Q3 2023 Weibo Corp Earnings Call

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Speaker 1: Good day and thank you for standing by. Welcome to the Weibo Report's third quarter 2023 financial results conference call.

Good day and thank you just started by welcome to the Weibo reports third quarter 2023 financial results Conference call.

Speaker 1: At this time all participants are in a listen only mode. After the speaker's presentation there will be a question and answer session.

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

The speaker's presentation, there will be a question and answer session to ask a question. During the session you will need to press star one on your telephone you would then have an automated message advising you'll have just raised it.

Speaker 1: To ask a question during this session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 1 again.

Withdraw your question Please press star.

One again please.

Speaker 1: please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Sandra Zhang. Please go ahead.

Please be advised that today's conference is being recorded.

Tom The conference over to your Speaker today, Sandra Zhang Please go ahead.

Speaker 2: Thank you all, Peter. Welcome to Wade's Web Support for 2023 early conference call. Joining us today are what Chief Executive Officer, Sophie Woll, and our Chief Financial Officer, Steve Hall. The conference call is also being broadcasted on Internet, and it's a little bit of freeway with IR.

Thank you operator.

Welcome to the wavelets quarter three earnings conference call.

So let me have today, our chief Executive Officer, and our Chief Financial Officer.

The conference call is also being broadcasted on the Internet and is available through Weibo's IR website.

Speaker 2: Before the maximum remarks, I would like to read you the safe harbor statement in connection with today's conference call. During today's conference call, women made global statements, statements that are not historical facts, including statements of our beliefs and expectations. For all working statements involved in heavy risk and uncertainties, a number of important factors could cause actual results for different material needs on those containing any global statement.

It wasn't actually remarks I'd like to review the Safe Harbor statement in connection with today's conference call. During today's conference call. When they make all of these statements statements that are not historical facts equally statements of our beliefs.

Patient well looking statements involve inherent risks and uncertainties a number that's important factors could cause actual results to differ materially from those contained in any forward looking statements.

Speaker 2: We will assume no obligation to update the forward-looking statements in this conference call and elsewhere.

Weibo assumes no obligation to update the forward looking statements in this conference call and elsewhere.

Speaker 2: Further information regarding this and other risks is included in Weibo's annual report on Form 20-F and other filings with the FDC. All the information provided in this press release is occurring as of the date hereof. Weibo assumes no obligation to update such information, except if required under applicable law.

For information regarding this and other risks is included you'd Weibo's annual report on form 20-F, and other filings with the SEC. All the information provided in this press release is occurring as of the date hereof Weibo assumes no obligation to update such information except as required.

At least for now.

Speaker 2: Additionally, I would like to remind you that our discussion today includes certain non-GAAP measures, which includes stock-based composition and certain other expenses. We use non-GAAP financial measures to gain a better understanding of Weibo's comparative operating performance and the future prospects.

Additionally, I would like to remind you that our discussion today includes certain non-GAAP measures, which exclude stock based compensation and certain other expenses, we use non-GAAP financial measures to gain a better understanding of Weibo's comparison operating performance and future prospects.

Speaker 2: Our non-gas financials exclude certain expenses, gains to losses and other items that are not expected to result in a future cash payments, or not referring to nature, or not indicated of our core operating results, and outlook. Please refer to our press release for more information about our non-gas measures.

That's the nationals exclude certain expenses gains or losses and other items that are not expected to result in future cash payments or nonrecurring in nature or not indicators of our call.

Our operating results and outlook.

Refer to our press release for more information about our non-GAAP measures. Following management's prepared remarks, well open the lines for a brief Q&A session with that let me turn over the call to our CEO All day long.

Speaker 3: Following management prepared remarks, we will open the lights for wayave Q a ation. With that, let me turn over the calls for our deal of the walk that I'll help plainim the GU a time.

All right.

How about the heartbeat.

Speaker 2: Thank you. Hello, everyone. Welcome to Weibo's third quarter 2023 earnings conference call. Today I will share with you highlights in Weibo's products, operations, and monetization in the third quarter of 2023.

Thank you Hello, everyone welcome to Weibo's third quarter 2023 earnings conference call centers have all shown that absolutely alright. Thank you.

Essentially what paper.

Today, I will share with you highlights in Weibo's product operation and monetization in the first quarter of 'twenty or 'twenty three.

Speaker 2: On the user front, Weibo's monthly active users reached 605 million, and average daily active users reached 260 million in the third quarter, adding approximately 21 million and 8 million users year-over-year with back-to-back users.

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Oh he was there from Weibo's monthly active users reached 600, and finally and average daily active users reached 260 million intra quarter, adding approximately 21 8 million users year over year, respectively.

Speaker 3: In terms of commercialization, the 3rd season is in the early stages. At the same time, due to the addition of hot movies and movie hot spots, users' satisfaction has been further improved. The overall traffic of the platform has reached the peak of this year in July and August .

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Speaker 3: Advertisement traffic storage is guaranteed. From the point of view of demand, due to the macroeconomic and consumption rhythm are not as expected, plus some unexpected factors interfered at the end of August , plus the same period last year, after the epidemic was sealed and opened, customers are eagerly looking forward to advertising. The overall advertising income of the third quarter has not increased significantly.

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Speaker 3: In July , there was a decline in copper prices. In August and September , the prices began to recover.

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Speaker 2: on monthization from the supply side in third quarter, benefiting from the promotion of popular TV series and movies during the summer vacation, our user engagement is continuously improved, and the overall traffic on labor at which peak levels this year in July and August , providing sufficient admin entries on the platform. From the demand side, a few factors next to green factors on the average revenue growth.

Monetization from the supply side in third quarter benefiting from the promotion popular TV series and movies during the summer vacation or user engagement continue to improve and the overall traffic on Weibo reached peak level. This year in July and August for Whiting.

They shouldn't have inventories on the platform.

Masked by a few factors negatively impacted our revenues.

Revenues.

Speaker 2: First, the macroeconomy and the consumption fell short of the expectations.

First the macro economy and consumption fell short of expectations. Secondly, a few unexpected adverse factors in late August negatively impacted on some clients budgets suddenly excuse me last year. After the pandemic lockdown advertisers have been tackled me lots of new products.

Speaker 2: certainddenly few are pective adversefactors in L others NE to be impacted on some COLI budget.

Speaker 2: Suddenly, in Q3 last year, after the pandemic lockdown, advertisers have been intensively launching new products and increased ad placements. Due to these factors,

And increased AD placement.

Using these factors our average in Q3 pick up modestly year over year.

Speaker 2: Our ad revenue is in Q3, pick up monthly year to year, with ads performance of July to climate and the performance of August and September that covering month over month.

With outperformance of <unk>.

<unk> decline and the performance of August and September recovered month over month in Q3, our total revenues reached 442 2 million U S dollar.

Speaker 2: In Q3, our total revenues reached $442.2 million.

Speaker 2: a decrease of 3% year-over-year, and a flat quarter-over-quarter. Our cost and currency basis...

A decrease of 3% you know later in this last quarter over quarter on a.

Constant currency basis.

Speaker 2: Our total revenues would have increased 2% year-over-year and 2% quarter-over-quarter. Our total ad revenues reached 389.3 million US dollars, a decrease of 1% or an increase of 3% on a constant currency basis.

