Q3 2021 Weibo Corp Earnings Call

Good day and thank you for standing by welcome to Weibo's third quarter 2021 financial results Conference call.

At this time all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session.

To ask a question. During this session you will need to press star one on your telephone.

Be advised that today's conference is being recorded if you require any further assistance. Please press star zero.

I'd now like to turn the conference over to dimension team of wasteful. Thank you. Please go ahead.

Thank you operator, welcome to Weibo's third quarter 2021 earnings conference call, joining our call today, our Chief Executive Officer, Jose Wang and our Chief Financial Officer Paypal. The conference call is also being broadcast on the Internet and it's available through Weibo's IR website.

Before mentioned my remarks, I would like 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 statements that are not historical facts, including statements of beliefs and expectations forward looking statements involve inherent risks and uncertainties.

Important factors could cause actual results to differ materially from those contained in any forward looking statements.

We assume no obligation to update our forward looking statements in this conference call and elsewhere.

Information regarding this and other risks is included in Weibo's annual report on form 20-F, and other filings with the SEC all the information provided in this press release is occurring as of the date hereof.

We will assume no obligation to update such 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 to gain a better understanding.

Weibo's comparative operating performance and the future prospects, our non-GAAP financials exclude certain expenses gains or losses and other items that are not expected to result in future cash payments or nonrecurring in nature and now the indicators of our core operating results and outlook.

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

Following managements prepared remarks, well open up the lines for a brief Q&A session with this I would like to turn the call over to our CEO All day long.

But all claimed for now they both have all of the Avi. Thank you Hello, everyone and welcome to Weibo's third quarter 2021 earnings Conference call.

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Tempe, you're starting off I'm gonna Kinda on today's call I will share with you highlights E weibo's user product and monetization in the third quarter of 2021.

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On the user front Weibo's meus reached $573 million and average deal is reached 248 million in September 2021, adding approximately six 2 million and 20 of freemium users year over year, respectively, which represented the highest net attrition number Amanda.

Six quarters in September 94% of Weibo's Meus came from mobile.

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What are you hearing that AGA, so do imaging on the monetization front leveraging further optimization your competitive strategy and add product offerings for key industries or total revenues reached $607 4 million in third quarter, an increase of 30% year over year advertising.

In marketing revenues raised 537, 6 million, an increase of 29% year over year, 93%, how about where our revenue came from mobile our non-GAAP operating income in the third quarter reached $248 7 million.

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In the third quarter, driven by seasonality effects of summer break and the Olympics Weibo's user scale and traffic both reached record high in July and August closer spikes seen during the pandemic outbreak in March last year as supposed to timber we would typically see a fall back in traffic naturally you'd hit it back.

The school season that was well for this September in light of Brexit vacations in the entertainment sector. We have also step up our compliance efforts and revamp relevant product offerings. Accordingly, as a result, we saw a pullback in traffic from the July and August level as well as slowdown up user.

Growth on a sequential basis.

In the meantime, we also revisit our product and operations to further conformed to a regulatory requirement.

Average, we cooperated closely with our partners in the entertainment industry. So highlights the library is work such as T V series and a variety of shows as opposed to celebrities themself in a whole cloth fostering a healthier entertainment ecosystem. We also refined our heart transplant can have them so as to.

Build out a more constructive ecosystem around how convinced in the long run.

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I'll Cook at home and that could mean potential on the channel front with half months in certain verticals such as the crack down on education. The overall user acquisition price has been descending trend due to lost market competition, coupled with weibo's competitive edge in channel our channel costs per user has.

Further they create Meanwhile, we're also pleased with better retention rate of user acquired through channel leveraging improved synergy between channel investments and subsequent product usage.

Library, we made progress in optimizing our targeting mechanics, and assess the acquired an incremental number of high quality users.

In meantime, we continuously improve subsequent content consumption experience and optimize user recall strategy driving organic content consumption from China users in the third quarter, we step up cooperation with major channel partners, such as tennis that mailing fractures and operators in the area.

That's social features and how trends in September the number of users acquired from China investments increased substantially compared to where it should well position to further enhance our competitive edge on user acquisition leveraging the gradual normalization of competition on the channel front as well as that.

The improvements in engagement trend of users acquired through channel.

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On the product front I'd like to share with you our key initiatives on Weibo's information feed them faster.

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Information see our primary strategy in 2021 is to solidify our competitive edge of Weibo's key social features and core functionality and that's driving user thickness and inaction, Malawi, but core user groups in the third quarter with further strengthened their data mining and distribution of quality social.

And then how trends as well as desktop traffic support quality accounts products T shirts with focus on amplifying content distribution to offense and facilitating social relations build out them all users so as to improve content consumption experience in social attributes.

Taking Tokyo Olympic Games as an example, weibo demonstrated its strong platform positioning in a combination of podcasts and social features underpinned by our advantaged in real time, I'll take updates public discussion and viral distribution as well as strong engagement from athletes Olympians.

Gangs related topics generated over 400 total views and 117 marine discussions on our platform.

No performance among domestic platforms.

As a result also of user and traffic reached a record high in July and August.

Looking ahead, well further reinforced our heart transplant, social interactions playbook, which features a systematic operation approach that integrate media reports celebrity Deanna kols discussion in distribution as well as social interactions. Among users will also beef up our product features and.

Distribution and thereby further uplifting weibo's competitive edge than it should be informed me in Tony Vaughn Charter talks you can call a teacher chocolate people its name in Congress.

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Two other things.

Moving on to the BD in 2021 we're focused on accelerating the contents needle ablation for Weibo's content creators through our video accounts program and starts increase media content generation and consumption. Meanwhile, well emphasize on cultivating users' mindset abusing weibo's video.

Function through constant operation in key verticals.

Leveraging ongoing progress made in our video accounts program, we are pleased to see.

Further the utilization trend among content generators as of September the number of registered video accounts surpassed the 20 million Mark This quarter were focused on several key verticals, such as fashion and beauty gaming and sports to cultivate users' mindset towards video consumption.

We also increased our media content generator in these key verticals through our incentive program, while optimizing the recommendation model and their key scenarios. So enable video common creators with REIT community right to reach users more efficiently.

Thanks to improving video ecosystem and all of them taking effect the quarterly average video views and time spent in Q3 continued to grow from Q2 on live streaming we leveraged our strong Mike life's premium products to attract users was that our real time Olympic updates and build a highly engaged.

Community right. During the Olympics season, we're delighted to see or 50 athletes hundreds of Kols and multiple media outlets participate in our trial, Mike like generating lots of hot topics or viral distribution in discussion.

From the product perspective, we kept the optimizing user experience and enhancing the social and consumption features of our lifestream new products laying solid foundation for the upcoming IP based join Mike Lifestream.

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Next let me give an update on our content verticals in third quarter, well witness a tightening regulatory environment or the overall entertainment sector, notably government authorities issued a serious aspect with vacation measures a film TV series and variety shows as well as Banco.

Sure in the short run we would expect certainly impact on traffic from the entertainment and news information verticals. That's it leveraging our continuous investment to enrage content verticals, we could mitigate especially impact by fulfilling users' diversified consumption need other content verticals.

A good example would be the gaming and esports vertical since last year Weibo has beef up its investments in your various areas in our sector and a strengthened partnership with game developers esports tournament gaming Kols and hope as well I started our own E sports team.

Gaming vertical has now become one of the top content verticals. Besides news information and entertainment benefiting from a strong social distribution and large engaged jazzy user groups for instance, during the recent league of legends season, 11 relevant topics generated.

Over 100 billion views and our 60 million discussions in total as a result, our traffic also ratios peaked things Tokyo Olympic games on our final day of the season 11 tournament.

Suddenly Weibo has also proactively enrich our offerings around esports vector, including investing in starting February esports team organizing a serious of esports tournaments of popular games in the market with the investments in the upstream and downstream around the gaming and esports vector weibo.

He is well positioned to better reach young users and improve their engagement, which should boost the monetization for gaming sector in the long run suddenly when franchisees look.

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Now, let me share some color on our monetization strategies and the progress made this quarter in 2020. One we have further strengthened our competitive edge of our social AD products, but what was it five hour industry specific marketing capabilities and enhance the potential and the efficiency of traffic monetization.

So as we improve weibo's monetization scale in a market competitiveness.

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From an industry perspective, our revenues increased 29% year over year in the third quarter, despite a deceleration or even cut back of AD spend from certain industry, that's facing macro or regulatory headwinds, we're delighted to see revealing the growth in key verticals such as cuts.

Medics, and personal care food and beverage and sweet tea product GA benefiting from improvements in our service capabilities. Meanwhile, our strategic focus on sectors, such as gaming and apparel also paid out testified by decent growth.

In these sectors as we strengthen the synergy between our user and AD products to further enhance the monetization efficiency of our organic traffic and AD performance.

The flip side, a few sectors spoke a notable decline due to regulatory headwinds such as education and entertainment at budget or he'd cry from the entertainment industry could be temporary due to the cutback on the demand side amid tightening of policies in a sector where should gradually come back.

Following the normalization and a gradual release of blockbuster shows however, it will be a different story with the education sector as the crack down on our industry's AD demand seems irreversible currently.

Eli just raised and policies and the industry trends, we have proactively adapt our go to market strategies and just our sales structure. Looking ahead, we will beef up our efforts to reach and serve customers in those promising sector, especially as the new consumption economy.

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On the AD product fronts with a focus on maybe two things in the third quarter first we continue to reinforce weibo's competitive edge in branding plus performance at offerings leveraging the compound effect of our house fan celebrity Kols and treasure box at offerings with shell.

<unk> strong performance to our customers during major events and their prime campaign Wendell praised him during the Tokyo Olympic Games, Although mobile company G C leverage athletes being cancelled inputs to build high and relevant topics one viral our platform reach.

Nearly 200 million lives and have generated over 12 times traffic value compared with a traditional commercial placement.

Second well continue to optimize our feed AD offerings, notably on a full funnel conversion model from brown to backend.

Likely the gaming sector. We further reinforced the thing that G between our AD offerings and our content vertical operation leading to heated discussion on newly launched games and Buildout of social access we have successfully tendered this industry specific AD offerings to more gaming claim was.

Resonated greatly in the market.

The blockbuster IP game, Harry Potter as an example, we're leveraging strong IP feature and created a series of trending topics. These topics generated more than six billing days in the fine though in discussions in total enabling us to capture higher AD budget from the clients going.

For beautiful kind of success story with gaming industry.

They explore any tend to model to the e-commerce sector, well beefing up our investment in AD technologies around such added product with focus on the new consumption sector.

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In the second half of 2020, one government authorities beef up the overall regulatory efforts on Internet platform and issued a couple of new policies, including rapid vacations I've found culture and celebrity ranking charts cyber security law and personal information protection law just to name a few.

The new kind of regulatory framework imposes higher compliance requirements across the industry in terms of products.

Alteration in monetization as such we will also devoted significant R&D resources to the compliance front.

The more we're in regular communication with relevant government departments to better understand the policies.

On patient guidelines, so as to adjust our products and operations in a prompt wait for instance, talking about the rates and some cultural rectification LIBOR has taken in France of measures and issued guidelines to celebrity agencies and fan groups actually half year before issuance of such policy.

Upon implementation, Bulgaria that time, we have already seen Fang interaction had towards a healthier path, allowing us to buffer and minimized the impact from the recent rectification Cindy.

