatment to chalk release from Washington.

Yes, usually sony deal, which all of them.

So a lot of people go you show the ability.

Two of the each of course, when the Hopper She college at each of the tool.

Kindle Sunday, the Julien I won't call each of bunch of people to sort of cool.

Who couldn't walk the adoption for them so.

So if I want to anyone who owns the shimon for the chicken from Josephine.

On the line to be [laughter], we had for the emphasized blank classical fullness, how often among <unk> assets out of the type it from key industry and the reason for all of compared to the basically the market will be said yesterday the structure of we talked because of these factors for our business the copy of the comeback.

As the result, I'll talk in the industry for CECO into the gross credit for it.

Quarter underpinned by the notable growth in the number of runs out of the types of which contribute to the stabilization of the AD business in the first quarter of yield the of basic.

So did the reach of what's.

So anyway on timing for someone of omni channel.

In discussing our operating update [laughter] better initially of course with the snake in at least the pot of I might have they should.

Moving on the instrument shutdowns from them [laughter] for to Judy.

Yeah I was one of the from you.

Comes out with the jump off.

The but of course, you use of me.

Gotcha LIBOR the type of watching the ocean.

Sure the shipping to the shows for the from you what real quick on total.

Sure no that's the hitting the she will be able to shoot to achieve meaningful portion of the joint.

We're facing the increasingly intense market competition for the second half of the year in response to that it's crucial for us to push it pushes out the optimise I'll use the product to for the day, Hence we bought the uniqueness.

And of course pump at the competitive sets in the social media sector and the new wall. The step up on the investment in BT and use the community. The protocol area and you couldn't enhances the with the acquisition capability. So how do they didn't lose the habit of coking coal assumptions of it every day.

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In the support of he used to compute topics and keep the growth double digit yield the give you used the discussion around calk excuse nicely as well moving.

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I'll accretion from the we'll for the encouraging me the Ali and appeal to create topics and participate in public discussion with elite at all from a wrong topics.

Income from consumption side, we do for the intense use of consumption and discussion around how called <unk>.

The more quality content offering we've seen the discoveries don't either.

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Moving onto the social it's all so could he has the product social features took five content offerings and the social interaction.

For for relationship based of feet, we had the first the operating distribution mechanism and the.

And the peaches, two facilities used the interaction and the fees.

For instance, we reinforce the elected content distribution in the relationship beat the feet to beef up social content offerings, such as the cancel the traffic social to to post news the Microsoft to to host the use of might have missed and post that was he can discuss among uses for fall.

Okay.

At the Snow Lake on top of all coming to the Ivy post the features the.

The we added social features putting hence the lucky ructions amongst the sets that enable users to leaf message on the main page second for comedic products, such as fast food and you could call peak, we have slowed the enhanced the social attitude and promoted dance social relationship.

Build up and the interaction as loud interest.

Switching to the twice and use the social signals in the relationship based the speed.

As the result in the support of he views of due for the topic and the number of interaction and relationship Buda into the topic all grew double digit yield for years and nearly 60% of the call. He will have the <unk> agent is to put the topic.

With the with the pools like this we need to since the end compared to the actual felt on the products will enable us to tap into growth of the overall self media market, attracting more self media to wait for until I didn't use engagement you.

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[noise] death from we saw the month why hockey hockey games, and social actually the I sleep was cool composites net next let me she of some color on the progress of media account pullback seek the launch of the pull them into line, we have been focusing on optimizing all possible mechanism to add to the facility traffic the superior.

<unk> and fat accumulation around the do accounts as well as Benson all blends that the nation among the leading the pay wealth and use the.

As of November we had over 750000 content creators participating to lead the account program on labor for the mobile each over the 2000 and already have 10 days over a million take.

Taking the November match, the asset you simple the Mendel BT Meetme with the mission and beauty video viewership those increased over 30% year over year for those most of the active active video accounts.

We are encouraged to see a notable strength among weight of pop contemplated the ship to where we need to NAV, which an introduction of of of video account program and Meanwhile, video of come program a check the talent the video content creators from other Apple the feeling and accumulate social efforts on wait for which the assumption.

