Q1 2023 Weibo Corp Earnings Call

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They want to know when you touch on tissue town, telling me, we maintain amazingly Cushing Huntington.

I'm, Paul Volcker, chunky linear Antonio away from that and that's what brings them whatever they could basically but the hotel or the IP himself, but keeping yourself.

You Couldnt see any Oklahoma Ginger, Cambridge.

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Couple of questions.

Next let me share some talent on the monetization front in Turkey needs to meet language is a gradual economic recovery post the pandemic. We are pleased to see so many vertical start to at least some investments for future. Even the first half of the year with accelerated paces in brand building, especially new product.

And at least versus last year as such our overall monetization strategy will continue to focus on enhancing the locking humble, which Dennis around media and celebrities supported by P. O L distribution across verticals well entertained by traffic contacts featuring shrunk exposure.

<unk> calculation in particular, we will beef up weibo's unique culture, and IP and the newswires lunch at offerings aiming to earn recognition from more industries and customers and thus further strengthen weibo's core competitive needs in the ad market.

Yeah.

I mean, what comes at Us.

Real quick furniture musical chairs.

Google Katrina golf with you who jumped all over it.

Uh huh.

Got it.

Can we assume that combined student outcomes.

Hi.

T shirts shorts, you should've been call it kind of coping with the irony about kind of other heat.

Different people that come in at towards them and get them done.

She's got how many are coming in the Guangzhou China.

It was just kind of shed some years, you know that somebody else search engine, each year and called out in the system.

With regards to me you know Moshe we do keep everything we're showing you because what you said that you introduce Sean Chicago pushing for some people to assume that if you're a mouthful.

Thomas you.

Should it be a Bachelor that means you are absolutely.

And people shouldn't get back to that concept.

In China, Jeep and Greenville.

Gotcha.

She is going to impact them through the collateral to be able to kind of hook up.

Sure.

The room is uncomfortable with them too quickly equip them to them.

Oh, Hi happened in June .

From a client interest in cumulated into humans do you want to tell you I'm sure are declining backlog similar to the calculations will ultimately don't go for the show with US with you on that.

Hum.

So a handful that seem quite prevalent but I can tell you.

And then we're going to play out.

So in generic entry really dangerous.

Oh Moshe bundle coalition of off with a couple of other countries.

Based on wavelets performance in the first quarter, our overall abitibi exhibited gradually how they trended month by month to elaborate due to a pandemic and a high base of last year's Winter Olympics advertising bodies in January and February decreased year over year, However, since March and revenues.

Already returned to a positive growth trajectory on annual basis in terms of industry trend, we still divergent trends among different sectors in the first quarter for certain sectors, such as automobile, hence that is a luxury product.

To see that twice demonstrates strong confidence in 'twenty 'twenty suite.

Pick up their investment in new product and branding for example in the automobile industry. The number of new cars at least at the Guangzhou and Shanghai International Auto show in the first half of the year increased by 40% compared to the same period last year, the average of Weibo's differentiated automotive.

New product launch model nearly 100% of the OEM switch AD budget for new model launch in the first quarter.

Toaster to operate safely with sleep off a promotion.

Meanwhile, the first quarter was also appealing of enhance that relief.

Luxury boutique shows.

At least the number of luxury goods chose in a single quarter, reaching almost a half of a half of last year leveraging the hot trend effects around these shows we achieved nearly 90% of college of business cooperation with supplying show in the first quarter.

On the fleet side. So if the industry was still in the course of gradual recovery such as beauty and personal care sectors, mainly due to two reasons first some clients in the beauty and personal care industry had relatively weak pipeline for new product future industry competition strategy and their own business.

Uh huh.

Secondly, intensify the competition landscape.

The outlook for the housing market across media platforms also traffic should be heavily pitch as such our first priority is to quickly restore all competitiveness in the respective content ecosystem post the pandemic. Moreover, we will continue to amplify our monetization model.

Fishermen, how chance new part of the market, while empowering clients to achieve better long term growth in the market.

Argued with nutrition and household goods.

It's always good when you do quickly, which I know, it's a one off kind of as usual.

Okay.

Okay well great.

You brought it up I guess once you get that unless you're not Jewish she was able to her domain you can I think of it probably wouldn't be able to open new meetings, all the time about human emotion.

Chicago shook out from it.

All right.

Turning to the second quarter, we further pizza hut in offline assumption, we expect to see a more meaningful recovery in the demand side of the other tightened market driven by ongoing recovery of various.

Consumer market also they will there still be a diversion trends among different industries in light of such and we'll ask the suite embrace the market opportunities blocked by the June .

June 18th Mega shopping festivals navigate our positioning as a leading social media platform, we have MP five way with differentiated competitive edge in our heart check and the content marketing in the hotel capturing incremental wallet gradually released into the market.

No one's done in coffee just update how would you go with that let me turn the call over to phase out for a financial review.

That's still going to be unhappy or that well.

Well I have to live with first quarter.

Hum.

Paul.

Let's start with users.

Perfect.

He MA funds in three ways.

We've looked at.

I'm going to be which was that funded and then distributed 200 megahertz that with me.

And that'll be the end of the 11 million users on a burden and younger.

We're busy.

With ongoing execution of our business and the type of investment strategy.

Her nickel by myself.

Linda let's prepare their market with folks on that got resolved.

Uh-huh I'm not all the time.

Oh the comparison on an every year basis, unless otherwise noted now let me walk you through our financial highlights for the first quarter by the time is right.

We've worked fourth quarter comes when they bring that revenue will go find it on Thursday.

A decrease of 15% or better over that on the cranes are busy.

Operating income was 178 6 million.

Does that mean operating margin of course, we want that done nothing on a take or go to LIBOR based loans.

It had been in those markets all the time inside of that that is an easy one.

Out of that comparison statistics that was last year.

Let me get into harder on the first quarter.

And so for them then.

Weibo's advertising.

Our fourth quarter.

Well, if there is life unfairly and a decrease of 17% on that percent off on those kinds of things.

Lastly in concert with the AD budget immediately openings after after the Nazi factor compared to the fourth quarter of last year with me her all this it related advisors.

Mobile AD revenue was very high was because it's fun for me there.

Figure.

Memphis exercise a form of AD revenue.

And that's it.

We're locked in for three wonderful gladden deep thirsty for that Palmer.

And so forth.

And I think since you saw this world and Tracy and automobile sector.

Other pets that they only all playing basketball court agnostic.

Although I jumped up and running.

One of them is actually.

Customers in this sector, we've raised our full spectrum of social AD uncle to build might be half and high value user of sometimes that can power.

Is that a lot of the vertical I don't see Gee, how he was on the studies that have been hotspots of Winter Olympics last year.

By the way is relatively conservative as far as they are.

Our son in early stage.

At Florida.

Almost defeat what's allowed the photo of the backfill for me to say that.

I'm often asked are.

With continued ever since I've referenced our AD inventory is a little bit more I think the social marketing offering.

Just for fun of apples in the hope of better monetizing our traffic resort.

AD revenue from Alibaba for the first for us.

Asia, Australia, a bakery are perfect for that type of footprint that a constant currency basis.

Primarily attributable to its own cost our go to market strategy.

Okay I missed that.

Really shopping festival.

E Commerce season.

Before turning the call back that's.

Let me share some preliminary color on for Chad I'm going in the second quarter.

And after that I work, either mark or a husband welcoming my son.

It does not affect her the best since the second quarter last year.

It gives them all that data with all of the activities on the graduate course, I'm happy thoughts.

Our team there'll be oh, excuse it and work relentlessly to catch her time to have a body during that e-commerce shopping festivals exactly what's weather.

Got that.

A full recovery of consumption sentiment is certainly a discretionary category might be more so I'm not saying that's it.

A part of the aftermath of Sandy when our former Communists yeah.

Although volatile macro landscape that Brooklyn waterfront opportunity zone relative to vacancy in the sector.

With that I'd be wrong, Secondly tells me I'm throwing it in Florida have you cut back on mobile and how does that factor.

Well Terry are coming from Iraq from often to fulfill customer rather flat for four months on haynesville.

Library, our full spectrum of social AD offering we did.

I mean copper than in our monetization opportunity that's already illegal that acquisition I know that when they buy their own things, but this time, we will add at all.

So I did a survey that revenue or 58, but if that meeting in the fourth quarter.

But I'll talk about that or kind of put that on my part of the deal.

He brings all that revenue with little bit attributable to equally mindful of anvil slightly calmer.

Her name from costly funding.

Total cost and expenses for the first quarter with 280 class fine tuning it a.

I think with all 17.

That upgrade and ongoing execution of our infusion you need it.

The decrease was mainly attributable to lower personnel related costs, and the physics and the channel E Blackman.

I bring each with Huntington, Missouri without anymore with a more full of the team and I leave my cost structure, particularly our batesville part from all Crazy earnings goal.

Operating income in the fourth quarter was 128 6 million.

Do you ever done is an operating margin of 31% compared to 29%.

In February of last year.

Turning to the income tax and the cash taxes income taxes for the first quarter was 91, one Lady comparisons at the onset of media last year Dan.

The increase was primarily resulting from changes easy for their pets liabilities related to sand Island change I'll certainly lessons.

Net income attributable to LIBOR in the fourth quarter was unfunded Elevens fine for me then.

That's a net margin of 27%.

Flat compared to last year.

Turning to our balance sheet and I feel I am I thought my fundamental story.

Cash cash equivalents unheard for me, but closed the schools on a sudden exceed it.

In the first quarter.

Its corrado here by offering.

It was about a five or six years.

So he signed it hurts us on April one told me that I can say I want to say.

This is fun for me.

Before turning for the salary inflation.

Tariff on her our newly enough because I believe it is.

That people are healthy profitability and a strong balance sheet that seems right now that's our board of directors has approved a special cash dividend.

But yes.