Similarly on the hot trends product since the end of last year, we have proactively taken steps to lower the percentage of entertainment related trends, which has come down and stabilized at around 25% of total trends was diversified how trends Oh, how truth product is well position.

To reach a wider user demographics.

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Lastly, let me reiterate our position despite certain uncertainties and headwinds we delivered solid progress and results in the areas of user traffic product as well as monetization in the third quarter. That's that we are indeed facing a year of change where we have to navigate.

There are many external involvement however, well it doesn't change is our core positioning as China's leading social media platform. We have always been steadfast in our mission to empower users to be heard publicly and connect with each other as well as our commitment to a better society.

<unk> demonstrated our indispensable value proposition and critical events such as the recent Florida in general and also doing the evolving COVID-19 pandemic situation. We're proud to serve our users and our society you're recording in discovering what's happening in the world for the past 12 years.

With further optimization in our user experience and a core feature Weibo will continue to be the go to platform for users to connect with each other discover how trends and for customers to market effectively.

Sure Tony.

It should help essentially both how would you work with that let me turn the call over to Paypal for a financial review.

So if you're a golfer and hello, everyone.

Well have to do but that's what our plenty plenty maths learning conference call.

Let's start with user metrics.

September 2021, Weibo's SME youth and average daily use reached the five times with a 17 5 million on the 248 million respectively.

People want to go from prior quarter.

But the back to school seasonality under regulation.

On annual basis.

Added approximately 62 million and 25 million Teus.

Saturday. The net addition number primarily driven by strong execution on channel on the video front.

Looking ahead, we had less book, excluding our guests our user and product strategies.

Well navigating through changes in the regulatory landscape Larry.

Leveraging 12 years of experience as a social media platform as well as our indispensable role in serving public a conversation.

Turning to financial.

Lender my prepared remarks would focus on non-GAAP results and all the comparisons on a year over year basis, unless otherwise noted.

Now, let me walk through our financial highlights for the third quarter of 2021.

Well for third quarter tons, you're talking about net revenue was 607 4 million an increase of 34000.

Operating income was $248 7 million, an increase of 39% representing operating margin of 41%.

Net income attributable to Weibo U 209, 6 million, an increase of 37% representing a net margin of 34%.

But looking at E. P. S was nothing bad compared to 66 days in the third quarter plenty plenty.

Now, let me give you more color on revenues.

Weibo's advertising and marketing revenues for the third quarter, but increased 10% to five kinds of studies southern plus $6 million.

Mobile AD revenue well first time to a con call media cultural building approximately 93% of total AD revenue.

From 19% last year.

We've lost do you leave it a solid AD revenue growth underpinned by robust engagement Chad the only <unk>.

Strong sales execution and ongoing optimization.

Whereas the lagging to see advertisers recognize the way for us to go to platform to build hub with our industry specific AD playbook during major events.

In terms of revenue contribution our popular vertical well F. M C G for IC products and E Commerce.

Weibo has gradually become the cornerstone of many advertisers in their consumption sector.

Enabling them to connect with urgency user as well.

I feel they're integrated branding plus performance needs.

In terms of growth.

F N C G ancillary products continued to outperform.

There is a payment and education vertical it underperformed, mainly due to the regulator hasn't it.

From the App quite a perfect here.

Revenue contribution that's what I've had great remained fairly stable with promoted fee being the largest path followed by social display ads and other AD offering such as Colombia, Chen and topics.

We have industry wide application.

All right.

And the celebrity Todd.

Our team's job to mitigate that impact that's a bad thing at all things as well improving monetization efficiency, which resulted in based on the book for each of the broad product category.

Also we continue to see good traction with video AD and allows you to further job is penetration.

Positioning us well for a long runway of growth.

I said heading into Q4, what I'll call, maybe this will leverage our unique value proposition in the market and chosen track that part over to here to capture a commercial that share of wallet, even though the fact that the overall advertising market could be challenging in many ways.

Does that short term backward and regulatory headwinds facing the whole advertising that tree.

Call me Teva to driving value for our customers in the long run by leveraging Weibo's full spectrum of social advertising products.

As Daniel from Alibaba for third quarter.

Great.

That 28 million, mainly due to Alibaba as conservative a markdown strategies linked quarter. After us our progressive ultra up of AD inventory to other e-commerce platforms.

Lots at our cooperation with Alibaba positions us well to capture that.

Ongoing digitalization, Chad on the Jeff a value for breath and Mark has both platform.

Well I need to service that revenue was 69 eight made it in the third quarter.

Increase of 42% primarily attributable to the revenue derived from interactive Entertainment. The company acquired in November 2020, well, partially offset by a decrease of revenues from last streaming business.

Turning to costs and expenses.

Total costs and expenses for third quarter, what's their hybrid it to $8 7 million an increase of 25%. The increase was primarily due to a step up in marketing spend and higher personnel related costs.

Operating income in the third quarter increased 39% to $248 7 million.

Operating margin was 41 part that I found something that was that last year exceeding our expectations.

We're pleased to report our operating elaborate achieved linked quarter as we continued to balance well between investment for growth and margin performance.

Turning to income taxes, and a cat ladder income tax expense for the third quarter was 31 4 million comparable starting middle of last year.

Net income attributable to Weibo in the third quarter was 296 million, representing a net margin of 34% compared to a certain surplus that last year.

Turning to our balance sheet and cash flow items as.

As of September 30th.

Weibo's cash cash equivalents and short term investments totaled $2 7 million compared to a grave caused Buffy as of December 31st plenty plenty. The decrease was primarily resulting from investment activities. We've made otherwise partially offset by cash provided by operating activities.

In the third quarter of 2021 cash provided by operating activities was 276 million capital expenditures totaled eight on framing and.

Depreciation and amortization expenses amounted to 14 online meeting.

Lastly, let's talk about our financial outlook, we anticipate our first quarter of 2017, my family to increase by 15% to 20% year over year constant currency basis.

This forecast also reflects weibo's current and the prime inventory meal and is subject to change with that let me now turn the call.

Over to the operator for the Q&A session.

Thank you ladies and gentlemen, we will now begin the question and answer session.

If you wish to ask a question. Please press star one on your telephone and wait for your name to be announced if you wish to withdraw your request. Please press the pound or house key please standby, while we compile the question and answer roster.

Okay.

Our first question comes from the line of Alicia Yap from Citigroup. Please ask your question.

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Thank you management for taking my question first question is.

Curious if management can share if there's any change of the weibo behavior ever seen the effectiveness of the personal information protection law of stopping in November our first our second.

Second question is overall advertising industry actually he's facing you know.

Michael and also regulatory challenges.

Yes, Weibo has been able to maintain double digit growth in the online AD revenue. So can management share with us the performance and growth rates for different industry vertical and how big is the macro impact and how big is the regulatory impact on each industry vertical.

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So thank you very much for your question first of all let me address the question related to the implementation of the personal information protection not so overall speaking this is actually a mega trend not only happening in impacting China, but also the rest of the world as well because you know after the implementation of the personal information protection law.

We've been also having challenges in terms of our algorithms and also the competition. That's what it is the performances of our CSR as well and then also to the other companies. So that is to say that we need to emphasize more on the operation as well as the compliance as well.

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So I'm kind of I don't know how on the timing.

Sure.

So Sean Glenn that you go home.

I refer you talked about addressing those.

Globally.

Sure between sound Crazy to me.

When a woman so I don't think so.

Oh go Crazy in Chongqing.

And also in terms of Weibo I like to give you two points. The first one is that you know weibo has always been a public social media platform. So as you know during the past if any use has any questions or any suggestions. They were really feeling free to actually know provided feedback to us.

And of course that we will always being very much refrain from making public the personnel previously and also the other inflammation. So with a very good protection. So that because of this impact we are going to postpone or not thinking about going online for the features of the <unk>.

<unk> of our feedback and also the other relevant functions.

Okay, Newmont I don't when they book the.

<unk>.

The English or dominated came back.

You could possibly been plenty of women dmitry.

<unk> timber and that's what you can ship to them.

You will find on a commercial insurance.

Good question.

Young Kwon to enable Elijah Sheila.

<unk> is the bulk will come from it.

So do you think from the Beach walk all the Coke we gotcha.

And also second point is that we bought has been operational in China, but 12 years already and joined the past decades, we've been keeping a very close communication and collaboration with the government as well in terms of all kinds of different details. So I'm as you all know that.

Particular industry, we bought is really a kind of a more compliant company versus the other peers as well and also this is a normal business operational environment for us to be really in a regulated pretty much and also we emphasize a lot on the self discipline in terms of the data.

Selected and also the other businesses operated.

No I don't think it's one of those expansion initiatives.

Complementary shot.

They couldn't ship all cool cyclical accretion should you come in I'm trying to follow those Permian tissue tortured sushi.

And we were in Boston.

But until the till that holds when she was the name of them actually all three.

Could you talk to each other it's.

Sure.

Jim Guerra, who got to enable a heartbeat to go home.

And my father places you've got anyhow.

Okay and also you know before the implementation of their personal information protection law, we received already the guidance and also the training from the government to external had the optimization overall algorithm and also the personal information protection as well as a deep data.

Charities as well so we already had a very good communication with the government even before the implementation of this law and also of course after.

Going life of this personal information protection law of course that we are going to face further optimization of adjustment as well, however, I believe that such a tight and stringent regulation.

Sustainably is going to benefit not only wasteful, but also the whole industry.

Uh huh.

But are you seeing or hearing from you.

In addition Congress game.

Sure Engineers, how many of them cannot computer Baja yeah, I'll come back with a higher demand in Oklahoma, Jim I'll jump out.

I'll send you the boxes are strongest with us.

No I'd say, what you do.

Okay Cool high end that you go home in time into the phone with you.

The Caribbean.

Okay.

And also in terms of your second question. It is indeed correctly mentioned by you during the question that the whole industry and also not only weibo, but also the external as we're facing a lot of challenges since the second half of this year, but of course, having sat.

Weibo's still had a double digit growth in the AD industry and of course that was a pretty much not due to two reasons. The first one is a very optimized.

Our sector and vertical structure as.

As well as the very good and diversified coverage and second was because of the nature of Weibo's ads, which was a social media oriented.

Okay.

Ooh Ooh some formula.

So she owns all coming in Phnom Penh, English with Jaguar and Nissan.

The restore jogging German bullshit carotids.

It sounds like you'd be outdoor does it Tony Fisher Tunisian with Jim when.

When you're talking about.

So we're chugging along and it's almost similar.

Totally they tell you high and tell them nothing without that but probably not too far off topic I'm sure Paul Young woman Archie to serve until the two.

Bonefish grill, but we wouldn't see that again, so you won't go to <unk> and future.

She loved them so.

So its own meals without Michelle now when you're not sure sure man.

On Tommy Bahama.

Nishu I'll conclude with the.

Thanks Sheila.

How many people don't know cool so it takes it.

Why behind it.

Sure you're doing the shooting Josh aren't there yet.

Shang the <expletive> out of Panama.

Okay.

Hmm.

And also I like to actually talk about the three major industries that have been regulated pretty seriously during the past them. So they were education and insurance as well outside the entertainment industry. If you like so first of all we're talking about the education, So education vertical action accounted for there.

A minor proportion of our total revenue, which was lower than 2% but of course. If you are talking about paid towards relevant education. This was even though of course second of all I'm talking about is finite, especially insurance industry. So we had a pilot run off this particular collaboration with the insurer.