Total revenue would have increased 2% and 2% quarter over quarter. Our total AD revenues reached $389 3 million U S dollars, a decrease of 1% or a decrease of 3% on a constant currency basis, 95% of all.

Speaker 2: 95% of our ad news came from open.

Our AD revenues came from mobile.

Speaker 2: This year, we'll continue to focus on improving operating efficiency.

Yeah, what time it is a focus on improving operating efficiency and our non-GAAP operating income reached 163 9 million U S dollars, representing operating margin of 37% do you like what you're hearing out there.

Speaker 3: And now, the long-distance operating income reached 163.9 million US dollars, representing the long-distance operating margin of 37%.

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Speaker 3: Our focus this year is to shift from the hot spots of the pandemic in the past three years to the recovery of the flow in the hammer industry, strengthen the development of the hammer industry content ecosystem, strengthen users and customer minds, while improving user performance, and achieve commercial marketing value.

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So on the charter Queen next let me share with you our progress in Panama operation and the monetization in the third quarter. This year I'm proud of the operation was shifted our focus from hot topics around the pandemic in the past three years, the traffic recovery Hoffman vertical reinforcing that the homeless.

Speaker 2: Next, let me share with you our progress in public operation and monetization in third quarter. This year, on product operations, we shifted our focus from health topics around the pandemic in the past three years to traffic recovery of health and workforce, re-inforcing the development of complement ecosystems for medical areas, aiming to improve user engagement on the tackle, and try monetization value for our clients.

Hoffman ecosystem, well why did it go areas aiming to improve user engagement on the platform and fly monetization value for our clients.

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Speaker 2: On the channel front, leveraging increased sale of Hop Trends on Weibo in Q3 will continue to collaborate with handset manufacturers and step up over-channel investments moderately, and thus improving the scale of high-value users acquired through channels and the converging rate of these high-value users to DEUs. In third quarter, the average DEUs acquired from handset manufacturers achieved double-digit growth quarter-over-quarter.

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China from leveraging the presale Hawks shreds are way more in Q3 will continue to collaborate with handset manufacturers and that's off of a challenging investment market for us.

Thus improving the scale high value users acquired through channels and a conversion rate of these high ready users would be used in first quarter. The average schemes acquired from handset manufacturers achieved double digit growth quarter over quarter in particular was the promotion of Iowa.

Speaker 2: In particular, with the promotion on IOS items, the proportion of high-op re-users from Apple Pencess reached 46% of our social media use, which also boosts user engagement on weight.

The proportion of high absolutely users from Apple has that reached 46% of our total knee, which also boosted user engagement on weibo.

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Speaker 2: ??,???????????,???????????????,?????????????,??????,????????????,??????20% On social attributes, in the first half of the year, we completed the structured upgrade of social network products, which improved the distribution efficiency of relationship-based feeds and continuously increased the average daily refreshments per user.

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Oh, so so actually in the first half of the year, well complete infrastructure upgrade our social network product, which improves as it should be.

Are you seeing efficiency relationship they see and continue to increase the average they need refreshment per user.

Speaker 2: as with the moral attention to the development of the wordable competency system, the interaction efficiency between KOLLs and their followers includes in Q3 for relationship with C.

So it'd be more attention to that at all.

Vertical content ecosystem.

Actually efficiency ease of Kols and their followers improved in Q3 well relationship with.

Speaker 2: In more than this engagement, has social content creators, and thereby improved users social stigma. So you elaborate on WAMHAM with upgrades as an algorithm model to drive user interaction and effectively, that it was more traffic to KLL and come into a more fascinating track.

And most of it is engagement social content creators and thereby improve users' social stigma.

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Upgrade of the algorithm model to drive user interaction I mean that to me that it was more traffic to Kols and.

More fast interaction on the other hand, we improved the positive feedback from the Canada, Okay O L activities, which needs to work you go out in real time based on traffic and all the incentive system to encourage their content generation X that interaction with it.

Speaker 2: On the other hand, we improve the possible feedback mechanism for KLL activities, which means to work KLL in real time based on traffic and all the incentive systems to encourage their content generation and thanks interaction versus...

Speaker 2: Our efforts in these two aspects not only lead to a quarter-over-quarter increase in the number of average daily engaged users and the engagement efficiency of relationship-based feeds, but also boosted pay-all-out content generation in third-quarters.

Our efforts in these two assets not only need to a quarter over quarter increase.

Remember our average stages of engaged users and engagement and efficiency relationship great feet, but also boosted pale ale content generation against a quarter.

Speaker 2: For your interest-based feed, we have also been refining this user interaction efficiency and have upgraded recommendation algorithm by modifying content packs and a user demographic as a result. The construction of interest-based feed and a video feed per user grow 20% year-over-year.

Interest based feed we have also been refining its user interaction efficiency and have operated recommendation algorithm and modifying common attacks and they use the demographics as a result, the consumption of interest based feed and immediate need per user rose 20% year over year.

Speaker 3: In terms of content ecology, we have two main strategies in the hammer field today. The first is to consolidate Weibo's advantageous IP ecology, such as social hot spots, literature, ACGN, and sports. In this way, we can continue to improve the competitiveness of market users.

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Speaker 2: On the content front, this year, we mainly focused on two aspects of our vertical content operation. First, we further solidified Weibo's advantage in the IP-related content ecosystem, such as social topics, entertainment, SVG, and sports, to continue to improve our competitiveness in the user acquisition market.

Congress wrong. This year, we're mainly focused on two aspects of our vertical kaufmann population birth.

With further solidify weibo's advantage in the ICU related conference ecosystem. That's that's all those are topics entertainment S. E T and exports will continue to improve our competitiveness in the user acquisition market.

Speaker 2: Next week, we allocated incremental traffic support to certain constant verticals, with strong commercial attributes, to better support the industry market, such as digital products, other models, fashion and beauty and healthcare verticals, as well as other industry-based verticals that will drive user engagement, such as food and humor verticals.

Separately, we allocate the incremental traffic support so certain content verticals with strong commercial attribute to better support the use of the free market such as digital product automobile fashion, and beauty and health care verticals as well as other interest based on verticals, that's what's driving it.

Engagement such.

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Speaker 2: Regarding wave was Ikea-related content ecosystem driven by numerous TV series and movies in summer and hot topics around the Asian Games. The traffic and user engagement wave was Ikea-related content continuously increased quarter over quarter.

Regarding linguist I agree related content ecosystem.

By email E V theory, and he will eat into summer and hot topics around the Asian games, the traffic and user engagement Weibo's IPO related causes continue to increase quarter over quarter in the entertainment vertical engagements that celebrity and Kols with immune list by the hot topics related to <unk>.

Speaker 2: in the entertainment vertical. In Gakesmins' celebrity and KOL was stimulated by the hot topics related to TV series, variety shows, and movies.

Theories variety shows and movies in Q3, the average daily traffic number in taxes, either and totaling to actually grow year over year and achieved double digit growth quarter over quarter for AC Jim vertical at this peak season in summer of games developers to launch.

Speaker 2: In Q3, the average daily traffic, the number of interactive users and total interactions grow year-over-year and the chief double digit was quarter-over-quarter.

Speaker 2: For APG in vertical, as it keeps feeding in summer, both games developers to launch and promote new games. The traffic and user engagement for this vertical continues to well follow the portal.

