Q1 2024 Weibo Corporation Earnings Call
After 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 one on your telephone you will then have an automated message advising Johan just raised to withdraw your question. Please press star one on one again please.
Speaker Change: Please be advised that today's conference is being recorded I would now like to hand, the conference over to your first speaker today Sondra Shang I. Our hatch. Please go ahead.
Operator: Thank you operator.
Speaker Change: Welcome to Weibo's fourth quarter 'twenty 'twenty four.
Goofy, Wang: This call joining me today on exactly what all pieces of Goofy, Wang and our chief.
Speaker Change: Financial Officer CFO.
Speaker Change: The conference call is also being broadcasted on the Internet and is available through Weibo's IR website.
Speaker Change: Before the nice N remarks, I would like to read you the safe Harbor statement in connection with today's conference call. During today's conference call. We may make forward looking statements statements that are not historical facts, including statements of our beliefs and expectations forward looking statements involve inherent risks and uncertainties a number of.
Speaker Change: Important factors could cause actual results to differ materially from those contained in any forward looking statements. We will assume no obligation to update the forward looking statement in this conference call and elsewhere.
Weibo: Other information regarding these and other risks, including 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 the date hereof Weibo assumes no obligation to update section information, except as required and applicable law.
Weibo: Additionally, I'd like to remind you that our discussion today includes certain non-GAAP measures.
Speaker Change: It excludes stock based compensation and certain other expenses, we use non-GAAP financial measures to gain a better understanding of Weibo's comparative operating performance and the future posts that are non-GAAP financials exclude certain expenses gains or losses and other items that are not expected to result in future cash payment.
Speaker Change: Well no recurrent in nature, we're not indicative of our core operating result, and outlook. Please refer to our press release for more information about all got measures.
Speaker Change: Following managements prepared remarks, we will open their lives with a brief Q&A session with this I would like to turn the call over to our CEO of Gulf They want.
Speaker Change: But I'll explain it.
Weibo's CEO: Thank you Hello, everyone welcome to Weibo's fourth quarter 2024 earnings conference call.
Weibo's CEO: Okay.
Speaker Change: But absolutely it yourself.
Speaker Change: I need you.
Speaker Change: We're able to tell me what you mean.
Speaker Change: I'm going to do that.
Speaker Change: On today's call and share with you highlights in Weibo's part of the monetization in the first quarter of 'twenty 'twenty four.
Speaker Change: Yes.
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Speaker Change: Or do you think once you get them caught up so you know what I mean.
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Speaker Change: Childhood junk should always on conversion cultured golf.
Speaker Change: What's your future issues here talking to you watch it all the time.
Speaker Change: I don't know what you don't want somebody to nearly.
Speaker Change: I'll use a drop in the first quarter. We won Emmy you reached 588 million and average fee use reagents fight 255 million in light of an already sizeable user community and increasingly mature use a mindset, we have proactively adjust I'll use the strategy in 2024 weeks.
Speaker Change: Channel budget allocated to the acquisition and engagement with high quality users who are dedicated to further enhancing weibo's part of competitiveness leveraging optimized channel strategy social features and differentiation you have chance.
Speaker Change: I am off on that for you.
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Speaker Change: Yeah.
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Speaker Change: How about et cetera.
Speaker Change: Yes sure.
Speaker Change: On the monetization front in the last two years, we have been focusing on increasing commercial value for Weibo's Hudsons zero, combining entertainment and IP related hardware and content with advertising marketing demand. This quarter, we enhanced the couch any fast the spring festival, leveraging weibo's advantages in Hudson.
Speaker Change: Marketing despite overall sluggish end market in the first quarter of 2024 hour total revenues reached $395 $5 million and our total AD revenues reached 339 million U S. Dollar on a constant currency basis, both all total revenues and Ara.
Speaker Change: Revenues will be flat year over year for the first quarter of 'twenty 'twenty four our non-GAAP operating income reached $125 $8 million, representing a non non-GAAP operating margin of 32% a modest pick up year over year.
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Speaker Change: So how can I mean, we're kind of enjoying the injunction that you can show.
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Speaker Change: So I jumped in Nashville.
