Q2 2023 Weibo Corporation Earnings Call
Good day and thank you for standing by welcome to the Weibo reports second quarter 'twenty two 'twenty three financial results conference call. At this time all participants are in listen only mode. After the speaker's presentation. There will be the question and answer session Jessica.
To ask a question during the session you need to press Star one and one on your telephone keypad you well. Thank you and automatic message advising you had this race.
To withdraw your question. Please press star one again.
Please be advised that today's conference is being recorded.
I'd like to hand, the conference over to your speaker today sounds a child. Please go ahead.
Thank you operator, welcome to Weibo's second quarter 2023 earnings Conference call. Joining me today are Chief Executive Officer, Godfrey Walton and our Chief Financial Officer of fees held the conference call is also being broadcasted on the Internet and is available through Weibo's IR website.
Before them actually remarks, I would like to read you a few public statement in connection with today's conference call. During today's conference call. We may make forward looking statements statements that are not historical facts, including statements of our PBC.
The exact patients forward looking statements involve inherent risks and uncertainties a number of important factors could cause actual results to differ materially from those competing any forward looking statement LIBOR assumes no obligation to update our forward looking statements in this conference call and elsewhere. So I think information regarding these and other risks.
Is included in Weibo's annual report on form 20-F, and other filings with the SEC.
Oh, the information provided in the press release, a copy of the date.
Date hereof, Weibo assumes no obligation to update such information except.
As required under applicable law.
Additionally, I'd like to remind you that I'll be discussing today include certain non-GAAP measures.
Exclude stock based compensation and certain other expenses, we use non-GAAP financial measures to gain a better understanding of sleepless comparative operating performance and future posts that are.
Our non-GAAP financials exclude certain expenses gains or losses and other items that are not expected to result in future cash payments or another way clearly nature or knocking this piece of our core operating results.
Please refer to our press release for more information about our non-GAAP measures.
So you mentioned in prepared remarks, we'll open the lines for a brief Q&A session with that I'd like to turn the call, that's where I see old coffee law.
But I'll find out.
Okay.
Thank you Hello, everyone and welcome to Weibo's second quarter 2023 earnings conference call.
It was going to ask you.
Arguably.
Sure.
On todays call ill. She leaves you highlight weibo's user thought up in monetization in the second quarter of 2023.
For me it is arguably more dialogue.
Judy.
<unk>.
On the R&M side.
Hard to do.
Liam.
We're gonna be Donovan.
On the user front, we with any used reached 599 million and average do you use rates 258 million insured plenty plenty sweet, adding approximately 17 million and 5 million users year over year It was back.
In June 95%, I believe with and he came from all the travel.
Okay hope wasn't achievable Cleveland well.
Sure Moshe.
It would compete with <unk>.
Arguably Giordano Sadat City Hall.
She is liquidity as usual.
Sure.
Donaldson XI imaging any interesting she liquidity useful.
Cheap bottled and B E.
So when you hear someone you TVT you don't see MTBE, Sean Goodman argued for China.
Okay.
John .
Yeah.
Our monetization that like you said the pickup of offline consumption and events in the second quarter, we are at.
Pleased to see all as rapidly as we can trigger growth track trajectory with a broad base would be probably on that.
Site in the second quarter, our total revenues.
440.2 million views.
A decrease of 2% or increased.
You'll hear on constant currency basis.
Revenues reached.
$185 7 million.
Flattish year over year, or an increase of 7% year over year on a constant currency basis Nike for it but she had half of our revenues came from our non-GAAP operating margin operating income reached 153 million.
He likes dollar representing a non-GAAP operating margin.
35% that's to the solid execution so far.
The initiatives over the first half of this year, how many of them. Many of who you can show that you've received.
Sure sure sure.
So layer to each other.
<unk> 57.
Gotcha.
Yes.
Sure.
And argued ottonian gotcha.
Our shelf.
Got it alright.
Patricia.
Keep having the post pandemic challenge is generated from the shift in user interests and differentiated progressing happy memory coffee across various sectors in the first half of this year. We are adjusting our operational strategy in the first quarter, we shipped all pushing to focus from pandemic related topics over the past three years to do that.
How could we copy of vertical content as well as cultivation of juices mine site in the second quarter, we focused on improving operating efficiency of hardships as wellness entertainment and consumption related verticals in the second quarter, which further enhance the user engagement this quarter.
What do you view the article.
Yeah.
Next let me share with you all 12, and Canadian product and monetization in the second quarter.
Sure.
He got here in 2014.
And at least through the P&L.
A way to that future.
So when somebody that you see what I can answer each one of our critical but she argued all maturity Julien.
Sure.
And on track.
Johan <unk> CAGR.
Scott.
Argued return hurdle.
Okay.
On the China front, our focus this year is to improve user activation capabilities through channels and at Lasalle user scale and engagement beside the fact that the recovery of the handset shipment in the first half of this year is below our expectations, we continued to improve efficiency.
Wait with culture, and social product over the course of conditions on the headset devices in the second quarter collaboratively with manufacturers to improve targeted reach two high quality users optimize push mechanism and content consumption.
And improve retention of users acquired through channels in the second quarter. The handles average be used from headset, which we collaborated with equally 40% from the first quarter.
Chances are it will be then the equation along with family her childhood.
Ara go ahead.
Do you ever talk about strategically.
Finally, I'll go to put us on the ultra sensitive.
Core that you would've heard of.
Okay.
As you saw this year the furniture coincidental.
Jack on the order activity.
So you're going to go to where the chicken sandwich.
Thank you John .
Hi, just a.
The niche I think when looking at the future.
Shai neutrality in front of me.
You know with a traditional shopping came in children.
Seven.
Hugo tangible for Hugh why don't you idiot with I think going back to China.
The teacher jackpot feature.
Yes.
Social attributes, let me share with you the key progress we made in our products in the first quarter last year, we adjusted the structural social products and reinforced our confidence in distributions based on our social behaviors of youth social network in our relationship based defeat.
We have distribution of Super topic content relationship based defeat to improve social thickness of users and help to use to build up a high quality and real social relationship sluggish vantage social network.