Industry.

At replacement placements in April in Q2, actually how is that because of the poor user experience and also the other reason we gave up on this particular industry and first of all you know I'm talking about the entertainment industry. So this is of course, a very a big contributor to our total revenue. However, you know in the past.

We were pretty much you know, having a collaborative model based on the content instead of regarding those entertainment customers as our customers. So that's to say that even if we had a springing regulations on the entertainment industry.

Hardly impacted already.

Revenue and also this particular challenge wasn't as big as the other peers as well.

Okay.

Yeah for me I'm sure you see them in a brief.

Freedom, you felt that you shipped on Chile.

Sure.

She Scotia answer, yes, we kind of shot show that's what you mean, they book that you behind them and come to a Hershey chocolate coffee when does that cause you to ensure its long with you in a challenging.

As you well know.

Hum How's it going.

Touching on your own that you showed up I wasn't sure George Bush on Central China.

Well fit on book and for people that shouldn't be the properties. So it was a central box can be tricky.

So Michelle history Shymkent Cupid.

Cupid Cheesecake put on which is awesome.

We shouldn't be a triangle between orange and rent them useful or T V.

Scribbling that she thought I mean, what are you shooting traveling you're not doing a lot of good doesn't that argue to talk to them a huge cloud, Utah, a tremble when Jim and I will put out a chunk of money into your people you should be held most of the team.

We're trying to continue you'll see among the top 100, the RTG that you'll hear how he intends on keytruda and the time to complete all means yet.

Okay.

And also second of all and I were talking about those are verticals that have been badly.

Badly and also.

Firstly.

Impacted by this that particular type regulation. So they were automotive industry is what it is.

Gaming so first of all I'm talking about the Automotives and of course that we all know that the whole industry automotive was declining.

By itself, however, I'm talking about the AD types that we provided to those customers. They know it's most of the industry. This was pretty much on the brand plus performance oriented. So of course that we are still maintaining a very good positioning in the budget pool of our customers in this industry and also as I.

I've already stated in the opening remarks that Weibo has grasp the opportunity very well and precisely.

Especially the trend that more.

More and more of Ice's vehicles start turning to the electric vehicles and the penetration of BV is becoming higher so that we've got a lot of the budget of the new EV launch for our customers. So we kept a flat performance in Q3 in this area. However, I know in the future while the chip shortage issue has been.

Resolved that we're going to see a very good recovery of our leading position in this industry vertical and of course, the lofty and I'm talking about the gaming of course that we had the regulation of the non adults in this area. However, as I have stated we are successfully got the trend, but the popular esports games and also.

<unk> touched a lot of opportunities for the launch of many new popular games. So we really gain a highly a recognition from the gaming industry in terms of our ability of doing business with them and also you can see that the percentage of this particular part of the new business has been increasing over time.

Alright.

Oh cheeses Yogurts in Chicago May also take off on Guam bulk when she had her school sounds like internationally.

Andy will really jump quite shall I assume are the highest.

19, 800 comes on you don't quite know neighborhood. She shared with your thoughts actually on them and should have a higher total npls ballclub. She came out of the show each time, whether they should tie up on the ocean.

Any mention young people coming out with regard to hardware boxes that'd be all kind of you've got some school. So he said he would say on that so I'm kidding onshore hygeia go what kind of adoption.

Well I'm going to kill them.

But shouldn't you know women's I'm going off of our sugar dotcom sign essentially two uncles that sounds if you're doing that could you talk about whether you've got some tommy's attach.

Sure.

So owning more and also lastly, I would like to comment on the other verticals that were not impacted by this regulatory and also the macro headwinds, especially FMC G. I know so the consumer electronics et cetera. They were keeping a very good growth. So of course that China wave will always emphasize on.

The strategy of having brand plus the performance AD that's what it is.

Providing a differentiated.

<unk>.

By leveraging a lot on the Kols and also celebrities as well so you can see that in China.

He is kind of a no FMC G and consumer electronics industries, we're not impacted at all and also maintain a very robust growth. So overall speaking because of this optimized overall structure of our customers and verticals and also.

Part of the industries have been impacted by the macro environment and also the regulatory environment. However, still we had a very positive trend in Q3 and also quite optimistic about continuing this trend to Q4.

Okay.

Sure.

Thank you. Your next question comes from Ashley She from Credit Suisse. Please ask your question.

She said my name is foundational to chew up almost how many times you should send you told us at home and don't keep Hello, yellow 'twenty, Dan Campbell Qiang Hollywood tissue Santana advantage means that shell homepage Yahoo. If he took a sudden turn although you won't fully I'll.

Help oncologist and to the end of two ships in counties that Mckenna, Jim go out and do it even woman thinking shell holding my breath like why do you plan to get all these people want nine yards I can't see on their own farmland, often brought up Oh gosh I know no one knows that takes longer and you go out in a franchise that can go that seemed gang.

Oh things.

Thanks management for taking my question. My question is related to the regulation in our in the entertainment sector, especially about the rocket a rectification about.

Culture could management share more color about the impact on our user engagement and monetization at the same time, you mentioned that we are investing in the esports and gaming related content.

Management share more color on our progress and future plans. Thank you.

Oh also championship child Sunshine to be not so sure companionship.

Okay.

For me, it's important to look in terms of a woman vehicles going from here.

Some of us would have to check.

The teacher don't come in.

Attrition ships are teaching to them when the time came clean sort of any change to your question on charge offs. Okay.

So first of all talking about the same culture. So as I have stated in a previous answer. So we had a very good communication and also the relationship with the government you know even before the implementation of any regulation. So action before the implementation of the policy, we are going to have a bad.

Understanding of the details of implementation as well as named horsemen of such regulations and also accordingly adjust our behaviour and also performance and also operation Okay.

Hum sequel friend, Harry and his room type quotes you're pointing to the attention to eat something cool English and Spanish information to true Google and came to them and so that you can garner I'm thinking your summer and into the summer, which Youll got Bush, which you can go to 50% on the imagine She's got me with my family travel breccia yet.

So of course, the Union comments Alicia Tinder.

People go to yoga, if people who.

In keeping with the trend that you're Gonna Jin Guan should all translate to Michelle.

John J D essentially to Sigma.

Please go to talk to you on that team and I'll go with it.

That's hard to reach in your most expensive no quick on glad any particular need to implement it.

So to each of them will get at one <unk>.

I don't know Aqua chart on opened I mean by that time, he talked a long time, you know that okay.

Okay.

Hum.

And also in the second of all one or two years ago actually you know we.

Already witness a and that's if the impact of this fan culture to the whole ecosystem of Weibo and also the whole industry. So you know that we have adjusted quite actively the announcements of the community.

In the first half if you noticed that in the adjusted announcements Davinci announcements, where do you said that we are forbidden all kinds of the release of the third party information and also would be irrelevant.

Called for and supportive messages sent by the fence as well and also you know these kind of measures that we are proactively take or took had a very good buffering effect.

This times regulatory change so that we have been reducing the impact to our traffic to the minimum level because of this preparation and also in Q3.

See the real implementation after detailed rules and of course for example, we have been changing actively.

The kind of management of the celebrity agencies as well as defense groups and also try to manage a more tightly in terms of those content itself TV and movies et cetera, and also we had a very good adjustment over the super topic.

And also the ranking of celebrities et cetera.

Okay, Ah, Tony and I kind of behind the women's and so what you're seeing in some kind of win.

G for sure.

I'm going to go up.

But the other two they'll be able to show you. All maybe if you can kind of I don't know homepage and pushing to ADP.

Its own name Nicole partnership do you lean more towards just the government.

Neil Mclaughlin from pushing you I believe you mentioned Gunther.

Suddenly.

It's sort of a window when people that'll be.

Good though that United is also to eat GMO.

Sure.

Tissue from Shanghai, and some cool tell them what their tangential mainly for oil.

It was only 20, even sure Jim when they anytime anywhere.

Thank you for the music equivalent so don't get too caught up now.

Hello, She does tend to go towards your annuity, but it shouldn't change.

Hi, Alicia Trenching when will they come to our common media you won't we cannot yet comment Jim Greenwood.

We cannot control the cheesy WOMAC law how.

How long washer Schindler issue to accumulate ETE will ensure you go can we can't comment you've got an English muffins illegal collusion.

Okay.

Hmm mm.

And also I would like to say that.

In recent years, we've been seeing the development of the entertainment industry more towards the top notch phenomenon, which was pretty much of a focus on those top celebrities and also the top shows and also the programs. However in no way Bosco by its nature is a social media.

Instead, I'll say pure media. So if we follow this particular time this is going to be detrimental to our diversification of our content and also going to harm the environment of the interaction between the fans as well as other celebrities and also between the movie.

And also the programs as well so that is to say that same reason, yes, we can see that it is already a very obvious trend that the entertainment.

Related topics, so just trying to rely on.

Very limited number of variety shows and also a few celebrities on the top ranking so and.

And in the past several years, we've been already noticing that and also trying to diversify the content related to all kinds of different.

Programs and variety shows and also creating a very diversified and rich I know discussion and also the interaction as well so as I have already said of course the whole industry is taking measure for example by collaborating with the video content platform as well as the television.

Radio stations.

Next several years or next year, we're going to try to launch more content related to all kinds of different movie and also the other.

Programs and variety shows as well and also the television station is going to do that as well. So we are going to emphasize on the collaborations windows entities more and also trying to build a very good and healthy environment for the interactions.

Okay.

To that engine.

Scrimmage.

Shanxi zoom and chat pushing you in Shanghai that you'll hear from in a tour and.

But you will see that contributing to your June th human tissue.

So some people you can't tell me too Tom that you go to as many of you know.

Now speaking to answer she does he go towards your tap onto the reason, we're not changing back to $10.

Tourism Islands, you send to the ER totally attached to it.

Z Shan Shan Shan Yoshi that'd be is that right.

Someone else will be tuned out kind of a put a central and north Sydney.

Sure.

So on the use of high at least without being a face off with asthma.

One woman, who tend if I'm being a tool that's usually a fashion cycle.

Cheap.

And one should handle it.

And our nation young one to them.

If your phone you feel you did touch on all of those are still to come.

Can you just messes Russo toilet tissue and they see you mentioned the Easter Sunday this year, and so 10 days or so and that's it from me and I don't know about women and people affected most of them eating I mean no.

No more sure.

As shown on the RVP looking African gold.

You May now really looking Johnson with anywhere from that shameful, Toyota Honda and cool.

Hum.

And also lastly, you know talking about the esports so.

We have already said during the opening remark that we had a huge investment into the gaming industry and of course that making this our gaming vertical one of the biggest verticals in Q3.

Against the others for example entertainment and also the traditionally in the Strawn a vertical in a label. So of course that you already see a very beautiful figure on the number of rights on the topic of league of legends season, 11, spinal and also of course that we are heavily investing in shoes.

Building teams and also organizing the tournaments of the esports of popular games. So you've been seeing a very good data and also a figure in terms of the development because of the investment that we have conducted but of course like the entertainment gaming industry is a very complicated and also a very a big industry.

Big take so actually we are still in the infant phase of that and still continuing our investment so of course at that time.

Like the other industries of course, our strategy for the gaming industry is to collaborate with the famous Ips and also collaborate with the famous.

