Q1 2021 Weibo Corp Earnings Call

Home office, good day, and thank you for standing by, welcome to wait for first quarter 2021 Financial results conference call. At this time, all participants are in a listen-only mode. After speaker's presentation. There will be a question-and-answer session to ask questions during the session. You need to press star one on your telephone. Please be advised that today's conference is being recorded if you require any further wage.

Assistance, please press zero now, like to hand the conference over to Miss Sandra J web or head of our. Thank you, please. Go ahead, ma'am.

Since you all put her welcome to live with first quarter 2021 earnings conference call during the day of if that is active officer and financial officer off the conference call is also being broadcasted on the internet and it's available tables. I our website before the Mansion remarks allowed to read you the Safe Harbor statement in connection with today's conference call. During today's conference call, we may make forward-looking statements statement that are not historical facts including statements of our beliefs and expectations. I mean, Bobby Harrell risk and uncertainties a number of important factors could cause actual results to differ materially from those containing. Any following statement, people assume no obligation to update the forward-looking statement in this conference call and elsewhere further information regarding this and other risks is included in way towards any report on form, 20-f and other game.

SEC, all the information provided in this press release is current as of the date here. Oh, we assume some obligation to update such information, except as required under applicable law. Additionally, I like to read you. I would like to remind you that our discussion today, include certain non-gaap measures, which is cool. Stuff is compensation, and certain expenses, we use non-gaap Financial measures to be a better understanding of labels comparative, operating performance and future. Prospects are non-gaap Financial exclude certain expenses and losses and other items that are not expected result in future cash payment or a non-recurring in nature or not indicative of our operating results. And look, please refer to our patch release for more information about our non-gaap measures flowy management prepared. Remarks, we open line for a brief Q&A session with this. I'd like to turn the call over to our CEO.

Oh, you been asking how about the Hobbies?

2021 earnings conference. Call back, if she always do highlights he was use the product and monetization in the first quarter of 2021. So I'm not too sure whether you took in March 2021 and 94% of labeled any used came from mobile home, $0 a month,

Thank you. Hello everyone. And welcome to

Other manager will shut down over here to 458.9 million, maybe sent to the first recovery of marketing. And the optimization of our competitive strategy from the industry are at the time and marketing Revenue. Increased 42% year-over-year to 390 million ways. 92% of our Revenue coming from mobile, our non-gaap operating income in the first place, which the 137.5 million pack has made in the area of product mind position in the first quarter burning pressure from the time you in for me.

No need. Thank you for choosing the timing chains. Only on the 20, 21 further enhance competitiveness in key features such as portrait and social functions wage coupled with affect the channel. Strategies, we have further improved are using a judgment concurrently with this with our investment in video product, to strengthen use as mindset of using way, poor for Video Connection. So as to enhance our product competitiveness, so the 29th, don't you? Check out your cushy job

Sure, you can change the channel songs investment with the focus on improving user engagement. Celebrity wave was competitive advantage of this acquisition cost. While stressing, the Synergy between Channel investment and subsequent content consumption, and thereby improving user engagement and retention in the first quarter, we stand the dispatch and improve the content recommendation efficiency. And the consumption experience of acquire used by focusing on alcoholism optimization moving forward, we will continue to improve use Acquisitions Wishing Well, focusing on increasing, user retention, consumption, and monetization efficiency. So as to improve our rifle used, acquisition off,

Lee versus you can you just tell me how many guests?

Talking to me, but actually gonna suck you. Suck. You. Suck you. Suck, you suck.

So it's usually over the Shelby. Yeah I would like to elaborate on initiative on waivers information and video information. Feed our objective in 2021 is to enhance people's social features in the competitiveness and that's like use the sickness. And in fact action among among wait was user groups in the 5th Quarter for a relationship-based fee, we focused on the data, mining on quality of social content, to improve social action and diversity and thus effectively promoted user consumption and retention. Meanwhile, we step up our investment in Social interested products to elaborate. In the first quarter, we improve the completion of the super topic into the courses, optimizing the interest test but used to discover and consume super topic but gaming and campus birth.

Plus we also strengthened the interactive features of super topic to improve the community life which led to a notable increase of using engagement traffic. In super topic of your choices super topic traffic, in the first quarter, increased by nearly 50% year-over-year, which generated more social content for relationship-based defeat, and increase the user's social statistics on wait for interface to feed. In the first quarter. We focus on the technology has technical upgrade of the recommendation system as well as altruism which combines the behavior characteristic of users from different channels and in different scenarios to experience and feed patterns recommendation as a result users content consumption, may be improved that we saw a study increase in the use of scale and traffic from a previous quarter actually from your home.

