Q4 2023 Weibo Corp Earnings Call
Good day, and thank you for standing by while come to Weibo reports fourth quarter and fiscal year 2023 financial results Conference call.
At this time all participants are in a listen only mode.
After the speaker's presentation, there will be a question and answer session.
I'll ask a question during the session you will need to press star one one on your telephone.
Fisher biting you'll have your strengths.
Be advised that today's conference is being recorded I would now like to turn the call over to the first speaker today Ms. Sandra Zhang from way for Corporation. Thank you. Please go ahead.
Thank you operator, welcome to Weibo's fourth quarter and full year 2023.
Earnings Conference call.
With me today are Chief Executive Officer, Sophie Wang and our Chief Financial Officer, Keith Helming.
Conference call.
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Before the nitrogen demand.
I'd like to review the Safe Harbor statement in connection with today's conference call. During today's conference call. We may make forward looking statements statements that are not historical facts, including statements about leasing that patient.
So we're looking for when he walks inherent risks and uncertainties.
And remember off hand, what does that could cause actual results to differ materially from those contained.
Sure.
Please.
Asian to update it.
And elsewhere.
Further information regarding these and other risks, including E vapor annual report on form 20-F.
Other filings with SEC.
All of the information provided in this press release is occurring.
Thank you.
Weibo assumes no obligation to update such information, except as required and it actually makes it all additionally.
To remind you that our discussion today includes certain non-GAAP measures, which excludes stock based compensation and certain other expenses.
We use non-GAAP financial measures to GAAP.
And any of Weibo's comparative operating performance and future prospects.
non-GAAP financial measures to certain expenses gains or losses and other items that are not expected to result in future cash payments or are nonrecurring in nature or are not as good.
Our core operating results and outlook. Please refer to our press release for more information about our non-GAAP measures.
I know you mentioned in prepared remarks, we'll open the lines for a brief Q&A session with that I like to turn the call back to our CEO Godfrey Walton.
Uh-huh claimed I got opinion about the hobby.
Thank you Hello, everyone welcome to English.
Three years.
Earnings Conference call.
But it doesn't have a quick question on that that's one that you help me more time here.
I mean, it seems that.
That's a fact that huge.
Great. That's helpful. Ernie Garcia of course, silicones, you've put it.
On today's call I'll share with you highlight the labor supply up in monetization.
The progress made in 2023 and in that week, our strategies for 2024.
Since you are available at that particular tower blocks yet.
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Chi imaging unions in Manhattan.
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She and her team Union combat with antibodies.
She is liquidity.
Julian he isn't all that new drilling any income off of that renewed.
With the China anyway.
So would your imaging, China or any of the new wave pattern.
Johnny financial performance in the fourth quarter in the first quarter of condensate.
Efforts improve user acquisition and engagement.
To us continuing to pay off in addition, we beef up our initiatives to further recover the muddy accounting for system strengthen continental accretion.
Yeah.
Ability itself, how can marketing as a result, despite the overall sluggish end market. Our total revenue in the fourth quarter. It reached.
Well I'm going to $63 $7 million, an increase of 3% year over year, and 5% quarter over quarter. Our total AD revenues reached four.
$403 $7 million, an increase of 3% year over year, and 4% quarter over quarter on a constant currency basis, both total revenues and AD revenues in the fourth quarter would have increased 5% year over year.
non-GAAP operating income in the fourth quarter reached $125 $9 million, representing a non-GAAP operating margin of 31%.
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Volatile.
Without even knowing that.
Can you bucket for some time.
Compared with the patient at the beginning of the year, which weighed on the growth of our IP.
Full year 2023, our total revenues, which 171 76 billion U S dollars.
Decrease of 4% year over year, our total AD revenues reached $1 billion, a decrease of 4% year over year on a constant currency basis, both total revenues and revenues would have increased 1% year over year.
Here, we're focused on improving our core competitiveness.
Operating efficiency.
He gets to a challenging external environment.
Full year 2020 suite on a non-GAAP operating income reached.
590, $221 million, representing a non-GAAP operating margin of 34%.
Let me ask you this even more.
I know with Angel by Dominion.
Are you changing bylaw feeling without R&R, which he mentioned earlier on where you want that one.
Yeah.
On the use of funds, we wouldnt use it to $598 million and the average fee.
257 million for the quarter, adding approximately $11 million and find many views it year over year, respectively.
Gotcha got you towards that I mean, you could kind of highlight when it seems that you are seeing out there from that.
Next let me exactly our progress made on cost of operation and monetization in the fourth quarter and our key strategies for 2024, who are in our opinion, well Michelle money, I mean, and who as you know should I don't do it on a wafer.
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Looking back on Saturday from.
'twenty 'twenty suite in the first half of the year, we are starting to recover due to traffic in the post pandemic isn't it.
Second half of the year, while maintaining our core competitiveness in health care.
In sports, we strengthened the government vertical coffee with system through traffic support well vertical content, which enhance our competitiveness and health of Weibo's overall ecosystem that you don't focus on man woman, that's what you do about it.
Okay.
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Most of them up here, but you mentioned.
That's European having created a culture where of course, the Sarnia plant.
I'll, let you handle from in the fourth quarter, we maintained our cooperation with manufacturers to increase channels in that since the acquisition of high value.
To more accurately algorithm and targeting capability, our user engagement has been improved which laid the foundation for monetization.
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Our opinion, where you should see going forward without treat engine him he got to see a tweener.
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Greenwood, Indiana.
So if I hear what couldnt agree more countries come about.
On social attributes in the fourth quarter, we continued to execute and execute strategy to focus on development of content verticals on the land, we continue to optimize Cogs instruction relationship eight defeat to reinforce that distribution of content from key vertical and we covered the opioid.
And you will see something on the other hand, we continue to enrich the way vertical kols interact with their fans and improve their interaction efficiency active adult kols from vertical areas continue to gain more traffic and user interactions and became more willing to January content.
2023 the number of daily interact with users and the number of interactions.
You should base defeat continue to grow year over year.