Yes, all of our ordinary share or maybe at our shareholder apathy along off the dividend will be approximately 200 of the meeting I thought it would seem as big exactly this week.

Late July .

Looking ahead, we will continue to be great long term growth opportunity.

Well focusing on financial discipline, its commitment to returning money to shareholders on the Oslo market off of it.

Besides I would also like to provide an update on our yesterday he said it.

In April what does it needs are suddenly yet to launch all aimed at company Barbara Gordon that E. E. S. C area for fiscal year funds any true yes.

E S C. It is crowded but neither this call speaks to our long standing commitment to the dental in the background.

Hardly the impact for users how many per acre I believe.

The toddlers and either they called us.

Bad bad behavior into the region.

Making the world a F.

We used the power of legal.

Part of that vision the company funded R&D to yesterday's apart. So it's our app or be wary of areas, such as cyber security and a prayer.

Average active compound.

Right.

Yourself.

The arbitration.

Yes.

Yes.

Looking ahead, we will continue to optimize our yes, you got it.

And Florida is it worth it yes to users across our day to day operations Yeah.

A whole of creating value for society, and what floor that will filter data with LIBOR community.

You'll be rebid or Arabic side.

Ted one information of Rguest seat disclosure.

With that let me know critical over to the operator for the Q&A session.

Yes.

Thank you.

Ask a question you will need to press star one and one on your telephone and wait for your name to be announced until wait till your question you can press star one on one again, please stand by while we compile the Q&A roster.

Thank you, we'll now take our first question.

Please standby.

Next question is from the line of Miranda Shang from Bank of America Securities. Please go ahead.

And she said my name is unusual that she went well the one piece you're going to and you see now is that just Yankee Brooklynese, Neil GW sheets that tends to keep them in the April one so no. It sounds you one can we just paid down south in society.

The email it goes from the Army completed it sounds I mean, I think I kind of flagged out you'll see that you know it.

Sounds like it was really catch I'm equally want.

Thank you my question is about AI T G I.

Can you elaborate more on your plans for the AIG Sea area.

Be the main applications and what have you pulled up claims thank you.

Yeah.

Two weeks ago, maybe paint that upon the jewel in the country.

And I'll talk to you later.

Let's see.

So we don't really pushing on them.

Oh, you know what.

And of course with your comments on kind of the coat area well be able to pin down.

Two questions for me on what's going on with countries like Columbia, If you buy how are you sure you're.

It doesn't go up you don't childless adults.

Let me start off.

Or put it in.

Thank you for the question.

Well you know as a Soc.

It will be there, but we are looking at are in competitive, especially among our users but also in terms of commercialization two parts. One is actually a silicon platform like wasting and also another one that's like those domain and also show through those kind of a recommended debates.

For me the platforms so.

<unk> and Weibo.

Confronted actually two kind of a crazy one is of course, the content creator of media or media. Another one is the we media that are having a very strong personality.

Okay.

No.

I'm able to you know you want to ask one could you Peter I couldn't.

Yes.

Thanks, Andrew Buncombe peanuts come in a bit on cold weather, maybe Jon Hauck, who come in Cushing.

Does the show it you would go to a clean fun and Jonathan Poole opinions on what you read you change all of them in children.

So it says that the children P&L, even poorer and you shouldn't go put them onto me up.

Got it.

Principle in terms of application of <unk>, we have two areas one is bad.

We have a lot of talking about media and also we are going to help them to enhance their efficiency, creating more personalized and also individualized content. So by having a fine tuning our big models.

We're able to help them to leverage this capability to enhance it.

Patient the other content creation and generation.

Okay.

Anyway, I hope I'm endured a bundling between Henry Dubois between.

So now people can ask him what you feel could you go into your document Sean do you want to pull back on her sometime which honestly is not only sound harder sometimes can only borrow let's say, a 200 millimeter and I'll draw them with them too much and watch and see.

And you see what kind of a more you know which ones to come in and get them back.

Got it.

And also second of all it is going to help us to optimize and also helps those long tail accounts do you have a better equation of content. So now you know on our platform on Weibo, we have actually those top accounts are having a very strong contributors and in doing so but actually it is perhaps could be weaker for those medium level and all.

So the long term so by applying the UGC very fast this is going to be honest.

Two fortune looks I mean, you'll remember you got to you who like kind of on a Hum Duncan people. Most you can absolutely see that moving towards you know people in the community.

The only thing that could cover.

Yeah, our onion Sheehan intuited shown to actually when we go to <unk> Sunday.

Oh, gosh I wish I want him to take the money you know work with our central corridor once I shouldn't say I'm wishing to you should see a bubble when she comes back and I get that won't fall from Indonesia to humans.

Humans have a pin pad site soon.

And I'm sure plenty for them in a range on it.

Yeah.

With that let me talk to you about the application. So nowadays you know given the strength of the total aig's even issue it does not.

Do you see a pause to say that it is going to actually would play at the top notch free media. So let me talk to you about some of the trials and also applications. So before the middle of 2022 last year, we were primarily adopting the P. P T three model.

So it was not as capable as to in a moment mitigated and also mitigates or stimulate the interaction with the users. So we used the GBC three model back then for the purpose of learn and also trying to keep up with the search and solution anything sums up the empty.

Internet.

So that's how we're gonna comps operation of the Internet based business.

Yeah.

No. They are treating yourself by name, but you know somebody England.

So similar to him and wishing him the same woman.

Most of them you can keep your heart pneumonia season sort of jingle partnering with them.

It happened in the second quarter, you've got especially the NUCYNTA neutral Newtonian tool that neighbors in the entry.

Boundary per week, which is you know when something doesn't go down.

I think that the R&D, leading packaging for sure.

Okay.

And also a second of all starting from the second half of last year and also at the beginning of this year. We are using more about the model of GPT and also the other do you see relative to the models. So maybe it's now able for us to actually know stimulate the personnel based interactions buybacks here it is not able to do.

Generate the users' content buys home so do.

Do you see is primarily used in the systems for those top notch grades and also we are starting already this particular campaign that things Q2 of this year.

Uh huh.

Daniel you know you're doing it.

Yeah.

Well you know me I've been watching the team to create your own kind of went from 12, when they will take some time.

Thanks.

What do you mean, they'll go hot putu, they're gonna pool, both of the Samsung note I hope it'll be dark.

Yeah.

But the.

That is something we cannot kind of armor.

Again Tonight.

You've actually kind of thing coming out between the three elements I mean listen I think for me hard tissue. If you don't I wish I knew.

Either.

And also in the next one up in the next one or two at a time when the bunch of them and so they say I do see models and also the <unk> models as a whole we believe that it is able for us to use to generate the content, replacing those original content generated by the mid level contemplated as well.

For those top notch content creators, which have a very strong personality I still believe that is the China engine of course to use the model to actually replace the content equation purpose. So overall speaking I believe that the ITC and also the relative technologies.

Rex you know very good to be used to really enrich the content creator.

Ecosystem and platform and also enhance our competitive edge as a whole.

Okay.

<unk>, who doesn't like kind of a partner for merchants actually the two bookends here I see you unless you can talk a little more shifts, but if it doesn't appear more ownership.

Thanks for all the folks that I should swapping for sure.

We ended up that you got in Washington.

I don't I believe had an impact toward the second Q and we have talked to them but.

It's human may not until you finish.

Sorry that she shouldn't you name a woman named with an interim but John do you feel that sometime between toilet.

Sure.

So as a conclusion I was talking about this particular technology now the collaborative model is pretty much based on the collaboration Windows are open source.

And also open source models. So I'm, primarily speaking, though we are just spending the adoption and also fine tuning our model.

Necessarily proprietary innovate and also invest into the development of LNR in my model. So as a result, it is not going to enhance the launch of our internal R&D investment and it's pumps and also it is going to help us to improve our commercial efficiency, while at the same time reduced the costs related the contemplation.

Thank you.

Yes.

Yeah.

Thank you very much.

Okay.

I will now take our next question.

Please standby.

Yeah.

This is from the lineup of new CSS, Yeah from Citigroup. Please go ahead.

Hi, good.

Good evening management. Thanks, a lot that came my questions can you hear me okay.

Yes, yes, okay alright. Thanks.

Uh-huh Juanita Oh excuse.

So what does Q1 O Waddell one quiche.

Oh, Youll, Guangdong Schlie Nah I'm glad he's going about Sunshine you got you should see that fund that we have for <unk> you can.

Walk us through how full sort of you said kind of a whole Hyatt Juanita and they've now got a genius Sabine.

She wants a higher ROE and Doe funding.

Suddenly Oh, Wow, I took a blood draw Uh huh, yeah, well I'll call it the <unk> shoot rule.

Leeway.

Oh My gosh.

Need to watch closely.

So you see it.

I'll tell you that what I see here seemed to try and pin a number about one woman Joseph Keith I'll, just the time to change that and B L.

My questions is related to advertising so can management share pre virus view on the latest advertising market recovery, so far, especially in April and May and then what is your expectation for the AD revenue growth in the second half of the ship and then.

If you can elaborate the performance by the industry category is small.

Then.

Also if we look forward what is the company at the product and marketing strategy that you can think about it.

To be able to improve the competitiveness in the market.

Yeah.

Cheers.

Scribbling, they're shorter than you did when I got cut off some people unless you do anyway. So each of them briefly each of course, but.

But we could see attempting so excuse me or somebody up here on potentially not too sure sure arent, you going to kind of sort of things and so hopefully if not sometimes in the pursuit of a T shirt deal and like I said.

Have on them in the future quarters.

Thank you for this question. So as we have stated in the script that we have already seen that Q1 of the kind of a recovery and also the growth trend of the advertisement industry.

Our company is actually pretty much weaker due to the post COVID-19 I mean, the release of the.