And promote new games, the traffic and the user engagement. This vertical continues as well, although it wasn't well sports vertical thanks to our strategic cooperation with the Asian games up nicely Organising Committee. The Hall conference at the Asian Games will fully cover by mainstreaming.

Speaker 2: For sports verticals, thanks to our strategic cooperation with the Asian Games of the United States of the United States Committee, the hot content set the Asian Games was fully covered by mainstream media and over 600 star athletes shared their competition experience on the label. We're spread through the total discussion of the Asian Games exceeding 100 million times on label.

And now we're in a 600 star athletes share their competition on Weibo, which led to the total discussion of the ancient gains exceeding 100 million is highly valuable.

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Speaker 3: the traffic in the digital sector, and the number of users to achieve a growth of double-digit. In the second half of the year, we will expand the system to other sectors that have a high economic and commercial synergy.

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Speaker 3: The scale, activity, degree, and traffic of real-life doctors has greatly improved over the past year, and it is better to support the development of our medical health clients in the micro-blogging ecosystem.

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Speaker 2: For the commercial work of constant areas, traffic from visual products and automobiles sustain solid growth momentum in the past three years, leveraging the robust, constant and month-as-vision ecosystem we built, as we focused on increasing the number and engagement that's professional accounts in these work. And strengthening client mindset for new products really...

And Marshall vertical cotton area traffic, some additional products and automobile sustained solid growth momentum in the past three years, leveraging the robust content and monetization ecosystem with us as we focus on increasing the number of engagements that professional accounts indeed.

Verticals its draft me quite mindset on new product releases.

Speaker 2: In this quarter, both traffic and user interactions generated from the digital product work force, which doubled the risk of year-over-year and quarter-over-quarter. As we tap into the industry health trends, such as the fall launches of Xiaomi and Huawei and mobile photography years.

In this quarter, both traffic and user interactions generated from the additional product vertical with double digit growth quarter.

Quarter over quarter.

We tap into the industry health trends, such as the fall launches gummy anabolic and Weibo mobile the raffi.

Speaker 2: In the second half of the year, we expanded the system to other synergetic verticals with the client marketing ecosystem such as beauty, apparel, healthcare, etc. What's focused on inviting people was industry influence and professional KOLs to try and waive and driving their engagement.

In the second half of the year, we expanded the system to other synergetic verticals with the claim.

With the clock crime marketing ecosystem, such as beauty apparel health care it.

Let's focus on your writing people with industry influence and professional kols to join weight, well and driving their engagement.

Speaker 2: Leveraging Weibo's strength in operation around health topics will infuse Weibo into the go-to platform for the growth of professional KOLs and distribution and discussion of industry health topics, and thus enhance clients' recognition of Weibo and further reinforce our market competitiveness. At present, we are pleased with the early results in the healthcare world.

Now they can weight loss drafts and operation of hot topics.

He is way below each of the Goldman Sachs, one well the growth of professional kols and distribution in the discussion of industry health topics and stuff you have clients reclamation that weibo has further reinforced our market competitiveness and.

At present, well pleased with the early results in our health care vertical we haven't expanded partnerships with industry Association and increase the number and engagement is a professional doctors on our platform.

Speaker 2: We have expanded partnership with industry association, increase the number and engagement of professional doctors and the faculty. And collaborated with media and top accounts across these to elevate the input of medical professional accounts.

And collaborated with media and talk about cars across to elevate the east was medical professional content as a result, the number of engagements and traffic from our professional doctorate were all significantly year over year, which also supported the sustainable development of health care.

Speaker 2: As a result, the number of engagements and traffic from professional doctors rose significantly year over year, which also supported the sustainable development of healthcare clients in a way that was marketing-equal to zero.

Clients in Weibo's marketing ecosystem.

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Speaker 2: On top concentrators, we focus on selecting more top KOLs, with higher inputs and social values, and output support to them in terms of traffic, operation, and monetization, aiming to view the healthier ecosystem. As such, we use to use the golden v-bash for influential concentrators in the second quarter, and the orange v-bash for high quality concentrators in third quarter.

On top content creators, we focus on selecting more top kols with higher inflows and social value and outburst of course of them. Each ends up traffic operation and amortization, Amy do you view that healthier.

As such we introduced like older be Bashful International Conference later in the second quarter, and the orange be bashful high quality concentrate or intra quarter.

Speaker 2: Since then, apart from traffic support, we also focused on enhancing the monetization capabilities of the Golden V and Orange V accounts.

Then apart from traffic support we're also focused on enhancing the monetization capabilities at the Goldman V and all HVO cats, so that they could obtain business recommendation more easily and high quality commercial coffee.

Speaker 2: so that they could obtain business recognition more easily and high quality commercial content than the better chance of traffic support. In support of the golden and orange V accounts generated a significantly higher proportion of all ad revenue, derived from a rebate act system, with income for these accounts ramped up by 50% year over year, which further boosted their engagement.

It's a better chance of traffic support in third quarter, the Goldman and Orange be accounts generated a significantly higher proportion of all AD revenue derived from our APAC system with income from visa has ramped up 550% year over year, which further boosts in theory.

Speaker 2: Additionally, the scale average daily post, average daily interaction users, and interaction of the Golden Bee and all HBO camps, achieved double-digit growth, quarter-over-corded.

Additionally, the scale average daily pool average dating each active users and in the action of the Golden me and I'll have to be a cat, but she double digit growth quarter over quarter.

He has a this direction in the future and to continue to facilitate the synergy between vertical kols and quiet on the monetization of some of the stuff in polymer. Moreover, task with original content and social value.

E comm on Weibo and to better support our business ecosystem.

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She was important cohort I'm proud tradition opportunity you'll get Oklahoma.

Maybe the question.

Cheyenne cooking HEICO, what percentage of the user until very enjoyable ago got more behind that shipments. So you saw John do it.

So it's usually the chocolate <unk> ultra deepwater high portion on the Hershey, Jamie Macdonald and you'll get to we have released until it actually comes on.

You may all monetization in the second quarter, driven by the Labor day holiday almost basketballs, we encourage to see him up consumption. The math really two market leading to a broad based recovery across the verticals and all of that.

Cover a piece of the overall consumer market fell short of your expectations for the full year customer service sectors remain cautious and have it as its awards Martha certainties, considering the soft consumption environment and sentiment.

In third quarter with all the volatility as budget on Weibo's key sectors with a notable pullback as spending in July but that's good that's it benefiting from advantages in hearth I E in new product marketing with a highlight of Weibo's core can happen, but in the AD market, which resolved.

And then a gradual recovery in August and September was a month over month growth up over 20% respectively.

So this year is how much and how are you all don't get Gs hydro.

I mean is that something you got kind of a computer go down the wrong tell me, but on the other one kind of a couple of I'll call them, we're able to use them when they go to the IP that anywhere else.

NASA negotiate John tissue cooling degree.

Yeah.

In summary.

Cool they use on the other two.

Martha Coakley, but why don't you try them later.

The team, which is really what are the and it would not be insured. So you have.

The most convenient and.

Sure.

It is a niche aquifer.

Thank you.

I even.

Further with function of online and offline entertainment activities and sports events, where he crashed the newmont blockbuster IV Culp is widely distributed and discuss all wave one third quarter, especially in the areas of entertainment and sports.

Well continue to optimize our monetization products system and Matthew model elaborate what elaborate weibo's hot IP traffic and he's a discussion to show the Congo organic hot topics and marketing content to users. This approach enabled us to better fulfill customer brand exposure.