Speaker Change: Tony.
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Speaker Change: He knows all coach them as your children Shaw, who was on that.
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Speaker Change: Next I'll introduce our program he thought of operation and the monetization in the first quarter in 'twenty 'twenty four we still focus on growing user scale and engagement strengthening the competitiveness of company ecosystem and improving operating efficiency, that's all keys to our key strategic objectives.
Speaker Change: We keep optimizing channel collaboration improving the competitiveness of social and Hudson products and strengthening key content verticals to further enhance the old real competitiveness and healthy development of Weibo's content ecosystem. We believe execution of this strategy. We have laid a solid foundation for top line.
Speaker Change: Copies from user content and monetization side, enabling us to capture market opportunities once the macro economy gets better and Brent at demand improves that should also Oklahoma you called out you don't want to hold you you'll hear me.
Speaker Change: The chart shows you you've also Jimmy holds all.
Speaker Change: I'm not sure. It's for me. It holds here tissue judge ourselves at you try and wish him. The P. P GP issue, which.
Speaker Change: Which you don't know what you won't go through them with an H T.
Speaker Change: I wish I don't know if I got you.
Speaker Change: On the channel front, we maintained close collaboration with handset manufacturers focusing on the acquisition of have adding users and the promotion of user engagement. We also investing to further refine accuracy of algorithm and targeting capability of our business model in order to create in red.
Speaker Change: <unk> content offering for our channel uses and the increased user engagement, which lays the foundation for monetization.
Speaker Change: Especially don't worry about it.
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Speaker Change: So Tony with cleaning chunky, she won't come back because you don't have to treat him.
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Speaker Change: And what you bought in Israel do you have anything.
Speaker Change: Just want with Haynesville and Eagle Ford are already pushing that you know what.
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Speaker Change: Sure.
Speaker Change: And I'm talking about.
Speaker Change: On social as you do in the first quarter, we continue to execute strategies to focus on the development of content verticals to further recover the vertical accounting ecosystem on the one hand, we focus on adjusting the algorithm of relationships base of fee and interest based feed because this would be.
Speaker Change: Personalized vertical content for users reinforce recommendation on real time feedback and promoting social conversion.
Speaker Change: As a result, the catheter content consumption and interaction efficiency of these two feet continuing to increase sequentially.
Speaker Change: On the other hand in 'twenty two before we stepped up investment in UGC content and improved generation of high quality UGC content on LIBOR.
Speaker Change: And close user to create more high quality content around housing and the verticals on weibo to improve user engagement and reach and diversified and vertical areas.
Speaker Change: An example in the wave one mobile photography contest, we introduce multi screen to trucks.
Speaker Change: The age of the content <unk> media and handset manufacturers and opened offline photography expansion to encourage ordinary users to shield photography, or seemingly culture and life.
Speaker Change: Is that from a label as lease out over 6 million users participate in the contest in five months and contribute approximately 3 million photos. This year. We were working on is more similar activities and encourage users to participate in the content generation leveraging weibo's influence in English.
Speaker Change: Weibo's content ecosystem.
Speaker Change: Additionally, we further upgraded the posting an interaction functions for the super topic products in order to boost the user engagement within the community.
Speaker Change: That is to say users can gain traffic in certain incentives are high quality content. They posted while also enjoyed the social interaction around the interest based content, we seem to super topic communities in.
Speaker Change: In the first quarter the number of posts users, who posted an interruption in the super topics community.
Speaker Change: Oh, good double digit compared with Q4 last year. The Super topic has become an important channel to calculate interest base of high quality content creators semi.
Speaker Change: Sending somebody told me it does you do want that voucher.
Speaker Change: Have you tried piece, we're embedding the journey that you shop til against that sure sure sure.
Speaker Change: Xiaomi is one you know a chunk of.
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Speaker Change #100: Jumping back in about two minutes I'm sure, Jim, but you don't Wanna shy opinion shortly.
Speaker Change #101: Causing some system in the first quarter well maintained.
Speaker Change #102: It took me some couches entertainment and other advantage of IP related verticals, we focus on increasingly investing in vertical such as digital automobile automotive game fashion and beauty and health care to enhance the competitiveness of weibo's ecosystem and further improve monetization efficiency.