Tournament and also esports events and also try to cooperate with those celebrities team members and also those that they must teams as well. So I really believe that we're gonna have a much better operational model and operational efficiency compare without peers. So at the end of the day, we're going to try.

To diversify the content that we bought really provides to attract more high value users.

Alright.

Okay.

Thank you. Our next question comes from Alex <unk> from Morgan Stanley. Please go ahead.

Can I check what makes sense and so what.

You weren't just going to your Weibo challenging yeah Chi.

No I was trying to do a show called anything out she adult phone call home, Yeah, it's empty that Jim I'm glad you were cutting out.

So if you talk Huntington a couple K G well my son, he took a seat with a chip.

Got it.

Sure.

Wait bought the Android saga.

So thank you management for taking my question and congrats on the solid results. So we mentioned regulations on advertising industry last quarter, including the large screen ads B assay policy implementation. So can management share the latest observation in the third quarter and fourth quarter.

Help us quantify the impact on Weibo ads and the measures we have taken to navigate the impact okay.

Yes.

Uh huh okay.

Two from me like all material compared to Q2 for one thank you.

Since you do that sometimes you should slow and you go to Asia, while providing watch over time into so I forgot about com and you can put it.

Sure.

Probably more of my guys have any thought eating the Shanghai Tang.

The Pentagon Gar Yan junior component diagrams without something that someone puts under a PPA depending on us to attach on all kind of agree with that David.

He didn't even jobs homes tangible it's onetime.

I see it coming quanta computer for you on the phone line now quantity. It's also coming from that kind of what's your thought about these women don't go out of your car.

So sure so hey, jogging.

He might have meanwhile, on the TNT to be shot down getting shot equals and show them, what we thought on the cover of the Covance your.

The woman cant argument before does take out some good local queen lawful and then didn't really didn't show coming up in a woman.

On pin pads put on them.

I think one because that's pretty.

So we shrunk he probably they will come back normal me, if you don't lose all the quarters.

Sure.

On the top line a couple of the Toyota truck shop, I can't yet trying to shop, she szeto with Ashford Twonshein's shower under a soda fountain.

The commercial lines out no problem with that bundle don't die Crosscurrents with young want me a twist and turns you won't call. It 19 times in the teeth on 10 GB Pizza chains, I know, you'll still be the Tucson.

And a couple of the future of yours as well.

Okay.

Hmm.

And also you know first of all definitely speaking I think that in Q3 and also Q4, we had a very good momentum.

For this.

I think in our business not only because of our very optimized the structure of our customers, but also because of very good portfolio of product. That's what is the nature of weibo as a social AD platform. So first of all of course, you know we're talking about the open screen from AD or the special Ed actually in the first half definitely speaking we had a more stringent.

The regulation over the apps launching.

Launching the especially <unk> and that did impact the whole industry above cause <unk> seen from the data and also statistics you can see that in Q3. This particular revenue slowed.

Slow down its growth rate and the month to month growth rate was only single digital which was lower than the industry. The whole kind of AD revenue growth and of course that was mainly due to the lower down the click rate on this particular splashy pad and also that did impact a part of.

Performance.

Oriented kind of AD customers, but of course, I'm, having set that scope because of the very good.

<unk> off label in terms of our customer and then Bryan access those budgets from those impacted customers never leave Weibo.

We successfully transferred their budget from the splash out to other areas like utilizing that seed.

Seed and also the hot search and also the other relevant products as well and also especially during the double 11 Festival, we've launched several new products and also try to.

Increase the click rate by several spuds and that really increased the demand from our customers.

Okay.

So we're kind of authentic.

Now I'll ask the sugar content keep account cembalo.

Okay. So a proven Oakland downtown Hollywood shouldn't be told me to my third time before they show up on a kind of Omnichannel heartfelt. Thank you to kind of tie it up.

So our hiring cohorts I'm able to listen to the show what's material cool shortly youll be touch on that you can show them with these deals.

Do you see the.

Function that we're able to teach me under the table shower telephone teaching them with you.

Turning to Chartwell, Tom should we look at the published no woman the.

These are solid here to argue with you.

Chemical plant on that <unk>.

Work Queens Korea Ministry.

So of course, our mentor.

Okay.

What's what are you gonna tissue.

And in fact on the honeymoon.

Okay.

Hum.

And also second of all related to I'd say of course that since the launch of iOS 16 in Q3, I D assay related details or being implemented and also land. It of course that it did impact us a lot of the peers in this advertisement industry, however, and talking about <unk>.

But we did not have that large impact in Q3.

Because you know I'm talking about all customers. The reason for them to collaborate with us on their AD placement was not only because of a higher position, but of course are more focusing on the marketing effectiveness as well as the info.

Information dissemination. So for example for many kind of a game developers.

Try to collaborate with Weibo, while they launched a new games and not only because of a higher and better position, but of course trying to disseminate as critical information of the new game as far as possible. So that it to say of course in Q2, we already started to to support to the Apple official.

S K at network Attrit.

Attrition.

Strategy. So that was a very good effectiveness that improved the final results of this particular business and also tried very well to enlarge our market share at the end.

Okay.

I don't get that kind of final trick or treat at Hong Kong tempting to jump on that kind of a trial and be useful.

I mean, do you kind of balance sheet.

One call a tricky identify one called <unk>.

Okay.

Cynthia Cynthia yet this year.

Sure.

Yeah.

Once you are at a P. P. You do show, who she got a P. P no danger.

Right.

We were able to grow the dolphins with Chicago.

<unk> recorded a ball bonder.

The channel will talk on the future Okay shampoo.

My children P chocolate he does it.

Uh huh.

Faced with a proven and.

With Cushing, Oklahoma with Hampton.

What are the sources of that too.

Could you kind of want to do but the other piece of that which I'm told him.

So you don't have an image here yet.

Okay.

Yeah.

Welcome to the equation shortsighted on sugarcane honeymoon, she passing sugar <unk>.

To that function.

Dropbox will recoup their used truck bump liquidity for shell.

Sheldon will go into at the time, you know kind of odd to go Oh sure. Yeah. So we've got a couple of issues you had something that you can tell I'm with you.

And as I always say towards India.

Sure Tyler.

Yes, okay.

Should you all keep power yeah, it's something that you all put up one swap with a union shop critical shown that you can go to Asia.

Hum.

So lastly in conclusion of course that we did see and witness such a bad impact on the advertisement industry. So because of this regulation of the idea Fe as well is that the.

But screen related deaths of course that these kind of Oh, two regulations Reno had a serious impact on those apps that dependent a lot on the splash ads or dependent a lot on the precision marketing strategy, but of course that weibo is a social media platform that.

Emphasize more on the social nature of the advertisement placement so of course that we really cover the whole chain from the exposure and the first time all the way until the final conversion and transfer of the customers and also really we emphasize a lot on the brand plus performance strategy. So.

Such kind of a single directional crash certain type of product will never impact are very heavily on our overall business and also as a result make some of the customers are leaving our company or stop the collaboration or given the budget to us no.

And also yesterday.

The interim results.

I mean, the tier three without announcements made by Tencent also talk a lot about this particular point, which is a social AD platform. So of course that we do provide all kinds of other products to our customers and also help them to really boost the consumer accepts because of the other innovative products.

Of course has.

<unk> said that still we need to invest a lot into a more product R&D fashion and also cost of goods sold as well so of course.

In the conclusion that the speaking, though we are going to further leverage our advantage as a social media platform to reach and cause more the collaborations with our customers.

Okay.

Okay.

Alright. Thank you we have reached the end of the question and answer session I'll hand, the call back to the management team for the closing remarks.

Yeah. Thank you for joining us today see you next quarter.

Yeah.

Thank you, ladies and gentlemen that does conclude our conference for today. Thank you for participating.

<unk> connect.

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Good day and thank you for standing by welcome to Weibo's third quarter 2021 financial results Conference call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session.

To ask a question. During this session you will need to press star one on your telephone please.

Be advised that today's conference is being recorded if you require any further assistance. Please press out there.

I'd now like to turn the conference over to dimension team of wasteful. Thank you. Please go ahead.

Thank you operator, welcome to Weibo's third quarter 2021 earnings conference call, joining our call today, our Chief Executive officer cause they want and our Chief Financial Officer Tal. The conference call is also being broadcast on the Internet and is available through Weibo's IR website.

Before mentioned my remarks, I would like to review the Safe Harbor statement in connection with today's conference call. During today's conference call. We may make forward looking statements statements that are not historical facts, including statements of beliefs and expectations forward looking statements involve inherent risks and uncertainties.

Important factors could cause actual results to differ materially from those contained in any forward looking statements.

I assume no obligation to update our forward looking statements in this conference call and elsewhere further.

For information regarding this and other risks is included in the Weibo's annual report on form 20-F, and other filings with the SEC.

All of the information provided in this press release is occurring as of the date hereof.

We will assume no obligation to update such 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 to gain a better understanding.

Weibo's comparative operating performance and future prospects, our non-GAAP financials exclude certain expenses gains or losses and other items that are not expected to result.

Future cash payments or nonrecurring in nature and now the indicators of our core operating results and outlook. Please refer to our press release for more information about our non-GAAP measures.

Following management's prepared remarks, we will open up the lines for a brief Q&A session with this I would like to turn the call over to our CEO All day long.

Uh-huh claimed that you ought to know they both have all of the Avi. Thank you Hello, everyone and welcome to Weibo's third quarter 2021 earnings Conference call.

It sounds like about 20 inches already.

Great maybe one of your own cool tempting you sign off I'm Gonna Kinda on today's call I'll share with you highlights weibo's user product and monetization in the third quarter of 2021 that you have.

From it to the Central mall.

With that I would actually say.

<unk> been more competing to me, what youre doing with that AGA by Yoplait <unk>.

On that one.

So if we can do what you do to call center to be able to yield an even went to them I think you can burn the BD that matures.

On the user front Weibo's meus reached $573 million and average fees reached $248 million in September 2021, adding approximately six 2 million and 23 million users year over year, respectively, which represented the highest neither the sheer number of mamba.

Six quarters in September 94% of Weibo's Meus came from mobile trying to come in so that's one that I had seen don't turn it on our terms.

Do you sense.

Sentinel neighborhood autonomous haulage, and Chi imaging until now paying attention to from volumes or tunnel without somebody mentioned, Indiana Archie.

<unk> done a PD or was that 2%.

Who's the tunnel the hand here at Argos Central imaging on the monetization front leveraging further optimization your competitive strategy and add product offerings for key industries. Our total revenues reached $607 4 million in third quarter, an increase of 30% year over year.

Advertising and marketing revenues raised $537 6 million, an increase of 29% year over year, 93%, how about where our revenue came from mobile.

Non-GAAP operating income in the third quarter reached $248 7 million.

Isn't it.

I can't really tell people to attend the meeting minutes.

Okay.

Now let me elaborate on progress made in the areas of product and monetization in Q3, San Diego initially that's actually I'll even go there.

We're trying to deal with.

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And as soon as the time when the improvement showing you and some of the onshore team in Shanghai.

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In terms of your onshore cookie yields for sure.

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Landowner.

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Switching to <unk>.

Can you comment a chunk of those.

You can add.

In the first quarter, driven by seasonality effects of summer break and the Olympics Weibo's user scale and traffic both reached record high in July and August close this vaccine during the pandemic outbreak in March last year as supposed to timber we would typically see a pullback in traffic nationally.