Men according to the pace of network and each of coking coal system the.

Moving forward for one thing the lower the entry bevy of for opening all of you do a video for cash.

Labeling more cable else to wage and benefit from traffic support from retail accounts pull them for another we elite force me to come to Houston based on social recommendation, we think the video community, hoping to know to use the mindset to visit the beat of community and does for the July Vito can come from.

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Moving on income.

The dozens of don't change from quarter to assume the from national pool for that the book.

Research and channel from the quality of course on any kind of youth.

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To sum up on top of channel investment on the month Smoky competition for schools the Mideast.

Pitch and caustic and social media function took while used the base and we do think each month, so as to enhance our competitiveness in the U.S the acquisition.

Second we will focus on the increase will use the content and stuff and see maybe the proof of concept of the consumption of events of meeting and the from need of product and does the head of competitiveness in the market.

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Or decreasing 20, 22% quarter over quarter.

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Show the yourself [noise].

Okay and revenue increased 12% yield the year was 53% of quarter over quarter. The go but the growth was nearly to the the by a notable increase in the number of brand the customers, which reached historical high this quarter from the industry perspective, the EPS.

From a category so of the acceleration.

Benefiting from accounts receivable increased in the number of customers.

Although it and hence the industry to didn't bother transaction Oh, the good solid double digit Corp.

The team at previous the sheep Hearts by pandemic started to come back this quarter of those you feel short short of the same level last year.

On top of the overall at the NAND. The coffee, we also a tip of the such mobile close to our differentiated value proposition took when customers maybe on two fronts for leveraging all the unique strength in the distribution and discussion around the top IP such as the blockbuster shows and it's for.

Yeah, we managed to open up the incremental inventory by two leading calling from around the IP I.

IP based marketing would enable us to tap into or for other customer base as well as drive monetization through accounts and operations.

Second we focus all of the integrated brand plus the woman that solution to pay customers to capture higher average.

Especially with auto and at some of the keys that.

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On the line.

Revenue from Keybanc.

Circle, the Turkey income to come true.

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Well the work to show up and of course in the non fuel guns.

Revenue [laughter] 20 in talking to some sort of thing.

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Moving onto SMB, I think revenue decreased 15% year over year and increased 20% quarter over quarter non.

Notwithstanding the tax to the overall revenue level last year, we are pleased to see any and all the other patients that could become the corp. Both the ever of <unk> and it's the.

This year, we have that she likes to this day to set the as we beef up our efforts to drive conversion you can't all pushing capability.

Consequently, as revenue from gaming and all the education the sector continue to the triple digit growth of any.

The the basis for example, the July industry specific solutions for these two sets of.

More specifically at Chapada code the day to set of customers Nuking, the least mazzini as well, it's I solution Pocketing, a high school and the college examination for on the adaptation customers.

At the product like a product like the effects of people feel customers mocking need of around.

Around product launch and the T. tiny leading to water cut some of the coverage and the higher volume for us in the <unk>.

With respect to other assets.

We continue to focus on top of the Mike. Okay. My income from the standard customer base and improved quality of this year Jim.

During this quarter, we took steps to optimize the on areas, where weve quickly the seat not confuse the feedback that setting higher at quality standard.

Despite the short term revenue line, we believe the <unk> of the overall asset quality would benefit us in expanding our customer base and optimize the AD performance in the longer.

So what are some of them.

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From in consumer.

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Net income and Josh on the.

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For me the new launches.

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Doing well the TV the other team, which we chose to line.

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Total for each of the interim meaning from Gabelli.

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The agenda she was given to the cruise line, how do you show the chip to how much all of them.

Well the chunky through the day, when we're kind of June.

Could you jungle to one quarter of <unk> showing from the government.

Finally, let me share some color on the poker, we sell our products and technologies for the two could talk the approach to interest at alcoholism and shop distribution strategy. A. Good example is the game of life of Kingdom, a blockbuster the blockbuster day.

View of the customer go through we should talk the use of boots rapidly upon the release, we refined our AD attribution backend system to accommodate the especially mocking the allowing these customer true to reach of incremental talk of to use of beyond the or reaching the scoop and the being higher conversion as the result.