Campaign goes and also beefed up our monetization efficiency around how trends are going as well as revenue generated from the food and beverage and entertainment sectors, demonstrating notable recovery trends.

Delivering double digit growth year over year, that's for sure.

Sure I understand you got a few times here.

Sure.

Sure.

Hercules remarks, visiting me she was gonna Bianca Xiaomi assumes you don't drill them.

Kudos India.

Labor come into one piece of it.

Thank you Matt.

Switching to yourself, well that should Australia excuse me Tony at Parisian.

Calling your treatment will come down a quick answer John Thank you on your blood sugar.

So to do that.

Hi, kudos to our favorable Jaeger and I recall, when you announced you got shot with image.

Hugo I assumed that but it was kind of a retired.

Jim has a patent.

They couldnt do that.

Now I'll turn to conduct tissue over the video product sector continued to outperform in the quarter with over 50%.

Royalty revenue, mainly thanks to the thing I mean between content and monetization ecosystem.

Weibo has become the go to platform for new product or brand launch as mentioned before we're also beef up our operational efforts in the business verticals. For example, the health care industry is only trajectory epidemic world without revenue maintaining double digit growth yeah, it'll be here in third quarter.

We are also encouraged to see greater quantity and diversity of customers in the health care sector. Some performance oriented is that at medical you. He's Houston's originally and now forbearance kind it quite across upstream equipment manufacturers pharmaceutical companies health care.

Platform exactly all campaigning all able with a growing trend.

So what's your take on the Gulf with Walker.

He is going to go away with your hotel. It goes the closer to routinely use the shipyard achieves opening units in California, and Virginia, each element Shaw quicker to suit the needs on a cool shotguns oxygen Joshua would shoot me Chuck.

Chunk of any blood in humans would seem to me the attrition will essentially be gone Cooper showed a drop in tourism.

Switching over to arty.

You'll see this having an issue about her kind of action from downtown forgot the it's only on a coupla condo conversion of that mill.

To heal wounds Archie back Onstream patchy younger being until prudent diligent.

I mean, she downtown Atlanta from Devon to see Oklahoma Attorney General distribution of course that what Johan.

Specialty you talk of Vinci, coyote totally into the quarters themselves.

Yoshi Hi, Joe.

So now.

Finally, let me share some color on the beauty and personal care as well as online gaming sector.

Here, the beauty and personal care industry has experienced twist and turns and overall recovery pace well sure. The naphthalene impacted Torquay branding marketing environments with all customer cut back on investments in new products due to headwinds from their own operation.

It was blocked with such marketing environments on the mass side, we focus on capturing opportunities brought by a hot topic traffic related to your summer vacation and it's dropping label its competitive edge around celebrity marketing coffee closely when you effectively solidified and wallets.

The overall beauty and personal care sector bookings sequential growth in the third quarter as for the gaming industry with normalization.

License approval, we expanded coverage of new games and build more of a partnership with key customers on a cost and marketing problems will not only strengthen content ecosystem.

And hot topic operation, even in the public testing period of new games, but also reinforced our routine beautiful cock and ecosystem and optimized technology to improve AD performance and price.

It think blockbuster titles in the first quarter driven by the summer vacation peak season.

One three celebration AD revenue from the gaming industry books that double digit growth from the second quarter.

Oh, sorry.

With that let me turn the call over to Paypal.

For financial review.

Thank you Delphine on the other end of that.

Well have to live with current quarter.

Earnings Conference call.

Let's start with user metrics.

Kind of a time to time, we agree.

We've looked at meal crop the sixth country to me that milestone.

And it is fascinating.

An average deal size in the 210 million different then behind that the nation.

I don't know eight bit yogurt year over year basis, respectively.

Her financial under the law.

Lender my prepared remarks, we're focused on that that result.

Right along.

Asked all the time.

Oh, the comparison on a year over year basis, unless otherwise noted.

We continue to experience high demand.

Two our financial deals with one of the movie upgrades tend to do it this quarter.

Our business primarily operates in China Wow, We report our credentials in U S dollars.

Our financial performance was affected by that.

Currency movements.

Now, let me walk you through our financial highlights.

For the first quarter.

We've left that part of our clinical news right that revenue for 442 are fun to Amelia a decrease of 3% or an increase of two a precise.

Constant currency basis.

Operating income was $163 9 million, representing operating margin of 37%.

Okay I'll take the cell to label it makes a lot of times it.

Pretty quick classically that uptick 2%.

17%, a constant currency basis, rather than a net margin of 31%.

We'll do that if you ask what 57th that comparison cookie side last year.

Let me give you a la carte or on the third quarter I think I hit the ground with performance.

Weibo's advertising and marketing revenue for the third quarter funded under three what's their kind of is a nice one for a minute.

Be quiet, a 1% or an increase of 3% on a constant currency basis.

They said relatively soft July well accelerate the growth in August and September.

Mobile AD revenue was 880 <unk>.

I think the 819 million.

How should we look at approximately 95% of total AD revenue.

In terms of growth that can cause it to see strong momentum of Sunset Entertainment and online services that Kurt is the largest country build cars to a top line growth, but how does that factor our years of cultivation around the content ecosystem in the Thursday vertical continued to pay.

All right.

Enable has that manufacturer to a targeted high value users and built market hub at the port at lunch.

Also benefited from solid traffic performance built upon the blockbuster effect during the summer vacation leading to further add to recovery.

The entertainment sector and online platforms.

On the flipside, the ultra mobile in the luxury sector showed weakness linked quarter, reflecting the seasonal pullback hope that eventful first half of the ear.

The AD product promoting the space add whats the largest followed by social display on the topic and search.

AD revenue from Alibaba for the third quarter were 21, plus southern Nathan I increase of 44% or 50% a constant currency basis of a relatively low base driven by incremental adds that brown exposure see if no shopping festival.

As the Asian games.

Before turning into bad Secondly, let me share a preliminary Carter on the chest entering the fourth quarter of 2023.

Not that I don't have the market continue to demonstrate welcoming all the trend post athletes in July.

In line with the macro and the consumption data trajectory.

We hope to close this year with further recovery of our AD business in the fourth quarter.

Finally figured the from the opportunities for all the fundamentals that ecommerce festival.

Not that we may have to wait a while for a turning point of consumption sentiment, especially in certain discretionary categories to pick up in light of current macroeconomic conditions.

Value added service revenues were 52 9 million in the third quarter, a decrease upheld precise or 7% a constant currency basis, primarily due to a decrease of gaming related revenues.

Turning to cut expenses.

Total costs and expenses for the third quarter with 278 3 million.

Decrease affect her thoughts.

Operating income in the third quarter, well that sounds like a 63 on diluted slippage on the operating margin of 37% compared to a 36% in the same period last year.

Turning to income tax and they've got later income tax expense for the third quarter were $25 for me there.

Compared to 19 8 million last year nothing.

Net income attributable to the label in the third quarter increased 15% or.

17% constant currency basis to 136, 6 million, representing a net margin of 31% compared to a 26% in the same period last year.

Turning to our balance sheet and cash flow items.

As of September 30th plenty plenty of three Weibo's cash cash equivalents and short term investments totaled 277 billion.

Third quarter cash provided at the upgrade activities with 130 156 million capital expenditure totaled seven plus eight.