Go ahead, we'd be fine distribution mechanism.
The traffic for content and accounts from key verticals in the relationship basis.
Use of increased demand and consumption are interest based content verticals.
All these efforts, we may well need to improve <unk> competitiveness in the interest.
Based on accounting vertical as post pandemic in the second quarter the scale of our content consumption per user in the relationship based feed grew double digit in jewelry Sandblast City Center.
Consumption in interest based content, a vertical such as crude as well.
We will continue to implement these efforts in the second half of this year and that became the seasonality during the summer holiday in the third quarter. We are we were step as it is set up set up a better distribution mechanism to boost traffic flow vertical content kols and speed up the traffic recovery.
For the interest based accounting verticals Saturday or Sunday.
Can you kind of thing.
Total available Yoshiaki Yoshida.
Youll see a little Matt Gili Web banking office, we did Tricia tune that you showed at <unk>.
So the agreement with the article to meet Sarnia.
If you've had an opportunity from that.
So waning arguably wafer and therefore don't deal with Shanghai.
So by using gene booster actually final hurdle without need someone that Julian good industry Cleveland.
And yet we.
What do you think youll Sochi, and continue to tune that you're talking about.
Rishi into mandates coming in your box and Lisa.
Previously the opinion citizen young <unk>, <unk>, Xiaomi and thinking in Virginia that hopefully will be able to announce yet.
We do not Alabama.
Okay.
System, you'll equivalent.
Sundar talked about Nevada.
Arguably the acuity question.
Could you hold at that property.
Sure.
Between our chain.
<unk> argued to the pulling of which can be confusing that machine that will be judged on implementing to.
To deal with English is the future.
So you cannot take consensus.
Perfect.
I'm not able to ACD.
Hum.
Hey, Jonathan Chang machinery don't easily within that.
Bush.
<unk> content ecosystem, we increased our investment in vertical content.
Well, we've looked at advantages 30 towards such as entertainment.
Jamie I mean.
The traffic and user engagement exhibited a significant year over year growth in the second quarter, which benefited from the recovery of market environment and our continuous effort in improving our operating efficiency.
The result, we wish overall traffic and engagement, we're rapidly to elaborate for entertainment vertical we language offline activities such as entertainment Gala.
Concerts and field promotion events in the second quarter to speed up vertical traffic recovery.
Beyond completion, with the lab and agents agents and producers.
And generally more content and discussion around celebrities.
Hot topics in the first half of this year, both the traffic and user engagement for the entertainment vertical grew over 20% year over year.
The online gaming esports and any verticals also deliver a growth rate. During this period in particular for the E sports vertical refocus on esports events over the past few years as Jason completion at least major esports crops.
In the first half of this year, the average daily traffic and the Denver office engage the users of this vertical grew significantly on a year over year basis with over 50% growth workshop at 40% growth for the number of engaged users and over 100% growth what are you thinking.
But at any vertical fleets glass market opportunity in the second our second quarter exactly encourage and many global anybody out.
So very slightly that calls on LIBOR, which in turn quickly extracted and promoting consumption from ACG users on weibo. The number of engaged for uses for the enemy artist community exhibited a year over year growth of 15% in the second quarter, which helped to increase their usage of weibo.
All users interested in Anthony.
S offline E sports events and the enemy activities, we do we.
We will continue to increase our investment in the ACG vertical on LIBOR help our partners within the ecosystem, we have influence and commercial value.
Do they use this mindset and improve sleeveless capability, you know acquiring and engaging young generation.
When you send your chance because he was happy with downtime, which is <unk>.
She has been with you.
<unk> got a pretty sudden closure of the ovens that.
Neil.
Cool.
So you could find a home transaction.
Good.
Oh God, you do see kind of a complete longer but how do we see on shelf and maybe I'll do this morning, you've only dropped me sure sure each in Hawaii, but in doing so what youre, saying.
So I'm Gonna Englishman have you done.
Okay.
Yes, Hi, Fi ubiquitous more neutral impact Senegal.
Over the past three days, some professional verticals such as automobiles digital products and health care verticals had been strengthened these verticals are more easily monetize despite having less traffic skills that entertainment at ACG verticals. We have also created a more comprehensive and health.
Your company ecosystem in the past three years, our customers are willing to further explore create value and that shift with new situations with us in terms of content and marketing with the recovery of industries and consumption the traffic and revenues generated from these verticals.
<unk> growth in the second quarter.
Ever for the FMC key verticals, which used to be heavily consumed by our users that have cosmetics and food verticals. The comp ecosystem had been facing challenges over the past few years due to disruption from that and then any kind of external competition.
Anticipated resumption of these verticals will take time I S. A S. We're exploring differentiated operational strategy to reconstruct all company for system aiming to offer better support for the end market sectors.
Who knows where they'll come out each agreement will never be a casualty.
Casualty and adequate and future.
Some of the people <unk> got coffee quite neutral you short your P&L R&D second token look on Tony Hawk out who I'm talking to people, we won't call date.
This expansion of future Gucci accountable to achieve that goal.
Putting a green shoot to argue with tissue babar from that.
Let me, saying corridor.
It won't be much of a tissue comes out in with Apache or arguably meet you you're talking about.
So don't get me into a leading into the summer season.
LNG seemed to them.
And actually if you can help on that.
So our top content creators in the first quarter, we have compete complete their transactions with increased shareholding of mindshare with digital technology.
That's a V pass the pets and platform system, together and completely various upgrades of our functions in the second quarter. The platform select pit more top kols with Hyatt and social value and offer support for them in terms of traffic operation and monetization.
Aiming to build a healthier ecosystem for them as a result, the traffic and the number of engaged users top kols to double digit growth in June versus March and a corresponding at Rollins from the task to over 50% year over year in the second quarter.
By improving the operating efficiency of top content creators, we have created a moorefield favorable line utilization environment for them, so they're driving their continuous and healthy development of Cleveland coffee ecosystem.
Shanghai, La Quinta arguably positioning a little before Ethan we tactically all back into content and it's you don't know.