Sure.
Topic, we launched a new function for use as opposed to interrupt boosting user engagement in our community input.
In particular for the entertainment vertical we further enhanced the super topics, social attributes and interactions with users in that discussion and constantly creation in entertainment.
The payments that have now moved to the recruitment of the overall sector active adult user engagement and entertainment vertical.
In 2023 versus 2022.
Member of the use of Super coffee increased year over year, and the number of users who posts per day and interaction objects, you put hunting increased over 20% year over year anyway.
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On the common stock in the fourth quarter on top of maintaining the competitiveness of hot topics Entertainment.
The advantage is key IP related verticals really.
What vertical to support the energy market.
For example, we increased investment in digital automobile online game fashion, and beauty and health care verticals.
Industry partners protection of the platform value and further enhance the competitiveness of our content ecosystem.
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I see that it is costing you put tension in the fourth quarter for entertainment vertical we continue to Tuesday.
When the interruption of top celebrities.
Increases in discussion around being worse.
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Defense and entertainment works related content ecosystem.
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I think our interaction in the entertainment vertical increased year over year input.
Top celebrities recently unemployed increased over 30%.
With a better environment for entertainment work production that we released the traffic around the promotion of entertainment work and discussion around these works have increased significantly year over year.
Total discussion increasing by more than 50% year over year.
Traffic and discussion around P V series lethal reached a record high.
In terms of content.
Clarity national media to organize discussion.
Vertical area facilitating content coverage from social news too.
Terrific.
To increase the media engagement in a vertical culture and stabilize user demand for consumption and discussion of the social hot topics I'll answer that if that's what you're doing in.
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Industry related content verticals, we continue to invest across the platform in the fourth quarter, we strengthen their traffic distribution of high quality vertical content increase the proportion of political content on the platform and promoted there'd be thousands of top kols in each country.
Nicole.
Second we have tested the product the mechanism.
Hence chatting supports the vertical content, that's the eighth how China is improving there.
Reception of the industry, the Lady that Akshay.
Third we improved the accretion of industry, the Lady devoted for topics and events that we can live with advantages in.
Vertical accretion to die media and comp plus vertical kols proposed and engage with our content.
All these measures contributed to the continuous growth of the traffic and interaction in the industry related verticals compared with the third quarter.
For example.
We have seen a surge in interest in Berlin with pilots in D C.
Influenza and macro plasma.
We encourage the media accounts, who actually post content of popular science and also promotes related content sharing from vertical kols from other that's all.
Those verticals as a result, the total consumption.
Anyhow puppies had exceeded 2 billion attracting a lot of doctors.
Doctors to join and engage on LIBOR.
Just to quickly increase we've seen in the medical industry and establish user habit.
You can see me.
Discussing hot topics in the health care vertical leap chairman.
Yeah.
You said you haven't you didn't know unless we heard you Darren Gee wish about Hollywood.
Gotcha.
It will be able to make sure.
So you're going to be more profitable.
Let me jump back.
Moving on to monetization.
In the fourth quarter.
E Commerce shopping basketball.
And promotion until Wingstop game license approval, we book, our revenues grew 3% year over year and stuff like that.
Corna, leveraging labor expense in Hudson marketing.
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By energy revenues from the automobile and the handset sector themes on the year over year.
The fourth quarter the growth was mainly attributable to Weibo feeds we initiated a damage of content marketing and new product launch as well as favorable discussion like in the areas of growth.
Technology and new energy vehicles. In addition to online games and health care industries look the double digit growth year over year in the fourth quarter.
As for the health care sector. We are pleased to see steady growth trajectory of both our industry influence and monetization with a surge of user interests in a housekeeping question.
Okay.
Our increased investments in vertical content ecosystem.
I'll Skip also gradually bear fruit.
Terms of the online game industry.
Tailwind from gaming license approval and that's a recognition of a common marketing solution all customers.
And capture the opportunity to come out with a new blockbuster titles for key clients in the fourth quarter delivering sustained year over year revenue growth.
For example in the fourth quarter.
It just seems dark.
The party and happily I'll wait for new game campaign.
We budget allocated mostly to Hudson and content marketing, we have delivered strong branding effects Eaton crouse.
Expectations and European buyout, and unique often marketing and service capability of building marquee hype for the new games.
That means from an E. Commerce, that's also booked a year over year quarter over quarter.
According.
The Mac on E Commerce E Commerce shopping festivals.
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For example, we are then into now put it on the short term that money.
And you can draw down again, so our hiring into yourself.
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We'll miss you on that Union.
Yes.
On the flip side to that.
Beauty and personal care industry, even with strong traffic supports the entire content generation topline with deep cleaning up inventory during the double 11 shopping festival, resulting in continued buddy shift towards performance based platform.
Therefore, the recovery pace of beauty and personal care industry you.
You fell short of our expectations, we can be consummated that for the overall AD growth in 2020 suite for one thing driven by AD budget shift from offline to online during the pandemic and new contributions from the beauty and personal care industry increased.
Increased significantly around 'twenty, 'twenty, and 'twenty, one which created a high base at that time this exactly.
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Shifting their field.
E Commerce live streaming platform.
Speaking to you at the time, you add Ronny ship of social media and traditional e-commerce platforms.
Additionally, we also need to further beef up our investments in things, where it was competitive competitiveness in accounting vertical beauty and personal care, we hope to reach an impasse with accuracy in this sector and when next year with further recovery of counting cookies and normalization in customer sales.
Channel adjustment when you our opinion or many of those you should I wish into the charter.
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Cohort two in Ghana to watch that closely.
Good morning Tanya.
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And that way you won't go anymore.
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Tom Ford retreating to human Quay food labeling language on that.
Looking back on kind of your 'twenty suite, we faced challenges from graphic shifting user interest in a post pandemic era, namely we saw a decline in content consumption demand for music culture, where our sugar consumption being national vertical content.
In the meantime at least probably pace of the Oakville consumer market also fell short of expectations, leading to a coffee blend that bucket for certain customers.