It should be going to change them dead. Dead dead, dead dead.

Pixel Google phone.

So you know who killed Julian crane, believe this concrete, to leave your account mechanism and does improve the production and consumption of weibo s video content while strengthening used. As my side of using label, for video Club ocean in the first quarter, we upgraded we've watched video account product. Improving the consumption experience in Oviedo fees, and lower the entry barrier for calling Creator to participate in the program. As of now, we still a noticeable increase of content creator, register the video account which exceeded 5 million among which the video accounts with over a million phone number.

Each exceeded 25,000 Mi verticals entertainment and lifestyle related articles, remain as awkward as of March. For those videos with over 10,000, fellow followers, approximately 60% of the account and Middle Village generated from entertainment and lifestyle related verticals. Also, we are pleased to see the rapid visualization Trends among certain knowledge related verticals, including popular science, law, and education serving as a payment to the existing graphic and text content. Ecosystem of labeled on live streaming. In the first quarter, we launched the feature of join join to Mike live streaming which enables the inspection between multiple multiple, and creators and users through live streaming hundreds of kol have joined their test run with enhanced interactive features versus Georgia

Traditional live streaming joined Mike perform well in both use of attention and time stamps. In the second quarter we plan to launch the join my club stream with top media. Outlets Corporation Corporation was to strengthen weibo s brand drugs, the nation in the live streaming Market. Thank you very much money on the charger with cool titles being from you. You're fine, cool off. See how we use with your wage.

Kol. Yeah, I mean if he has, hi, I'm going to do the same junk. Can you tell me the fast life and disclosure? We used to classify our business by customer type since our IPO namely K and SME segment, two disclosure measure up to the whole category wise customer with distinction in Aspen at the marketing. Demand, for instance, the market demand for paying customer is usually brand focused while for SME customer

Usually performance-driven number Telus, was evolvement of the advertising industry and we both business as well. The distinction between pay and as an assessment, has to be becoming increasingly blurred, all the other one hand customer across those segments, have an increasing increasing demand for Brand Plus performance at products. On the other hand, there's no clear distinction of the amount of Aspen by paying as I mean. Therefore, we're also the exercising, such distinction in our internal management by choice, but to sales teams, well increasingly focusing on development of vertical Industries, fulfilling each customers comprehensive containing companies, as well as the competitiveness of all our products in the market. And thus, to be consistent with internal management will no longer provide a segment Disclosure by paying less. I mean, since the first quarter of 2012,

How long is it going to be inclusion, let me share with you more color Choice made so far in 2021. We will further strengthen the competitiveness of our social, add products solidify, industry-specific marketing competence, and only the power, and efficiency of traffic monetization. So, as to improve wave was mine technician skills and Market competitiveness from you, folks told me you found me dead.

Give me what I told me a higher wage. You actually know quite often here, 2018, Dodge. Home page.

You talking about.

From an industry perspective. In the first quarter, our area being increased by 42% year over here, a little bit due to the pandemic last year. It off represents 14% gross compared to the first quarter of 2019 before the pandemic, which speak to the recovery of the overall Market overall Market, environment recovery as well, as long as it's with friends and labels capabilities to directly, Serve customer across key Industries, marketing-oriented services and differentiated marketing strategies home in particular. We're delighted to see a robust year-over-year, growth industries. Back by our further enhance, the competitive advantage to elaborate in public sectors, sectors such as food, and beverage, and beauty, and personal-care, we put celebrity and kol marketing and brand past performance solution into play. Delivering an odd.

Your vehicles in Japanese.

IND, the automobile. And hence, the sectors, we are seeing changes in Market landscape with more emerging Brands and the shorter. A shorter intervals between a product released. In the first half of the year in response, we fully utilize our, our advantage in promoting new product for customers to how Trent resulting in with the email. All performance of Revenue, growth of defectors versus the overall business over a year basis. In Alexandria category. Most top brands customers have shifted their marketing efforts towards the domestic Market. Therefore, we strengthen their marketing mindset to promote new products, like screaming. And with the celebrity and endorsements and wage. Increasing the revenue in the first quarter by triple digit year-over-year in the education sector, we did see a proof back from marketing team and do to tighten regulations while keeping an eye on the subject.