Fixation and amortization expenses amounted to 13.9 unit with that let me now I'll turn the call over to the operator for the Q&A session.

Thank you.

Just to ask a question you would need to press star one.

One on your Tennessee and wait for your name to Vietnam.

To withdraw your question Please press star one.

Okay.

We will take our first question.

Please standby.

Your first question comes from the lineup.

Bank of America. Please go ahead your line is open.

Thank you Jim Hawkins said when he was on schedule. She then kidney interest it sounds Jim Gouin, some cobalt that just aren't going to war just your thinking on the Congo.

What should you do rely they go quickly.

The Hollywood you come help T cell function.

Yeah, Doug you called Prequalification Com.

Well of course, keep all warm and dry cargo.

Give me just yet.

No one phone shop, so can management provide more details on the recent recovery in the first quarter.

Specialty that we have that that one doesn't equal much promotions and then how will the company increased the competitiveness.

The ACH business. Thank you.

Okay.

So essentially what you're Gonna agent then John caller.

Nicola Shaw.

I mean peak season and that was it.

On the U T T mechanical work.

No that's all higher attach.

Got you then sure Gonzalo opinion, she bought here than she used to be their chip in.

Sure.

Yeah absolutely.

I sure will.

Got it all.

Got it.

Alright. Thanks for the question. So first of all as we have already stated that in terms of the Q3 performance off the advertising performance.

Third quarter advertising revenue increased.

On the basis of the RMB five 3%, yeah, and also quarter on quarter, which is actually basically in line with our expectations and also this was primarily due to the concentrated with ease up the consumer demand and advertising placement requirement.

E Commerce event on <unk> and also.

After that we'd been seeing a quite weak performance and join the July most all of it and also a much better performance in August and also September.

So as you know the hung in there to partner with them.

And then to shout about it a whole lot or some sort of you who don't have an idea how are you and <unk>. Alex you. Later, you go isn't yet, but my son's goudreau audio computer comes out that far.

I'm not sure I can quit.

Quit that come out of that number sure Julio.

So as you do know and what kind of dogs once a year in which I'm guess I'm kinetic profile go up you have to want to teach you know our hip alcohol tourists how long a correction I bought a lot of time here.

On the two kind of a tornado cobalt cash it wasn't gluteus Rockies and front yard down looking at don't you then should undershot, Oh gosh I'm, calling it are getting along with her nap ox, even enhanced wound down and you've got you got you.

Got it.

Hum.

Also let me share some of the colors on the Q4 expectations. So actually it will be a double 11 shopping festival and also do you come to the bank.

We've been seeing a very good time for us.

We expect to have also in Q3, we've got over 50% of the growth, but because of the basin game by Audi Alibaba and also in Q4, we had been seeing also activation of the AD placements by all kinds of e-commerce platforms.

Like the double oven that also double 12 shopping festival. So that we are expecting growth or the double oven and also double 12, but you come with it.

Especially for the e-commerce, including all kinds of different Brian than also platforms.

Okay.

Leeway you ship is yeah, yeah like kind of on larger accounts you try out summa figure it out when we continue both for me and ill jump entrepreneur scribbling, she adult via higher that Union Siobhan, yet highly accretive Berkshire portfolio, you could come down but you.

Keep glacier.

And until he built out the pseudo easy.

Hi, Andy mentioned NIM Gar Jackson of daughters, who your gut wrenching wafer the quote unquote cheaper.

She Hershey World Congress show it because we are selling it to them. So it'll be a quieter or somebody out there kind of dollar language that <unk> always had done I'm sure somebody that Chevron has always yet.

So far so there's a.

So that didn't go to Guangzhou, but how that turns out in terms of downward for the Guangzhou.

So, let's see how many channels whichever touch out without to something he wasn't sure shot by you in the coming from Xiaomi or how many of them quite apparent Shenyang got into gold box, where you got some inquiries on that on that part.

Uh huh.

Also let me talk to you about some of the verticals.

First of all in the second half of this year, we had a very good momentum off the growth for the verticals like automotive and also digital products are bought in.

Beverages, that's what the health care as we have already stated.

You can see that because of a very good recover off the topic for those verticals and a very good works around the ecosystem building and also the accounts to recover as well I know, it's quite special in terms of the automotive industry, because we really had a very good growth in the first half of this year pilot in the second half of year, we'd been seeing a slow down of the sale.

Welcome to the ICU vehicles and also be electric vehicles.

But of course the.

The electric vehicles. So we do see actually a revenue increase especially for the AD revenue increase but actually be AD revenue for the IC E vehicles that she was decreasing.

As a result, we are expecting a lower performance in the second half of year in terms of revenue from the automotive industry.

But throughout the whole year, we expect to have a double digit growth for the automotive industry as a whole.

Okay.

A lemur, particularly.

We've done a ton or anything like that around the economy. This year. She tells me it's wrong Hollywood here, you'll see you'll see the unknown attacks.

Essentially what you paid for that kind of go down too.

Got it.

Okay.

I'm gonna come more attached to them.

Somebody will part tend.

And do you have full faith that you will find out and Yoshi.

Due to the turnaround of cooking bulk what you see with your turnover that we see the cards that we bought them and teaching telephone article from attack.

Thank you.

So do you have a voucher tanker trunk club.

So who are.

Fungible and we kind of think you found me as a cool, but it's in a changing world.

In adults, which enemy know.

A couple of the EQT can shoulder, Peru or switching to Asia.

Yep no contract out there.

And that is really really meant that we shouldn't kind of before.

She was heard I got on a triple net that's coming into your Cheetah sanguine and see it hold up you all go to Korea.

Got it.

The Guangzhou family Cranking that'd be really go into your three or four months here for me, so I'm going to take on it without them.

Wafer with Allah each in Chattanooga, the junket, even around it that would be a.

I know, it's kind of harder Thiago.

Mm 300.

What's your thinking around.

But it would be one area you didn't know that economy reasons, Amit you'll you'll shut you're all familiar you don't hock pizza as it has.

I think.

They can be easily GE had to shut down the tipping point.

Before I show you that.

So there's all these days.

Also good hygiene kinesiology at Hinton and yes, it's all three and shut down they can bring some attention on this.

Got it.

Yeah.

Okay.

Alright, and and also in the first half of the year, we do see some of the challenging but of course that for instance, the.

Fashion and also the beauty products and also the gaming industry and of course for the gaming industry.

We are returned to the talk of a positive growth in Q3, because I'll, probably the growth will come up with new games and also the optimizations in terms of the algorithms and also to be paid back payments.

So as a result, we do actually you'll see a very good recovery starting from Q4.

For the gaming industry because of the better performance and also the better allocation of the advertisement budget for some of the medium to high end the games and also it is going to be the momentum that has continued all the way through fall for gaming industry, but also it's pretty much shut in for the beauty and cosmetics industry.

Because back in.

In Q3, the operational facts that source a decrease.

As a result the.

Budgeting the budget for the a market change or some of the new products.

The cosmetic and also between industry was also decreased so you can see that it worked the way Bob of course, we do actually see a lower than expected recovery of the ecosystem or the content ecosystem.

And also of course, we've been in the dedicated a lot on the investment of our resources and also the operational effects to this particular area and.