The ultra human services further dilution.
He will then turn the contamination cleanup she doesn't.
<unk> not quite all the legal accrual.
Adjuvant treatment.
Jonathan.
Phones will keep second question without government Grainger.
According to Nielsen.
Thank you guys for that.
Goldman.
It will be cool.
Thank you Moshe.
Oh sure.
Coopervision.
Next let me share some color on the monetization front.
Second quarter, we are encouraged to see that most industry has demonstrated solid recovery checks and returning to the growth trajectory underpinned by a notable pickup in adding inside language resumption of offline offline activities as well as pent up travel and the consumption demand during maybe holiday.
And the June 18th E. Commerce event, we've continued to reinforce all advantages in Hudson IP and new product launch, enabling brands to build a monkey hype and earned recognition from users more efficiently.
In the process publicly our targeted marketing reach Brent has established.
Communication, which consumers, thereby further calculated consumers' mindset.
This marketing Commvault has resonated greatly with numerous industry and client after being introduced to the market softened.
She turned from a haiku JV, but theyre going to you know youll ship.
Yeah, Michael could you talk little Youtube.
So I'll put it that way.
I would tell me that.
Yeah.
Here, you can check entrees with a pencil.
Yeah.
It was on the NIM.
Thanks, Jonathan.
We have opened into incoherent charter capetian, he's hoping to answer that call can.
It will be booking at the IP.
<unk> got a.
Total of Peanuts, Sheila you need help with it.
Towards that end LIBOR that cool if you wanted to use Unfortunately don't get that doesn't have to go through another article Roomba Java short and sweet.
Looking at the natural lease accounting into 90% of them with ours.
Article to to be able to reach out with them.
Got it.
Why do you want to reach.
How much of a yield vehicle.
People, who didn't ship Felicia.
Sure.
These are normal to equal <unk> behavior to ensure behind our turnkey program. So.
So it should be higher.
Sundar.
I'll just give Krishna Shankar.
Got it.
Sure.
Right.
From an industry perspective clients from the automobile unusual products that have already highly a b how do you reckon a nice sleepless stress in heart check marketing therefore partnership between LIBOR and these clients have entered a more advanced stage with both sides not only collaborating Kansas.
If he Tyson, but also investing more resources and product evolution, and the cough and cold co creation.
So that gives us.
Continental lots of trucks, we bought has become a must have platform for <unk>.
Customers, new product launches with them virtually.
Virtual cycle for us.
Around our organic and monetization.
System. In addition, sleepwear also strengthen its capability to capture and want it actually the team feels phase post the product launch lovely just enrich the lucky.
By building a more influential IP co, creating how checks with clients.
Driven by such synergies the automobile and digital product sectors continued to deliver a decent revenue growth in the second quarter for instance at major handset manufacturers would have any promotions. There photography features in the second quarter LIBOR lungs, LIBOR mobile photography.
You bet aiming to create high quality photography, IP and uncover compelling stories from users by Fox Levo.
Others have already signed up for the event Apple and while they have also expressed their intent to collaborate suite basically that weibo has that manufacturers are working together to influence your perception of mobile a mobile photography and shape consumer mine site.
Data by promoting the long term growth of the handset industry as for the jewelry sector benefiting from increased marketing budget of clients and the rebound of the entertainment sector, we language for celebrity and heart check. The fact of all flight entertainment fashion events in the second quarter without any IMO.
I think year over year growth in the revenue from that sector.
Thanks Chip.
If you don't have the ultra goodness I N C D E Shaw.
So I wish you all the articles.
Do we see a Franco boucheron <unk> mesh environment that I think ashwin.
I will then go towards that in the San Juan.
Sure.
Yeah, Sean a question, which I don't know Shuja tuitions are higher the VEBA to each other.
Tissue neighborhoods Croatia.
No John .
I can't tell you when we're.
So ami issues happy with.
Cheng Cheng Cheng.
And comedy show and when we do not keep them essentially similar.
Sure <unk>.
You talked about essentially Q2.
<unk> will be back Julien.
Thank God.
I told him present, John I'm going to show you moved out into the auto piece really opened up.
Sure.
Sure.
All of them.
So the sector obsession has undertaken a parallel healthcare as well as tourism as pandemic exceeded the pent up consumer demand for offline consumption without at least in the second quarter clients. In these sectors eight huge life offline sales through beefing up all of that promotion you view of.
Marketing our marketing goes we bought effectively cultivated an extensive use of mine site to accompany ecosystem operation and hotshot in these sectors, leading to ongoing improvement in client recognition, we might have thought FIFA opportunities and their capabilities to capture higher wattage in there.
Sectors for instance in terms of the health care sector, we deepen the engagement of professional media and doctors on label and does he have a capability in all places hot topics related to healthcare.
We felt the traffic of health care vertical.
30%.
First half of this year, leading to over 30% year over year revenue growth for the sector in the second quarter.
Medical service platform, such estimate one Madison delivery a P. P M JD health, because placing ads and there was a healthcare hot hot topics, which are facilitating facilitated them to communicate with you talking to users and health related concerns.
In elevating the brand awareness.
A recognition from our clients. We are encouraged to see AD revenue from medical platform more than doubled in the first half of this year.
I mean for me I mean its uncle.
Article previous Sudan for you.
So thank you Tony and arguably even Jonathan I'm not sure that we.
We don't go out here with <unk>.
So we've got you know.
Until you Cindy you since you're looking at.
Hi, I'm sure, we'll keep doing that has shown at each again uhm Archibald.
Aren't you pulled back a bit of a hole Chicago Moshi Moshi ownership and virtually everybody was yoshito cannot be was not with one thing that he or she would accrue to the charterer.
Gentlemen.
So you're trying to switch it don't you refinanced the article.
That said about what was happening with hone FY.
<unk> she couldnt come to the name can you talk about tissue that TCT, who usually you shouldn't it seems to me that you've drawn towards how can you do with it because <unk> move onto kosher and contracted.
<unk> tangible book.
On the fleet side.