In light of the headwinds from copper consumption as timing demand side, we focus on improving the problems operating efficiency in 2020.
This week, we got you.
And our competitive E auctions and social products.
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Patrick.
And a solid foundation for us to promote vertical shopping and that's the Microlights sleepless companies.
And our competitiveness.
So the actual could be I'll use will be cheap.
Sure.
Until you close the deal.
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You don't get the chance.
Lawrence you don't you won't get more quick screenshots of the Huntington.
When we kind of know what's your entry of the name is going to have the team and we will talk about that.
And have you found out a publisher, which one will be treated in the English room hygiene. Many of the people will need you shutdown not done yet.
The thing that can happen.
One example, send you can go to Finland.
Corporate talking only about the Chicago County, I think which you have shown in my shot at kind of a green light on that.
Yeah.
Overall speaking, although revenues from sort of users you're still short of expectation and draft that's supposed to rapidly grow.
The labor piece and I'll take it.
For the input from last year, that's the solid execution of our efficiency initiatives leveraging improved operating efficiency.
Profitability and a healthy cash flow with further elevated our financial flexibility, giving us ample room to invest in vertical content ecosystem and driving user growth and engagement.
After a challenging comp.
Competition landscape of vertical content.
Heath Ledger stack to restoring our competitiveness of vertical company ecosystem, while I'm focused on solidifying our advantaged areas. It may take two to three years to drive up the traffic shares of vertical content on the platform in this way we put together.
Ladies sportswear market influence achieve healthy bottom line of the content ecosystem and got the solid foundation.
Handheld monetization efficiency on yours.
Can you maybe will you chew away more into core yet.
Her name and she's only fill chomping heterogeneous shop, which will unveil someone can actually don't want Nisha also showed when you until not too sure accretion than what you usually see.
Shall I go there I teach them I mean, the torture wasteful trade it shouldn't happen seasonally.
So on their initial push I wish I had something in June the children when genius alcohol Bachelor children, shortly but tuned up.
Sure.
In 'twenty 'twenty four we were focused on the Permian.
Yeah.
Germany, the competitiveness of our content ecosystem as well as further enhancing our operating efficiency.
The current market conditions.
Right.
Teens that 11, gross and improving the overall efficiency in the meantime on accretion from real pizza and all efforts to lean towards the competitive edge of how China and IP.
Like a lifestyle vertical content vertical ecosystem at the same time.
The monetization path, we aim to optimize our content marketing and performance based ad products.
Execution of this strategy.
Solid foundation for our topline recovery from user.
Monetization by enabling us to capture market opportunities once the macro economy gets better and run academia improves.
And how you who've been with you with them. There are some yeah 21 liquidity inquiries when you shop and how many tissue tissue.
Tissue boxes that should all kind of went about it.
Utility room courtyard.
Until he should talk a little bit.
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We are coming to you go.
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I mean, if suddenly you won't yet.
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Oh, My goodness I mean have you.
This was.
A part of operation where folks are going to be after that first we have continued to awfully closely.
You can count on us.
When you focus on improving high revenue per acquisition and usage.
Second we emphasize optimizing the structure of social products and further enhancing the recommendation efficiency of information feed in the hope of driving user scale, social interactions and engagement.
Sure.
We find the part of life and the user experience of powertrain products in order to reinforce the mindset and market enjoys of hospice uses.
Meanwhile, we will also try to clean more Hudson days apart.
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Two discoveries.
And their public discussion that drove that user scale and engagement of hotshot.
Some choppy choppy.
I mean, we.
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Some of that bottleneck in the ocean.
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Josh you mentioned that you couldn't win more junior Josh Dan You don't you are asking about kind of hopeful won't go towards me try 19 million freedom.
Where the chamber tissue.
Our opinion 20 about thinking about maybe two I mean, I think teaching who don't dania country of these aren't really I mean, what's what.
They will tell you and I'll turn it out to me Josh.
And the issue on that being shut back on them when they didn't.
Shopping that conversation.
Yeah, it's always easier when the senior debt you're sizes.
Daniel.
Isn't it without talking about Jewish isn't about it.
I'm talking ecosystem. It also highlights the asset in 2024 for continuous relationship with our leading position around the ecosystem of entertainment and sports events in.
In particular and for the entertainment sector will strengthen celebrity flora equal system to increase user interaction and focus on strengthening our strategic cooperation with a promotion and distribution topical movies TV series and variety shows.
This will not only solidifies the competitiveness of entertainment basically ecosystem, but also drive classroom happy and user engagement.
You've seen the movie promotion during the 2019 for Spring Festival I figured that out.
Leveraging our cooperation with movie IP holders around the hotshot operation movie plots celebrity flora interactions and these 10 day vertical topics. We are pleased to see a 50% increase in topic discussion year over year, giving us confidence in becoming the go to platform for me too.
This year.
24 also marks a year of Olympics, our use of calculation around the sports vertical were paid off with the opportunity to achieve new record high E sports related topics and discussion yeah conjuncture shutdown scenario. So my name is Shane.
Maybe show you know quiver when it comes up to me and tell me. She will go to the type of clients, where you go that far.
And with children.
So you can come to the October date shortly.
But in the interim.
Because you can line up with your own.
Second we will continue to solidify our leading position around how.
We hope to receive the steady growth of society and immediately ladies hot topics. The key is to better engage the media and top content creators.
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Of hot topics around vertical time, enabling the build out of macro hot topics.
Ethics, good hopefully consolidate weightless market.
Holiday marketing choice in the hot trend area and facilitate this acquisition.
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I'm going to use that balance sheet.
Tony.
She helped by attributing laid out between what you call you're talking about.
Kimberly.
Aside from that the Shanghai, Shanghai Shenzhen Suzhou.
Sure.
And the combination of vertical ecosystem in key industry elaborate real growth in member engagement building in Orange County.
Switching the discussion of vertical hot topics.
That's leading towards the synergy between company for system, and the monetization ecosystem, which form.
Virtuous self reinforcing cycle.