Restricted policies as well as the weak season or low season in the spring Festival season and also in Q2, you know as we have already stated it opt in March we have been seeing that the growth of the advertisement business has been on the positive track, but still I know the growth rate wise. It is still smaller than the same period.

The financial results of the St. Jude.

Okay.

No.

And that kind of on the.

Two other Hollywood Sean.

Keith.

Sure.

Salman, so whom he'd been on cook with equivalent Vishal vishal towards it.

Sandeep separately kind of spooky permanent shutdowns, which as I say I don't think your tiered Samson Schurman shrink you Paul Cooke inclusion into the country. If you don't meet him.

So it's useful marker to truly be an ETP church.

The only food telling me they're comfortable.

The same thing that kind of on the pumps.

No you kind of have you seen me with human contact easy to read and cash at Santana.

Kind of once you go through that pinch on bedroom condo, because it kind of sounds like what.

T shirt bullshit.

I couldn't quite hear machines aren't the only two of them are tissue, even put a I'm sure the taper and that kind of on the LIBOR in the chair for it makes it kind of come to cope with the ambition so nothing material.

Honestly, that's how long can pay those who don't get a lot of those amendments.

She only gonna come in maybe April 20th that Mig and I'll come back on.

We are executing that'd be gotcha gingerly. So he is watching that.

Sean I don't find the people they don't be shy.

Yeah.

As you know kind of aren't you do with people that comes through.

You know you've got some squeezing there should be about to gel plaintiffs' counsel of millions each you got it.

Hum.

So second of all and some about the industrial verticals now we have seen for example, a three season has that that's what the automotive industries. So after March we're going to see that a recovery trends in terms of upfront investment into the consumption market. So.

Some of these industries.

Although we have been seeing some of the decline on there. So still there is a trend of the consumption upgrade already competitive edge or competitive market.

Upgrade as well so for the industry of and headsets.

Tracy did until products, that's what it was automotive we've been seeing a double digit growth in Tijuana.

One business and also after March or we've been seeing that especially month, we've been seeing over 40 expand of the growth in this area and also in <unk>.

Yes. So you know we do see the kind of a lot of as I brought up months in Newport or lunch were happening in Q1 previously well be sad that.

It is becoming a longer and longer in terms of the.

Mobile phone or smartphone switch cycle.

Are those still you know for most of those that have that are manufacturers, they're still thinking about launching those new products with a lot of technologies inside in Q1 in order to enhance the value of their users. So weibo is actually a must to choose a platform for them to collaborate with and also our next one is up 40.

Most of our markets. So now we've been seeing a further ramp wing of the electrification and then also the new energy vehicle top selected.

Advertisement platform, while Weibo had a year's worth of experience in terms of the content creation and also the content ecosystem.

For the automotive market.

We are also a necessary choice among automakers.

Auto makers. So in Q2 on the overall basis, we believe that it is going to enjoy a much quicker growth, which is arrow for expectation I mean, especially now surpassed the budget that we made in the beginning of the year.

Okay.

No I would definitely hear that kind of thing.

On the same side of things.

So like Orange to create content cause it sounds actually critical it's really she had to ship pilot.

Now can I ask the question well Nisha Guineans Cook with US what is your opinion and thought it should be no mention of the charter will put us at Hamlin Kingdom for film yet put us as a cook, whether you should check off on it.

Two from me and I kind of I know I'm not sure about the you talked about you know all about doing something to them connect quantity then you've got to quit.

Which I'm kind of sound like I'm going to I'll bother you got one call. It say I know using future Chan at Tinder.

And so the equivalent figure for you.

So each year for all countries, where you think you'll your sort of attach at Florida.

Got it.

And in March for some of the other industry isn't always been seen. Some also makes you are back on a positive trend or some of the other verticals are going to recover the growth.

With things to tube, but actually some of the other industries that I'm going to talk to you about later there has been actually a weaker growth rate than the same period previously so for instance for the e-commerce vertical so for some of the key accounts that they have been adjusting their managers and strategies and especially their competitive strategies.

I was wondering if there are customer structures. So.

As always again, we wanted to actually see the big opportunities for instance, the June 18th.

First of all the e-commerce.

The big opportunity.

We do actually have seen a lot of the older and also placement of the AD budget.

This June the 18th of this year.

Higher than that of last year, but still you know it is still weaker than previous quarters.

E Commerce business.

They wanted to be sure the MTBE or commercially.

Well he's talking about the high end digital what you're here equal P. Right now if I'm hearing that kind of I'm not sure you cope with you about how to attack that each of them.

We're treating that union bosworth jump on it.

I mean, you can send me a.

Well it could be up to Ciena siobhan yet.

I had some quick shot.

No you won't pull it into commercial where the fleet is.

I'll show you in for Jim.

I'm kind of at the high end of equivalent of provision that.

Opinion towards Hudson's Italian volatile based on the popular tiers with Shanghai <unk>.

Sure I knew all about country that yourself with actually a couple of quick would assume a decent order and the union.

Figure for me is at MTS.

<unk> said he wasn't available on assembly minutes I'll give you I'll call seriously palila, one until Goodyear teed up to go.

Okay great.

Okay.

And also 'twenty into the vertical up at M. D. G. And then anything specific we are talking about the cosmetics and also a personal care products.

And you can see that in Q1, they had actually a very weak performance due to two reasons. The first one was that in the St.

December of last year enjoying Poland. So we were not really think the restrictive policies in China. So.

Last year in the Sun.

Remember those advertisers and there's plenty of industry, we're making the budget for the new year. So they were actually on tending to be very conservative for the new year of 2023 and also the second reason was that you know for the past three.

Three years, we had a COVID-19 impact I'm pretty much and also you.

You can see that.

C G industry or the cosmetic and also personal care industry is still in the cycle.

Consuming their existing inventory so it will still take time for them to actually fully recover the new user purchase.

Our products and also next I would like to say is that especially for all the customers in this area. They are having a very conservative fashion and making their budget and specifically we're talking about the new product launch plans.

Actually this FMC industry is actually much weaker than the other industries in terms of their planning of the new product launch and also of course, we've been seeing certainly recovering to and enjoying the 18th.

Festival, but still the recovery speed is actually a way lower than the expectation in the beginning of the yeah.

So the reason for us to have an overall kind of a slower growth for our total business.

Advertisement is because that we have a very high percentage of the FMC.

Business accounted for the whole advertisement business.

Okay.

So what I can answer that for me and I'll be able to as you heard from <unk>.

And just shifting towards.

So that kind of training.

From there to the next year or so.

Many of whom recently so that they don't even know.

So to me that's shown there, yes sure that'd be helpful into the Philippines.

As you sure one Doug Donatelli G weigh in for me in Q T. J, if you could put it.

Uh huh.

The bulk of Genpact does it can pull down the deep it wasn't you.

Let him kick to the PDP outdoor cookware digit IMT bad.

It would be helpful to file and then some that are in kingdom, usually Filipino Chow leeway if I'm in two names on it I don't know how much.

The.

They want to exit from.

But that kind of a central team there Sean.

T shirts, and shoes were available in English and Portuguese.

Portuguese ancestry or some type of an opinion on that.

The unusual actually become the center.

Crude oil, saying <expletive> shelf it should have been.

Push out.

Yeah sure. It's only of course, you can yeah, you may each and she has led to a label.

Oh sure seem that.

That's it from the shipyard in South Asia, Shanghai Shellfish, and one in New York I've been looking at a time here.

So its all opinion, that's one of your from him he got Soundcloud.

Shanghai shellfish and windows visiting with the name of a catch up here without any only sure sure telling me it's on tissue collusion I call upon the woman.

That's all for me up in China.

So I'll kind of figure for me elements, you keep going with that thank you. That's all for me that you can go on it.

Yes.

Okay.

So finally I'd like to say that in our label is a platform that is actually not having everything ready or everything in place and covering almost all the areas, including the tax and.

Images videos, so actually we are quite diverse and also a widely covered a platform. So in terms of the total nature of disability, we're having actually a much better positioning than the other platforms.

So in terms of the development of a budget. So it is pretty much in a subject to the European launch of our external customers as well as their investments.

And also a mindset into the branding activities. So for instance, if for some of the verticals. They have actually a much diverse plan on their new car launch and also pretty much in our intensive investment on our branding activities, we are going to enhance our competitiveness in those verticals.

And also for instance, and that has that then also e-commerce and also automotive verticals Weibo has years of experience in accumulating the content created a very good content ecosystem. So that as I say, we gain a bigger advantage than the other platforms. In this area in terms of the diversity of the content. However.

In terms of the offline consumption related areas like the cosmetics or the beauty products, that's where the personal care or fashion.

Ben actually performing like a pretty much in this area and also this market is something that we have to further strengthen in the future. So previously in the past most of topic or a majority of our traffic were driven from the entertainment and also cultural industry et cetera, but not that much from vehicles.

Line of consumption. So this year our strategy is that further we have strengthened our ability and capturing those opportunities in the offline consumption markets. For example, travel food and cosmetics and beauty products et cetera to gain momentum and also a second of all our strategy of focusing on the application of integrate.

Marketing strategies, so that we are going to further enhance our competitive edge by doing that thank.

Thank you.

Thank you well now take our next question.

Please standby.

This is from the line of Thomas Chong from Jefferies. Please go ahead.

Well I think I'll take that one is how are you guys all of that.

One woman tenet market.

Okay.

Well I think that what I found.

You saw a woman.

Thank you.

With the application.

Oh sure.

Okay.

Good evening management My question May I ask about the margin outlook for this year.

In Asia operating efficiency improvement.

Separate need May I also ask about our capital allocation plan. That's also and also out on the table.

Thank you.

Well what happened after you go into like the arguments you had coffee with Fisher.

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Put it towards that kind of.

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So that's important so but <unk> seen that really it'll be done.

And Ivy children Union Sundar and good eating into boom, they've been ciena shouldn't be bothered shipping not using.