<unk> personal care and online gaming sector continue to show a slower than expected recovery pace tracking with the overall growth of our revenue during the second quarter to elaborate some of the top multinational clients in cosmetic and personal care sector faced the headwinds from their old business operation in Kansas.
Slide the competition in marketing and has that slowed down their pace of new product launch.
Such headwinds in my take additional time for revenue from this sector should return to positive gross adds for the online gaming industry. We are encouraged to see higher number of new games.
Relief after the resumption of gaming license approval in the second quarter with more mid tier games and new games stepping up their marketing cooperation with April .
Due to the strategic adjustments from Keith gaming online gaming clients and marketing budget reduction.
Cost cutting trends over revenues from online game industry continued continue all of these things are kind of in the second quarter cause lessors with normalizing a gaming license issuance, a sweater leadership toward premium game clients focusing on content marketing.
We will continue to beef up our competitive edge around LIBOR gaming ecosystem and facilitate the long term growth of our clients leveraging the strengths of 11, just leveraging the strengths of our hot shot and the new product marketing offerings, hopefully, we would expect to see a more meaningful recovery.
Wally.
Incentives in the third quarter.
I know, it's only a topic, which is our dividend.
With that let me turn the call over to phase out for a financial review.
Some people go quick.
Welcome to live with that deployment.
Great.
Got it.
Let's start with you can imagine.
I think that's.
We've looked at.
I don't need to be.
Got it.
Sometimes it is.
Respectively.
Another addition of 17.
Or are there other gear.
Lucky So listen yogurt Little chart, Amit I'm seeing the execution of our business.
That's the strategy.
Turning to finance or other remember my prepared remarks would focus on that regard.
Uh huh.
Other firms in North America.
Good.
Unless otherwise noted.
We sure haven't Florida financial deals with them on liquidity umbrella.
Linked quarter.
These are business primarily operate in China.
Well, we report all center.
U S dollar.
Our financial performance was affected by currency.
Currency movement.
Leslie will feel through.
Financial highlights for the second quarter plenty of inventory.
Yeah.
We've looked at in the quarter coming from here that revenues will go up on that.
Just want to leave it.
That'd be great I'm Super side.
That's correct that a possible crafted.
Operating income was up I guess this is really part of it.
This is up and operating loss of 30.
Question.
Net income attributable to legal risks either something for me.
15% or something like that Colin Mccracken David.
On the margin.
Perfect.
Only the ETR with fitbit versa.
I'm happy with what the fixed stock last year.
Let me give you a little color on our second quarter kind of another round of performer.
With advertising and marketing revenue for the second quarter I don't know what they funded 85 plus that are needed.
Language.
7% constant currency basis.
With advertising business improving month over month.
AD revenue was very fun to create a media company.
Leslie I think Brooklyn October Ad revenue.
The industry, leading herself girl that they'd like to see a solid growth trajectory arguable, how does that on the.
e-commerce effort off the top of market.
Just to add a lot of inquiry.
Although mobile and how does that that's hurt wafer.
Wait what I was talking to customers the Rocky Mountains building blocks of the half and thread creaming.
That's a customer from you is that's one of the vehicles that Kurt I'm Hudson might affect her with a record backlog.
We worked right that's cool.
Goldman social AD offerings that make it a brittany basically customer.
To help them target high you highlighted the user.
With respect to e-commerce, other pen that tougher comp as it landscape.
Our sales team actually while we have to hire and project from comprehensive E Commerce platform.
That part of the cycle.
Well I'm happy to buy it from other key market up there.
Afterward.
Promoting the fees so it won't be to see what the Largo, Florida.
But I still hear me say on the topic I'm search.
Revenue from Alibaba for the second quarter.
What type of fixed on the egg median I wouldn't create a therapy for that what kind of a 1% constant currency basis.
Hi, Ricky it's backlog is protected.
Rob, but it brought demand softens basketball hoop Honey I thought I believe if I, if I can take them all.
It will turn into bad debt.
Let me share some creating their car on the chat.
Second half tied to penetrate.
Up that I don't have the market had been bottoming out month by month during the second quarter with Mastercard.
The earnings growth trajectory.
You all tailwind from all of this email or a gradual.
The recovery.
Our team they'll be off sales execution.
Or is that likely to catch up.
Released into the market in the second half.
This moment of time.
Ill put it blocks kicking off that's not E learning market uploaded.
I love the flying hours.
Susan.
Leveraging our differentiated social ads.
Got that either that over half of advertising.
Generally it's on top of that since that Kurt a full recovery all consensus Benjamin.
Separately.
Depression or attack.
The pace of macro economy recovery.
Which might be more if they're not that sucks. It equal policy travel agencies, who have done it should be clear.
But I did a survey.
But I'm going to serve us well.
Plus 54 on the second before I'll be quick uptick to myself.
Uh huh.
The decrease was mainly due to the lack of Alicia run time.
The second technique called therapy.
Were sitting here last year and that's when the contribution from membership side.
Her into car Sunday.
<unk> expenses for the second quarter.
It was 286 one for me then I'll be quick uptake for that.
Operating income in the second quarter inquiries.
That 153 if needed.
That is off the market.
Perfect.
It feels like at 2%.
Yes.
Turning to enhance that.
Under GAAP measure income tax aside for a second quarter, we're trying to find some slightly cut back with them getting Pos at retail last year.
Net income attributable to LIBOR in the second quarter, we cleared for flip chip so part of it.
Uh huh.
So one quick one for me and different sensors on that much upfront and that person comparator for tenants look like that.
Or not yet.
So that's one of our local team in a leaner cost structure.
Yeah. He levered earnings for all taking the top line.
Demonstrating our ongoing execution of our efficiency initiatives.
Turning to our balance sheet and cash flow I've done I've got two final thoughts.
Weibo's cash cash equivalents I'm sure, it's something like one.
So it goes on it gets tricky in a second quarter cash provided by operating activities.
142 on site.
Capital expenditure totaled three 3 million and integration work would be expenses amounted to 14 lots that need it.