Because of that because of the feel of customers the being the lease the old while helping the customer the hence the smoking efficiency significantly.

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Oh, the can significantly enable us to capture incremental EPS bucket the.

The Pos such success success story, our next step is to put together an industry specific at the loosen and make the standard at offering for the in the industry set.

Second we will focus on tech all optimization, a round of food funnel marketing in the next few quarters for.

For example, with the Internet of except the we advanced our technology to deliver better app download the ceiling and the completion rate to optimization on the download and a reconciliation process we.

Successfully lowered the apt acquisition cost by over 50%.

Third to address customer lead generation, the especially with adaptation E Commerce, a cosmetic surgery in the system that we facilitate the easy Buda of landing page.

Using our own CMS cool.

Currently customers the use of T.N.S. So the of the conversion rate improved improving by over 50% upon the adoption.

We sold the execution of the Abbas initiative, we are well positioned to capture higher performance at wallet in the market.

No it's on the topic to non hundreds of which will.

With that let me kind of look for over the same called for a financial review.

[noise] frankly, the Gulf they and the Hello, everyone welcome to the late for the third quarter of <unk> earnings Conference call.

Let's start with the of the metrics in September attendees from D.

Well I mean, you used for sub crunch of 11 million unique of done to a net addition of approximately 14 million along with other a year over year basis.

Well look I like the do reach for the 220 for meeting the presented a net addition of approximately $8 million a year over year basis [noise].

Let's turn to the line shows.

I think the lunder, let's call it part of the luck with for some non-GAAP results.

And the other competitors out for like year over year basis.

I like otherwise noted.

Now, let me walk you through our financial highlights for the third quarter of the 2020.

Well the third quarter, probably towards the latter granules will 400 of 55.7 million flow.

Net oh, it decreased from 4% of costs on price debate.

The exceeding.

The high end of our guidance of operating income well, that's kind of the 79.4 million representing an operating margin of 13 net put that in the.

Net income attributable to legal was about 100 of 52.9 million.

The diluted EPS was 66 cents.

Now, let me give you more color on the revenue.

Well, what other what had been on the MCU revenue for the first for the public funding the quick 1% to 400, the 16 plus 70 of it.

Mobile ad revenue.

Let's say Honda the some of the fixed on one maybe it how could build the approximately 90% of total AD the revenue up from 87% of last year.

Moving on to <unk>.

In the third quarter Weibos cash add the revenue with the 221.2 million.

The increase of Coke assigned to the over year I'm stuck of 3% the quarter over quarter.

Like every day and that's really about the domestic assumption of Golden digital transformation, Okay business demonstrated where the recovery of momentum with the number of whereas other Kaiser funding this past quarter heating of the CT high.

Let the allied here to see according number of brands recognize the we bought the unique value proposition when connected to younger generation.

The average in Pos sales group losses, as well as the liver and brand the flat for from the scope.

This quarter.

Total of traditional brand the budget cake.

Okay customers no for they are located at the higher budget.

True pro form S. Three of them for Doc Sac has stayed on the appeal of our marketing offerings to drive the yours for all the way down the funnel, which puts us the us this opportunity to cats for incremental add the war of the it in the long run.

Yeah, that's true why.

That's true in our kids business, what's the genotype lids for all of the basically caught her.

The schools field by key sectors, such as I, often say to all for mobile and the luxury category it et cetera.

Oh, Please sad entertainment travel and the real estate sector remained on the lack of growth trajectory.

By the way I see it early signs of recovery for the east up off of the fixed and adjusted her eye towards.

Part of it I study.

In the third quarter waypoint, that's on the AD revenue, which for the kind of the fixed the fixed part for me again at the.

The craze of 15% and line craze of content per side of the quarter over quarter.

But the sudden the trend of our SMB business was mainly attributable to two factors.

For us.

The credit pace of off line work has continued to lap the head at the over the life any sector I'm.

The way down the growth of the ads and the AD revenue.

And the second.

At the life in the last quarter.

The initiative to clear out of low quality cost from ours.

As credit. He is also a lack of play impacted the out I 70 revenue.

[noise] <unk> assets.