So you don't feel that can ensure that you don't see an attack and of course, we are trying to many of them.
Excuse me talking on label and their IP.
Hum.
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Kmart format.
So empty miles long out you're going to show up they don't have it.
One of them show them that Tony and how many of the Pulmicort I'm talking about working remotely.
Due to me looking back with some dark in 'twenty. So you don't know tell me you seem to chimbote switching it to everybody jumped banning Joe or Tony talk to you.
Yeah sure.
So I will look in general it shows you a compute actually really young Donald Trump what puts them that you wish you hear a lot about it.
Sure.
You can go there Shannon Ghansham Shanghai.
Yep.
That being said you can shuttle it can be to them about this issue.
Can you go towards Gonna have a hard time that you yourself audio with them. So that you will sell.
Those are the IP cool Sidoti <unk> excuse me to you already have and they want to try and capture tool.
Oh sure hometown with tissue, you'll show that when you fail it somewhat difficult to check out a torture chamber.
So don't you have to implement Virginia Charlotte.
Finally on the operating efficiency.
All efforts enhancing our monetization competitiveness will continue to strengthen the recognition of labor content and IP marketing among more industries and clients and thus improve our competitive edge in the international trying to bucket in terms of the products, we have standardized and scale up.
Sales of our content and IP marketing offerings.
Excellent performance based ads, we strive to improve our service capability around.
And content, which focus on my.
<unk> seen evaluation of outperformance of key industries and the top client.
For instance, I mean.
Dan Jaffee, Brent what's it done capitalized on its two product concepts lightweight unseen and reshaping plastics.
To a campaign of Huntington.
Leveraging the combination of celebrity endorsement and content marketing are way more wisdom teeth deplete bump it was hot topics around each brand ambassador.
Ounces, having into real time winter related churn how much of a drop like snow to formerly associated a brand that we sustain walk in the door at the same time what is it don't know leached celebrities popularity to drive e-commerce traffic online while promoting.
Opening of the Oh promoting his opening October pretty in fact sheet store at the Gwen you back offline actually adopt the sales performance boosted genetically.
Dramatically in the fourth quarter, we're still small in increasing 40% year over year this year with standardized our AD products and services.
[noise] timely integrate popular Ips such as entertainment and sports event with a campaign called of all client, which will further propel the money foundation that is a contract.
Public safety initiatives to drive top line growth. We also continue to have to see discipline, our cost expenses jumped into that gross profit line.
Management and further improve the ultra operating efficiency of our platform.
Yeah.
With that let me turn the call over it.
For the first quarter.
We actually our financial results.
Turning to the Doctor and how well they work both corner.
Yes.
Hum.
Paul.
That was used in magic.
In December I think that'd be great. We want I mean, I havent see weakness outside of 19 8 million to fund it.
Possibly.
Hum.
And in fact, many of those are signs everywhere.
Great.
Hi, good morning.
I wouldn't look at a little bit.
Healthy shot taken off and running.
Topics.
I'm gonna execution.
Yes.
Turning to financial other lender, that's what private along with focused on that right now.
A lot of word of mouth foggy I felt at home on the other comparison on a year over year basis.
Otherwise in the Rockies.
Terra Haute is water financial deals with the volatility of brands to integrate so up here since our business, providing the operating China Wow, what is it Florida, our financial U S dollar.
Our financial performance was affected by adverse currency movements.
Let me I'll walk you through our financial highlights for the fourth quarter and fiscal year funding can be great.
Fourth quarter I didn't understand that revenue will fall time period, I think is right, but I mean it.
I won't read all sit beside of that of course on a constant currency basis.
Operating income was 125.
I'm not I mean, it wasn't that the operating margins are holding up with that net income attributed local label.
76, plus for a minute I don't that wont be the ETR will sort of be lesser.
But full year.
Total revenues reached to 176 billion.
Great.
Oh, I think there's a bunch of that.
Constant currency basis.
Operating income.
That's 519 true a lot of it rather than the operating margin look like that.
Net income attributed much we'll wait we'll look at 456 minutes on the diluted EPS was 188.
Operating cash flow before year I don't have any great reached a 692 on taking it in.
An increase of 19%.
Let me give me a little color on fourth quarter and full year I don't know the ceramic mcfarland.
Weibo's advertising and marketing revenue for the fourth quarter I don't know three or four times, where it actually comes down a bit.
I think with all sorts of things like.
That's on a constant currency basis.
Mobile AD revenue was 399, plus we made it possible to have some information that we talked about that a puzzle atherectomy.
Yes.
I don't have the kind of market value, which the one answer differently than I think where it all works like that.
Little bit above that.
On an attractive basis.
Mobile AD revenue comes with European Nike for the size of our total AD revenue.
They called me on Q4 from that spot.
Oh definitely.
Jason I don't have a business that's always cool overall.
With that we're gonna spoke on a call or a piano AD market model.
Let's see I'm, not getting a great vertical well spacing.
C. G e-commerce in terms of world that encourage to see Soma Manhattan, a context that continues throughout the year.
How does that factor in neighborhoods that will be able to grow with both year over year on a quarter over quarter, our customer invoice our platform today.
I mean, there was market hat e-commerce on the games that part over women. They go past recoveries had double digit world leveraging favorable dynamic conversation that fit along a blockbuster title.
Yes, I was thinking of category continued understanding of the trajectory before and if I were to sector faced a high comparable base.
The World Cup content, either in country and be true.
Meanwhile, the cosmetic and personal health care remained under tighter separating from Scottsdale.
And in my case, but I'll throw them out of our multinational customers.
Also we continue to see as part of this ship order through the platform to Osaka marching bars.
Right now than they were in the e-commerce season.
Moving on to full year.
Performance.
It was a macro uncertainties and concentrate a weekly report.
Or are they paid on our advertising business is 173 flip it to be wrong.
Constant currency basis, our I've ever had to unlock the value we create one or is that work that fundamentally true industry are likely to suffer any verticals laugh and say Gee, we're different apps and e-commerce.