Fintech. We are also strengthening the combination of wave was unique, ecosystem and strategies to encourage customers to try out our content Marketing Solutions. Wage tell me about me at home. You don't see you tell me a joke. Cool to be able to do need to do

Yeah. Didn't you while you were shooting off and only God can do the feelings and thoughts on the show. Me any choice in the first quarter, we always highest only continue optimization of products that leverage with advantages in Brand Plus performance counting marketing such has promoted feed prod

Lee scale and celebrity month.

Coding concept and the promoted shouldn't topic products. Not only could this product help, increase brand awareness for customers. If you also feel customers performance-driven needs which largely increase the representation of this product solution among performance customers in this quarter, the number of customers who had asked been on either of our marketing wage or promoting chance and topics products who notably year-over-year with revenues contributed from this parts, delivered strong momentum as well. And meanwhile for online surveys and cheese burritos while continue to optimize the algorithm we upgraded the entire advertising experience and optimize that performance for app. Download app. Download page. For example, we optimize the download and installation, link and improve, download and installation date as a result, the birth.

Increase significantly after the solution was launched video ad in the first quarter, the Run Part of traffic from video accounts. What for a small video ad inventory home and also attract more customers to out of its height, two videos and thus video ad. As percentage of total revenues continue to ramp up. This quarter going forward, we will fine-tune the scheduling and distribution of the monetizable traffic and allocate quality and compatible traffic's to customers with a stronger, performance demands, met her Max potential. So as to maximize the efficiency of traffic monetization, so who was that? I am. So it's apparently, I got a living wage.

So we get home and work Network. We, you know, we were trying to get into the shop also like to touch on Apple's recent implementation of the package, tracking transparency, policy is a launch of idolized 14.5 under which new apps are no longer able to access IDs, namely identify for advertising by default without used information, it is exactly. They are such change May compromise. The position of attribution in targeted, targeted wage.

Idfa is a key tracker for the attribution especially, especially with the clothes cost activity tracker.

In response we have adopted Apple network attribution as an alternative. The Restless in The Shootin, we expect to face off all the ads always and and strategy from you to change in the attribution algorithm in the long run, Skadden workspace to attribute, open to the public, catch up and deliver similar performance. As the original model leveraging model training and advertisers increasing support know. It's only coffee off with the allow me to Nicole over two feet offer financial review. Thank you. And hello everyone. Welcome to the first quarter 2021 earnings. Let's start with user metrics. You much hundred. Twenty one was any use the 530 million, a decrease of 4% off.

You ever hear from last year without user traffic, reaching peak level during the pandemic. Sequential basis with any used, represent it another edition of normally users mobile. I mean use represented approximately 94% of total amuse. We would be used, which is 230 million, a decrease of 5% year-over-year due to the same reason. For any basis are a life represented, a net addition of five million users

Turning to financials as a reminder, my prepared remarks would focus on results and all the comparisons are many rear basis unless otherwise noted know let me walk you through our financial highlights for the first quarter of 2021. We both first quarter 2017 the net revenues were full fifty eight or nine million an increase of 42% exceeding. The high end of our guidance. Operating income was $137 per month, increase of 85% of 30% wage increase of 94% margin of 28%.

Value to the EPS was $0.57 compared to $0.30 in the first quarter twenty-twenty know. Let me give him a quarter revenues.

It was advertising and marketing revenues for the first quarter of 2021, with 390042000 to 61.8 million contribution, approximately 93% of total ad revenues up from 89% last year.

Indicated in his prepared, remarks Constitution debates market trends and internal management will no longer provide a segment of disclosure of add business like a birthday starting from this quarter. Let me share some color are gross from an industry and add product perspective instead.

Total first quarter 20 21, our leading articles in terms of the contributions since the products. And e-commerce, we will have. I become the Cornerstone of many advertisers. In this traditionally heavy spent the industries to fulfill their integrity branding plus performance needs.

Mau also delighted to see great opportunities with new economy, particularly in the consumption factors such as those emerging domestic wage. Assist customers, increasingly recognized only was unique value. Proposition in connecting with massive Young Generation of users, implementing a celebrity and marketing and the delivering viral effect in their campaigns.

In terms of growth, the fastest growing verticals for Olga, mobile luxury, and e-commerce.

apart from low base affect this, vertical have been experiencing black head, secular growth momentum, leveraging Tailwinds, in consumption Behavior shift, as well as I differentiate, he, the social Marketing Solutions,

Ad products protective to see is continued to be the largest part followed by social and other adults, wanted to chat. I'm talking encourage would-be customers of list that work at all to drive users. All shut down the fertile to achieve aside, her our I mostly generated from our differentiated promoted. Check at the top two products home delivered, a strong growth, many driven by increase of adding inventories and the positive pricing tests as well as a relatively low base last year during a chemical.