Okay, and the educator sector continued to pull the trigger for data growth year over year post heard of bad part of his Copeland Oh, the beating the since the end pro Formas.

In September we officially launched our revamped the admitting sets from she'll perplexed because free featuring a spirit.

Optimize the 50 at the deal and the tail out at all for the with me.

In the hope of driving our of for customers. So most of the rapid response the feature.

But the add the rather than the and the higher AD placement the deficiency.

At the other meals farm out of the buyback for the third quarter real quick the 52% to 29 point to me that.

The momentum of AD spend from Ali if I bought the flag, our sales and cooperation in driving value for brands and the more tests to a cheap of graduating class for form of prepares for integrated at the pump head of both platforms.

That's that.

As that of the bomb Ali Baba highly correlated to the two is all business operations, especially with lots of their strategies.

Which may change from time to time.

As such we cannot assure the fact robot the growth will be sustainable in the field her.

Volume added the surveys that revenue of big price of the 11% for 49.1 moving into the third quarter, primarily due to the day craze of lot of stream of revenue.

Partially offset by the increase in membership revenue.

Turning to costs and expenses total cost the expenses for the third quarter, we quit the 3% to 286 part for me then.

The increase was primarily due to the higher bad debt provision and the personality of the policy.

Partially offset by decreased the marketing spend.

Oh for the income in the third quarter, what's the rough part of the 17 nights for for me with the.

But then to the operating margin of 39% compared to 41% lots of here on the 31% in the second the quarter.

Turning to the income tax.

And the GAAP measure the income tax expense for the third quarter was circa media compared to 31 close for the last year.

Net income for my kids are those they bought in the first quarter, but.

Well kind of the true Paul I lie made in the pedantic a less margin I'll start the fed OSAT compared to 38% of last year and the 30% the in the second the quarter.

Turning to our five of them. She it of the tackle the item I thought the September circuit plenty of lumpy way for cash cash equivalents and the slow Tony Ressler total the 3.2 billion.

Part of two coupon for it I thought of December 31st I'd like to.

Mainly due to a nice let's see it.

Oh, the several times of the booking cluster of made and just see if the from away was the senior note offering me to line interest like day.

In the third quarter of coming from to tax provided by operating activities was 235 on to me that kept the expenditures totaled the 10 seven meetings and the trade and I look at the end of the benefit amounted to 7.7 day then.

Now, let me turn to financial outlook.

We anticipate our fourth quarter Twentytwenty net revenue to increase by 1% for third for side of the year over year of copper price of basis.

It's for costs include the rally I can age of back in the active entertainment the company, which was acquired on the consolidate the to our company in November of plenty plenty.

And it puts out of approximately 2% of our revenue estimate and this quarter.

This for caught with lab with both current and the president to reveal I'm. The a subject to change with that let me now turn the call over to the operator for the pill I live nation.

Definitely.

Ladies and gentlemen.

I'll begin the question and answer session.

Ask the question. Please press star one on each other for coupon rate for your name to be involved.

We have the first question from the line of are we said yep from.

The group please go.

Right.

Oh, Thank you why the times.

The <unk> see tickets for what actually was laying out the.

<unk>.

Eager to sure no girl woman want God, Your GAAP T shirts, Michigan for interacting with the confusion.

Hi, John the true ventures usual uptick interest sure she's there could be the another huge has the money during the day sure you dissolve for why does tend to other sub girls line called the travel quite soon.

Sure the <unk> corporate sales.

So the I should think of lunch and CEOC I'm not sure I'm Jewish it seems oncology tissue to she was like shipping sitting inside of the engine, which is cheap why should be I'm not sure. The dissolves usual I'm, sorry, GAAP conjunctival allergen Theres still got some concrete wait a true freedom Yeah. The has your school.

She wishes for moving to how people kind of just the swap bottom line of before we go from <unk>.

Yeah, I think for the notebook you acquired the <unk> down to show the woman, the Goodman, which drives the gossip of these oncology.

Let's see I find the.

Good evening management from thanks for taking my questions I have two questions. The relate that true advertising a number one the it's related to the the overall at a bunch of offensive moves and the covering trend in China.