We're using our marketing channel and Michele actually parts of the country.

Yes.

Got it.

So I'll answer the first question and second question will be addressed by Paypal.

So first of all.

As we have already said in the prepared remarks that in Q1 on the overall cost and expenses, we have been having a reduction of 17% and also in Q1 of this year.

Really sad that and those things Q4 of last year, we've been having the strategies and making the organizational restructuring of our organizational structure.

So that Oh uncertain kind of a business. So in terms of the kind of the impact to the overall margin and also profitability. We are going to see the value by doing that things. This year and also a second is that you know we have already mentioned that we have a strategy of a channel user acquisition and are focusing on.

That and also further having the ROI related to channel our user acquisition as an appraisal in the.

So of course in Q1 would be experiencing certain tightness in terms of the smartphones for instance, the reduction of the thiosulfate how's that.

So in terms of the marketing costs originally actually we plan that we might have actually an increase in terms of this particular area, but still I think that and this is due to the decreased sales of that.

Then there's a marketing related costs, we're going to keep a flat performance versus last year and also overall speaking in terms of the margin. We expect to have a very stable development and also with a little bit increase in terms of the margin of this year.

Yeah.

Okay.

To tease all Archie Dakota support that kind of thing that just recently kicked into homes.

So we're doing that.

Absolutely.

Okay great.

So again, that's equivalent of phenol plant built and we cannot kind of Australia and not the people that come here. Even if you can send me a chance to actually handle hunting nothing whatsoever.

So it comes out.

Got it.

Hum.

Okay.

And also same as Q2, because we have now fully reopened knock it off to Covid. So we expect to have more organizations of the offline activities. So this kind of expenses related to reorganization of Oh plenty of activities are expected to having a growth.

For the rest of the quarters, we expect to have the increase on the overall profit and margin.

Okay.

Okay. Good question.

This is Jay let me add some color on the margin.

So most of our marketing spend is really timing of investments.

So is of basketball liquid only doing that now.

I don't even like asthma.

They'll be lessened, we have kept us Navy.

Uh huh.

And the decisions using hackman EMEA last year and will result in a more focused the team on the neither Congress Jacek lithium content in it.

Interest income this year.

Or for.

Miley cabinet.

Is to restore top line growth in the second half.

Oh sure so our marketing team and they are.

You can see that our market huh.

Net cash at a higher level they've been investing.

So let me talk to you is that in the question the tactical allocation Youll see okay.

Hey, Paul.

Well several things.

Okay.

Right.

That's enough to support the organic growth.

Yeah.

That's a new business model and our social e-commerce and the new products.

The second way and then the cash to do that.

And then maybe that you're mentioning.

I'm sorry.

Patient feedback and our own thickness exactly application.

Her excess cash to shareholders.

And I have talked about that okay.

Regardless of the analysis that you would have seen it as a part of that mix.

Program that lets say our economy.

Delivery shareholder ladder, and our topic for a long time since last night.

Yes.

It's the whole piece of our content.

Right right.

That'd be great.

So I'll hand it back.

To generate operating cash flow.

Well it was actually down for the reasons he had to leave.

With our long term competitiveness and financial objectives.

Jack including Hat's shareholder return within this framework.

As I said, we will have to achieve sustainable from here.

I'm in for that asset and robust.

Alright.

As impactful.

Yeah sure.

And that has a data.

I will continue to generate sufficient free cash flow to support the operation.

Our commitment to a healthy financial position enables us to navigate this market.

And this one feels that they've got.

Well it takes arming our shareholder he said.

No not have neuropathy as we explore various ways to reward I always let her including dividend payout.

Okay.

Maybe later, we'll be carefully hockey there at all.

That's a really powerful exactly as FX.

Lastly, the NIM dedicated delivery and we'll add it to our shareholder.

And maximizing the return from these contract with your question. Thank you.

Thank you.

Yeah.

Thank you at this time I will now hand back to the speakers for any closing remarks.

Thanks also to essentially all for joining our conference call. We will see you next quarter.

Thank you. This does conclude the conference for today. Thank you for participating and you may now disconnect.

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Okay.

Good day, and thank you for standing by and welcome to the Wi Fi reports first quarter 2023 financial results.

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 one on your telephone you will then have an automated message advising Johan just raised to withdraw your question. Please press star one again.

Please be advised today's conference is being recorded.

I would now like to hand, the conference over to your Speaker today, Sean Zhang Investor Relations. Please go ahead.

Thank you operator, welcome to Weibo's fourth quarter 2023 earnings conference call.

With me today are Chief Executive Officer, Coffee, Wang and our Chief Financial Officer Vitol.

Next call is also being broadcasted on Internet and is available to all IR website before the management 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 state.

<unk> of our belief that patient.

Forward looking statements involve inherent risks and uncertainties.

And then most important factors could cause actual results to differ materially from those contained in any forward looking statements.

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

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

The information provided in this press release is occurring as of the date of payroll.

But assumes no obligations to update such information, except as to be quiet and applicable law.

Finally, I want to remind you that our discussion today includes certain non-GAAP measures, which includes stock based compensation I said that all the expenses, we use non-GAAP financial measures to gain a better understanding of Weibo's comparative operating performance and future prospects.

non-GAAP financials exclude certain expenses gains.

<unk> and other items that are now expected to result in future cash payments, while nonrecurring in nature or are not indicative of our core or taking without them.

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

Hello, you mentioned in prepared remarks, we'll open the lines for a brief Q&A session with it.

I will turn the call over to our CEO Golfie law.

Sure.

<unk> talked about the RFP.

Thank you Hello, everyone welcome to Weibo's fourth quarter 2020 earnings conference call business have alpha, which under gasoline <unk> it will be able to compete at the.

You'll have seen that.

Today I'll share with you highlights in Weibo's user product and monetization in the third quarter of 2023.

It will come in given that you do more on New York.

<unk> and <unk>.

I'm not going to India.

And two I guess on that one.

It's easy to do if we went from I think Eaton Vance BD, Jonathan Chou, who only use a shop with any use reached $593 million and average be used reached 200 to 255 million, adding approximately $11 million and 3 million views year over year, respectively in the first quarter.

95%.

You may use case for mobile.

Selling for Permian.

England maturity.

Gotcha.

Ashish will dangle suddenly appeared.

Sure.

Got you.

The short answer Ethan behind key international patent issue.

These two unusual EMEA showing our balance sheet will ensure that our same.

<unk> between one country.

The <unk> PD Donovan to food fragrance mushroom with INO, which about Abercrombie team.

Alright.

Liquidity is with Dominion until November issue.

And tissue <unk>.

Tissue.

Additionally, causes a ton of <unk>.

Valerie machine tunnel.

Bob I'm sorry.

Q2 queries Housatonic and keep it quick without Sheehan 20 treatment can be turned out that way.

Line utilization affected by the over peaks pandemic medical uncertainties at all Steve.

During the spring festival the overlapping there was still resonate Jonathan if you look in the first quarter, coupled with the high base brought by the 2022 Winter Olympics, our total revenues reached.

$413 8 million U S dollar in the first quarter, a decrease of 15% or 7% year over year on a constant currency basis.

Total AD revenues reached $355 3 million of which 95% while our revenue came from mobile.

Now no AD revenues reached $58 $5 million, an increase of 2% year over year or 10% year over year on constant currency basis. This year, we continue to focus on improving operating efficiency and our lung GAAP operating income reached 128.

$28 6 million U S dollar representing a non-GAAP operating margin of 31%.

Constant currency basis, our non-GAAP operating income nearly that trend through the same level as last year, which equates to 1% year over year.

What are you seeing in regional banking human condition.

And Lee both equity seems a equivalent of when things are you looking for there.

So they each metric from kind of requests or equivalent to.

<unk> is a squishy question, absolutely huge orthodoxies I'm sure Bob.

Do they get treated either in English MPC, you were seeing in Tucson.

Mosquito.

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I mean, unfortunately, usually utilities.

Now turn to yourself at the Sidoti attention towards <unk>.

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The ground Mount some official keeping liquidity.

In the past three years due to the pandemic you could pay more attention to news related hot topics, we should anything that weibo's user and traffic growth with the reopening the winter.

Track of travel and offline consumption demand have been released altogether and uses consumption demand for content in vertical areas and increased accordingly.

Aimed at in marking down in end user demand has brought certain challenges.

Our Florida operation strategy in the first quarter, we quickly adapt to changes in usage.

While maintaining investment in key content verticals, we focus more on the development of Pompe and vertical that has a strong use of consumption need with LIBOR at a annual rate of <unk> and <unk>.

Completion across verticals with increased content supply and diversity, maybe he was this consumption need and boost user engagement isn't our GTC in Shanghai, we will lead with that Tommy China funding.

Sure.

Yes.

Okay.

Okay.

Children in showing to you we're going to do that.

John will have some <unk>.

To meet you.

Mobile next let me share with you our progress made in part of the monetization in the first quarter in 2023, our product strategy is to focus on user scale growth and improved operating efficiency.

And further strengthen platform competitive advantage.

That showed up on it.

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Put it towards her being put on it.

Ghansham cooking forgot.

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2 million to income of $2 <unk>.

Where do you do to answer again.

So if you push it sometime in the future Jackup neighborhood initially only.

Turn out economically Eagle <unk> teachers families on the channel front in terms of this year's collaboration strategy with handset manufacturers. In addition to coverage of labor how content.

Core positions off the handset will also further strengthen our completion of Houston level basis with focus on driving the user scale and engagement of the Meek and mutual high end.

Smartphone users in the first quarter leveraging manufacturers adopting the user reach channel, we continue to optimize our product and that can easily such a push to efficiently.

Reach at week, four to Weibo's hot topics and social content.

As a result, the AD would be from.

From the headset channels grew double digit year over year.

We have Amit.

Got that.