In fact to grow.
Since the product was the largest comfortably over two year over year growth.
But in the Palmer and also mobile among major category.
Ivor discretionary consumption category.
It's a magic on the personal care and luxury apparel face the prospects hobbies travel demand that the ask right.
Let's see what the blogger blah, blah, blah, and social display ads and a topic I'm search in line to some degree.
In that time I've had to hit hard work, how can be model with box zones, where like for like in continental ecosystem with high monetization potential that that product has.
And also mobile let me add for Husky, Nicola Shaw Warner Center are accomplished marketing offering and enhance our market people are going to Asia.
AD revenues from Alibaba, what fourth quarter wonderful online with an increase of 6%.
Or anything like that on a constant currency basis.
Gunn promoting this high rate of course aftermarket I mean, because they buy the competition Irina like unhelpful backdrop.
AD revenues from Alibaba, well long time, Elisa plastic cleaning I, usually all corporates that are 10% constant currency basis.
With Alibaba as Marguerite if you carve the mark to market.
I love, our desktop market by mid year amid sluggish consumption environment.
Heightened competition.
Omar.
Before turning to go back second most definitely share some preliminary color on the China and recycle capital.
Its economy in a state of transition and the geopolitical uncertainty.
Well.
The macro condition and consumption sentiment, apparently even harder to predict.
Despite limited visibility of demand that the macro trends it yeah.
How quickly optimistic I'll further recovery of our advertising business.
Therefore, we hope before not lower age tailwind weibo's competitiveness that hurt us.
Oh, my gosh, what Eli.
Our team will be up just excuse for for a long long time ago.
I don't know 10 hours a week about a conversation I had that much inside the cockpit ecosystem.
No I don't I didn't survey back and you look up to now.
For the fourth quarter I think very helpful.
Oh, 6% constant currency basis, mainly due to higher gravity contribution from standard.
Oh, Yes, I mean, I think the right revenue less revenue equates to 6%, although that's on a constant currency basis to $225 million.
Turning to cost and expenses.
Hum and blend it for fourth quarter, what we're kind of at a $17 million an increase of 7% mainly attributable to higher G&A Classic English Jenny Sunday with providers sausage from lower G&A expenses booked in the fourth quarter Alzheimers disease.
Many related to the reversal of compensation expenses slipped out technology based on the computer entertainment arrangement pizza.
Full year comp expenses totaled one 7% a decrease of 5% primarily attributable to a favorable rate change impact on the reported number as well as a decrease of personnel related costs.
This decrease was partially offset by the increase of G&A expenses, mainly related to the termination of compensation expense.
Technology I mentioned them all.
Operating income in fourth quarter was a long time to deploy the platform.
Operating margin was 11%.
Compared to before.
Last year.
Hany in California.
What's that.
At times, it might be too because I need it rather than an operating margin of 34.
Okay.
Inside the company too.
Turning to income tax under GAAP.
I can either income tax expense for the fourth quarter was that I think will create a comparison of net income.
That image.
88, 7 million last year the English.
If you go to two factors.
It looks like the worst of tax recognized in the fourth quarter outside of a true there maybe five or 10.
Exploration.
We paid at a cool withholding tax related to the.
It makes sense from the only foreign owned enterprise.
It will be truly well hung hom, even hit the earnings distribution onshore offshore with 12 hours about well you asked the other a business operation.
<unk> updated that with network.
Your income taxes, both at one time it was lifestyle for a minute.
Compared to a circumstance where being a hot last year, let me read dogged about increase of taxi flat to fourth quarter exactly.
Net income attributable to Weibo equal score was 76, one for me if you ever done in that market of 16% compared with last year, primarily due to top line.
Shouldn't impact while income from income tax.
Net income for full year inventory was 100, it's about 6 million, representing a net margin of 36% compared to sugar.
That process.
You know last year.
Turning to our balance sheet and impactful.
And my second car simultaneously Weibo's cash cash equivalents I'm sure from investments totaled 35, hundreds are being compared to a grade one of 17.
It's almost like a forest.
In the fourth quarter past variety, but I'll tell you that liquidity with 218 fluctuated.
Okay.
On a vacation.
Got it.
Okay.
A full year basis.
That is opted not to do it.
At this time, we'd substitute.
Hum.
Actually subprime.
Well I'm not win in time.
Now, let me turn it.
Thanks.
It hasn't changed and I don't know if I think of it as exactly amounted to 58 separately.
It wasn't hard.
Before turning to the county.
I'd like to let you know that's the way a couple of days often.
Or any kind of a certain mainly U S dollar our football in December last year with all of these do too.
How many therapy with a coupon rate of one five to three satisfied sometime this actually owns in that proceeds from the note offering to refine that a portion of the all 73, 5% senior notes due in July.
A part of the Colorado, but no you should weigh in with what we thought could make it a power off grid casually share U S dollar.
More than half was left.
We have one location in the field.
Lastly, even though our healthy profitability and cash flow generation, that's it's not our core actually record a pool that's nice okay.
I'll give you Tucson, yes, all that all the new shaft at Adi to our shareholder the aggregate not long after dividend will be approximately 200 million U S. Dollar.
Payment state you expected it to be anyway looking at half lives.
We've been that have highly committed to embracing long term growth opportunities well generate more return to shareholders on the roofing market to copy them.
Let me now turn the call over to the operator for the Q&A session.
Thank you we will now begin the question and answer session. If you'd like to ask a question. Please press star one one and wait for a name dependence.
Request, Please press star one again.
One moment for the first question.
Yeah.
Our first question comes from the line of Tim.
Your child from Goldman Sachs. Please go ahead.
Although our guys have plenty of potential with it.
With whats going on with.
With our Austin chalk well I'll call. It some way it sounds I should actually say how you sell.
Then you have a ballpark could you do that you can go off of things for you.
Hong Kong dollar assumption.
Okay, that's cool.
Now I'll have clarifying yourself.
Thank you management for taking my question. My question is regarding our autopilot badness.
I'm not sure I can elaborate more on your outlook for the advertising.