The back to school season, as well for this September in light of rectification on the entertainment sector. We have also stepped up our compliance efforts and revamp relevant product offerings accordingly as well.

Result, we saw a pullback in traffic from the July and August level, as well as slowdown up user growth on a sequential basis.

In the meantime, we also revisited our products and operations to further conformed to a regulatory requirement.

Labyrinth, we cooperated closely with our partners in the entertainment industry. So highlight the library is work, especially out of TV series and a variety of shows as opposed to celebrities themselves in the hope of fostering a healthier entertainment ecosystem. We also refined our heart transplant candidate so that's.

To build out a more constructive ecosystem around how convinced in the long run.

Sure.

Now on to the Hyatt He would tell you that something she does seem to imply much NGO.

Continuing to quote somebody else was shot down.

Tiger neighborhood.

Well no we don't even with all of that.

Country, That's channel mix, if you watch it on Cooper Etame, Shelly well in Israel closely.

Those new communities.

Well no.

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When branches in Chicago is the name we shall we.

Tony and I wont go too shall be able to either totally interchangeable.

Josh in your telecom business.

So thanks again.

So here's some kudos she thought even grimoire John Lewis aperture.

She doesn't usually council, which really what issue should have.

With the wind, but too soon.

With all of them and that's an unusual cuisine with agile on the channel brand with half months in certain verticals such as the crackdown agitation. The overall user acquisition price has been descending trend due to less market competition, coupled with weibo's competitive edge in channels, our channel cost per user has.

Further they create Meanwhile, we are also pleased with better retention rate of user acquired through channel leveraging improved synergy between channel investment and subsequent product usage. So elaborate we made progress in optimizing our targeting and mechanics and so that's the acquired an incremental number.

High quality users.

In meantime, we continuously improve subsequent content consumption experience and optimize user recall strategy driving organic content consumption from China users in the third quarter, which that perhaps cooperation with major channel partners, especially I've kind of fascinating vouchers and operators in the area.

<unk>, that's social features and how trends in September the number of users acquired from China investments increased substantially compared with should well position to further enhance our competitive edge and user acquisition leveraging gradual normalization of competition on the channel front as well.

The improvements in engagement trend of users acquired through channels.

But let me comment.

Quite often shocked how people she said no you shouldn't.

Got it.

On the product front I'd like to share with you our key initiatives on Weibo's information feed and video.

We'll find out when the team that's.

So have you found shops checked on Loopnet.

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Ultimately, what they want within commercial company itunes on heat sensitive <unk>.

Yeah team will touch on the down Arrow cholesterol down there on the WAC in.

The yields on that at that.

Tony touched on people check out accordingly.

And I think you called him team, but she who essentially shelf issue Philadelphia.

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Jim do you have.

Okay.

<unk> heard that trembled or usual hijacking.

Okay.

Yes.

So what's changed totally onto isn't cheap.

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T E phenotypes Garner G Hilton Naga Shanghai, She can live with a higher zinc and lead our information feed our primary strategies in 2021 is to solidify our competitive edge of Weibo's key social features and core functionality and that's driving user thickness and inaction.

Weibo's core user groups in the third quarter with further scratching their data mining and distribution of quality, social content and how trends as well as desktop traffic support quality accounts and product features we focused on emphasizing content distribution to fans and facilitating social relations build out.

And our users.

Three improve content consumption experience in social attributes.

Tokyo Olympic Games as an example, we bought demonstrates its strong platform positioning in a combination of hub fans and social features underpinned by our advantaged you real time, I'll take updates public discussion and viral distribution as well as strong engagement from athletes.

Olympic games related topics generated over 400 total views and 117 marine discussions on our platform.

Domino performer among domestic platforms. As a result also of user and traffic reached a record high in July and August looking ahead, well further reinforced our heart transplant social interactions playbook, which features the systematic operation approach that integrate media report.

Celebrity Deanna Kols discussion in distribution as well as social interactions. Among users will also be football where product features and feed distribution and thereby further uplifting weibo's competitive edge than it should be coming in from peanuts on LIFO charge of course, you can call the teacher cancel People's name with Congress.

And then on the country.

Well, certainly I mean continually pay off you can put yourself in the hindrance.

This new label.

The team will touch on central cutting away more you toward our chairman Timothy.

The new Utonian visiting.

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So anyhow.

You mentioned kind of two move outs that you can always superiority in the genre central teaching the portfolio entrepreneur he turns out sorry triple from in my.

In my time in SME argument.

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Dr William panel and tube.

People thought I believe.

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Of course, you don't you my opinion.

Moving on to <unk> and 2021 we're focused on accelerating our content video ambitions for Weibo's content creators through our media accounts program and start to increase media content generation and consumption. Meanwhile were emphasized on cultivating users' mindset abusing label for <unk>.

<unk> consumption.

Constant operations he vertical leveraging ongoing progress made in our video accounts program. We are pleased to see.

The further be utilization trend among content generators as of September the number of registered media accounts surpassed the 20 million Mark This quarter were focused on several key verticals, such as fashion and beauty gaming and sports to cultivate users' mindset towards video consumption.

We also increased our media comments generally very e&ps key vertical through our incentive program, while optimizing the recommendation model under these scenarios to enable video common creators with REIT community right to reach users more efficiently. Thanks.

Thanks to improving video ecosystem and Olympic effect, the quarterly average video views and time spent in Q3 continued to grow from Q2.

<unk> will leverage our strength, Mike likes to premium products to attract users was that our real time Olympic ethics and build a highly engaged community right. During the Olympics season, we're delighted to see over 50 accurate hundreds of Kols and multiple media outlets potash.

This is a page in our joint Mike like generating lots of hot topics or bio distribution and discussion.

From a product perspective.

Optimizing user experience and enhancing the social and consumption features of our live streaming products laying a solid foundation for the upcoming IP based join Mike led screen.

Well, thanks for coming out.

Sure.

Essentially to talk about something you're going to have any impact on our gluttony to me between institutional Tucson initially organically.

So until I kind of talked to the charter do you look to humans machining yeah. So you didn't name yourself.

We actually didn't give them a shot.

With who.

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Neil you were starting to LIBOR.

We will continue to guide that you talked about changing says look throughout China.

You're talking about.

So I'm in a pool table automation dominating the attention and even travel.

Consumer shop to do tend to lead us through a background.

You bet.

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Totally age issuance issue.

$3.

Thank you Scott.

As she can go to Shanghai.

And well talk to you guys about until what she probably.

So what are your children.

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Yeah.

I the country.

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The real uncertainty being taught you shouldn't Daniel Sasson forgot to.

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Julie O'neill.

Scott.

Next let me give an update on our content worth close in the third quarter witnessed a tightening regulatory environment for the overall entertainment sector, notably government authorities issued a serious rectification measures a few P series and variety shows as well as bank culture.

In the short run we would expect certainly impact on traffic from the entertainment and news information verticals. That's it leveraging our continuous investment to you rich content verticals, we could mitigate especially impact by fulfilling users' diversified consumption need other content verticals.

A good example would be the gaming and esports vertical since last year Weibo has beef up its investments in various areas in our sector and a strengthened partnership with game developers esports tournament gaming Kols and hope as well I started our own E sport Pete the gaming vertical.

Has now become one of the top content verticals, Besides news information and entertainment.

Operating from a strong social distribution and a large and engaged jazzy user groups for instance, during the <unk>.

Recent league of legends season, 11 relevant topics generated over 100 billion views and a 60 million discussions in total as a result, our traffic also ratios peaked things Tokyo Olympic games on our final day of the season, you love and permanent. Additionally.

Weibo has also proactively erase our offerings around esports sector, including investing in starting February esports team organizing a serious of esports tournaments are popular games in the market with the investments in the upstream and downstream around the gaming and esports Becker weibo as well.

Position to better reach young users and improve their engagement, which should boost our monetization for gaming sector in the long run.

Well thanks, Josh.

I mean, that's what I hope and tubular Qingdao honey aren't yet one congrats on why we're able to put up on costs I mean, the two New York chunk Honeypot economy.

And again being short term so that she can be able to Shanghai.

Okay.

Now, let me share some color on our monetization strategies and the progress made this quarter in terms of the country. One we have further strengthened our competitive edge of our social AD products, but what's inside our industry specific marketing capabilities and enhance the potential and the efficiency of traffic monetization.

So as we improve weibo's monetization scale in a market that can happen there.

Send you don't remember Camacho told me its not that large youll see that San Diego Puma.

Uh huh.

So central pharma and nutrition aside yep.

Or don't you will be able with that Tony and his team, but Shanghai yourself Wouldnt meet send it to me a honey toolbox when it comes to the roommates uncle <unk> since these two models.

Continuing on the economy.

Sure.

Sure.

The onshore.

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Hi, Sean.

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Sure well you know Honeywell in the shortest time, yeah, so when you're talking about telecom, Austria towards the types of charter.

So in a way that we've had.

Turning to Yamana.

While he was with xiaomi to wafer.

Thanks Kelly.

Kelly opinion, and even something with Shanghai classical Camille.

Neutral <unk> sure could you tell me.

You find the financial details I would put it.

How many shows hosting a call.

Okay, Tony or John after she shopping Oh Chattanooga.

The Hyatt coconut put out the overdue for people pedantic onto their high.

Congrats on the chocolate modest you called.

From an industry perspective.

Our revenues increased 29% year over year in the third quarter, despite of acceleration, where you'd been cutback of AD spend from certain industry, that's facing macro or regulatory headwinds.

I'm delighted to see resilient growth being a keyword, especially that's cosmetics and personal care food and beverage and sweet tea products benefiting from improvements in our search.

Service capabilities.

Meanwhile, our strategic focus on sectors, such as gaming and apparel also paid out testified about decent growth 16 records as we strengthen the synergy between our user and AD products to further enhance the monetization efficiency of our organic traffic and act upon it.

On the flip side, a few sectors book, a notable decline due to regulatory headwinds such as education and entertainment AD budgets are good cry from the entertainment industry could be temporary due to the cutback on the demand side.

Policies in a sector, where should gradually come back following the normalization and gradual release of blockbuster show. However, it would be a different story with the education sector as the crack down on the industry and demand seems irreversible currently Eli.

Eli just recent policies and industry trends, we have proactively adapt our go to market strategy and not just our sales structure. Looking ahead, we will beef up our efforts to reach and serve customers in those promising sector, especially as a new consumption economy.

So both view their specific marketing is in the longer term.

So let me comment on that.

Tangible book, if I may.

People keep talking about I mean, it seems only.

Yeah.

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Dan.

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<unk> send you the award Ipos Johan.

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<unk> is perfectly.

Josh I'll call attended 2 million pool on.

On the AD product fronts, we focus on maybe two things in the third quarter.

We continue to reinforce weibo's competitive edge in branding plus performance at offerings, leveraging the compound effect of our house.

Elaborate T K O L and treasure box at offerings will showcase strong outperformance to our customers during major events and their prime campaign window.

Raised him during the Tokyo Olympic Games, Although mobile company D C leverage athletes cancels inputs for build hype and relevant topics one viral.

Apple, reaching nearly 200 million meals and have generated over 12 times traffic value compared with a traditional commercial placements.

Well continue to optimize our feed AD offerings, notably on a full funnel conversion model from brown to backend specifically for the gaming sector. We further reinforced the synergy between our AD offerings and our constant vertical operation leading to heated discussion our newly launched games.