And also we do see a traffic that actually has recovered before to the level before the COVID-19, how would that still be a power structure wise. It is not as good as that'd be a situation before COVID-19. So I'm still meaning that we are if at all but the number one show and also in pipe or a couch.

In this area. So this does take time for us to see a full recovery.

Joe passionate and also beauty care products. So as a result, we expect to have a year on year decrease for this one.

Okay.

Now, let me walk on and we're not able to claim the dotcom car conversion tiny minutes, you don't need to pause here to see the time okay.

Harold laid out before me and Thats, what changed on the Cobra figure to share actually reallocation labeling.

Kudos to them.

Uh huh.

And attach them on their way.

Got it.

And that's without even.

North Korea presentation grandmother, you go to a credit of $1 <unk>.

Oh, there you go to some arbitrary number that you've gone through the math, okay excrement. It jumped out at me, but that would be out to use your iPhone, even put that that'd be a phone call or even for the company.

Sure sure.

<unk> not finished yet.

The grandmother, you don't put it kind of got out of sync with our Greenwood will go into a little box for Eagle out there shouldn't be all that you've done each year.

<unk> Shaanxi and cultural attack on Cook, who does something quite hard agreement you signed a condo now could have able to one more kind of cool.

Full attention Nakamachi myself I don't go shopping neither can we again, if I can go to China type a people quite lumpy matters, a bunch of what you're saying.

Got it.

And also second part of your question was a pretty much about the enhancement of our competitiveness of our ecosystem of the advertisement. So I had several points to be sharing with you. The first one is that still we are going to be focusing on the value and also the our pool.

Weibo users so in the second half of this year, our strategy was not only focusing on the volume or the number of users, but actually on the total structural to us meaning that we have to focus on those high <unk> users.

Use it for instance, the uses are.

And also the iPhone users. So these if we can really increase the number of those are also high value users, we do see more willingness for them to allocate their budgets.

Weibo up with investments.

Also judging from the feedback that we got for the double 11 shopping festival.

Last year, we did see that particular effectiveness, if we're trying to focus on those.

And also the high value users.

Okay.

Uh huh.

Turning to cope with us all.

All the time that you need from your children to us again.

Oh Man you got not only the decision do you got some deep quiet cohort all Evens example, or downtown Oklahoma put us.

Borgwarner copel yet on their shop. They know they will do so U S economy and it seems to me I don't have a posture for us.

Toyota Chicken.

People, who know theyre not hurting our hometown pet.

Sure somebody should happening there yet so you got to.

For me there you go.

Goldman is in that ballpark for Bob Cook with a turnkey harsher.

Hi, sure Yeah, because there really isn't about corporate attempt in short you can look here are like faithful machines.

They're doing crude off on it she told me somebody at Chicago people, making that PMA walking up mcglashan.

I shouldn't they shouldn't impact or something that much if I'm an unusual high share.

And that actually that should have been done well you did say something in an unbiased way, but on the gene GSO.

Yeah.

Got it.

And also second one on the surface the provisioning capabilities, especially you know talking about the competitiveness of all but it's been to serve it.

Two points to be sharing with you. The first one is that actually but those are branded consumers and also customers. Nowadays, we did see fewer and fewer customers. So those brands.

It's you know procuring.

For the purpose of exposing their brands on it. So we do see actually you know because of a very unique competitive Smith in terms of U K O L ecosystem and also the hard times and also hot topics on Weibo, we do see those customers choosing weibo as a platform for them to place the advertisement.

We did have a very good endorsement of those are important the pumps or the kols to read and I emphasize on the advertisement and also some of the places placements up their products MBS.

So because of this we do see a very good competitive edge compared with the other media like.

Newspapers or a video counts or some of the other like TV and also radio stations for instance, we did see still Weibo is keeping our competitive that also the competitive edge over the other platforms for those are brendan consumers or customers.

Okay.

The show will show off on that Oh.

There's a chip I would continue and shirts.

And the proof will be in Congo, and telco side.

Tissue or Google about Copel would that be able to volatile one credit opinion on kind of found out alright shall we.

When it doesn't hit us somehow to Johan doses on the.

So a single order for Pizza hut Youll see from that going with the new Hooper engine that yoga classes like with its MBS here, what's a good way Sheila no tweaks that I got on a woman computer somehow.

Cool.

Glass here, you'll see higher Hydro dam Shanghai, Yeah, you want AUC and I'm sure. When you should all figured out yet so I usually go hydrogen there shouldn't do it yourself here Kumar yorkie, even cook with that.

Okay cool attached to them.

That's just to US an ideal partner see if I'm and I don't know, how Nike Kinder I should assume that I hope you all are doing.

Oh Man you got you got you a total deal Thats, how Oklahoma, if I'm angry about sure you got when dealing with us.

Sundar higher equipment down to <unk>.

Yeah sure sure not sure that I got that here.

Yourself.

But they're not going to get them a tool to the telephone off on me into a tool.

And also a second point is on those that performance based ads, so I'm, especially I would like to make an example of the recovery of our gaming in the gaming vertical so as I have already stated that we have been optimizing.

Algorithms and also which is going to generate a positive ROI for the customers and for instance, we are really focusing on the conversion and also be increasing.

Christmas is all those conversion rates for those Sino paid users in the Bay area and also in this particular thing is also related to our strategy of focusing on those hard alcohol value users and <unk> for instance.

The important thing is that not only for gaming industry, but also for E Commerce and entertainment and also the other relevant.

Consumption for instance, as verticals, we do actually that would be the better optimization of our algorithm, which is around the area also making those no pay users to consume the content.

And those are different but of course and also you can see that this has been bouncing very much well in the gaming industry and also by heavily continuously investing into the technologies around this area is also helping us to gain a sustainable growth for the future. So this year, we do see.

A very good outcome, probably gaming industry and also from this year onwards. So we are going to see a very positive impact to the business of the entertainment.

Entertainment and consumption e-commerce et cetera.

Hey.

T J.

Yeah.

Thanks, Paul.

Thank you.

Thank you we will take our next question.

Your next question comes from the line of Stacy Chen from high Til International. Please go ahead. Your line is open.

I was just it seems like when he tried special extra what you'll show what I can tell you Josh I'm sure Jetblue Darwin here well now you know 20000.

Sure.

I'll put them away.

Got.

Pardon me.

Well it will show up I think it sounds, though it sounds college football.

So shouldn't that ship.

So that's why he chose or why Johnson's Algonquin as well.

That foundation.

Uh huh.

So cheap.

Sure thing, we bought them they were shouldn't Pat cool in there at all.

Well it all without that project.

Oh Chipmakers myself.

And for taking my question. My question is about the Olympics play, though we haven't noticed the bad for many social media platform in China, including LIBOR, how frequently I know that's the way I'll, just say, though real name off about a third of their plants.

On page eight.

I would like to ask the management, what is probably a whiteboard real Memphis. They work all the way and how we should evaluate to adopt it.

Tax at all and then Louis out Weibo's content ecosystem and you have a ticket. Thank you.

See the Susan Chen of commute time April for sure.

Most of them have position that drove.

<unk> I'm glad accounts, we're able to switch in the Goldman Sachs. She's a champion com and soon you'll see us on 10 nanometer.

Oh sure you'll shortage you unless you want me to talk to you put out.

You can do with them.

Thanks, and I'll show you the whole I am sure.

Sure I mean, if you will.