Chinas digital until sequentially, while attempting to application of a charter killing somebody sooner.

That concludes the <unk>.

Digital team to determine capital semi changes, particularly with the Chicago.

Sure.

The order book.

Food value the competition doing that.

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Yes.

Okay.

I mean, then essentially immediately.

Into the future.

The team with Hugo will conduct.

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Yes.

You would put.

<unk> batten chiefly due to more frequent than that Adam.

One other point too quickly in China to do 21.

<unk> DNA niche kind of this country.

You don't do it arguably Jonathan.

So our timing of opinion, Santa Sounion, selenium touch on any either kind of all fungible.

Sure Doug Patrick Tibor.

For example in Germany.

Social attributes introduce the highlights of plot out adjustments in the first quarter last year, we adjust our social network product should improve user consumption efficiency and help users spend more high quality and view social relations in the first quarter of this year, we further upgraded the product mechanism and algorithms to it.

Quarterly user social relations and interests and it should be about the distribution efficiency.

Lastly increases for quality content now in the relationship based feed user not only can consume interact with content generated by followed a path that can also consumer interactive content based on users' social network and build more relations. These plots Saturday have driven further growth in that.

I used to be and engagement.

Around the relationship basis.

We are also pleased to see strong intention to form new social relationships and interact on our platform with the number of newly issued Butte tripled year over year also around 70% of the incremental user interaction around the relationship with.

<unk> generated two content of funnel contemplated in particular users who are more willing to interact and follow with new T. O P. O L. The product adjustment for relationship basis seats also played a positive built in promoting the content generation by Kols and a suitable debottleneck pumping.

For system.

The second quarter, we will continue to optimize product recommendation alkylate based all using agent level and that's what our focus on accounts in key verticals to help content creator to achieve higher social value and further stabilize weibo's core social competitiveness.

Semi machine platform in.

Truthfully, some initial issues without precedent that paper you shouldn't be.

Thank you so much for European how you want to lead the Chinese digital <unk>.

We will touch and when she doesn't have any news yet.

Thank you Anthony can be attained.

San Diego calculated in China, each lease maturities.

Thank you June .

Downhole equipment.

Actually in 2000, so that at least for.

Qdoba somebody who gets what we're seeing so we went into the tissue.

<unk> the Dutch auction just tell me how many they will have to wait for that by nature.

With that ill caution that help with that.

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English only hemoglobin to ensure you're correct with your wording in English on Edison energy issue.

Q2 thanks.

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Sean is around portfolio.

Charlotte on annual basis.

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Sure.

So quick question quick.

Clinton Trump the consumption needs of entertainment and lifestyle verticals are growing rapidly.

User attention shifts the average daily traffic volume and the number of users interact grew significantly year over year for key verticals, such as entertainment digital and automobile in the first quarter.

For the entertainment vertical and movies and TV series scheduled during the Spring festival showcased the knockout and three body et cetera has improved the traffic trend of the entertainment sector with the quarterly average traffic volume and the number of new physical interacted grew double digits compared with the same period last year.

And the growth trend continues in the second quarter.

For the automobile and digital vertical after offline users consumption has improved labels able to capture more AD budget leverage advantages in heart check and chemo marketing, even when the offline consulting fees will be covered.

In terms of other content verticals that also have high consumption needs, such as tourism and fashion and cosmetic verticals. We are also accelerating investment you part of operations and improving the content ecosystem.

On the land for operation, we will leverage our platform advantages you cross vertical kols integration and quickly in which countries for system for related to vertical.

On the other hand the.

Product utilized recommendation in half this traffic to distribute vertical heart check and high quality content to targeted users, which is strengthen the recovery of use this mindset in key content verticals and encourage kols willingly to generate content.

For example, since March do you have to be a significant increase in activity in entertainment and fashion verticals.

For example, the Beijing International Film Festival, and the luxury brands shelf drilling during the period, we have organized to celebrity makeup artist ballot and cable asking second vertical.

Helios enough Humana.

Humanities and arts and popular science vertical to create accounts around fashion related topic activities out in March things that could be used in fashion vertical and then bundle user who interact with content.

Content increased double digits compared with December last year, we said, although in growth trend in April and May we believe with the strategy adjustments and our implementation during the first and second quarter.

Kathy will increase significantly.

So consumption mindset will recover as well.

Thank you to implement 100 casualty medical endometrium.

<unk> got a PUC transitions in Shanghai.

The total amount that we're going to kind of ekati chosen to take over towards I don't know Josh regular counter cardio coming out towards the total defense so the shelf equivalent that Illinois.

The positive thing.

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Copel towards the peanut could have been or you don't have much of a western area.

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We had a total solution package tours.

So did I kind of talked to that.

Okay.

And besides that we should be with Chris.

So Don I, just wanted to get those out.

On the top content creators in the first quarter, we completed a transaction to increase shareholder of EMI show digital technology, we upgraded the we'd have platform system I went online in April with a new evaluation mechanism for the top kols.

<unk> now shifted evaluation mechanism for top content creators from traffic that it will lead to traffic plus social value, putting more emphasis on kols capability to indirectly skin and monetize on social assets.

The upgrades, we have screened top kols that had some influence in the high social value and will further reinforce all traffic operation and the monetization mechanism in the next one and two quarters.

Kelsey <unk> elite pro systems.

According to the data in Maine, the traffic and interactions of top kols increased double digits compared to that in March and the AD revenues from B pack also resumed double digit year over year growth think March civil within.

With that I can't really tell me, what the accuracy Q from English content switching and pressure is that kind of on the ITC that enable quicker you know.

Taking that usually becomes a uni tranche.

I Kinda Sidoti your ITC Kordofan Alicia.

The article appeared to profit.

That Wuxi, Colorado reportedly ocean.

Cologuard two <unk> to hit that one can mostly be able to kind of piggyback on protein in China.

Vantagepoint, whereas you seem to find that type of humor.

<unk> announced and then kind of comes out of character.

Lastly, let me introduce the key application areas for <unk> technology on label since last year, we have been exploring suitable scenarios for AIG C on LIBOR.

Solid progress on improving our product and operational efficiency recently.

We continue to collaborate with AIG see partners, we plan to relaunch some tools in the second quarter to better assist our content creators content generation and to improve the efficiency of creative evolution. Some lost modal companies are also using wavelets open platform to provide.

The UCITS this relevant survey.

Going forward, we will keep a close eye on the development of Aig's.

And explore new application area.

Quickly to create greater value for users and contemplated semi with tiny guys trying to fine tune, the earning opinion ceiling you keep pushing that.

And what kind of I'll call. It that so many of them kind of a general debate I look towards the future.

<unk> <unk> and chocolate.

They will continue and I'm trying to get to the atone tissue touch on if we may.

Masonry Cushing hunting in commercial Norway.

The jumbo Volcker Chongqing video Antonio away from Venezuela, So moisture visual able to ultra low.

So keeping yourself secondly, how are you.

Jenny Cook senior team with LIBOR.

<unk>.

From Clayton County.

Next let me share some color on the monetization front in 2020 suites Navidad is a gradual economic recovery post the pandemic. We are pleased to see so many vertical start to at least some investments for future in the first half of the year with accelerated paces in brand building, especially new product release.

With this last year as such our overall monetization strategy will continue to focus on enhancing their marketing humble, which Dennis around media and celebrities supported by T O L distribution across verticals, well entertain by traffic contacts featuring shrunk exposure and mindset.

Calculation.

In particular, we will beef up weibo's unique auction IP and the NUPLAZID launch at offerings aiming to earn recognition from more industries and customers.

Service Janssen waitlist core competitiveness in the AD market.

Can you hear me.

Yeah.

Real quick for the tissue <unk> and Google achieved trough with <unk> digital.

Thank you.

Saying things include the coming soon.

And through the back half.

Come yet tight group.

In short you should call you cannot cope with the Iranian boxing into others.

Different pack permanent towards the medium term.

Cheetah higher coming in the Guangzhou, Shanghai trigger lose the tender share soon.

She is a comprehensive search engine each year and combat this issue when the torch addressing CEO Moshe <unk>.

Tim Guttman Languish Sanya hotel, you, so much and introduce shrunk to shippers.

So some people at Toshiba.

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It should have been tasked with immediate absolutely.

Should it be back to the account.

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International.

We negotiate kind of environment.

And with that I'd be able to shrink.

Thanks Sure protocol, yet the room at all.

Copel with them too.

With liquidity.

Hi, Ben.

Thanks for calling in.

Because in June .

<unk> you want to tell you I'm sure are declining.

The calculations, we don't go for the show with Us with the Jamba.

When you saw him seem quite prevalent.

Okay.

200, <unk> I'm with it.

<unk>.

Other countries on that.

Based on <unk> performance in the first quarter, our overall abbvie see exhibited gradually how they trended month by month to elaborate due to pandemic and a high base of last year's Olympics.

Typhoon <unk> in January and February decreased year over year. However, since March and revenues has already returned to positive growth strategy on annual basis.

In terms of industry trend, we saw diverging trends among different sectors in the first quarter for certain sectors, such as automobile handset.

It's the only product that income.

Sorry to see that to life demonstrates strong confidence in 'twenty 'twenty suite and had peacocks, they're investing in new product and branding for example in the automobile industry. The number of new car relief at the Guangzhou and Shanghai International Auto show in the first half of the year increased by 40%.

<unk> for the same period last year, the average of Weibo's differentiated automotive new product launch model.

Thank you for example, if the Oems, which AD budget for new model launch.

Sure.

<unk> deeply with sleepwear for promotion and Meanwhile, the first quarter was also appealing of enhance it released for luxury food shows.

With the number of luxury goods shows in a single quarter, reaching almost half of our half of last year.

Average length of haul shouldn't be effect around these shows we achieved nearly 90% of business cooperation with <unk> in the first quarter.

The fleet size.