And Buildout of social access we have successfully tendered this industry specific offerings to more gaming.

Which resonated greatly in the market, taking the blockbuster IP game Harry Potter as an example, we leverage strong IP feature and created a series of trending topics.

These topics generated more than six billing days in the fine, though in discussions in total enabling us to capture higher AD budget from the client going forward building. Upon our success story with gaming industry. We will further explore and extend them. All go to the E Commerce sector, we're beefing up our investment.

Can you add technologies around such added product with focus on the new consumption exit.

So on and so forth so long as you're in China, you put them on the Cleveland show went to two two times at all.

Function triage dual entity at Shaw wireline, Jennifer Garner and Chipotle.

To put our Shanghai concert attempted.

Anyone who wishes to keytruda.

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When it comes out.

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To tie the pension funds.

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Donald <unk>.

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Yes.

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<unk>.

Petroleum she.

So let me go to Liam Quad play out this way.

It will not come back.

In the second half of 2021 government authorities to beef up the overall regulatory efforts on Internet platform and issued a couple of new policies, including rapid vacations outbound culture and celebrity ranking charts.

Security law and personal information protection loss just to name a few the new setup regulatory framework in towards this higher compliance requirements across the industry in terms of products operation in monetization as such we will also devoted significant R&D research.

Worth to the compliance from Furthermore, well your regular communication with relevant government departments.

To better understand the policies and the airplanes on patient guidelines, so as to adjust our product and operations in a prompt wait for instance, talking about the rates and sound cultural rectification LIBOR has taken in France of measures and issued guidelines to celebrity agencies and fan groups actually have.

Yeah, but what you should have such policy.

Implementation for a period of time, we have already seen Fang impaction had towards the healthier path, allowing us to buffer and minimized the impact from the recent rectification.

Similarly on the health insurance product since the end of last year, we have proactively taken steps to lower the percentage of entertainment related trends, which has come down and stabilized at around 25% of total trends well diversified all trends or how truth product is well.

Turning to arrange a wider user demographics.

Yeah.

So well.

Do you have many issue, but shifting the usual Guangdong Fujian essential LIBOR.

Yeah.

Got you got you.

On the 10th.

Yeah.

Women should come in.

<unk> passion.

With that.

Sure we ensured a game called pocket P M.

We believe sequentially.

Okay.

Nigel just threw it agenda to ensure them ATP impact from Guangzhou founder who has worked with.

Well I'm going to conclude.

As you know the MTA.

<unk>.

Shockwave Michelle Qi.

Sure.

We will send you a fashion that <unk> <unk> annualized so she will generally eating too.

Well look whats your Cheyenne light vivo tissue issue.

<unk> 20 in Q2 classrooms.

That's all.

Michelle.

Google Nutrition.

Yeah.

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Sure they were tissue to me I mean, pushing them, India potash incomplete you bundle and you saw the Fiat <unk>.

Lastly, let me reiterate our position despite certain uncertainties and have been well deliver solid progress and our results in the areas of user traffic product as well as monetization in the third quarter. That's that we are indeed facing a year of change where we have to navigate through.

<unk> turned on when you bought <unk>.

Over what doesn't change is our core positioning as China's leading social media platform.

I've always been steadfast in our mission to empower users to be heard publicly and connect with each other as well as our commitment to a better society, we have demonstrated our indispensable value proposition and critical events such as the reasons why they in Zhengzhou City and also during the evolving COVID-19.

In Iceland pandemic situation, we're proud to serve our users and our society you're recording in discovering what's happening in the world over the past 12 years with further optimization in our user experience and a core feature Weibo will continue to be the go to platform for users to connect with each other.

Discover how trends and for customers to market effectively.

Tony.

Essentially how would you work with that let me turn the call over to Beth Howe for financial review.

Some people golfing and Hello, everyone.

Well have to loop that clutter plenty plenty, earning conference call.

Let's start with user metrics.

Timber plenty plenty, what we've lost Ami youth and average do you reach the five times with a 17 3 million and 248 million respectively, continuing to grow from prior quarter. Despite the back to school seasonality and the declaration of happening.

Our annual basis, they added approximately 62 million Ami and associates I mean M. D youth are sorry. The net addition, number primarily driven by strong execution on channel on the video front.

Looking ahead, we had less focused on executing against our user and product strategies, well navigating through changes in the regulatory landscape.

Leveraging 12 years of experience as a social media platform as well as our indispensable role in serving public conversation.

Turning to financial and other than that.

Under my prepared remarks would focus on non-GAAP results and all the comparison on a year over year basis, unless otherwise noted.

Now, let me walk you through our financial highlights for the third quarter of 20 times or what.

Well for first quarter times, if anyone that's brand New York, well 607, 4 million an increase of 34000.

Operating income was $248 7 million, an increase of 39% representing operating margin of 41%.

Net income attributable to Weibo $209 6 million.

The increase of 37% representing a net margin of 34%.

Diluted EPS was nothing compared to 66 days in the third quarter plenty plenty.

Now, let me give you more color on revenues.

Weibo's advertising and marketing revenues for the third quarter fundings on me, but.

It probably 9% to $537 6 million.

Mobile AD revenue was five times at Comscore media contributing approximately 93% of total AD revenue up from 19% last year.

We delivered a solid AD revenue growth underpinned by robust engagement chat during the Olympics.

<unk> sell execution and ongoing ad optimization.

Without the lagging to see advertisers recognize the way for us to go to platform to build half our industry specific AD playbook during major events.

In terms of revenue contribution or tops or what do you call. It well F. M C G Tracy products and E Commerce.

LIBOR has gradually become the cornerstone of many advertisers in their consumption sector.

By enabling them to connect with Gen Z users and casino there integrated branding plus performance.

In terms of growth.

F N C. G I'm, sorry fee products continued to outperform that.

Anchor tenant.

Okay vertical it underperformed, mainly due to the regulator hasn't it.

From the App quite a perfect here.

Revenue contribution by product category.

It is stable with promoted fee being the largest part followed by social display ads and other ad offerings.

As promoted chats and topics.

We have industry wide application allows us and the celebrity Todd.

Our team's job to mitigate that impact that's a bad thing at all things as well improving monetization efficiency, which resulted in based on the growth for each of the broad product category.

Also we continue to see good traction with video AD and hold you to further drive penetration.

Positioning us well for a long runway of growth.

As we headed into Q, Paul locale, maybe this will leverage our unique value proposition in the market and strong execution track record over the ear to capture a commercial that share of wallet, even though the fact that the overall advertising market could be challenging in many ways.

Does that short term macro and regulatory headwinds facing the whole advertising that train.

That committed to driving value for our customers in the long run elaborate you label it full spectrum of social advertising products.

As Daniel from Alibaba for the third quarter decreased 9% to 28 million, mainly due to Alibaba Conservative Alaska strategies. This quarter after us our progressive ultra up of AD inventory to other e-commerce platforms.

Lots at our cooperation with Alibaba positions us well to capitalize on the ongoing digitalization Chad on the Jeff a value for breath and amortize both platforms.

Value added service that revenue was 69 eight made it in the third quarter.

Increase of 42% primarily attributable to the revenue derived from interactive Entertainment company acquired in November plenty plenty valves, partially offset by a decrease of revenues from last streaming business.

Turning to costs and expenses.

Total costs and stuff it a third quarter with 358 7 million an increase of 25%. The increase was primarily due to a step up in marketing spend and higher personnel related costs.

Operating income in the third quarter increased 39% to 248 Southern Union.

Operating margin was 41% up from second quarter last year exceeding our expectations.

We're pleased to report our operating elaborate achieved linked quarter as we continued to balance well between investment for growth and margin performance.

Turning to income tax and the Catholic later income tax expense for the third quarter was 31 final for me comparable starting middle of last year.

Net income attributable to Weibo in the third quarter was 209 six me at different times.

Margin of 13, 4% compared to a second third fourth and last year.

Turning to our balance sheet and cash flow items I felt September 30th.

Weibo's cash cash equivalents and short term investments totaled a coupon 17 comparator with great caused platform as of December 31st plenty of funding. The decrease was primarily resulting from investment activities made otherwise partially offset by cash provided by operating activities.

In the third quarter after having thought about providing.

Provided by operating activities was $276 million carefully.

Totals eight on framing that.

Depreciation and amortization expenses amounted to Fortunately on let me know.

Lastly, let's talk about our financial outlook.

I anticipate our first quarter of 2017, my family to increase by 15% to kind of put that in year over year on a constant currency basis. This forecast also reflects weibo's current and preliminary view on.

Is subject to change with that let me now turn the call over.

Over to the operator for the Q&A session.

Thank you ladies and gentlemen, we will now begin the question and answer session.

If you wish to ask a question. Please press star one on your telephone and wait for your name to be announced if you wish to withdraw your request. Please press the pound or house K P. Standby, while we compile the question and answer roster.

Yeah.

Our first question comes from the line of Alicia Yap from Citigroup. Please ask your question.

Hi, Thank you Juanita and lunch on Hagen sees yoga challenging the yeti alloy on that score.

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Sleep shuffle golfing shopko, yeah that since you need to production so that all one.

What I can do so without Tim Guttman.

Uh huh.

Thank you management for taking my question first question is.

Curious if management can share if there's any change of the weibo app behavior ever seen the effectiveness of the personal information protection law starting in November our first our.

Second question is overall advertising industry actually facing.

Michael and also regulatory challenges.

Yes, Weibo has been able to maintain double digit growth in the online AD revenue. So can management share with us the performance and growth rates for different industry vertical and how big is the macro impact and how big is the regulatory impact on each industry vertical.

Fishing boat, which help with I think a quick.

Integration.

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I think that's something for them to shop with Union found out somewhat.

Country, essentially factors, which you.

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Sapphire coating machine to meet each choice I mean, I've got my final Tricia wouldn't quit who'll be talk towards going towards that time T V. Shying away from it kill me into Silicon Valley onshore.

So thank you very much. Good question first of all let me address the question related to the implementation of the personal information protection not so overall speaking this is actually a mega trend not only happening in impacting China, but also the rest of the world as well because you know after the implementation of the personal information protection at all.

And also having challenges in terms of our algorithms and also the competition as well as the performances of our CSR as well and also to the other companies. So that is to say that we need to emphasize more on the operation as well as the compliance as well.

Okay. So when we bought the other night.

Eagle account on the label or FICO Kun, Cai, there, who don't meet at Pizza hut.

With that debenture to accomplish going forward.

Each Yahoo wouldn't sheet, Okay forget a chunk of that's useful how quick so his role in the Chicago I don't know how on the timing of.

And the sheer goodness as young Kwon the Yokohama.

I refer you talked about introducing.

And globally.

Sure between the pound created comedian Wonder woman that don't really until the local cuisine Shan Shan.

And also in terms of whiteboard I'd like to give you two points. The first one is that Weibo has always been a public social media platform. So that you know during the past if any user has any questions or any suggestions they were really feeling free to actually provide the feedback to us.

And of course that we weren't always being very much refrain from making public the personal previously and also the other inflammation. So with a very good protection. So that because of this impact we are going to postpone or not thinking about going online for the features of the <unk>.

Function of feedback and also the other relevant functions.

Okay, Newmont I jumped on late.

Thank you ginger available on your screen.

Sure and you're in the English or don't meet the P&I cultural mutual positive until one implement omnichannel go to.