Revenue contribution from video ad, also continued to Trend app, many benefiting from continuous growth of mount for video, ad products and app pens. If I go to the moment, this our video account program ad revenues from Alibaba for the first quarter was 33 + 3 million + 5. 25%. Despite a relatively High base from last year as well. Continues to deliver double-digit growth speaking to this value of our partnership in service integrated marketing, demand for both platforms Brands. And more chance that says advance from Alibaba or relating to his own business operation, especially is marketing strategies. Which may change from time to time. As communicated earlier, we can log

Sure. That's that's real fast growth. We will be

Dependable in the future.

I did a survey bad news was sic to eight or nine million in the first quarter, an increase of 44% primarily attributable to the revenues, derived from the active entertainment, the company acquired in November last year,

Turning to cut expenses total costs expenses for the first quarter was 321.4 Million an increase of 29%. The increase was primarily due to step up marketing send and hire Personnel related to cost.

Operating income in the first quarter was 137.5 Million. An increase of 55% representing operating margin of 30% off a decent margin profile made intense Market competition and also in Laboratories location as they actively step up or respond in China Wok on the video capabilities.

Turn to income tax and the Gap manager income taxes for the first quarter was 14.9 Million compared to 15.9 Million last month.

That income attributable to reboot in the first quarter was 137 million, representing a night margin of 28%, compared to that, of course, and last year, turn into our balance sheet and cash flow items as of March. 31st 2021, we will cash cash in Cleveland and not coming back. Total 3.4 billion compared to 3.5 billion as of December 31st 2020 in the first quarter of 2021, Fridays about I'll put it down, the committee's was 244.3 Million, Capital expenditures totaled, The Six Million, and depreciation. And amortization expense has a monkey to 24 million.

Lastly, let's talk about our financial Outlook but I anticipate second quarter of 2020 by Revenue.

To grow by twenty-five to thirty percent in your year. Constant currency basis, this book has also reflects, we was current and preliminary review and is subject to change with that. Let me know. Turn over to the operator for the Q&A session. Thank you. We will now begin the question-and-answer session. Do you also question, you need to press star one on your telephone to withdraw your question. Please. Press the pound or haschke.

If this question comes from the line of Alicia CT group, please ask the question.

Eh, thank you. I want to talk to a rep about Vena has show like he should. He can't dollar just bought a whole month you're hanging age. He was talking to him and make sure that we got

Yes, I get. Should you should say? Congratulations on the very strong results. So wanted to

Follow up on this strong outperformance. In the first quarter was that mainly driven by the secular address especially with a low base wage or we actually seeing we are gaining market share in terms of the aperture allocation from The Advertiser any color that management could provide it home. The trend going into the second quarter, for example, April, or the first week of May, some of the strong vertical that you see in first quarter of the also seeing the trend continued into April and they thank you.

Well, not realize. How about you suck? It wasn't, now. Aren't you go get free children. So, Monday through Thursday. It's usually showing off. And let me show. Not only including the dog.

Yep. Yep. Yep. You soon know, yep. Yep.

You shall not here. I'm holding up. You got off easy way to help a minimum. Sure that I'm I'm good. Do you cook? What you use on the no.

All right. Okay, so so first of all, thank you very much for the question. That's just be very brief. So, first of all, we have been seeing that in q1, we had a big growth and a part of the reason was due to the kind of a urea-based like low Base number of the last quarter q1 of last year but that was only partially. The reason. However, we can see that people are talking about the growth rate of the YouTube, this is still, you know as robust as q1. So only partially reason and also let me talk about the external and also internal reasons of having that high growth of the club performance of the advertisement advertisement. So first of all, externally we are seeing that, the recovery of many verticals are very robust. For example, the consumer related Industries, like off the e-commerce, and also fmcg and automobile and are curious as well. And also some of the other very competitive markets. For example, the gaming and also the education industry, which was somehow wage

The impacted by a certain policies but still you know we have seek to strive to realize our Target said in the beginning of the year if we're talking about the year-on-year growth. So this is something about a very good vertical performance and also internally. We are talking about the reasons. For example, last year, we have been doing some kind of a restructuring of our sales system. So in the past couple we had a branding team and sales team, there was very much a, you know, focused and strong at doing service and providing service to those Ka customers. However, they are relatively no weaker in South Riding the services to smbs and also on the country, those SMS sales teams were very much dedicated in providing services, and also get budgets from the gaming and education industry wage. They're pretty much stoning helping to download or helping to sell the courses but not that much in, in terms of organizing activity or doing some kind of a branding work for those SME. Customers dead.