It seems you know China is on track for a decent recovery of but given the seriousness off the pandemic outbreaks in other countries do you have you seen or do you think it will affect the assets no on true the worried from off the the the operating out of cash.

Countries in terms of the assets at sentiments net second it should relate that true.

The competition. It seems that management continued to mentioned the intensified competition from the shop videos companies in comes off the subject allocation. So.

So I'm not too sure they'll be a intense competition of continue into next year or the thing people. We bought for about six of the covering the other if you know improving sure. The he they'll come pack of this landscape the actually a moderate assets.

Cool thing of the time thank you.

Okay.

So could I feel the need not just for between 200 from quantum leap from going from <unk> I will show you highlight for the Euro.

Your attention by the total from me about the along the way so each day.

As shown on T. for through the woman and got some of it wasn't going to hurt.

On the phone is your one really really valuable shop.

The better the show long ago I mean, he told me for quick from both I think someone or for other things on the you went from gun like the <unk> till now with the all of the your line the chalet the for all the pool you generally the Gulf.

The pay late but here the moment to all of you know about Upshaw zone and all of that means you're going to go other shot.

Sure.

Your thoughts on the channel itself for.

Well, you'll shoot for within show the genius years, you got such a bunch of.

So let me give you the answer for the very first question. So let's talk about the data of skew of three that's divided into the brand and also at the meat first of all talking about the brand that you kind of see that because we boys of Baird <unk> company. So I don't have a pandemic impacting the assets the AD revenue or a budget of the bribes.

So far but talking about the EPS I mean, I think that in the first half of the 2020, we really had a big impact.

Because previously our SMB the budget previously focused on offline primary speaking of the.

Especially those kind of the industries like Oh and also for them. So I think that we made some changes on the SMB side. So this year, we move further to the online business and especially the online education, you called those and gaming the et cetera.

Yes.

The kiddies auction my home in the answered all your people to take on some of the loan of she downtime from quarter don't go losses on image on the right.

Yeah Shaun.

Joining me on the.

How many of the.

Cool for isn't it rekindled Jim Hi.

Hi, coming out of GAAP on a cool range it crews from the Hong Kong China.

For GAAP, what sort of from them so to the on our Union. The army for the ship selling the charge of Neutrolin. Following the tradition the usage of Cotwo vocal issue with all the people you want the amount with the along with getting into for the cooling Kim I coupon the the from the unrealized losses. She wants over the right you're talking on the filling it up and for sure.

For the I've done the we all of the come I come from a credit remains of good volume. So quantia you talk of one of them though.

So second of all I would like to say that in terms of our strategy of focusing on the brand customers No carnage speaking of brand revenue or other revenue from the brand customers is relatively small compared with the other big companies.

Oh, because previously and also as of now we pretty much focus on the top companies and also top brands. So you kind of see that of course, we have a very steady growth of our number of customers, especially the brand customers and also in 2021, we have some kind of the changes and also adjustment overall strategy.

For example, now we are going to think large and expand the name most of those from customers, especially focusing on the inclusion of regional brands and also those national fashionable brands as well. So you kind of see that in the next one two years were going to see that more revenues or women as the more revenue is coming from.

Those are the middle and from customers.

Okay.

The two I mean from a genuine if we don't know tells me each home buying from you know who the United usually the steel total we've actually all shown by bulk we should generally the cool for more vehicles, which is true semenya in each of the than usual got lot of Dodd.

Before the show the political.

Sure. He only woman. So do you think of the tried and true thinking about the call yet.

The woman to clients who are too.

But usually the teenage fully ship channel tissue shut down the school will be GAAP, Egypt. The you might go ahead of time you on the sort of houses the Union you want to publicly the two things all the time the shunshun from the.

Cool to match for time.

For a chunk of cool the yours.

Do not go visit unions on the.

The net so not the choice gossiping, none of that kind of on the call them from the crushing harsher shown on the show for 120, I'm Jewish of who we show in Chicago, the bulk lump there from all along.

The other won't forget room, which he says Wow jinyan TV, if he or she commodity which you know the whole 400 on for you off way people have that made the dual for one of the adult all of the opposite she from being of course, what he told me about your throughput of function.