That's basically all tissue timberland to ship to them.

You will find in our commercial tablet Francisco complain to deal with a question.

Young Kwon to enable Elijah Shiva.

Insulin suite Saudi.

<unk> is a bulk with them from a.

Each opportunity is being from the beach walk off the hook.

And also second point is that Weibo has been operational in China, but 12 years already and joined the past decades, we've been keeping a very close communication and collaboration with the government as well in terms of all kinds of different details. So as you all know that in this particular industry wide.

<unk> is really a kind of a more compliant company versus the other peers as well and also this is a normal business operational environment for us to be really in a regulated pretty much and also we emphasize a lot on the self discipline in terms of the data collected and also the <unk>.

The business is operated.

Yeah.

No. It's I don't think it's one of those expansions here sure.

So two complementary hotshot.

They couldn't ship all cyclical.

So a quick question. So would you come into angina, followed them for me and teach them a tortured so should I also be chemical inbox with two years ago.

Thanks for that.

She was the name of them actually I'll pick the two question Nishu I also will talk to each other it's actually at one time Telecom Shanghai, Shinohara, Tim Glenn who got to enable a heartbeat.

Turning off other places that you got to the call.

Okay and also you know before the implementation of this personal information protection law, we received already the guidance and also the trainings from the government directional had the optimization overall algorithm and also the personal information protection as well as a deep data security.

Ts as well so we already had a very good communication with the government even before the implementation of this law and also of course after the Hum.

Going life of personal information protection law of course that we are going to face a further optimization of adjustment as well, however, I believe that such a tight and stringent regulation.

Sustainably is going to benefit not only wasteful, but also the whole industry.

Uh huh.

Like what are you seeing a higher Communist Congress game engineers somebody else kind of computer Baja yeah, I'll come back with a higher demand.

Not that I can send you the policies or somebody is with us.

See what you're doing.

Uh huh.

Okay Cool and lets you go home and come into fruition.

How about on the Caribbean.

Okay.

And also in terms of your second question. It is indeed correctly mentioned by you during a question that the whole industry and also no not only weibo, but also the external as we're facing a lot of challenges since the second half of this year, but of course, having said that.

Weibo's still had a double digit growth in the AD industry and of course that was a pretty much not due to two reasons. The first one is a very optimized as a sector and vertical structure and.

As well as the very good and diversified coverage and second was because of the nature of Weibo's AD, which was a social media oriented.

Okay.

Ooh Ooh some formula.

So Shannon so her name amphenol team or saw timber and each of them.

The restore Shelley thunen bought yet.

So it's something you can only be outdoor does it Tony Fisher Tunisian with Jim when.

When you're talking about.

I don't want to let you all totaled.

Total it I'll tell you how I am told me nothing like that that are.

Put all that in our case hard I'm not going to need shopping from shop, Paul Young woman Archie to serve until the two actually.

Downstroke, but we wouldn't see that again.

With that she I wouldnt teach you wanted some functional cost.

So he told me he looks at all.

You can shop now.

I mean, unless you're very shortly.

Okay.

You know nishu converted a couple of them across other brands Sheila.

I think for sure they'll cool so at Westwood.

So the why behind it won't tell you, which I'm sure you're doing assuring Josh I'm there yet.

The <expletive> out of Macau.

Okay.

Okay.

And also I like to ask you know talk about the three major industries that have been regulated pretty seriously during the past them. So they were education and insurance as well as the entertainment industry. If you like so first of all talking about the education, So education vertical action accounted for a very.

Minor proportion of our total revenue, which was lower than 2% but of course, if you're talking about pay 12 relevant education. This was even though of course second of all we're talking about it finance, especially insurance industry. So we had a pilot run out of this particular, you know collaboration with the insurance thing.

The story for.

So the at replacement placements in April in Q2, actually however, because of the poor user experience and also the other reason we gave up on this particular industry and third of all talking about the entertainment industry. So this is of course, a very a big contributor to our total revenue. However, you know in the past.

We were pretty much you know, having a collaborative model based on the content instead of a regarding those entertainment customers as our customers. So that's to say that even if we had a stringent regulations on the entertainment industry, there's hardly impacted already.

Our revenue and also this particular challenge wasn't as big as the other peers as well.

Okay.

Yeah sure so many.

Brendan you probably hit on shield English identifying with Chitra, who yoshi.

She Scotia answer, yes, we shouldn't I shot you definitely you mean, the book that you're behind them in Congo, Hershey chocolate coffee when does that cause you to ensure talking with you in the foundry gets shouldn't trade at <unk> <unk> com.

<unk> has its own it was cool.

Okay.

It was showed up I wasn't sure huge rush on central China.

They don't look into a piece of it is simply the fabless. So as authentic functional can be tricky protection shunting yesterday, they simply couldn't away when you accumulate cheesecake put on which is awesome.

We shouldn't be spending well between orange and went up.

T V.

I was scribbling, but she told me what he or she tending transiting relies on a lot of good questions.

Okay.

I thought you told on the triangle, when Tim and I'll call that a chunk of money until you're able to heat the home or to the team, but then we.

Moving on our continuing you'll hear you talk about the RTG, though you'll see it in some T shirts.

Khatami Egypt.

Okay.

And also second of all and I'm talking about those are verticals that have been badly.

Badly and also.

Mostly impacted by this that particular type regulation, so they were automotive industry.

Gaming so first of all I'm talking about the Automotives and of course that we all know that the whole industry automotive was declining.

By itself, however, talking about the AD types that we provided to those customers. So most of the industry. This was pretty much on the brand plus performance oriented. So of course that we are still maintaining a very good positioning in the budget pool of our customers in this industry and also as I.

I've already stated in the opening remarks that Weibo has grasp the opportunity very well and precisely.

Especially the trend that more and more of Ice's vehicles start turning to the electric vehicles and the penetration of BV is becoming higher so that we've got a lot of the budget of the new EV launch for our customers. So we capped.

<unk> performance in Q3 in this area. However, I know in the future while the chip shortage issue has been resolved and we're going to see a very good recovery of our leading position in this industry vertical and of course lastly, I know talking about the gaming of course that we had the regulation of the non adults in this area. However, as I have stated.

We are successfully got the trend, but the popular esports games and also catching a lot of opportunities for the launch of many new popular games. So we really gain a highly recognition from the gaming industry in terms of our ability of doing business with them and also you can see that.

The percentage of this particular part of the new business has been increasing over time.

Alright.

No.

Those are temporary.

Oh sure take off on Guam bulk when she had her school concert anytime anywhere and on which I'm quite sure Schumacher Johan here.

Has it come down you don't quite know neighborhood. She shared with your thought that Tony mentioned, a higher total NPL bulk on the knees you can come out and show you should go down somewhat or the heat or Taiwan.

So that takes your client event junior and she would call me up.

I got boxes that'd be talk high though you've got some school. So basically if you can say on that so I'm kidding sure Hi, Thiago.

Can you hear me now from.

Wound in Tijuana.

But you didn't see that momentum going up on our sugar dotcom sign essentially to uncle Sam.

China people in that group.

Boucher books, whether you got some families of patients.

Sure.

So owning more and.

And also lastly, I would like to comment on the other verticals that were not impacted by this regulatory and also the macro headwinds, especially FMC G. I know some of the consumer electronics et cetera. They were keeping a very good growth. So of course that timing of Weibo always emphasize on the strategy of having brand plus the performance.

AD as well as providing a differentiated.

<unk> strengths.

By leveraging a lot on the Kols and also celebrities as well. So you can see that we are these kind of FMC G and consumer electronics industries, we're not impacted at all and also maintain a very robust growth. So overall speaking because of this optimized overall structure of our customers and verticals and also.

No.

Part of the industries have been impacted by the macro environment and also the regulatory environment how are those still.

<unk> had a very positive trend in Q3 and also quite optimistic about continuing this trend to Q4.

Okay.

Sure.

Your next question comes from Ashley She from Credit Suisse. Please ask your question.

She said why don't you finish all of it Sheila well what how many times you should send you told us at home and don't keep how long you'll have 20, Dan Timberland Qiang of Hollywood tissue, So I'm trying to get underneath that Chow homepage Yahoo. If it isn't.

One cannot oh, yeah.

Help oncologist in ER to be in the tissue and killing yourself Mckenna, Jim what do they want men taking shots are holding my gosh, why don't you selling a kit argus or whatnot in yards I can't see on their own farmland often brought up.

Oh Gosh I know no one knows that takes longer and you go out in a franchise that can.

I'm glad I've seen Chang.

Oh thanks.

Thanks management for taking my question. My question is related to the regulation in our in the entertainment sector, especially about the racket, a rectification about Fang Fang culture too.

Could management share more color about the impact on our user engagement and monetization at the same time, you mentioned that we are investing in the esports and gaming related content.

Could management share more color on our progress and future plans. Thank you.

Oh, what sort of timeframe Shanghai Sunshine.

Sure.

Oh sure sure available okay.

Away from these boxes in terms of a woman musical tones of me every time someone would.

What types of churn going.

How that easier to implement our teaching to them when the time came clean sort of attention was your.

A question on China Okay.

So first of all talking about the same culture. So as I have stated in the previous answer. So we had a very good communication and also the relationship with the government you know even before the implementation of any regulation. So action before the implementation of the policy, we are going to have a better.

Understanding of the details of implementation as well as seeing postman off the search on regulations and also.

Accordingly adjust our behaviour and also performance and also operation Okay.

So you'll find Cheyenne Prairie CT Sheila you don't have gone to the ascension to eat something cool English and Spanish information I'm sure Google in Guangzhou and Shenzhen.

Thank God 19 years coming into summer, which Youll got wash, which you can go to 50% on the man she she's not able to travel and travel Virginia, Yeah, sorry, So close to the Union comments at least 10 times.

So listen to people, who live here you get people who.

They've been the trend.

And Jim why don't you think knock on consequences.

John J D.

Turning to our particular, we thought at all to you on that team and really all shorts ACH onto each in your most expensive nucleus umpqua any particular need to implement.

As to each year more than this year.

Great.

Now on the bulk of that chart on a proven and abandoned time here, it's hard to I mean other here.

Okay.

Hum.

And also in our second of all one or two years ago actually you know we already witnessed a and that's if the impact of this a fan culture to the whole ecosystem off label and also the whole industry. So you know that we have adjusted quite actively the announcements of the community.

In the first half if you have noticed that in the adjusted announcement from each announcements where did you said that we are forbidden all kinds of the release also the third party information and also would be irrelevant.

Called for and supportive messages sent by the fence as well and also you know these kind of measures that we are proactively take or took had a very good buffering effect.

On this at times regulatory change so that we have been reducing the impact to our traffic to the minimum level because of this preparation and also in Q3.

C.

Reeling from mutation after detailed rules and of course for example, we have been a change in activity.

The kind of management of the <unk>.

Celebrity agencies as well as defense groups and also trying to manage a more tightly in terms of those content itself TV and movies et cetera, and also we had a very good adjustment over the super topic.

And also the ranking of celebrities et cetera.

Okay.

And I kind of I know womens.

What she can yeah, so I'm going to win.

Cheaper for them.

It will go up.

The standards that are able to show you all maybe if you can kind of I don't know home and teaching push from ADP.

It's only when the total partnership do you able to just sit on the heat or yeah.

Neil Mclaughlin from Cushing, you I believe you mentioned Gunther.