Lots of things second half of last year, we have been doing in restructuring of our sales system. That is the reason that after Q4 that we can see that we're not performing like the other companies that are only focusing on either brand or Ka customers or SMS but we actually don't have combined this and also that is to say we have a higher and also better spent in gaining the back from our customers and also improve our competitiveness because the the customers could approach way before for a lot of Effectiveness, for example, content marketing, and branding, and also affected for this etcetera etcetera. So that is to say that we are providing a whole package of solution to the customers and also, you know, that in terms of the quickest are grown. Now, one of the quickest growing verticals like automobile which had over sixty percent of the performance or growth and that is to say the kind of effect has been also SMS ad

The quickest growing pot. However, in this education, sector will be seeing that. The brand part is actually the biggest

Growing sector so that to say in a word we are having stronger ability to actually know gain more budget from our customers. All right, thank you so much. Thank you. Next question comes from a question.

Thank you management for taking my questions and congratulations on very strongly Tales. So I'd like to ask about your strategy focused in the in the user productivity. So what will be your key initiatives to increase the user engagement with in terms of your product design and walk ins? And would you like to share any specific targets for some of them. Thank you.

Monthly charges. Are you familiar with the time and for how long are you dead dead?

Visa not that busy on and off again took me off so bad taste in Chicago on the phone number.

Tell me if I'm wrong. So thank you for this question. First of all, you know, since June of last year and also in q1, this quarterly or report, we have already mentioning some of the works in Ephesus focusing on the user engagement announcement. And also for example, the first is that we are trying to get access to those low frequency uses and especially improving their frequency from the external sources. And also second from the internal sources we are talking about, for example, we focus more on those kind of activity, and also more engagement on the core scenarios. And especially for example, those interest driven or interest-based scenarios like the super topic dead.

And also, we are.

Going to, you know, increase the frequency of the content consumption in the from the chaos and also the gamers as well as the campus and except for products and also like the super topic and that is the exact reason why we had over forty percent of the gross on the super topic. And also and talking about the monetization we're going to action will start doing the monetization things Q2 of this year. I'm also third point is, we are exercising a lot on the growth of the video account. And also you can see that not only this can help us to develop the U and Mao the user size but also more importantly that we can, you know, enhance the consumption of contents and also consumption scale of the videos. So that is exactly a focus on the environment or enlargement of the time span on the videos within the system. So that is to say that we have been gaining a lot. In terms of the traffic inventory in this area wage

Business specifically important for us to drive vs m, e ad industry, and also products and also talking about the Q3 and Q2. I don't think that there is any big change. So in a word we're just going to focus on three areas. The first is that, you know, more Channel access to increase the frequency to be more specific. And second is that focusing more on the social content products and also Thursday video products.

All right. Okay, thank you. Next question. Comes from Thomas from Jefferies. Please go ahead.

My phone is dead guy's Meal, which I social? Mm. Mm. No special for you hiring Choi management for taking my questions. Um, I just have a question relating to the cost side. Do you think that we are going to invest more in content to drive use across a human? Can we say about our spending project for this year together with the trend in R&D and sales and marketing? Thank you.

Yep. Yep. As well as usual. I'm going to try either.

all right, so

First of all, you know, let's give you the answer relates to the content part. So, you know, things this year, we are talking about a kind of like, you know, competitive landscape here. And also we are going to be more on the investment to the content. But, of course, that this particular fashion of doing the investment is quite much different from the investing to the content or two to the video. Sorry, so that is to say like God, we're talking about the collaborations with the NBA last year. Also CPA and also Chinese Super League Football League of this year quite similar. Um so that is to say that we are going to focus more on the birth of those kind of a social accounts like in a way bowl and also to do some kind of monetization or socialization work, but we're not going to act like a video actor, which is to say that we are not going to buy a lot of contents in a sense.

Anyway, how's it going to require some money down on their way home?

So that second of all, is talk to you about the monetization or the business side or commercial side. So that is to say that, you know, first of all, we are trying to provide our customers, the kind of a commercial solution that is pretty much focused on the map content marketing. So that is to say that, uh, all together, the regular back-up solutions that we are providing to our customers. We also going to put and include inside package, the kind of a content created by the chaos and also, those top-notch goelz. So that will generate a certain part in this particular area. However, if you are talking about the kind of a sales gross margin of this particular area, we are not seeing in any deduction on the gross margins here. So Thursday to say that even though the absolute figure is going to kind of increase but talking about the percentage against the total sales, this is not changing.