The industry was still in the course of gradual recovery, such as beauty and personal care sectors, mainly due to two reasons first some clients in the beauty and personal care industry has got a good pipeline for new product future industry publication strategy and their own D. C have these.

Secondly intensified competition landscape.

The advertising market, a cross media platform Ultra Jack actually probably pick.

As such our first priority.

Quickly the store all competitiveness in the respective content ecosystem post the pandemic. Moreover, we will continue to amplify our monetization model featuring high chance new part of the market, while empowering clients to achieve better long term growth in the market.

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Wendy quickly it.

She's with Us Tonight.

The cleanup.

Hi.

We feel good about it but I can't guarantee that that industry not us.

Labor should dominate.

200, <unk> pathway will enable internet chew up anyway.

The gains on the tie up I can negotiate courtship.

Sure.

From a thumbnail on all your site.

Entering into the second quarter, we further pizza hut in offline consumption, we expect to see a more meaningful recovery in the demand side also tightened market driven by ongoing recovery of berries.

Our consumer market.

So it will still be diverging trends among different industries.

<unk> session.

We are actively in brief the market opportunities blocked by the.

June 18th Mega shopping festival navigate our positioning as a leading social media platform, we have MP five way with differentiated competitive edge in her chest, an important marketing in the hotel capturing incremental wallet gradually released into the market.

That was the only coffee just update us how would you go with that let me turn the call over to phase out for a financial review.

Thank you Augusta and how all of that well.

Welcome to Weibo's first quarter.

Paul.

Let's start with user metrics enough suite.

I'm going to be.

That plan was 93.

265 million respectively.

We have a sense of navigation 11 million users.

I was there with ongoing execution of our business and the type of investment strategy.

Her nickel Butterfield other reminder, macroeconomy.

Got it.

Uh huh.

Uh huh.

For comparison.

Year to date.

Unless otherwise noted now that we will go through our financial highlights for the first quarter.

Right.

We were first quarter. Please let me break that revenue will go find it on Thursday.

A decrease of 15% or better with that.

Currency basis.

Operating income was 100.

78 6 million.

What does that mean operating margin of 21.

Net income attributable to illegal they survive.

Rather than a nice margin.

That is an easy add what puts us at <unk> com.

Where specifically is that throughout the year.

Let me give you a bit harder on the first quarter and things are driving this performance.

Weibo's ad.

Revenue quarter Bruce.

55, I'm, sorry, Neal I think word of dosing.

With us on that front.

On a constant currency basis.

Reflecting cost out with advisors immediately okay, I've got that in the factor compared to the fourth quarter of last year with me holiday related advisors.

Mobile AD revenue will verify this legacy portfolio.

Hum.

Professor Alfred.

That's it.

Alaska is a great wonderful.

Thank you.

Palmer.

In terms of board.

And I think as we saw this girl and Tracy and automobile sector.

I don't know pets that Hayley I'll tell you why.

That's correct.

Uh-huh jumped up.

Right exactly.

Customers in this sector right also.

For all social at Commvault to build might be half and half.

Sometimes that can power.

Lisa.

Hum.

He was on defending against.

Okay.

I don't think as last year.

One of the ways that as it may cost us a S R.

Also in early stage.

Yes.

At Florida.

But what we see with the light for the back door for me.

I'm sorry.

Sure.

With husky.

Right.

We agree.

Okay, great and for social marketing offering to John for further of apples in the hope that her monetizing our traffic resort.

AD revenues from Alibaba for the first quarter.

What 18 3 million a decrease.

That type of equipment that a constant currency basis.

Primarily attributable to its own comprehensive marketing strategy.

I, just thought really shouldnt that go into that.

E Commerce feedback.

Before turning the call back that'd.

That'd be sure I'm afraid there.

Chad I think the second quarter.

On the asset.

Hi, there Mark.

Luckily my son.

It's not a sector that they think that that number last year.

Reaching normalization in Albany.

I'm glad it's my pleasure.

Our team will be up.

Got it.

Well that leads me to capture kind of a target.

E Commerce shopping festivals in second quarter like that.

A full recovery of cost benefit assessment.

It's certainly a discretionary category.

Any more runoff that backs it up.

After that I'll come back when a consumer economy.

The lack of a lot of power backhaul landscape tobacco clean water for an opportunity.

Relative to that sector.

With that I'd be wrong, secondly, healthy actually.

The product set that go ahead of the mobile handset sector lap Terry our company maxam, often to fulfill customer brats that performance comp haynesville.

Leveraging our full spectrum of social ad offering.

And then half of it in our monetization opportunity that our unique value proposition and a bankruptcy by the holiday ecosystem and all.

That'll add his background.

Revenue.

58, once that meeting in the fourth quarter.

I think I'll talk about that well talk about that offline.

The increase in revenue was mainly attributable to equally mindful of attitude from E Commerce.

Turning to cost and Sunday.

Total cost for the first quarter with 280 class possible.

Great All 17.

That is an ongoing execution of our ambition.

Yes.

The decrease was mainly attributable to lower personnel related costs and the thesis that the channel investment.

I've run into kind of penetrate where have anymore at least a more focused team and then they.

Got her precision.

Amit <unk> from operating earnings.

Operating income in the first quarter was 100 of it.

Eight 6 million.

There are a dozen operating market I'll think about it like that.

Compared to something like that.

If you were at last year.

Turning to the income tax.

Income taxes.

First quarter was 21 my money.

Barracuda was one 7 million last year.

The increase was primarily resulting from a change it would be sort of past liability related to variable change I'll circle back with them.

Net income attributable to labor in the first quarter was off on 11th Mindfully.

And that market 77.

That compares to last year.

Turning to our balance sheet and Tyco.

Okay truck side of things.

Great.

It was tax package vigor unheard anyway.

On a Sunday.

In the first quarter cash provided by operations.

It was a lot higher.

Capital expenditures totaled eight coupon for over there.

Okay.

Thank God.

Just one for me.

Before turning to the county.

I'm proud of our newly I'm not exactly.

There are.

Our healthy profitability.

Our balance sheet that means right now that's our board of directors has approved a special cash dividend.

But yes.

Yes, all that ordinary share or small shareholder you.

The aggregate amount of the dividend will be approximately 200 and meeting with.

Exactly.

In late July .

Looking ahead with a coffee with really great long term growth opportunity.

Well.

Okay, that's a big thing for me.

Two recurrent lattice shareholders on the open market as possible.

I would also like to provide an update rguest.

In April what are their needs are secondly, yes, you're spot on.

The Companys, Barbara and procurement ESG area for fiscal year 'twenty two.

E S.

Crap in either record speaks to our long standing commitment to definitely be back when hiring.

Sorry, the impact from user comparable per acre I believe.

It's Tyler and either they called.

Bad bad behavior into the region.

Making the walk I play with the power of legal.

Half of that uses the coffee other than usual yet you apart so easily our Adler you area.

That accelerates secure.

Primarily in Texas.

Got it.

Correct.

Hum.

Underground operation.

Yes.

Looking ahead, we will continue.

To optimize <unk>.

Got it.

And in Florida integrated reacting music.

Our daily operation.

Oh for creating value with the Dart I rough war that will filter with label community.

Our habits.

So I'll turn one information of Ibs D exposure.

With that let me I'll turn it over to the operator for the Q&A.

These days.

Okay.

Thank you to ask a question you will need to press star one and one on your telephone and wait for your name to be announced until withdraw. Your question you can press star one on one again, please standby, while we compile the Q&A roster.

Yeah.

Thank you, we'll now take our first question.

Please standby.

Next question is from the line of Miranda Shang from Bank of America Securities. Please go ahead.

Thank you for your body's unusual weather events or the one piece you're going to see now is that just Yankee Queens, New York, obviously at that time.

Goldman Sachs.

No one could we just take them down.

Oh, I'm, sorry go aig's, either they need really good you know make up with your sandbox.

Right.

Yeah.

Yeah, Lisa Chummy Gregoire.

Thank you my question is about AIG all can you elaborate more on your plans for the agency area.

What would be the main applications and what are your product lines. Thank you.

Two.

We issued on the ADP impact upon a jewel in our country.

And that's what's in place with them that relationship.

Let's see.

A question on their own.

Uh huh.

What are some of them so diesel.

<unk> okay.

Could you are you know <unk> antibody.

I will come with some changes are absolutely key by Asher.

They're going to go up.

Sumit Shah.

Got it.

Thank you for your question. So first of all you know as a social media platform. We are looking at are in competitive, especially among our users and then also in terms of commercialization.

One is actually a silicon platform like wasting and also another one that's like those domain and also shell. So those kind of a recommended the base I know social media platforms. So of course in Weibo, we confronted actually two kinds of cases, one is of course, the content creator of media or by the media and other one is.

The we media that are having a very strong personality.

Okay.

No.

<unk>.

So that's one could you Peter I Couldnt Harrison from here.

Thanks, Andrew Buncombe PNM come in is it in Colorado. So maybe you can talk to Cushing by the Nielsen does showing the utility of clean products from.

Jonathan Poole, Unfortunately, egencia all children, namely from that showing the children can have their own who.

So don't read onto me up.

Got it.

So Clinton.

First of all in terms of application of <unk>, we have two areas one is that.

Our platform, we have a lot of top notch, we media and also we are going to help them to enhance their efficiency, creating more personalized and also individualized content. So by having a fine tuning. Our models, we are able to help them to leverage this capability to enhance the efficiency of the content creation and generation.

Okay.

Anyway, I hope I'm endured a bundling between Henry Dubois.

Now we're looking at some blood tissue could you go into your document shown deal when the pool without her hometown, which honestly it's.

It's kind of harder, sometimes generally poor or let's say, a chunk of milk or not to draw them within two months.

And do you see with time and with no clear bundling or 'twenty community get done but got it.