Suddenly.

So your thoughts sort of window.

People don't but you don't have good although it's also two new T M.

Sure.

Some woman something cool Pilomotor tangential, mainly for oil country.

It was amazing to me here my name is happening.

Thank you for the machine equivalents, but would want you to go to the phone.

So it is soon to the tortilla annuity so it shouldn't impact.

These are retrenching a little bit.

And I'll come in media, you won't we cannot yet system and GMO clean water.

We cannot control the T V WOMAC law, how long I'm not sure.

And the issue of acuity.

He wasn't sure why don't you go up and we can't comment you've got management offerings to the Eagle Ford will come back.

Hmm.

Yeah.

And also I would like to say that you know in recent years, we've been seeing in the development of the entertainment industry more towards the top notch phenomenon, which was pretty much of a focus on those top celebrities and also the top shows and also the programs. However, you know weibo is still.

By its nature is a social media instead of like pure media. So if we follow this particular time this is going to be detrimental to our diversification of our content and also going to harm the environment of the interaction between the fans as well as the seller.

And also between.

The movie lovers and also the programs as well so that is to say that same reason, yes. We can see that it is already a very obvious trend that the entertainment.

Related topics. So just trying to rely on a very limited number of variety shows and also a few celebrities on the top ranking so and in the past several years, we've been already noticing that and also trying to diversify the content related to all kinds of good.

<unk>.

Programs and variety shows and also creating a very diversified and rich discussion and also the interaction as well so as I have already said of course the whole industry is taking measure for example by collaborating with the video content platform as well as the television.

Radio stations.

In the next several years or next year, well have volumes here and I'll try to launch more content related to all kinds of different mood.

And also the other.

Programs and variety shows as well and also the television station is going to do that as well. So we are going to emphasize on the collaborations windows entities more and also trying to build a very good and healthy environment for the interactions.

Okay.

That engine.

I can say it was screaming she at all no.

Shan Shan Shan.

Chat pushing you in China, I think you will see if I'm in the total number of churn to be you will see that contributing to your June 20 <unk>.

And so you know that's a lot.

So I think keeping that 'twenty two time that you go to Sydney.

Taking the answer she does he was once you sign up onto the reason, we're not talking about $10.

Tourism that once you hit that 10 day, the total Asia tend to it suited towards Asia, showing that you're sure you'll see that these patents are valid.

Someone else really tuned out kind of a put a central and north Sydney.

Sure sure.

Good morning, Lisa I'll take the first half with asthma.

Quinn.

If I'm being a tool that's usually a harsh is that computer you got to cheap.

And one should handle it.

No nation Yamana com.

I T phone, usually if you could touch on all of those are so called Tianjin expenses Russo.

<unk> mentioned the Easter Sunday this year initial 10 days or so into Permian well.

And people like that it looks as though maybe pulling back on I mean, no more share I think Michele.

The RVP looking at God, we assume they're not people here looking Josh who put in English and that's where she came from the outdoor Honda.

Okay.

Yeah.

And also lastly, and I'm talking about the esports. So as we have already said during the opening remark that we had a huge investment into the gaming industry and of course that making this gaming vertical one of the biggest verticals in Q3.

Against the others for example entertainment and also the traditionally strong vertical in a label. So of course that you already see a very beautiful figure on the number of weeks on the topic of sudden league of legends season, 11, spinal and also of course that we are heavily investing in shoes.

Building teams and also organizing the tournaments of the esports of popular games. So you've been seeing a very good data and also figure in terms of the development because of the investment that we have conducted but of course like the entertainment. They meet industry is a very complicated and also a very a big industry.

Big take so actually we are still in the infant phase of still continuing our investment so of course that term.

Like the other industries of course, our strategy for the gaming industry is to collaborate with the famous Ips and also collaborate with the famous.

Tournament and also esports events and also try to cooperate with those celebrities team members and also those that they must teams as well. So I really believe that we're going to have a much better operational model and operational efficiency compare without peers. So at the end of the day wasn't a try.

To diversify the content that we bought really provides to attract more high value users.

Alright.

Okay.

Thank you. Our next question comes from Alex Ko from Morgan Stanley. Please go ahead.

Okay, Let me just start with.

So you wont youre going to see a way forward challenging.

No.

Oh gosh, yeah, it's empty that Jim you kind of thinking about how <unk> fits into the lower tier city was I'll call. It a couple of Kay.

And you can see with.

Time charter book.

Wait for the Android.

So thank you management for taking my question and congrats on the solid results. So we mentioned regulations on advertising industry last quarter, including the large screen ads IBSA policy implementation. So can management share the latest observation in third quarter and fourth quarter help.

Help us quantify the impact on Weibo ads and the measures we have taken to navigate the impact.

Uh huh okay.

Like how much of a competitor cannot use one thank you.

Since you do that sometimes you should slow.

Yes, while providing real time into Oh, I forgot about calling you should put it I'm not sure. It can be one of our guys have any thoughts.

The Shanghai.

The tennenbaum Gar Yan from unearned diagrams without something that someone puts under the PPA.

So with that how kind of agree with that.

Dave you talked about you didn't even shop almost angelus for Montana.

I think having one other sort of computer for.

So a follow up on the quantity. It's also coming from that what's your thought about these women don't cause.

While our social so sundar Pichai, who may come in well under TNT to be shutdown getting shot you blueprint showing what we thought on the cover of the Covance you want room count all human being important to you got some good local queen.

Queen Wahoo, and then didn't really didn't show coming up in a woman, who don't pin pads put on them.

I think one connectivity.

<unk>, probably they will come back with me if you don't Mueller co.

Sure Charlie.

On the top line a couple of the toilet, Russia, I can't yet shall shishido with Ashford Trust shower and dogs are solidly in the country.

Commercial lines out no problem with that.

And <unk> cause you won't call it time machine not anytime in the teeth on Tien <unk> pizza chain down there, you'll still pay the Tucson.

And a couple of the future of yours as well.

Okay.

Hmm.

And also you know first of all definitely speaking I think that in Q3 and also Q4, we had a very good momentum.

For this.

But they've got a business not only because of our very optimized the structure of our customers, but also because of very good portfolio of product. That's what is the nature of weibo as a social AD platform. So first of all of course, I mean, I'm talking about the open screen from AD or the special Ed actually in the first half definitely speaking we had a more stringent.

The regulation over the apps launching.

Launching the especially <unk> and that did impact the whole industry, but of course <unk> seen from the data and also statistics you can see that in Q3. This particular revenue slowed.

Slow down its growth rate and the month to month growth rate was only a single digital which was lower than the industry.

We'll kind of AD revenue growth and of course that was mainly due to the lower down a quick weight on this particular slashdot and also that did impact part of our performance.

Oriented kind of AD customers, but of course, I'm, having set that stope because of the very good.

<unk> off label in terms of our customer and then Bryan access those budgets from those impacted customers never leave Weibo.

Meaning that we successfully transferred there.

Budget from the splash out to other areas like utilizing the speed.

And seed and also the hot search and also the other relevant products as well and also especially during the double 11 Festival, we've launched several new products and also try to.

Increase the click rate by several folds and that really increased the demand from our customers.

Okay.

So we're kind of authentic quinine to FASB now as the 10-Q.

Excuse me John Chamberlain.

Actually it's a proven Oakland downtown Hollywood you shouldn't be taught me to me he's out there.

<unk> reported on a kind of omni channel without some sense at what kind of shampoo.

So 100 cohort IV with a core ontology show what's material cool shortly you'll beat our China, even shown with eastern triangle deals looking boy you ship the functions that are able to teach them to the table show a telephone to treat them with the potential Wheeler.

The shallow too I'm sure we look at the published no woman tying the Hawaii.

These are solid here to argue with you.

What went on there.

Work Queens.

So this will push our modulus huh.

Okay.

What's really going on tissue.

How are you feeling like that's on a client event for us.

Okay.

And also second of all related to I'd say of course that.

Since the launch of iOS 16 in Q3.

D. S. A related details have been implemented and also landed of course that it did impact a lot of the peers in this.

The industry, however, and talking about Weibo, we did not have that large impact in Q3 that was because you know I'm talking about all customers. The reason for them to collaborate with us on their AD placement was not only because of a higher position, but of course are more focusing on the market changes.

That business as well as the information.

Information dissemination. So for example for many kind of and game developers.

Try to collaborate with way, Bob while they launched a new games and not only because of a higher and better position, but of course no tried to disseminate this information of the new game as far as possible. So that it to say of course in Q2, we already started to support to the Apple official.

S K at network attrition.

Attrition.

Strategy. So that was a very good effectiveness that improved the final results of this particular business and also quite very well to enlarge our market share at the end.

Okay.

We don't give that kind of final Cherokee about Hong Kong car tempting jumped on that cannot.

Yes.

But it will come down she doesn't know cutting what call each year identify one called the tmall totally.

Shock top and Cynthia Cynthia Yeah sure Eli.

Fortunately the P P judicial who BW languish, Qdoba Chengdu and Guangzhou.

Sure.

We were able to.

The dolphins with us should help them all the time.

You might recall to embark on.

China handle the coupon the future Okay shampoo, keeping my children P chocolate either.

So, it's we're not too often and too.

Cushing, Oklahoma attempting to deal with it.

Got you.

Could you kind of want to talk about the.

The other piece of that which I'm told him. Please.

So you don't have all the material to dollar tree.

Many of the Caribbean.

Welcome to the accretion short answer no sugarcane honeymoon, she passing should <unk>.

To that function of CCAR stockpile, but real quickly you talked about liquidity kind of are for that.

Sheldon will go into at the time, you know kind of off the shelf relationships.

Could you shed some light so I'm with you.

And as I always say, it's all it's India.

But she tied up on the call that you had some okay.

Yeah.

Sure Joe I'll keep power yet shown in Idaho, Hello, Quench walk with a union shop critical shown that you can go to Asia.

Hum.

So lasting conclusion of course that we did see and witness such a bad impact on the advertisement industry. So because of this regulation of the idea of assay as well as at the.

Open up screen related deaths, but of course that these kind of Oh, two regulations Reno had a serious impact on those apps that dependent a lot on the splash ads or dependent a lot on the precision marketing strategy, but of course that weibo is a social media platform.

Emphasized on the social nature of the advertisement placement so of course that we really cover the whole chain from the exposure and the first time all the way until the final conversion and transfer all the customers and also really we emphasize a lot on the brand plus performance strategy. So.

Such kind of a single directional crash certain type of a product well never pain.

Pat So very heavily on our overall business and also thus as a result make some of the customers, leaving our company or stop the collaboration or given the budget to us no.

And also yesterday as the interim results.

I mean, the tier three without announcements made by Tencent also talk a lot about this particular point, which is a social AD platform. So of course that we do provide all kinds of other products to our customers and also help them to really boost the consumer assets because of the other <unk> products.

Of course.

<unk> said that still we need to invest a lot into a more product R&D fashion and also cost of goods sold as well so of course.

And our conclusion that the speaking, though we are going to further leverage our advantage as a social media platform to Reno and caused more of the collaborations with our customers.

Okay.

Okay.

Alright. Thank you we have reached the end of the question and answer session I'll hand, the call back to the management team for their closing remarks.

Yeah. Thank you for joining us today see you next quarter.

Thank you, ladies and gentlemen that does conclude our conference for today. Thank you for participating you may all this.

Disconnect.