Before turning to because I'm as I said, that's it sits right now by the way have completely the distribution of special dividend.
It is upside for ordinary share for it yet.
Shareholder.
I forget the amount of 200 million.
Looking ahead with a coffee with a great long term growth opportunity.
Well focusing on financial discipline with a commitment to returning value to our shareholders with that let me now turn call over to the operator.
Yeah.
Thank you Dear participants as a reminder, if you wish to ask a question. Please press star one bond on the telephone keypad and wait for a name to be announced to withdraw your question. Please press star one again.
Mr. Baber will compile the Q&A rose to this will take a few moments.
[noise] now we're going to take our first question and the question comes from the line of Timothy Zhao from Goldman Sachs. Your line is open. Please ask your question.
Uh huh.
No when I went to Houston.
Our first question couple.
Great.
Hi, gentlemen, it's al mentioned that should've been done.
Uh huh.
Paul.
<unk>. Thank you.
That'd be helpful.
Yeah.
It sounds like Archie.
Tell me you said, though.
Thank you Sir.
For taking my question My question answers regarding the hybrid all look into the second half this year.
Can you share any color on that.
Spending trend in July and August .
To date, and how should we think about the AD revenue growth the third quarter and the fourth quarter. This year and we've seen the vertical is that Weibo has.
Is there any specific verticals that we are going to see very strong recovery to a second half. Thank you.
Sure. So as you are to do that kind of online to be doing with whats going to go down that fund is still not that mature. So it sounds to me that on our balance sheet.
Sure.
So you're from Yamal, because you thought you're going to take a look.
Welcome to Cushing I shall be able to like what you don't see them a shoebox.
If I go back to Egypt from alcohol in the bathroom founded it shrunk.
I'll go through how high and volatile to handle.
Oh gosh.
The company's emphasis on Jonathan.
Thank you for your question first of all in Q2.
Thank you very much be a question. So first of all in terms of Q2, we had actually maintain that positive growth.
Year on year basis, So, we had a 13% growth quarter by quarter and 7% growth year on year. So this was much better than before and also.
There were several reasons first of all is that the May day holiday came and also you can see that I know, we had a more revenues from the verticals like the consumption and also that People's travel as well and also the sixth 18th as one of the biggest e-commerce events taken place after the Covid, we have seen a more placement and also.
The budget from e-commerce that store as well. So these are all giving us the boost.
Okay.
No I thought she is I'm gonna vitamins, one cannot ship in women.
Sure.
But you do have to see what you have to wait in order not to we don't take the time to kind of go from one that's under the shelf here shortly assures showing your peer that you wont be doing on Gilenya.
So there's some dar to highest of instant shopping at Guadalajara.
So it's other income five minutes, you'll kind of be a shift in the business.
The outcome going cocky here soon.
Do you have an incident.
So your efficiency ratio.
When we go into Omnichannel vision, where it seems that your pocketbook, Ohio.
Clifford.
Got it.
And also tied into that July and August have already finished up performance in July so the growth rate has been a little bit down compared with that up to June because you know that was that still associated with the macro economy and also the consumption related to performance because to a third of our verticals are pretty much related to consumption and also in August .
We're going to have a better recovery pace, then that all by July . So overall speaking we have the confidence of the recovery phase of the whole second half up yet, but still we have to keep an eye on the macroeconomic development of China.
Okay.
Southern is a good phone call here, that's one kind of what sort of impact it really runs on the cheap.
Not sure by the time you wish it to go condo.
So in Chile, you should also refer to sue us it would be up quite a bit, but it's something which and I can tell you that at least for me.
Got it.
And she did not take on golf and some good to bear fruit.
But what she does it onto universal wafer.
It turns a woman so EBITDA, what kind of on the higher horse power Yorkshire Tortilla chips.
With our company.
Yeah, Yeah sure Yeah, let me answer here in Oklahoma.
Sure.
Surely you're attributing it to.
So you should continue but were eating each engineer web kingdom well at Tcf.
Yes.
Yeah.
So I don't know when they just haven't yet so any future cheesier fulfillment it doesn't matter, who don't see an extra 20 ish.
Sure Matt.
The newly Ohio, and twists will take a stab at what you would issue not a genius on the NCS.
<unk>.
Danielle I'm not too sure.
<unk> told you about what are the yields kind of come about you know how quickly your path, which you don't win a tender you hit the financial vehicle in Arizona.
To the Honeywell shortens out.
So I think bandwidth.
And also further I've seen that for the overall, how the second half of this year in terms of the verticals. So first of all I would like to talk to you about the supply which is what about a topic. So in July and it also Augusta, we have seen a better very good recovery in terms of the entertainment and the culture as well.
And of course that talking about the overall kind of a traffic hub right. This is already better than the period during the Covid understood.
Having a very good recovery, but still we have to focus on the vertical topic and hot topics and I'll try and ask what is the vertical of our culture and entertainment. So still we have a lot of strategies that are going to be laser focus on certain verticals for instance, we want to increase the budget spending by the verticals like automobiles.
And has that that's what is the gaming as well.
And also still we have experienced some of the headwinds from the verticals like food and travel as well due to the Covid situation and also the.
So do you have competition in the past we have seen a decline of the percentage of the traffic contribution from these verticals.
But still you know in the second half yeah, we have to further give more classic support to the verticals like the food and travel in order for them to develop and also so for the travel for instance, we have been a regain the activity of that travel with Weibo, which has been stopped for about three years during the past October period.
This yes, so when we are regaining this particular campaign or.
Trouble with Weibo as an event, we've been saying that the total number of participants exceeding $9 million and also the total number of final topic succeeding.
<unk> or tens of billions. So these are all going to help us to have a very good recovery.
Hey.
The teeth, all cuda and all that kind of thing you don't.
Go into our Cherokee Tony Hawk.
Sure Josh.
There'll be all kinds of I'm not sure what he she currently behind yet not sure.
Yeah.
Article.
She got when you don't know for sure.
Sure.
Hi, Eric Hagen Dazs shops right.
Good to know.
Shutdown can answer is if we're doing that.
Yeah sure.