And also second of all it is going to help us to optimize and also helped those long tail accounts do you have a better equation of content. So now on our platform on Weibo, we have actually those talking about accounts are having a very strong commitment in doing so but it is rapidly be weaker for those.

And also the Lotto accounts, so by applying aig's, he's very practically business are going to be in house.

Two questions.

You got your who like kind of on a woman Dunkin' people, mostly new habits.

Towards this end of April .

That's the only thing that could come to maturity.

Our onion Sheehan Intuited, Shannon wants to ask Michel <unk> signed leases that motion.

I also have with island terminal.

With our central corridor.

I shouldn't say I'm wishing to you should see it bundled in tissue that cannot get that won't fall off I mean, the issue traditionally human Philippines, ISI didnt plenty of them in a reading Charlie Gordon.

So let.

Let me talk to you about the application so nowadays given the strength of the total aig's equipment issues. It is not.

Easy to say that it is going to actually replace the top notch screen media.

So let me talk to you about some of the trials and also applications. So before the middle of 2022 last year, we were primarily adopting the TPG three model.

So it was not as capable as to.

Mitigated and also mitigate or assimilate the interactions with the users. So we used the GBC three model back then for the purpose of learn and also trying to keep up with certain solutions in terms of the MTM.

Thats great.

So that's how we're going to hang comps operation of the Internet based business.

Yeah.

I can hear somebody.

So as soon as the human listeners employment.

Emerging KBR had pneumonia season surgical part of your liquidity.

It happened in the morning, your tissue and quota you Cook.

In children.

And it wasn't a bluetooth bundled a week with bankers.

I think that the arguably be encouraging Fisher.

Got it.

And also second of all starting from the second half of last year and also at the beginning of this year. We are using more advanced model of GBT and also the other do you see relative to the models. So may just now able for us to actually know stimulate the personnel based interactions Bob actually it is not.

Able to generate the users' content buys home so I'd say.

The primary use of assistance for those top notch creditors and also we are starting already this particular campaign since Q2 of this year.

Uh huh.

What are you doing it.

I mean it really.

And what he and the team to create jumping to end 2012 with Midland.

Sure.

Peter Thanks for doing it.

What do you manage Aimco hot proof point to the.

I hope it will be all.

I don't have anything like that.

So we cannot kind of AMR.

Thanks Vincent.

I shouldn't have anything competitive to the chairwoman.

To me it hurts you for sure.

No.

And also in the next one.

Next one or two years at a time with the advancement of this model and also the <unk> models as a whole we believe that it is able for us to use to generate the content, replacing those original content generated by the mid level content creators, but actually for those top notch content creators, which have a very strong personality.

I still believe that is the China in general course, the use the model to actually replace the content equation posted so overall speaking I believe that the ITC and also the relative technologies are actually very good to be used to really enrich the content creator ecosystem.

Ecosystem and platform and also enhance our competitive edge as a whole.

Okay.

<unk>, who doesn't like kind of a partner for.

So I mentioned ICL attribution too high for you.

I am wishing them a little.

But if it doesn't appear anomalies in there for sure.

Thank you Charles I don't have that issue so hoping for sure.

Without getting in Washington.

So even from the cohort I believe her own pipe good uptake in Q1, but.

Sure I mean, I think you finished.

So that she can you name a woman named with an interim but John do you feel it's sometime between toilet.

Yes.

So as a conclusion I was talking about this particular technology now the collaborative model is pretty much based on the collaboration Windows are open source.

And also does that open source models. So primarily speaking, though we are just having the adoption and also fine tuning our model.

Necessarily proprietary innovate and also invest into the development of the LNR model. So as a result, it is not going to enhance a lot of internal R&D investment and it's pumps and also it is going to help us to improve our commercial efficiency, while at the same time reduced the costs related the contemplation.

Thank you.

Yeah.

Thank you much.

Okay.

I will now take our next question.

Please standby.

This is from the lineup on the CSS Yeah from Citigroup. Please go ahead.

Hi.

Good evening management.

Thanks for taking my questions can you hear me okay.

Yes, yes, okay alright. Thanks.

Uh-huh Juanita.

So what does Q1.

One key issue.

Oh.

Oh, Youll Glenda slightly numb Juanita.

<unk>, telling you that you should see that find out we are chasing the ECL Guangdong.

<unk>.

Oh, Hi, Juanita Nalco genius <unk>.

She wants.

Yes.

Yes, let them be adult while I took a blood draw.

Yes, yes sure.

Oh leeway.

Oh, Yeah sure.

Sure Tom.

Keith John Lee.

Somewhat.

Yes.

What <unk> seen.

<unk> Gopal.

Gopal woman Joseph kiosks that seems on the outlets.

So my question is related to advertising so can management share with virus view on the latest advertising market recovery, so far, especially in April and May and then what is your expectation for the AD revenue growth in the SEC.

Half of these ships and then if you can.

Can you elaborate the performance by the industry category is small and then.

Also as we look forward what is the company.

At the product and marketing strategy that you can think about.

To be able to improve the competitiveness in the market.

Oh go ahead, scribbling that through digital and I got to find out what kind of some people in our future anyway. So each of them briefly each of them.

Probably it's really attempting so suzhou or somebody up here I'm not.

Sure sure Yeah, articulate kind of thing so hopefully from that comes out.

In pursuit of a T shirt deal and I guess on this have on them.

Teachey Gordon.

Thank you for the question. So as we have stated in the script that we have already seen that in Q1 of the kind of a recovery and also the growth trend of the advertisement industry.

Company is actually pretty much weak due to the post COVID-19 I mean, the release of restricted.

Restricted policies as well as the weak season or low season in the spring Festival season and also in Q2, you know as we have already stated it. After March we have been seeing that the growth of the advertisement business has been on the positive track, but still I know the growth rate wise. It is still smaller than the same period.

The financial results of the same period.

Okay.

No.

That kind of on the <unk>.

Yeah, Sean.

Keith.

Sure.

Salmon to whom he'd been on cook with equivalent ratio Vishal on the tour.

Kind of permanent shutdowns, we shouldn't I sat down and country tubular assumption shall we assume to IBO cook inclusion into the country would be done in Egypt.

<unk> to us.

Finally for Colombia comfortable.

As a science and that kind of on the color.

I know for sure no conduct you seem to have had with humor content easy to become cash at Santana.

<unk> excellent kind of cause you to achieve your gaucher, particularly a futile PMI couldn't cut and the <unk> 92.

And tissue.

Sure the typical kind of on a LIBOR, which actually makes it kind of come to cope with the ambition. So.

Jimmy Choo and honestly the tenant can pay them.

Sure.

He told me that you may be April 20th same emotion.

Oh Man I heard Julie let me touch on that.

So he is watching at.

John I don't find examples and efficiently.

Yeah.

As you know kind of aren't keeping with people that can absorb.

But since we English with Paypal to sell quite a tussle going into the U E cheap.

So second of all in terms of the industrial verticals and now we have seen for example in <unk> and how does that that's what the automotive industry. So after March we've been seeing that recovery trend in terms of brand investment into the consumption market.

Some of these industries.

Although we have been seeing some of the decline on there. So still there is a triangle.

Consumption upgrade or the competitive edge or competitive market.

Upgrade as well so for the industry of has that <unk>.

<unk> digital products as well as automotive we've been seeing a double digit growth in Tijuana, but does the investment business and also after March we've been seeing that especially month, we've been seeing over 40 expand of the growth in this area and also in terms of the assets, we do see the.

<unk> kind of a lot of our product months Newport launch were happening in Q1.

Previously, we already said that it.

It is becoming a longer and longer in terms of the mobile phone or smartphone switch cycle. However, it's still you know for most of those that that are manufacturers, they're still thinking about launching those new products with a lot of technologies inside in Q1 in order to enhance the value of their use of it so.

Weibo is actually a must to choose a platform for them to collaborate with and also our next one is up for the automotive market. So now we've been seeing a further ramp wing of the electrification and also the new energy vehicle and a top selected.

Advertisement platform Weibo had a year's worth of experience in terms of the content creation and also the content ecosystem.

For the automotive market.

We are also a necessary choice among automakers.

Also makers so in Q2 on the overall basis, we believe that it is going to enjoy a much quicker growth, which is out of Brexit that patient, especially in those surpassed the budget that we've made in the beginning of the year.

Okay.

No I was just kind of on the same kind of thing.

Okay.

Okay. Thanks.

Becker critical.

She had to reshape pilot.

Okay.

Now can I ask a question Lisa Guineans Cooper the CDR is your opinion and thought it should be done.

You mentioned that China put us at Hamlin Kingdom put a thumb yet caught up to that quickly, but you should check off on it.

How many of that kind of fundamental know how sure.

You talked about you all back here, so I'm tickled pink quantity that you can achieve with.

No offense, and we can kind of count wasn't going to bother you got one call center using future.

It turns out though.

So the equivalent of sequencing shrunk jeeze until each year for okay. Thank you.

So it was hard hit.

Got it.

And in March for some of the other industry as you know we've been seeing some of them actually are back on a positive trend or some of the other verticals are going to recover the growth since Q2, but actually some of the other industries that I'm going to talk to you about later there has been actually a weaker growth.

Right now in the same period previously so for instance, where the e-commerce vertical so for some of the key accounts that they have been adjusting their managers and strategies and.

Especially the competitive strategies as well as their customer structures. So.

As always again, we wanted to actually see the big opportunities for instance, the June 18th shopping festival or the E Commerce.

Big opportunity.

So we do actually have seen a lot of older and also placement of the AD budget.

In.

June the 18th of this year.

Higher than that of last year, but still it is still weaker than the previous quarters.

Our e-commerce business Okay.

Sure the MTBE or Conversely, if I don't hit like that about a $1 billion to what you hear.

L. P right now if I'm hearing that kind of I'm not sure you cope with the Broncos was at Shire for things that are treating the G and beyond buzzwords front, namely <unk> and a handful of caveats of Ciena Siobhan.