And also next I would like to say that talking about the S and the pot. So because I think that the need is really a kind of of sector and all the business that is a heavily impacted by the pandemic because previously we pretty much focused on the O. channel business and also based on the.

The wedding dress for.

The graphing and also you called the as or financial and that's true. So you can see that the oetwo because of the fact that the impact of this was heavily like dropped and decline and also second of all we willingly dropped out of some of the customers for example, in the financial industry or cosmetic surgery industries.

So the at the meat side, we have a strategy that we are going to leverage the ability of the existing team to focus more on volume, especially online education than on the also gaming as well. So that is the reason why we are seeing a very good result of growth and also next year of focus will be using.

The same SMB team to further optimize the and the online business and also to prioritize our services provided to those on line, but the customers, especially focusing on the network from service apps downloading service for example, and also because that this year, we had big growth on the game.

Moving the street. So that's why we have about pretty much more focused on the professional services for those downloading and other relevant areas.

Judy complexity of gene Doman the group.

I'm going to talk to you know simple I want.

Tony I kind of why would you go for.

Oh, the Jim you talked about arching line, we're talking maybe matter from into the I'm not sure.

Meanwhile, non.

Coming on T. and gone I'm in the bulk of community I had some go the total shot young from.

For the long term Don Julio shutdowns of once you given the cool weather came back are you sort of quickly one of you until the shop. The for all of these are what are some who's really the trick on me the pin pad two and the fish on your eye on your eating the Tanya.

So second talking about the impact from the competition landscape of the short video. So you kind of see that we have first of all of the indirect impact from this particular competition.

For the brand Customising, such as the old Brian add if you like so you start talking about this competition, we are talking about the indirect competition sort of the ball from the long video side are you kind of see that a this year because of the pandemic and also the lower down that's been going to the entertainment sector, we kind of see that those.

Rides are now preferring to invest their money into making videos on weibo BT beauty or rather the extent of those traditional of platform. So making long videos. So I think that is the favorable trend toward the.

Hi, good morning, Thanks for being on the you want to show of launches from children non teenagers and.

The kind of the I got on she and the honestly from batch anyway from it'd be nice back on commercial for me to be the won't be able to just wouldn't be moving that you show the room. He can't claim handling for the woman. The we should following up on all the rules for tied to not much of the while I'm going to unlock the I won't call or somebody who can.

I can tell you when she didn't meet your home of the former showing him for the sound.

Finally for Htwo Creek, but maybe not.

True chunk of your sort of one I don't want to others.

She along for the fall for the May fall quoting the trunking. My name is one of the was Shimon true trends I mean, the then and then other structures like venture where and when.

He's in the town shoes of seasonal at all on the not shown here I mean that the showing the ideal dealership.

And also I want to say that in the EPS that meet the sector, we still feel it at the stressful.

Couldn't confronting the competition from the short video platform because of the comparing with the tax and also the image like Weibo, we do see of the a bunch of just maintaining in the short video platform, but also what we have to do is that we want to focus on the service provision as well as the other optimization of our.

For them for the AD as well so you kind of see the this year, we're doing very good job on gaming, the especially kids free. So you can see that it just hope for for US the get more budget from both of those brands and also customers also next year, we're going to focus on getting more budget for.

From the other famous from customers in those cosmetic surgery area, when you call moves or Internet service et cetera. So that it is very much hope for for US the got more budget from those short video platforms as well, but overall speaking in the short run I still believe that she'll be the platform the.

Very much of of changes in terms of making ads.

Oh, the Texan image oriented platform like Weibo.

Mm three the bench so launching the financing is launching and from here we try to other operating income their calls on the highway kind of all gossiping from me on uses of that was on the <unk>.

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Thanks for telling it no.

Good day was about to kind of tack on shot one of the top thoughtfully woman. She was shown to the option I don't use on EBITDA of about her unchanged for the junior not lots and lots of magic digital not to do the each other.

[laughter].

So and also I have to say that I'm talking about the specific competition.

With the show so video platform from the.

The semi side first of all we are going to further invest into making more high quality short videos on our side. So you can see the we have the always focusing on investment on this area. So this year. We are also building up more inventory as of the advertisement as well at the same time based on.