Okay.
Sure.
The outcomes you find another guy on trucks.
Yeah.
I'm not sure what that means Alabama, we're sure not sure what you like.
That national would you touch on but I assure you that he and the commonality that map of that too.
Uh huh.
And when they.
Come to your assumption to assume that you had thought initially.
The chart kind of Black sure Ali a high share of people. So it was on.
Yeah.
Sure.
Arent you took on yet.
<unk> Joshi.
Taking a toll on Tricia opinion, I mean, when you sign them and ship what kind of a country in China on a T cell.
That means you're going to get out of holiday cheer.
Terrific.
Got it.
Yeah.
Hum.
Also I'd like to share with you some of the colors of those different verticals as are our customers. So we have so many different vertical so I'd just like to give you. Some of the representative. So first two are the has that that's what I say automotives. So in the second quarter, we've been having a year on year growth of 20% for the industry and also to <unk>.
What extent, but out of the vertical for the automotive verticals. So that was pretty much in a related still to the sales times out. These two verticals, but still you know there are some of the updates on stope.
Sales of these two verticals are fluctuated, but still we do see some of the new highlights on some of the events happening for these two verticals for instance.
There was a switch between the Oh from the ICU vehicles to electric vehicles and now the electric vehicles are accounting for about 50% of our sources outside the <unk>.
From a revenue and also in the first half of the year, we had been seen.
Lunch or promotion also a lot of new products off the headset industry.
In the second half of it yeah, we have to be aware of.
That's how I know there might be more new products or new headphones or smartphones that are going to be launched by those bonds, especially if I'm far away or Apple.
So we are going to experience they pretty much good trends and good growth.
For the half that and that's been a second pop ups.
And also it's still we have to be aware of that.
Automotive industry.
In the first half of the year, we had difficulties have seen the budget, especially from the ICB of course because of their poor sales they've been having.
Down the plant all the placement of our new products up ICU vehicles.
The sales. So you can see that we have to have a strategy to focus on the development of the automotive and also has that industry.
And change our strategies accordingly, okay.
Uh huh.
Condensation to actual people each of them to hopefully if we took down quite a bit.
Sure.
I can come here and I appreciate you my phone kind of articulate to me.
It depends on what it is.
So I am English ivano.
Okay.
Right.
Okay.
Okay and also we have other kind of a verticals as are our customers that are growing pretty much up interest rates for instance in Q2, we had over 20% of the gross witnessed for the vertical like powertrain entertainment luxurious products in health care as well as the tourism and travel so in the second half of <unk>.
At that time without any accidents up happening weapon to having confidence of seeing the continuous momentum.
Okay.
The new ex U.
She was a shotgun that scrutiny.
Sure.
And cohort three coming in.
Ah hinting that his old job to your content.
Can you tell me if I'm wrong there.
You just went through for tuition would that be on top of Yodlee.
I think we're gonna Samsung I mean, its only all back to Daniel.
Thanks for your view on the guidance really Cheetah quickly sugar has even daughter now seven years.
Your teacher, who saw that when do you think she made a couple of countries are great partners.
Gotcha Gotcha.
Yeah.
Okay.
And also next to the gaming and also the cosmetics and personal care for instance, our women's seen a very hardly the case of the new product launch in the first half of year and also most of those brands. In these two verticals are involved or engaged in the price war. So we have still some of the pressure.
And gaining the budgeting from these two verticals.
We have been a slight a weapon seen a slight recovery of the beauty.
Personal care and cosmetics in the industry and the 18th of June of events, but still you know this particular recovery trend or recovery pace was still lower than our expectation. So in the second half. We are still there are some of the headwinds helps coming so we still have to be cautious about the recovery pace of.
These two industries okay.
Done that maybe wasn't there going into legal entity I cannot tell what were kind of our opinion.
I don't think it would be with them here.
Yeah.
Quality assurance Division.
Either from the computer.
We haven't gone out.
No political Atlanta tissue on the niche.
You mean instruments and whatnot.
Tears are cognizant of the Codell I wish I knew the bathroom factor at all to look at each one of them doesn't show certain button.
Two in the pathway.
So I don't that showed a they're coming up with it even if it comes out and let somebody in county that Shawn. Thanks, sure, Yeah, Shelby area, Yatra and <unk> Mahindra.
Ghansham was how many shanghainese yet.
So I'm not sure.
Coming Sunday evening, Chen Tong people at a particular time good to go down that you defend the issue of a shop deal for them. So the opinion that we see either people don't get it without an outcome that way. Thanks.
Goodbye.
We have another call it in the arm, but I count upon the material and then to schedule without a shell and that's really I guess what changed here.
Sure sure.
Actually in quite sometime.
Kushner has really changed with.
Tissue.
And also as a whole you know standing on this particular time point I think that there are very heterogeneous recovery pay yourself different verticals. So apart from still focusing on the revenue and also the budgeting game from those verticals. We have another two additional focus is up this year. So the.
Rest of this year, so I assume that still we have to pay attention to the recovery.
The overall traffic and also the second is that mainly focusing on those chocolate supported two each in different verticals. So that ties all about the topics for the verticals. So you couldn't you kind of see that total in the first half up the year, we have been seeing some of the nature of Weibo. For example, the betas are great and popular.
So when people do discussed upon topics. So we do see actually more users and also the influential power of Weibo as a social platform was also enhancing however, still you know there's a broad to some of the pressure or some of the suppression.
The lifestyle and also local service related revenues.
Revenues for instance, like used to be I know, we had a lot of I know traffic.
Topics like the food and travel and photography et cetera et cetera.
But we've been experiencing some difficulties there so.
Our focus for the rest of the year is that first of all it will still overall pay attention to the recovery of the whole topic for all kinds of different no.
Sectors and also topics and second is that we are going to keep a laser focus support to the gift the topic laser focused support to those verticals. So that's I know they are going to have a very good recovery.
Also we can gain the momentum from the recovery of those are all kinds of different verticals that we are working with.
Okay.
Okay.
Alright, Thank you very much.
Excuse me can I say do you have any further questions.