Speaker Change #103: If you should have on your digital tools.
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Speaker Change #104: Finishing went away anyway.
Speaker Change #105: We're a family equation.
Speaker Change #105: Oh sure Yeah.
Speaker Change #106: Each iridium quietude anyway in Yorkshire.
Speaker Change #108: Can't really go to the.
Speaker Change #107: So cool.
Speaker Change #109: Kind of collusion or China, though your pin pad changes and whether they will show me a kudos on that.
Now for the immediate position Junior choice you no doubt the unchanged totally I'll tell us that you put out.
Speaker Change #110: Got you got you.
Speaker Change #111: All about Lucius.
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Speaker Change #112: And as I, usually do.
Speaker Change #113: You don't have hung up here shortly.
Speaker Change #114: Well sure because you don't you don't T magazine show quite a bit between people that she's a hunter you don't need a kidney.
Speaker Change #115: So those are the I wont call time usage.
Did you try to.
Speaker Change #116: Are you telling them that attribute a lot of functional.
Speaker Change #116: People, usually reaches you bought into it.
Speaker Change #116: Yeah.
Speaker Change #117: On her chance and IP content in the first quarter with about an entertainment content released during the Spring Festival, we integrated content accretion approaches entertainment and baileys vertical areas to engage broader users to consume interact around the content related to the swing festival leveraging our advantages.
Speaker Change #118: In these areas as a result, the overall traffic of the platform increased significantly during the period.
Speaker Change #119: Total views of content related to the Spring Festival Gala. This year reached 100 is still in and the related discussion surpassed the $300 million off of 50% year over year, the increase of traffic and cold chain scale Spring Festival also created significant commercial value on the one hand such close.
Speaker Change #120: Cooperation amplify the Hudson on the IP side on the platform and improve the platforms operating efficiency and establish weibo's influence in key industry on the other hand as Helge has become increasingly standardized and the process of Houghton marketing becomes looser, we'll also bring a sustained.
Speaker Change #121: Revenue growth going forward, we are confident that we will we will maintain its leading position in the industry and if you take our China operation and the marketing.
Speaker Change #122: But I am sure that you're telling.
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Speaker Change #123: Sure Josh isn't they don't show that yet publically traded his family on the 20th footprint.
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Speaker Change #124: I'm sure that are out there to support it with Fisher twins.
Speaker Change #125: On the phone to the nuances of needle that came out with a college football.
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Speaker Change #126: Tony tickets you do she says she.
Speaker Change #127: He didn't get you doesn't mean, you're not seeing that.
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Speaker Change #127: Yeah.
Speaker Change #128: Oh sure.
Speaker Change #129: Got you into teaching children and their children.
Speaker Change #130: It's usually job and what we've been talking about Russia.
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Speaker Change #131: Both of the commercial team is doing that.
Speaker Change #132: So we'll show you what you need.
Speaker Change #133: They will try that.
Speaker Change #134: And that's you meet you down too much here.
Speaker Change #134: Uh huh.
Speaker Change #135: I mean zoning.
Speaker Change #136: She ships.
Speaker Change #136: I don't know maybe.
Speaker Change #137: He's going to have a 10 milligram, which aren't you doesn't mean you have seen that.
Speaker Change #138: Should I think about it.
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Speaker Change #139: Joining sometime hopefully with all you can do show that comes out.
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Speaker Change #140: D G to the lucci, you're wanting isn't that voucher hygiene.
Speaker Change #141: Industry related content verticals. This year, we'll continue to execute against some of the key strategies, we adopted in the fourth quarter last year first we strive to strengthen their construction of vertical content ecosystem to elaborate we will beef up our support of political content engaging close vertical okay.
Speaker Change #142: And media outlets in the generation and distribution of a popular vertical content.
Speaker Change #143: Second we will diverge more traffic to vertical accounts to promote the growth of high quality accounts in vertical vertical areas and empower them to gain higher commercial return with your own content on Weibo platform. In addition to the health care industry mentioned in last quarter's conference call. We also add.