I am hesitant to children, who don't want you might go to E&C onshore that you're a bunch of them.

On the tissue to janitors international dripping push it could be the younger fleets all labor.

Got even gonna see I've got your 19, I assume you put understood attach it sounded like Youre Wuxi kimbrough jewelry glad can actually measure the juncture court.

So but this question first of all I think the bus off play ball with them always emphasizing on the real name registration Amendment, though so I don't believe that this is actually a kind of a new rule or deregulation for Weibo and also for instance, if you want to be identified as.

Accounts normally you have to provide the real name and also the other relevant information to facilitate the quotation process. So weibo actually did that when we were up here in this market to solve the issue of the trusts. However in the future a market that we did see the emergence of many different social platforms and also because of the requirement.

The personal and privileged information protection.

Becoming less testing that's required before but still you know we still are performing the regulation of the <unk>.

Sometimes a real name registration.

I think there's still apply for the certification of your accounts you need to provide the name or the position and also your company's name. So this is a kind of a real name registration process.

Hey.

[noise] underpinned switching actually meet them with even though we're doing some good feedback on pull with the media kind of harder into.

Now I'm going to try and create trade only about eight months, you're applying them jump ship it tomorrow.

We're doing this year in China wouldn't be quicker that'll wash them out for you.

That's really interesting comment I wouldn't change Union Shockwave for sure to ensure its hedging far easier to go to the audience. You know you bought infancy kind of community cancer.

The shelf swimming listen I do put them in a cool thing.

Oh wait till they are sharing with you let me share a hole to try out the economy. It's all that's easier for sure since you and actually into the.

Got it.

And also for this time, but the real name registration process itself at this time actually the major purpose is actually here to emphasize on the outsourcing business.

Also the responsibility and also the obligations that should be shouldered by those top notch, we media accounts and specifics. So that's how we're able to facilitate and also lead the process of creating a more ammonia environment Internet. So of course that are at this particular round up the real name registration process.

Especially those kind of channels of news in the military and also the legal and the.

E Commerce related accounts are core parts of this round up the real name registration.

But of course that this is not going to impact the accounts of the food and beverage or automotive then also cosmetics and beauty products et cetera.

Okay.

Yeah.

No nothing.

Then to the humans and I worked at other you sound like kind of on the to the nursing that it sooner.

I will tell you what it looks.

Got home improvement.

I think Vincent to boom.

It's usually I see any really me bathrooms.

So you can see color button this figure that out.

In fact, we.

We would have a copy you can go in a hurry. If you kind of can actually I mean, the tick tick tick up be able to not only and I saw there is simple and now they've been treated it you either Ethan Youll ship, Okay sure. Thank.

Thank you Dan you're shrinking the RT I should say challenge Bobby younger Asian country. So you end up on Hirsch endogenous immune not pushing that garnered a tradeoff with Elliott without hooking up I'll show you if I may I believe.

Gender.

We went to the swings in the Golan signed a show cause that the tusa cashmere connect I mean, you've got a few extra heart attack I said it well.

But she couldn't answer it without harder for your ECS.

Darn country like kind of one or two it doesn't sound like you got harder cushion do you hit your feelings on her at all maybe if you had the name and accretion even in Sacramento to bundle them all quite tricky exactly okay, you got enough to get better.

Okay.

And also another thing is that for this round of this no regulation.

So the impact is quite limited for instance.

By the same five to six different areas.

Also you know.

As I have already stated those big Vince I'm already had that their real name registration conducted before so over 40% of those are big the accounts actually had already realized its real name registration and also the real name of demonstration on the pump or on the front page. So we believe that this go round up the impact.

Is that pretty much limited and also another thing is that this round out the real name registration process is not compulsory.

So it's going to be carried out by different paces. So if best round. The account just choosing not to go on this particular process that particular topic and also saw some revenue are going to be impacted and also this for this round is stopped and started.

The 10th of October all filed told ups and also in the short period of time. This will generate that has such an impact a limitation in terms of the top eight multi others, but in the longer run I think that it's beneficial for us to create a more trustworthy environment with a more trusted inflammation nonpublic information.

So we will be still up to debate.

Observing the impact for a while.

Okay.

Yeah.

Thank you Patrick.

We will take our next question.

Your next question comes from the line of Timothy Zhao from Goldman Sachs. Please go ahead. Your line is open.

Please over to you.

Now it should be on Canadian fronts.

Yes.

Do you guys see basically.

We bought back to ensure that your name or Shanghai company fits into that.

Okay.

Sure Patrick.

Hey, guys.

Guys element dull.

Okay.

So you can Doug.

Sure.

How do you like your car T cells.

Alright, thank you.

Thank you management for taking my question.

Two questions.

Firstly regarding the.

The progress during the vertical content ecosystem could management elaborate more on the Weibo progressed, so far and how does that affect your monetization capabilities.

Secondly is regarding juicy applications I think has caused a lot of time, but I was wondering if theres any updates.

Regarding content generation and no so the efficiency improvement and you Gotta monetization. Thank you.

But just as chicken that scrutiny, and which I'm not sure that she has some.

You.

Can't tell anybody how much risk to label.

Okay.

Tickets as have all of them are here, John not a teenager each of them to hold similar sort of tender younger your car T that English here.

Two what you share some comments out on the job painting.

A seller advocate out of Georgia.

TV you'll share with.

Couldn't go to Goldman Sachs should honeymoon period that if we don't do that.

Greenwood, who you were going to do that.

I thought the acres remaining resilient there should be will be out of China.

They prefer not to for your tax issues any any material with extra he wouldn't deem to attack that summed up to a higher couch. It all mindful of how any of the Shaw Young Kabbalah cooee.

So you've got to sort of assume that alright.

Alright, so that's putting a question we were always.

Trying to emphasize on the Weibo strategy for the past several earnings reports sessions and also especially touching upon the concept of building vertical ecosystem. So priced at the top of the Covid. We have several strategies I'll focus my first one is that I'm focusing on establishment of the IP ecosystem.

Does that finish up which is back to you for those areas that could attract a lot of eyeballs and also tensions from the society for instance, the hot topics and also the entertainment and the culture and also sports as well as the gaming industry as well so you're going to see that these are different verticals, where do we go.

The IP ecosystem and also are these the IP ecosystems, where are growing still even during the COVID-19 period for the past three years. So that you can see that both in terms of the revenue and also the unquestioned power we've been seeing a very good growth and a very good momentum.

Yeah.

No. Okay. He's gone through this with you George which is essentially to go Nashville that here with somebody who doesn't go down until you can send that item that she should each and sugar label that T. I presume that angry its elements I'm glad it went on the BD is that back then to sue.

This agenda item either.

Eastern Michigan, I don't know how Hollywood into hitting me that comes with allergies and tuck ins on the hunting.

He is sitting in the IPO.

Uh Huh I should tell me you know.

So you've got thanks, Yeah, Trisha good enrollment in each other on that.

Which would be our Chinese movie, whether you want to compete on legal win deal if it turns out now.

I mean, you got to me seem to everyone.

Uh huh.

Okay.

So you're going to be at one button. She like the IP from Hey, you need to hear from any type here and go down the road.

God down the legal route and XI Qi sheer dollar tissue Mcdonald.

He mentioned Xiaomi, so I'm not you try out too myopic here too high and we need to hear from you and I got on a clean cut.

Good.