That's it.
Thank you. Thank you.
Yeah.
Now we're going to pick up my next question.
And then a quick question comes from the line of Miranda <unk> from Bank of America Securities. Your line is open please ask a question.
You bet. Thank you.
And as usual with it. She then no guns I just should as a whole.
Yeah $2.
You can go in Guangzhou, Chongqing, wasteful, Ohio, just sheer Yao chew food sugar and all that.
Now well see what it means.
Sure sounds good you sound a little crazy.
Great. Thank you I shall do yourself by name.
So how are you doing.
So that's a journey.
How are you doing.
I'm sure that Oh, well, thanks al lunches.
So thanks, I Wonder if oh.
Imagine this comment on this year's strategy, which is to increase the overall topic and also to beef up support for their vehicles traffic. So my question is can you share your outlook for the user growth in the second half and also a question of strategies to boost our user topic.
And then the core content areas. Thanks.
No we.
<unk> got all that kind of on that <unk>.
The opinion shortly the throughput out here sure.
I go back to.
So when you hear the shutdowns that scene.
Got it.
So I don't know that you go to China.
Human to machine Booker T phone, especially in New York when are you going to weigh on the salary fabulous execution on the glass.
But it could be that your own iPhone with us.
You're going to go down the Charlotte Atlanta, Charlotte and he goes onto the junior.
Got it.
Okay. Thank you for your question. So first let's talk about the scale of abuse.
First of all you know everybody is aware of that are the shipment of the has that in the first half of year experienced a decline of about 10% year on year and also as a result of the marketing expenses rather than to that was also decreasing so our focus for this will be first of all increase the efficiency of the traffic and a second of all focus on those high ARPA.
Clients, especially the traffic supporting those iPhone users in Huawei smartphone users as well.
Okay.
No go ahead.
Well.
Hello.
The hidden sugar, Hi, Sherman and tell them that you ended up going with you.
Virtually all of that.
You got it.
No argument that kind of on a time when you use them yet.
He got from yesterday it doesn't go when you for them, although again, it's unclear.
To meet you on the Eagle Ford for not doing good.
So to me it means you know tuna and ship manager that doesn't go.
So people don't go down to some pretty cool.
Sure.
Krishna you thought.
You go out to.
The tenure coming yet and that kind of tells me and I kind of thought when you go downhill.
To meet your telephone our shipping somebody a lot.
Sure Oh now quickly at Paypal.
One woman on dollar tree.
Oh, Gosh 20, Meg aquifer Garnett.
And also in Q2, you're going to see more activity itself.
And also still we are going to focus on the recovery of the traffic, especially from two areas. One is couch ran entertainment and the other is the news and the whole time, so in Q2, especially talking about the activities of the culture and the entertainment industry. We've been seeing more activities organize them for instance, the movie theaters and also variety shows that's what it is.
Concerts et cetera, So we had a very clear trend of the recovery and increased the traffic in July and August as well. This was mainly due to for instance, a more activity in the entertainment industry and the summer holiday season, and also in the first half of this year as a whole are women.
<unk> seen over 20% of the growth for the interactive use this number in the <unk>.
Entertainment industry, and also a 50% growth versus the pre COVID-19 period. So that what we are going to have a very good trend.
Getting from that to a particular industry.
Okay.
So those were seven year on I tunes.
The strategic benefit that doesn't kill it.
Sorry that you're going to my second question is sure to food show them and jumped the tripling down the aquifer.
Well the music sensation.
Sensation that kind of an element.
So other than that.
So you've instituted I'm not tissue samples.
Martin Young kind of course, you don't handle.
I'm not sure to that total.
Our opinion.
Thank you.
And I think it's something that's on your feet.
So no.
To finish some kind of unusual in any.
Anyway, that's shining through.
True okay.
Got it.
Yeah.
Hum.
And also in the second half of year were going to focus first on the overall recovery of the topic efficiency and also second does that give more support to those the different vertical content verticals as well so.
Already sharing with you some of the colors related to how does that the industry and also the vertical of Automotives.
We had a great investment of traffic.
For the past, one or two years and so in 2023, and we haven't been seeing that the overall percentage or the traffic contribution to our total traffic from that has that and also the automotive industry has already been doubled versus the pre COVID-19 period, so that China, because there's some very good trend and also a better kind of our revenue.
Revenue and also influential power increased we are going to see more and more significant.
<unk> D a.
How does that and also utmost but of course, so that we can get more vertical support traffic support to these two verticals.
Okay.
Now push Illinois.
Sure.
Sure.
Then there are some deals.
Daiichi and Samsung.
On the survey the hijab.
Santiago Lima.
<unk> done the Iceland taxes, when what kind of things you can close the Charlotte.
Sounds good.
Sure you know Dino you can China economy.
So they all are.
So you'll have some money in it.
She is if I'm in the TJ summed up.
Two of them were kind of challenged here as you know we've got to teach them the same.
<unk> kind of a thing.
Should it be higher kind of sure.
Ketchup Akshay you got to me that you've got some county, but something that Im sure Youre, telling me to only here or there.
Other times it hasn't we don't believe that you can scale beyond that.
Two the China, showing that the high industrial automation I'm resigned the Hulu will not compete as your revenues are down there.
How many N T shirts, italico controller wafer piece, yeah, so each of them.
In Charlotte the here no doubt, that's an opening slowdown even though you're going to announce here golf. So you'll see a critical element in county hold onto that.
Who would be though Sydney.
But I can remember competition.
And also next thing I'd like to talk about our four verticals of beauty.
Cosmetics and personal care and fashion industry I saw that the vertical travel so I know before the COVID-19 period or during the Covid period are People's Oh uses actually demand over these different products of these verticals actually decline and also we had experienced a severe competition joined the COVID-19 period, so when the Covid.
Control policy was just maybe is it I'm sorry.
What's just alleviated.
Well, it's just alleviated we can see that.
<unk>.
Kind.
Kind of our performance and also the traffic contribution percentage are also from these kind of industries are accounting for only half of the total traffic contribution percentage before the COVID-19 period. So in the first half of the year, we had already.