Revenue growth for this year, including in the first quarter and specifically regarding the.
Advertising products, what else our key strategies for this year. Thank you.
Okay.
So we cannot comment on the older. They are senior and you go to China I know you group.
Our sanya anyway.
You called out the trading shouldn't say tomorrow when you go to school.
Do you think the only thing I need people that don't typically kind of thoughts on how to ask Michel you can go between a T shirt.
Won't be really awesome at home welcome Michelle Michelle hard Sundays, yet, but should each and cook calpine about got it.
Thank you for those questions.
So first of all.
So in 2020 threes for many different quarters, we had a lot of uncertainties will providing this updated expectations. So we remain cautious and prudent and given the expectations for the whole year. So in Q1, we do see a recovery.
Almost all the industries. However, there are a lot of uncertainties and also challenges relating to the consumption market as a whole.
Okay.
So once you do that are similar to us they don't really sure how I answered such a nice tradition with you, but I think we're cooking and Oh, you know quick to essentially that you're buying.
Do you want to go that they don't tell me on that one.
So now he's on the ship up to virtually all of course, you mean adults. So let's see what you see there are a bunch of them in two buckets.
So they are in yen.
Or should there be the threshold in which you are seeing in the shop on Amazon is moving that way.
I hope with that Union.
Sure do you buy it.
But that Youll hear from industry was about how the family home until Nicole would you read our government cheese all of Jeremy Brotherhood, yet, although they bought and then when you show the switch or that would have in Chile, when you've got that should help them create factory.
And then when you.
But cigar shingle empowered the Gulf will know who you are.
Sure.
Sure.
Some of them are hanging out with oncology.
And also in terms of the overall demand in 2020 of course, so we have seen some of your thoughts and views.
Of course I'm industries for instance in terms of the gaming I mean the sports.
Those being the Olympics, which took place in July and also the beginning of August. So this has boosted somewhat be a budget.
For the consumption markets for instance from the food or beverages and also the apparel and also the footwear as well.
Of course in 'twenty, two we had actually a very high base because of the Asian games and also the World Cup.
We expect to have a better second half of the year in two.
2020 than the first half of the year and also in terms of the gaming we do see a little bumps certainties. So for instance, where the booming of the.
Granted a license to those gateways to the Cubs game developers, we do can leverage.
Outages in terms of the content.
Content marketing and then we would like to what leverage just a bump. It would also help to explore and also help a lot of our new games to be exported exploded. So in 'twenty 'twenty four we expect to have a better gaming industry that metal 23, okay.
Okay.
I wish you all you know we're kind of all day, our army on June 13.
It's about finding maybe some.
<unk> got call it once you're on the IPR challenge.
Yet shippers our cm cream.
But sugar.
Young its hard to be able to shop anyway hung up the country Bumpy Road show to you what you call that out. So you are saying that things will go box, but frankly, the kind of things.
Hum.
Heiko, it's one that didn't use any of them on the phone our sanya yet be argue for children. They are coming out we're at $10 a share issue behind them. So army young with someone called I think we'll see our usual.
It's watching quantitative appeal.
But boy the extra sort of B Tran I kind of I know I heard you that you'll be attribution.
She's got the bad luck on the wind down of the human tissue over the usual lag are becoming a.
I'm going to go out in any way other than Q2.
Cook with each other you sent to each.
China showed yet so there's a lot of its own chips.
<unk> heard that didn't have you decided to bring in the voucher.
Well I really traditionally the teams the leaf court, Lisa and Jim or the phone actually Yoshi shoes.
Not sure where that comes out.
Alright.
And also in 'twenty to 'twenty, two we did see the enhancement of our competitiveness and also the percentage of the AD budgets.
<unk> total revenue against the total budget off the agile for customers.
Is actually growing as well, but still in 2020 for one of those industries are still going to enjoy the same momentum and white box. It is.
Pretty much on such and also China in Japan for instance, take the example of the asset and also the automotive industries. So for instance in 2023 we had a very good growth in terms of the industry, which was double digits.
And also we had an increase of the total AD budget percentage allocated to Weibo in 2023.
But still in 'twenty 'twenty four we still remain cautious in terms of maintaining the same momentum up the growth or has that industry.
Versus that of 2022.
We have seen a better a better unexpected shipment of TSA industry in Q1, but still throughout the whole year of 'twenty 'twenty four there is a big uncertainty about this and turning to the automotive industry. We have gained the metro vantage and are helping to promote those products off new energy vehicles, but still due to the price of oil.
The budget that decrease.
For the ads for the ICU vehicles.
We found it quite challenging to maintain its I'm on the same momentum of the growth of our business.
So most of the industry are done out of last year, but still overall speaking we are still keeping a very good momentum while maintaining a very high competitiveness and also attract.
Attraction of Ohio budgets of the ads from our customers.
Okay.
How is your family and I toured her tiers are going to be thoughtful with regard to the R. R hernia or finance you don't want them, but you know you got to go to the other.
Got it.
T J I relate to the high end of our Union are telling you each meeting that dialogue.
Yeah, hi, or what have you done it won't even skeletal toward us.
So I'm glad I got to the high end of a geologic audience so as well.
Maybe the only thing I wanted to go short.
Attendees are union.
Are you, arguing.
No pay down your entire Condor from me and I got an RV and wake up and go with them exactly what happens in the teens.
It hasn't gotten to me there must be careful.
Hopefully that can pay you shrink on the microphone.
Thanks, Mike.
John Kim from with them I don't get it all came back.
Hello.
Collusion so cool that you can show you tracked well, let's say to each user to use you only bought two of them combined.
There are a lot of coal power.
The English I'll talk I'll go quick and kind of pay downs out of the yard.
What happens in the shotgun and Youre going to talk to all of them and Shinya usually that turns out.
I'll, let you go.
No.
Got into your platform I know you called out.
Hi, Andrew Oakley artisan young country and could be dealt with deep ties to Egypt.
Hi, Hi loved ones.
Sure.
And what have you.