She and cooking a lot of impact.

We will now go.

So you don't put any yet.

Ill touch on the east side and I'll tell you how I answer it anyway, you shouldn't we shouldn't have.

Sure sure Yeah.

Because you're likely to hear you Jason.

So on the T N something here you go.

Got it.

And also by Q3.

We've been seeing that statistics showing that.

I had a.

Over 70% of the growth in terms of the traffic, but this particular, what we called the IP ecosystem.

For the past several years during the Covid. So originally the topic from the IP ecosystem actually it was accounting for about 40% to 60% of the total traffic of Weibo and also during the Covid period still we had a much better growth from the IP ecosystems.

That'd be verticals, softball, automotives and did it totaled or cosmetics and beauty and also the other like electronics and so that's pretty good growth was pretty much stable in the past. However, this year, we would like to shift our attention off our strategy. So after the Covid, we would like to change the topic structure.

Meaning that we should not be too dependent on the traffic gains from the it ecosystem.

This is the too much.

And then hot topic oriented so since this year onward, and after the Covid, we would like to focus and also divert more topics. So the other vertical industries for instance, the cosmetics and beauty digital products and also automotive ships et cetera, because the users are more interactive and also the user stickiness is better.

And also the parallel ecosystem is much better for those vertical industries.

So we do have our own advertisement customers extra problem. These different verticals. So if we actually don't divert that also try to get more traffic to those verticals. This is also going to help us to increase our revenue also budget the revenue up there I bet, it's in them as well.

Okay.

Oh God knows what else.

The key elements you shouldn't be here, hi, Susan I kind of I'm, not taking any shop onions, who is essentially to go anywhere else I may be shipped between there you go.

For me, it's one can apply and be it on Android with no doubts on dotcom up Avenue for sure not.

I don't have that go down.

Each of our children Centene will be acted on it.

Got that back in the century.

Actually I think we've kind of put them there.

That phase one shouldn't hydro, Quebec for Kashi actually usual tie either.

And I kind of thought that it would help with acoustic.

And how you should be.

It sounds from Oh, cool and calm down.

She told me, Tony Sandy or don't play for parents to out of Shanghai. So too early really Melanie genre syndrome, youll shy attached to the team to lead the way in which you relax rupee equals yet well cool be cheeky answer to high figure, we should I mean genocide.

I'm sure the shots on that side go down like you do like an Ohio, Michigan kind of equivalent our Youtube channel. You go you won't go shopping decision it sounds kind of come out of it.

Got it.

Alright.

And also for those verticals, that's all I have for you share the color on palm.

So we've been seeing a very good recovery and also the growth or the traffic in Q3 and also in the whole second half as we expected. So of course for instance for the cosmetics and beauty vertical we had an over 50% of the growth quarter by quarter and also around.

30% or more growth.

Digital products and also health care verticals in Q2, so but of course, having said that still we've been seeing actually a quite sharp.

Differentiated our performance across different verticals for those areas.

So if the recovery speed. So there are actually two points that we are making comparison upon the first one is the recovery of the ecosystem as a whole and all or the kols system ecosystem.

The other one is the type of Republic.

The verticals like electronics.

Electronics and health care, we actually have observed a very good recovery on both the <unk> ecosystem and also the traffic however for the fashion and cosmetics up vertical.

It has recovered but not for a parallel system, meaning that the nor flash will accomplish.

Really no better book House Republic was not as good as that off the topic. So we still need to have another two quarters more of course to have a total recovery both on the parallel ecosystem and also the topics.

Now as you see from here that kind of on a superior sensitivity towards his calm and synergy and that's what we see actually that are to use a boom, which has no deadline fujifilm and hitachi that none of them solution and particularly because it gets into these English marcela baca.

It sounds with diabetes.

She comes out and find that you don't want to do you know when we see them.

So to put.

Put an opinion settlements here, saying that unions, although you go oh come into fruition.

Send utility Montana.

It sounds like with your with your comment or is that truly can really be I wouldn't even want to say to them.

Unless you want to bundle boiler attention. They also had solid execution.

What you read is that Keith and I don't know how much damage I'm going Yoshi I'd say that I'm going to do that and then within that come in and put it on the internet and she's researching done about now as you know make it uniquely vulnerable condition, which NGL.

True.

Or was that kind of finding an attack.

Did you see something on them, which I'll go through what's actually going to nail Farooq will do it on a call back when and where she shops.

The ZIP I mean, I've got to find out when we're halfway done team who put.

The control study.

We are familiar with it because not even cheaper to ship the highest rated high yield high heel.

His hygiene.

And then I can let you go through the tweets you don't die.

You'll see some I think youre going to achieve it.

Okay.

Computer vision.

They are like Oh man I kind of put it in that kind of a corner now completed a few months.

Got it.

Okay.

Right.

Also in terms of Aig's C. As we have already stated in the past that we have several focus of this year. So I just wanted to still we have to focus continuously on the accumulation of that also the collection of data by using them plain aig's seats. So that it is going to help those lagers in generation that comes up in a more efficient and ER.

Higher quality away. So for instance that I know the contents generated by AI GSE have more stickiness user stickiness and also interrupted rates and very efficient as well. So in Q3. So we have been actively applying the alarm last time quick model on different verticals to increase.

The efficiency of our content generation, let me give an example, so in Q3 and the area outside of the classroom.

Cosmetics and also in the gaming industry on a daily basis.

So they are taking the blogger and generating over 5000 pieces of information in the deck and also if you are comparing the content generated by AIG.

And that's pretty well written by the bloggers themselves.

You'll see a 50% better interactive grades and also user stickiness for the AI GSE generated content. So we of course plan to apply the <unk> well in the beauty cosmetics vertical gaming vertical and also the digital and electronics products and.

Next year, we are thinking about rolling this technology out to the rest of the other verticals.

Yeah.

Now they may have for me and I got a funnel of intuition or laid out are you sure you got the Asia kind of Alicia neither one of them in fact send to your account situations and our tenant teacher and ship onto Buffalo achieved on Hca's unique two countries in Asia, even counting nucor accuracy tissue too.

<unk> and Minsheng Buffalo Kavita.

Since the T V.

So I'm gonna put them not buy up I'm not sure it's something like that.

So that was good I mean, I'm not going to put them out.

He runs out until you can understand it they don't get a meal lunch and other day so damaging.

So unless you don't know, but I tend to look country didn't care about Michigan.

And also last not least we are also having some innovative trials and experiments for instance, using the AI.

To learn the care specialists and also the features all of the languages that those big things that I always use.

To generate the AI chat box or some of the virtual characters.

So we did that in Q3, two actual I'm really using aig's <unk> to learn from those important kols and influences.

Turning the way that they talk and also the style of their interaction so that the AI chatbot Wednesday interacting with our science.

So in August for instance, we had the experiment.

Lucas allergy upon store two five Kols and also on a daily basis generating tens of thousands of interactions that together with our friends would offense and followers using AI type of feature.

Of course at the current moment, we are not opening this to the rest of the ecosystem of the old big needs, but still we are thinking about doing that in the future still and nowadays we are trying to perfect. The whole system and also I'm trying to really find out the final on the effectiveness of.

This application.

Okay.

Okay sure.

Uh huh.

Okay. This concludes today's conference call. Thank you for participating you may now disconnect.

Oh, okay.

Okay.

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Yes.

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