We have already done something to extra supporting operation from these.
Two of these different verticals and also now a very good trying to start the fashion vertical has already recovered their.
I first presented.
Contribution to our overall traffic to.
For the period before the Covid and also in terms of the luxurious industry.
Revenue from this luxurious industry actually was increasing and two a positive trend and also for the cosmetics and also the travel still we have been seen a gap. If you are comparing with the situation before the COVID-19. So as a result, you can see that the overall kind of revenue from the vertical itself by the cosmetics had a year on year.
So these will be still the verticals that we're going to laser focus on operational support in the second half of the year and also.
Because when we had a very good recovery from those.
Less unexpected growth verticals.
It is going to give us more influence and also we are going to optimize the total structure in terms of the traffic contribution to our overall traffic. So thats, how we cannot regain to a positive mind somewhat growth.
Thank you.
Uh huh.
Thank you.
Thank you.
Now I'm going to take over next question.
And the next question comes from the line of David Chan from Haitong International. Your line is open. Please ask your question.
Just a question.
What that would be on that well.
Well the only tissue by me.
So it was lucky that.
We bought that.
Yeah.
Hey, guys. Good luck.
I go with just yet.
Okay.
Okay.
Okay.
Thanks for taking my question My question is volatile.
The amendment shambaugh color.
If a big one of application scenarios.
That's one.
They're running at the current stage open up.
Thank you.
Okay.
What you should do it but I want to go the windshield, which you don't want to drop out when they actually see it yet.
It was your bundling piano towboat Reinhard all chicken come out because you don't have anything around that.
The country of tissue.
Which again are put in front of me.
Got off on the issue of bundling them with 20 ships on conversation with John Hart.
We will continue to see some of the put in their own niche and uncle, we're trying hard for me to wait to tarnish measurement boardroom.
Through time, we just don't have time with Johnson ranch on the T cell target to leap a go.
And secondly, a bundling.
Got it.
Okay. Thank you for those questions. So I think that during the last quarter earnings Conference call. We had already answer part of this question. So aig's CEO for Weibo has two functions that we are going to enhance the production speed and productivity of those individuals dice com since by those key accounts on our platform.
The big accounts on our platform and also help them to enhance the stickiness and customer relationships and also a second is that they could help us to really supplement and also regaining some of those medium to long tail accounts on Weibo. So you can see that the four way boyd's onto the concentration we have a characteristic.
Which is that the ecosystem for the top accounts or top ranking accounts is pretty much optimized and also <unk>.
So pretty much weaker for those medium to long tail accounts. So aig's C is going to be a very much a supplementary and helping with those oh.
Medium and long tail accounts in terms of the content generation okay.
None of the things that arent you doing that kind of an unusual that's unfortunately too I think we're trying to shake tea bags.
I think that kind of on the commercial that has yet to sell <unk> as a whole.
To access it doesn't matter at all.
Latin America, and you correctly, ashish or themes as we see here.
And Hungary and Poland.
Thanks.
Okay.
Unkind anyway, who deal with that seven years to sell them and that's where all the time each in tissue relying on that kind of an unusual Cleveland.
I don't know if you can put two unusual woman in here to the new deal formation.
Hearing none of them in the Toledo towards fusion apps will go down as well, but that's what allows us to do that.
Do you see that kind of I'll call it bundling.
A bunch of joy to hear kind of hurt us a shot at it.
This is Jim.
So this year.
Sorry.
Okay.
And also in Q2, we've been seeing a very good trend of some of those.
Big accounts like us hundreds of those important accounts also already trying to aig's seeking liquidity and helping them to actually.
Cater the needs of their customers and are writing some of the articles of creating some of the content.
Well and it'll have the similar style that their customers months, but still even though this is not a 40% rolled out to the rest of the community. So I think that in the second half of this year, we're gonna see more and more of those top accounts using AI capability and also second thing is that you know, we really believe that some of it is going.
To be very important for giving us a further supplementation all side the vertical chassis and also vertical content, especially in terms of the travel and also the food et cetera. So because you know the top accounts of course are creating very good contents in these two areas, but still we are lack also good quality.
Are you content to those medium level accounts and also a medium level users. So I think that the AI GC is going to be of great help and support in this particular area. So that they know the efficiency up operation of those medium level accounts that could be pretty much in cost okay.
Matt do you want to articulate that sanctions with Russia that Youre adventure don't comment.
In Washington, the gene Kelly from into Asia. So you can be a challenge.
So you guys seem to authorities had Q2 months.
To Tom that easily.
Anyway, because we have a motion.
That's only a part of the table.
I'll handle that.
She thinks about it.
Put them yet.
Sure no need for me on proven easy to assume that it would improve population health and so the alternatives and alternative.
Sure.
Sure.
She is actually that you could.
Could be either.
England amazing kind of shoot it before.
Got it.
Yes.
Another two areas first of all in Q2, we had been seeing a more and more in our high efficient interactions created and generates it because of Aig's C.
Those kind of are quite professional and also specific topic oriented accounts like for the.
Momentum relations and <unk>.
Finance, and zodiac et cetera, et cetera, so because it does require a lot of a very professional and also a very much a style oriented to know also so we are using GC to offer those.
Professional also and also the NHL playoffs.
Chad can also help.
These accounts are increasing their stickiness, whether users followers as well and also thus generating certain revenue and income for those accounts and the second part is that I know some of the medium levels of Liberty's are actually.
Using and utilizing the <unk> in generating images through images and also be a function of AI chat as well. So most of those are medium level celebrities already using this capability to enhance their daily operation. So.
Starting from September of this year, we're going to see more and more top level celebrities trying and using this capability.
Okay.
Okay.
Yeah.
Alright, thank you.
<unk>.
Thank you David.
Okay.
Dear speakers there are no further questions and I would like now to hand, the conference over to Sandra Zhang for any closing remarks.
That's all played this concludes our conference call today, we will see you next quarter. Thank you.
Thank you very much for participating you may now all disconnect.
Yeah.
Okay.
[music].