The short videos and second of all the only were trying to focus on the content, but also we would like to focus more on the customer's conversion rate by putting that a budget over a platform. So you can see on the education side, we're pretty much focusing on the only doing add but also making the cash.

Question rate increase for them. So this is actually a kind of the hybrid way for us to contact for for us to overcome the challenges from the short video platforms.

Okay chip.

Thank you.

Thank you.

Next question comes from the line of can't help from the Th capital. Please ask your question.

So.

Yes.

Thank you again to the okay.

Do you know, what's just the sound strange acclaim.

Thanks, Jason.

Total.

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Thomas.

Non-GAAP schoenfeld muscle Shoals.

From the Chad.

Good day.

No the Shane.

As of the shortly.

The company assets.

Right.

Some of the short for the last quarter for we mentioned the company had the 5 million.

I mean, oh for already Oh.

For shortly.

So I wonder how many of them open a kind of setting.

And.

2000, Sensus line what is the company goal in terms of how many Uh huh.

Hi, Ken.

Well work on so.

Yeah for the advertising revenue.

Thanks.

What's the percentage of total so that the company makes sense.

That's my question. Thank you.

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He talked to them and go through the two for those who for the don't quite know the density of who can be for some great people are there for you could garner from a beach matching the cars on the line Dawn Schottlandt for.

So first of all the previous presentation I'd mentioned, the little bit about it so let's just recap from it. So first of all overall speaking we have over the 700000 accounts already opened on the video comps and also talking about those accounts having of the 1 million.

Followers, we have searching thousand of them already so the growth rate is very good I'm glad so of course, but having said that that is still relatively way smaller comparing with the number of we media that we have for self media that we have on Weibo.

Mm.

The switching topics on the older than you know total non.

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I'm going to leave it was one of those we think of the I saw the DC.

[noise] <unk>, so given the fact that creating the content of video is way more difficult than that of creating a patch the image like we traditionally did in the weibo. So in the future I think the number of video accounts will be still remain relatively small against the total number for cash.

So we have.

The result in the today she for showing the Guy if you don't choose you what are the then Jim other free shot true, whose children and I don't know volume Google should the hard inventory of collisions.

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No. The are like from onto couple of quick can call. The time each of them to wasn't within the finance armies and interest.

From a product though.

Well into the timing of excluding appreciate it doubled from the somebody the other thing on for the influence of the will be done the she's a lot of Oh, he was able to sell.

Oh the block no to your total she who go what's the Sean other people are going to publish for the missile shouldn't look [laughter] true.

True publishing from a lot of poorly them income Vulcan since the time of who don't know food so to the settlement with the Russian it hurts the whole weakened relative to the genius and down to quite the you're going to him, but he kind of bilateral thought out the gym movie for that they don't they don't tomorrow.

Mm.

The second of all of that spoke about our strategy, which is very clear already in the group. So first of all in terms of production first of course, we are going to emphasize more of an encouraging those the capable of offers to create more high quality videos on our side. So by those capable of sort of I mean, the media or.

Okay wells for those of who would all delicious food.

The accounts and also those fashionable brands or the fashionable accounts or those cosmetic parallels the as well so not only the can get the traffic from the video itself, but also the campaign and extensive sort of track the ore feed from the Weibo self from those types of image uses and second of all.

Of the strategy is that we are going to attract more external accounts or other external creators to join weibo to publish their short videos at the same time of Brooklyn.

For example, our track those the people from BBB or watermelon or the ticked off the et cetera. So at the same time not only the can generate videos on weibo videotel, but also the kind of actually are the same time publish some tech the image to show the our attitude and sometimes the interact with the followers.

By commenting et cetera, So you kind of see that this particular part of the hybrid model is the one the we enjoy the most growth for the biggest growth this year.

And the the Chisholm shocked at on the put and if we kind of funny on the cooler you was one of them are shipping them harder to kind of the banana Republic have moved the needle yet probably sheets when the naval nuclear couldn't go into for two sequential at the show will become part of the don't want to become the P. research on the shipping and some good anybody with the way you do.

One of the liquidity from people from the.