On the Santa Ana Yeah, I mean, we're one China.
Any feedback.
And Glenn if you by email a doghouse yachts, youre talking with and without Paypal.
The valuable legal framework, so, especially I know that you plan to ship.
Hello, Virginia, and see what how the time that you go how many elements you're using it and then we'll be able to show up at the higher grade parts of what quarter do you know that.
Come below the cooling tower, which is the highest.
That would put you got anybody.
Got it.
And also last Monday, so I would like to share some colors on the industry itself. The PGM cosmetic products in 2022 and 2020, we had suffered from some of the challenges because of the industry itself. So in 2021.
Because of Covid.
Covid and also because of our high concentration.
Promoting the entertainment and also the traffic attraction. So we had a pretty good year in 'twenty, one and also 2022 but reasonably speaking.
Lot of challenges going on and headwinds going on in the cosmetics and beauty products industries for instance.
Competitiveness and also the price war engaged by almost all of the brands and also they were decreasing their allocation of ad budgets.
Overall speaking and also you can see that there are a lot of our Casper.
Hi, Jeff.
The budget from the commercial book sort of traditional e-commerce industry to the live stream. So this gave US a lot of pressures in terms of the allocation of our budget to the brand that base to performance brand based ad or the E Commerce space.
So still there are.
So a lot of challenges and also in 2024, originally we wish to have stabilized.
Performance of the beauty and cosmetics industry.
Indication I'll stop at budget, but still.
In Q1, we saw that was less than expected and also a less than optimal.
And to optimize so you can see that for those international Brian So they are quite.
Quite a bit far away from there for recovery and also we do see the recovery.
Mastec brands, but still it is not the time for them to increase their ad.
Budget. So of course overall speaking, we still wish that we could have a very stable.
Article like the cosmetics and beauty products.
Up to now we think that this industry is still the most challenged industry against the.
Total business portfolio.
Okay.
There are two.
And suddenly the Prudential contract scribbling edge at all in the.
We're almost halfway to your TV at home at night.
And then when you can charter them in a total of 51 the tissue types in Pi Copel can patch and bought them and that's really what's at play with him the chance to meet with Dupont.
So why not use them.
More kind of on both of them are being shown that didn't even show up.
Or to use your words.
So you saw a couple of things and the team have you signed that are sounion pneumonia. When you boil it turns out they do to assure them that one of the time that you that you can hold between cohorts that have already been in August not locomotives jargon.
So all good to hear about clutter tissue.
And also lastly, I want to say that in terms of the overall strategy as we have already stay tuned for that.
Script.
You can see that the focus of this year will be still emphasizing on those to IP hot trends and also the content market change. So that we can increase our competitiveness and also gain more money and also budget from.
From the total budget.
Customers and also a second of all we would like to sputtering large user base and also the total scale of that and focusing on those monetize the traffic.
<unk> as a whole in 'twenty 'twenty four is still very much a focus and also the main driver for us to grow further as to.
Getting more budget from our customers and also that as we kind of grow our overall business.
Thank you.
Thank you for the questions one moment for the next question.
The next question comes from the line of publish Chong from Jefferies. Please go ahead.
So it's.
Yeah, it's all of it.
What is your travel, but ischemia in Chengdu.
Neil some tie that you've assigned to.
Yes.
You can find me a novel.
So you might see it.
Thanks management for taking my question. My question is about our strategy in trying to get in the fall, but we got to do this and our content ecosystem and on different kind of how should we think about our aig's strategy. Thank you.
Uh huh.
Partially annual portfolio valuation gymnast, Croatia are plenty of them quite economical goodbye for now until you sound good.
Our niche Amit two metric tons.
I thought I was kind of our opinions on whether it gets rolled out here a shutdown, but aren't that didn't you blacked out in.
I've got a complete change of heart.
Sure they open up that will buy what.
From here I know, what I'm going to either so he talks about mutual is done yet.
Otherwise you show me like what.
What's your view on that.
No we shouldn't be suddenly start seeing people compete contralateral aren't the only Chilean where you don't.
Our.
We're going to end up with what you should do you sounds like he or she can go with that.
Got it.
Okay.
And also for those question first of all let me talk to you about the use of our strategy.
So in Q4 still we are going to maintain the same budget to the marketing activities that all but one country. So far.
Has that industry in 2020, we do see a decrease of our total shipment. So we had a net gain and that gain also mou.
I believe $10 million and also over 5 million of net gain.
Because of our very deep strategic collaborations with a headset makers and.
So that's so that you can see that we can have a very low user acquisition costs and also overall speaking you know by focusing on the <unk>.
Payment and also be hot.
Topics, we have also a very good job positioning and getting the users from outside of the whiteboard.
The RCM I'm curious you know kind of them don't you finally get it shouldn't be RF onion live with document tricky.
Torture, the she went home when you call accident in the lead.
Oh, no congratulated and that we achieved with the wafer.
Grateful to their children at home.
And all that kind of how I should be taught me.
Well, he doesn't which you laid out.
Opinions here.
Sundar absolutely P R Sanyo.
We are going to.
Sheila Cocomo Youtube Golly earned 20 woman named Black kind of Wow.
The chart Asher, who hope I didn't want them yeah.
Two women to Andrea.
<unk> got about one minute or so without treatment.
I mean, you're.
Are you doing on that presumably opening that's showing up I can't yet, okay, I'm not sure any of those shifts.
All of them.
Okay.
Sure Paul.
That's you're holding entry than either without kind of tornado impact.
But in Wisconsin by any chance.
And Union actually real quick switch and that become easier I touched on.
Our army in Israel, and I get all of that.
She said her and the team are.
If any of them unless and until the eating them.
Kevin Anthony deem movie and Mauritania to drop we put all our passenger Oh sure. So he told me she won't going out finding that balance.
We don't do it out in tissue going down at all.
Oh sure it sounds like it's a pattern yet seen quoting them shiny penny yeah. So quick Camille terminate all kind of assumed only issue tissue Garda.