It's important to each other.

You won't put into a commercial weight aquifer has show unit for Jim.

And looking kind of at the high end of Copel in the provision of <unk>.

Opinion towards sort of Italian volatile attacks.

Isn't that popular tiers with Shanghai <unk>.

See I don't know about them country values.

Very cool equipped with a suite.

So this is a decent order.

Let me say with.

FMC is that it wasn't going to go on one Assemblyman Sandeep you all called physically at polo Women's So Goodyear Cheetah.

Cleveland Sudan.

Got it.

And also 'twenty into the vertical up at M. D. G. And then things specific we are talking about the cosmetics and also a personal care products. So you can see that in Q1, they had actually a very weak performance.

Due to two reasons the first one was that since.

December of last year joined covenants, we would not really think the receptor policies in China. So.

Last year.

Remember those advertisers and there's big industry, we're making our budget for the new year. So they were actually on tending to be very conservative for the new year of 2023 and also the second reason was that you know for the past.

Three years, we had a COVID-19 impact I'm pretty much and also.

You can see that.

The.

C G industry or the cosmetic and also personal care industry is still in the cycle.

Consuming their existing inventory.

It will take time for them to actually not fully recover the new users purchase.

Our products and also next I would like to say is that especially for all the customers in this area. They are having a very conservative fashion and making their budget and specifically we're talking about the new product launch plans.

Actually this FMC industry, it's actually much weaker than the other industries in terms of the planning of the new product launch and also of course, we've been seeing such a recovery and enjoying the 18th.

First of all but still the recovery speed is actually a way lower than the expectation in the beginning of it yes.

So the reason for us to have an overall kind of a slower growth for our total business.

But advertisement is because that we have a very high percentage of the FMC.

Business accounted for the whole algorithm.

On the business.

Okay.

So what I can tell you if I may not be.

So as you heard from HQ, two kind of Undershooting Doyle.

Turning to the next year or so many of whom recently.

If you notice what I mean.

That'd be helpful.

As usual one Doug Donatelli G way in front of me in Q T. J, if you could what is the grocery shop.

Hinchey buckle up impact does it can pull down the road.

It had a hindrance to the PDP outdoor cooking digital any feedback would be helpful.

The firewall and then some that arent seems unusually cool Chow leeway, if I'm in to mean something like that.

The.

They want to exit.

From pushing that kind of a central T. There Sean.

Shortly I'll answer you should be able to negotiate that.

Of course, you can manage your Sylvia Dublin peanut out upon the kingdom should actually be telling them et cetera.

Crude oil <expletive> shelf.

A question on its own.

Of course, you can.

In May ETE, and she has led to available anywhere else where else you're seeing that way too.

And the second shellfish outlets.

Shanghai self sufficient when announced that they were looking at a 10 meters yep little ones.

So its all opinion, that's one of your film in China.

Shanghai shellfish and windows visiting with the name of ketchup in reality only share Xiaomi as long this year.

And that kind of a final cleanup for me up in China.

So I'll kind of figure for me elements, you keep going without saying it was all for me that you don't need to.

Yes.

Okay.

So finally I'd like to say that in our label is a platform that is actually not having everything ready or everything in place and covering almost all the areas, including the tech spend.

Images videos, so actually we are quite diverse and also a widely covered platform. So in terms of the total nature of disability, we're having actually a much better positioning than the other platforms.

So in terms of the development of a budget. So it is pretty much in a subject to the European launch of our external customers as well as their investments.

Glenn.

And also a mindset into the branding activities. So for instance, if for some of the verticals we have actually a much diverse plan on their new car launch and also pretty much in our intensive investment on our branding activities. We have on until we enhance our competitiveness in those verticals.

And also for instance than it has that then also e-commerce and also automotive verticals Weibo has years of experiencing accumulating the content, creating a very good content ecosystem. So that is to say we gain a bigger advantage than the other platforms. In this area in terms of the diversity of the content. However.

In terms of the offline consumption related areas like the cosmetics or the beauty products, that's where the personal care or fashion.

Ben actually performing like pretty much weak in this area and also this market is something that we have to further strengthen in the future. So previously in the past most of our traffic or majority of our traffic were driven from the entertainment and also cultural industry et cetera, but not that much from the collateral.

Line of consumption. So this year our strategy is that further we have strengthened our ability and capturing those opportunities in the offline consumption markets for example, travel food and cosmetics and beauty products et cetera.

Dana momentum and also a second of all our strategy of focusing on the application of integrated marketing strategies. So that we are going to further enhance our competitive edge by doing that thank.

Thank you.

Okay.

Thank you well now take our next question.

Please standby.

Yes.

This is from the line of Thomas Chong from Jefferies. Please go ahead.

Well I think I'll take that one is how are you guys all of that to you as well.

<unk> got one woman.

Market.

Okay.

Well I think what I felt.

Well when you saw a woman.

Capital allocation.

So think about that.

Stay safe.

Good evening management My question May I ask about the margin outlook for this year.

In Asia operating efficiency improvement.

May I also ask about our capital allocation plan as also and also our.

Thank you.

Well what happened after you go into like the argument here.

Sure.

<unk>.

The 27.

She is right now.

Once you transfer the equivalent.

She and a strategy to sort of hitting the <unk>.

<unk> Cushing.

Can you cancel Brooklyn and.

You'll find the failure, sometimes really on continuing if you will catch up with some good production.

Production kit.

So I don't know how much of your chicken should also for the use of tissue tissue younger or should I read a cockpit.

Could it put it out there.

<unk> easy to really work with the Chinese yamana anyway shortest shut out.

I fear tissue suite so.

So let's say.

So, but <unk> not really going to be done.

Ivy tissue Dominion Thunder and liquidity unions at Boone crowd within Ciena shouldn't be bothered shipping that that's all that I think reaching a marketing channel and Michele actually parts of the country. They literally go out.

Got it.

So I'll answer the first question and second question will be addressed by Paypal.

So first of all.

And as soon as we have already said in the prepared remarks that in Q1 on the overall cost and expenses, we have been having a reduction of 17% and also in Q1 of this year and we are.

We decided that since Q4 of last year, we've been having the strategies and making the organizational restructuring of our organizational structure.

So that oh on certain kind of a business. So in terms of the kind of impact to the overall margin and also profitability. We are going to see the value by doing that the things that this year and also a second is that we have already mentioned that we have a strategy of a channel user acquisition and are focusing on.

That and also further having the ROI related to channel our user acquisition as an appraisal.

So of course in Q1 would be experiencing certain tightness in terms of the smartphones for instance, the reduction of the telescope.

In terms of the marketing costs originally actually we plan that we might have actually an increase in terms of this particular area, but still I think that and this due to the decreased sales of that.

Marketing related costs, we're going to keep a flat performance versus last year and also overall speaking in terms of the margin. We expect to have a very stable development and also with a little bit increase in terms of the margin of this year.

Okay.

Oh, not treated or to those go to support that kind of just really each in bookings.

Please go ahead.

But I think I don't think <unk> gotten there.

Typically in our P&L for the Bill.

We cannot kind of Iranian none.

How much is keeping our country arguments you can send me a chance.

Is that because of that.

Sundar.

Correct.

And also seems good too because we have now fully reopened market off the COVID-19. So we expect to have more organizations of the offline activities. So this kind of expenses related to reorganization of Oh plenty of activity.

Having a growth.

So for the rest of the quarters, we expect to have the increase on the overall profit and margin.

Okay.

Okay.

Chris This is Jay let me add some color on the margin.

So most of our marketing spend is really even casually investments.

So it's of basketball liquid always doing.

Or is that not only like asthma.

As already mentioned, we have successfully implemented.

A series of cost reduction decisions using Tasman immediate is last year as a result, he envelope.

Keith I don't know neither costume shop her.

Linda <unk>.

Initial estimates here.

Our for highway carriers.

Two of our top line growth in the second half.

Oh sure.

Our marketing team anytime they often as you can see that our marking the highest consequently net cat I guess.

Her name they seem to enhance T cell.

So let me talk to you is that in your question the tactical allocation uses of cash.

Alright, thanks for several things.

Can you use all cash.

Right.

First of all at least towards the Hawk the organic R&D.

I think that's a new desk model that at our.

Social and e-commerce, and the new products does that mean.

Anyway, there's a cash needs to do that.

And then as they need it in that seat.

I'm sorry.

Lastly, in our own business investments application.

Okay great.

Uh huh.

As to shareholder.

But I have thought about that okay.

Regardless of the analysis that you're happy with the progress of these programs that will shape, our economy nice for delivery.

And our topic for a long time since last night.

Yes, how many months is the whole thing is about our content.

But I'm glad to say, you'll have a day or.

So January offering hassle.

Well it was actually yeah, I'll start and regency had anything yet.

With her over time long term competitiveness and financial.

Jack including hat shareholder return within this framework.

As I said, we will have to achieve sustainable format.

Perfect.

David This is Gary I'll take impactful.

Yes sure.

And that has a basis I E.

Okay.

Email to generating sufficient free cash flow to support the operation.

Yes.

Our commitment to a healthy financial position enabled us to navigate this market.

I guess, we're still fascinated about wow, if guarding our shareholder he said.

Looking ahead, we will continuously explore various ways to reward our dresser.

Dividends pay off on top of it quickly.

Nick Library will be carefully heartbeat.

Lastly, our crop Cassius ex FX.

Cool.

Likewise, we remain dedicated to delivering and we'll add it to our shareholders.

And maximizing their return hopefully a contract with your question. Thank you.

Yeah.

Thank you.

Thank you at this time I will now hand back to the speakers for any closing remarks.

Thank you operator, and thank you all for joining our conference call. We will see you in next quarter.

Yes.

Thank you. This does conclude the conference for today. Thank you for participating and you may now disconnect.