You don't see me like you know, me as long as you're not seeing them off to them, you know, kind of a decent wage wage, should not feel any better job.

Concorde, please.

I'm more intense competition here. We're going to spend more money in getting access to users, especially if you use it and also more engaged and active users. And also that is to say, however, having said that our lack of use acquisition cost is relatively lower than are competitive. And also second of all, we are having a more stringent appraisal over the ri of this particular area. So, that is to say that, you know, in half a year of time, we're going to try to balance this particular kind of investment versus the user acquisition cost. So let's say that the conclusion is that seems to Thursday. We have already seen a big increase of this particular expenditure on the channels. However, we are going to definitely know focus more on the sustainable, kind of a growth of the channels. And also we are going to have more stringent policies over the appraisal of this particular indicator. And also our eye of this expenditure

And also a third of all, let's talk about the expenditures on the Channel Side. So as we have already stated last year, that things this year, we are definitely not going to expand or expands more focusing on the channels. So the reasons, our first of all because of higher competition,

Great, thank you. Next question. Comes from Alex Morgan Stanley. Please ask a question.

She said, just over a thousand times out. Thank you management for taking my questions. So, also on the show results. So, like to get a sense of like a reason, like the regular regulatory, or like the Crackdown what that have like any impact on like a enemy operational or financial impact on our fundamental. Thank you.

So yeah, we we did when she goes to show up with inflation. Let me see if he's in advance and she said, I need what, what should I name my dog.

You know, going into teaching the home office. We the thing is only chairs or $2 because you said, you had a 2018. Yeah. So where does that she's dead?

Data.

And also, you know, talking about this question, first of all, I have to say that this is not a very good question for waiver to, but rather by do i t should come in on this but however let me just show you some of these opinions. So I think that we're talking about the two levels of Regulation. The first one is that you know first of all we're not talking, you know, about this particular fan economy but I think that this is more like a kind of illegal funding or crowdsourcing and also to help those fans to hit the ranking. But thing is that you know, all those kind of launching or initiating kind of a platform or the funding of warm water. Promotional platforms. There are not wage war, but actually people are discussing however all those topics on weibo. So we are keeping a very close eye on this topic and also a very close relationship and also communication with the government and also second of all, I'm talking about the fan economy. I think that this is pretty common here in China also in the other part of the world. And also I think, wow.

So you know, anyway when trying to tie vert this particular to a very good direction and positive direction. So that is to say that this topic has been talked and discussed for months and also for the issue of the half a year. And also, for example, talking about the kol survey thing weibo, and my thing that they're fine economy is more like you know engage in their fans to really suck. Do some pro bono activities or charity and activities or some some of the positive energy oriented activities. For example, that one of the indicators that we care and concern about is the charity value that created by that kol together with their fans and followers. So that is to say that very very thing. This is something very positive driven and also having said that still for this particular problem or issue. As you have described, this may occur and emerge due to the period of time. When

When the reality show actually was quite popular but the platform wasn't quite complete and there wasn't a very complete agent system or the service and system in place. So some of the month forms were taking advantage of that and trying to know promote this so-called fan economy of that. But that wasn't something quite virtuous and benign. So I think that need to be eradicated outwards. Yep, yep. Yep.

To you soon.

Justin. How may I help you?

So, and also another thing that's that in a pasta 1/4, we have been seeing a very active communication of weibo. And also our regular dead bodies, so that to say that for the platform and big platforms such as wave, or we are having a very stringent requirement over the management of the fans, and also offer the fans group, as well as the agency and also the bells and the themselves. So we should manage and that to say that verification of the identities of the following month. So the fans group of that particular agent company or the kol is a must. And also necessary thing for us to do so that is to say we are not allowing any activities organized by the relevant fans group according to that regulation. And also I think that this is a beneficial thing for the development of this industry and also a very healthy.

Development and management of this whole fence economy. But thing is that, you know, this might see in a kind of, a temporary um, impact on the pause and. Of some kind of a reality show programs. And this main have seen a kind of reduction over the short-term traffic on that. However I think it's pretty much important facts label to manage this as a whole. And also we are going to gain long-term benefit by managing strictly on this particular notion.

All right, right. Thank you. So we have reached the end of the question and answer session with that we conclude our conference for today. Thank you for participating. You may all disconnect

off off off off.