And also in 'twenty 'twenty four as a result, we had almost a flat or a little bit more budget allocated to this area that at all but one country.
We don't see a very good recovery of the social hotline and also.
Payment industry.
And approved by the performance during the Chinese new year period.
So thus we are very confident to have a very good user gain and also user scale and qualifying for that upside to one country and also a much better one also and total challenges still are.
Our laptop reservoir.
To focus on a shift off the topic of entertainment in a social hot topics to the verticals.
Because you know.
Having more traffic off the vertical a vertical topics were able to increase the user stickiness and enhance our monetization efficiency and also improve our competitiveness. So before the Covid before 2019, we had almost 58% of our trusted allocated to political topics starting with joined the Covid period, we had a deal.
<unk> signed two almost around <unk>, 47% to 48% by the end of 'twenty. Two we had a very good strategy to recover that after that but still it is still at a level of around 50%. So in an extra two to three years' time by focusing on more efforts taken this area, we hope to increase the total political crisis.
That's the amount of the total drop it to about 60% of them more so that we are able to enhance the user's thickness the efficiency monetization and also overall competitiveness as a whole.
Okay.
Uh huh.
She sees if I'm into it because as you go type volatility agenda approval or do you leave what I got cut.
One of this year and how much of an institution conversions that union coming back on about your 12 months ago.
Our science you should to watch our opinion Nisha counter to barrel chip. When you finally got I got on a tertiary woman pool of accuracy, because unless you unless you characterize even more sure she's going downwards.
They don't have that.
So Don throw two children the woman, taking Mashiko, who don't have a copy of conference. So kudos isn't showing a civil engineer and none will be off of that pool than usual, Michelle 10, Tcf Shankar, who don't they don't suddenly it will add to so no not at all.
Coming up I don't know what else I have I'm not sure that <unk> asked which one.
No no leeway, but sort of a temporary issue push with a simpler easier to use and he can give you Katrina for the menthol genome quite.
The address of our building.
The tour accuracy issue would that be sometime naval Chinas surgical show her family, it's almost for sure got it okay.
Either naval silicon off with well sometimes they.
They don't that I don't think we have to go with them.
And I don't know, maybe we assume that you guys think.
It won't be on what that would have happened or should I was sure I shouldn't be kind of all time.
I mean she'd Halloween pop on the outlets.
What's your thought on the table at each year differently.
On the Congo, Congo, higher Congress email, but until you really got to be I mean trailer shelter not champion.
But I don't want it to be.
Amelia and Trevi Italian won't be all commodities household credit.
And also in relation to <unk>, we have stated a few comments already in the past.
And our performance or some of the according performance announcements.
Still you know now we would like to have a open minded to use the LMS and also focusing on the applications.
Large language models. So for instance, being 24, so we have some of the production pump applications visible in terms of the AI assistance are assisting the interactions between the new fans and followers and also the kols.
We have been doing a lot to really enhance the attractiveness between a new fast and some of the followers and also there'll kols. So now you can see that around 5% to 10% off the overall interactions between the Apollo with some Kols Rx you supported by AI assistance and also cyclical in terms of different verticals. So last year, we pretty.
Much focus on the verticals all future calls about your products.
And also facilitating the generation and the production of the content in this area and also this year, we want to further expand the application of the content generation.
To another four to five different bunch of calls so last year, 8% of the contents in the cosmetics and beauty products area was generated by the AI tools and also this year, we hope to have around 10% to 15% of the concept generated by Aig's first limitations, which is still challenging to say and also.
But the other areas for instance, the AI robot and also some of the commercialization so monetization using AI to support it is still an experimental stage. So we don't have a very deep.
<unk> target or figure it to be shared with everyone. Okay.
Thank you for the questions.
One last question.
Our last question comes from the vial switching Chung from CIBC. Please go ahead.
And he said well I am convinced that likely that you'll come back on the <unk> could be a so called dice Alcon thing opinions about picture I don't quite follow that.
I'm, calling from Hong Kong welcome Bill can comment about that.
So again I think maintenance for taking my question, we noticed that the company announced that should do better this quarter.
So it's a capital allocation and Michelle folder, it's implying yeah can management share more on the share buyback.
Thank you.
Hi, Thank you for your question. This is fake I've mentioned in my prepared remarks, LIBOR, and then hand, the different profitability and the relative lift John have ability to generate operating cash flows.
In terms of your time, you're three our non-GAAP operating income reached the 592 million representing a non-GAAP operating margin of 34% lead.
We generated operating cash flow of approximately 673 million in Huntington Beach, three representing over a year year over year increase of 19%.
So if you can remember last year, let's say, it's trivial kit special cash dividend for the first time last to me they talked about.
Third and perhaps they told us they would adhere to use all our cash first of all.
<unk> always had already high supporting business growth and the strengthening our platform competitive I'm, the one who did such as investing in content ecosystem.
What do you call area, and Aig's see any opportunity, which closely related to our business and then in addition between laughing in our own business development.
Secondly, it needs to ensure shareholder return.
So as you know our court you asked her highest approved the distribution of another 200 million special cash dividend.
After they made a true hi, Jay it's mainly a U S dollar cash dividend last year.
So going forward, we expect that to continue paying off the dividend to our shareholders.
Gradually formula nature, and new cash dividend distribution policy.
At the board would primarily side.
David and Tom models based on our Companys Parkway, the pro forma as in the prior fiscal year, well also costed or in fact her back at our cash flow, our financial condition and the capital requirements. So.
So looking ahead, we will continue to explore various ways to reward our investors our shareholders, including the dividend to pay off and that stock repurchases. This matter will be carefully considered and the land with our core objectives.
Subject to our board's approval they know.
Can we only pay for the program its Mark Hurd animates, our invest her in a timely manner and so I hope you had a Jack you question. Thank you.
Thank you for the questions. There are no further questions at this time I would like to hand, the call back to management for closing.
Thank you all for joining us and we will see you next time.
That does concludes today's conference call. Thank you for your participation you may now disconnect your lines.
Okay.
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