Speaker Change #144: Notable growth in automobile is the product and online games in this quarter. We are encouraged to see significant increase in the number of children and open to verify accounts and their traffic interaction as well as our revenues generated on an annual basis.
Speaker Change #145: In particular for the online game vertical the number of Gordon and the Orange verify accounts increased by nearly 50% year over year with traffic and interactions increasing over 20% and their revenues were marketing activities.
Speaker Change #146: Triple S.
Speaker Change #146: As a result, we have gradually integrated content and monetization ecosystem in a closer in a healthy manner for the online lending verticals in terms of the cosmetic and beauty vertical. We we achieved notable growth in the number of Houghton and Golden verify accounts in the past two quarters leveraging our traffic.
Speaker Change #147: Support and operation However, due to the fierce competition from other platform and our accounts weibo's content ecosystem in the cosmetic and beauty vertical has now returned to and in fact it.
<unk> achieved notable growth in automobile data products and online games in this quarter. We are encouraged to see significant increase in the number of building in orange verify accounts and their traffic interaction as well as our revenues generated on an annual basis.
Speaker Change #147: Trajectory.
I need to keep up our investment find a stable and in fact, it roadmap to optimize our content ecosystem.
Speaker Change #148: To reinforce our competitiveness in this vertical shove it Josh I haven't seen that.
Speaker Change #149: Unless it would use our goals without trying to limit the total.
Speaker Change #150: She is able to ensure that Amit.
Speaker Change #151: Oh actually too many.
an orange verify account increased by nearly 50% year-over-year, with traffic and interaction increasing over 20%, and their revenues from marketing activities
Speaker Change #152: It just changes on that you don't need a bunch of them saw named Michelle Michelle wish I had a time consuming and a system.
Speaker Change #153: She's won't factor here.
Speaker Change #154: Moving on to monetization in 'twenty 'twenty, four and we'll continue to beef up our efforts to reinforce our monetization competitively now.
nearly tripled.
As a result, we have gradually integrated the content and monetization ecosystem in a closer and healthy manner for the online game vertical.
Speaker Change #155: Everything wave with French in Hodgkin's and I piece as well as driving vertical content ecosystem, we will sharpen our competitive edge of our content marketing and performance AD products in the hope of enhancing our capabilities to navigate through business week in key industries.
In terms of the cosmetic and beauty vertical,
We achieved notable growth in the number of Hot Trends and the Golden Verify account in the past two quarters, leveraging our traffic support and housework operations. However, due to the fierce competition from other platforms and accounts.
Speaker Change #156: Egypt, Apache somebody should European religion, Asia, Oh, My gosh huge liquidity is shrinking.
Weibo's content ecosystem in the cosmetic and beauty vertical has now returned to an effective growth trajectory. We need to keep up our investment, find a stable and effective roadmap to optimize the content ecosystem in order to reinforce our competitiveness in this vertical.
Speaker Change #155: King.
Speaker Change #157: Again, when you can go to them.
Speaker Change #157: Yeah.
Julien: Julien Junction.
Michael would you call yourself to.
Speaker Change #159: Change also on the volume so you can get your hands when she was at all but I'm sure he won't even by region.
Let's talk about the progress of commercialization. In 2024, we will continue to strengthen the company's investment in market competition.
Speaker Change #160: I don't want to call. It is a shift sometimes pseudo means you'll find the drop off of 10 minutes.
Speaker Change #161: Hulu Harley nickel nickel table changes each already July all potential you'll see a shift you know.
Based on Weibo's competitiveness in trending topics and intellectual property as a social media platform
As well as the continuous improvement of vertical ecological competitiveness, enhance content marketing and the competitiveness of performance commercial products, and improve our risk resistance in core industries.
Speaker Change #161: Sure.
Speaker Change #162: Got it.
Speaker Change #163: Can you you can judge Judy in Shanghai, Guangzhou Shipyard Sunday child comes up.
Moving on to monetization, in 2024, we will continue to beef up our efforts to reinforce our monetization competitiveness.
Speaker Change #164: Do you know if you meant that people just two more children, while China junior.
Yeah.
Speaker Change #165: Oh, my gosh, it sounds like the bullet or they're telling me about truthful.
Navvaging wave was strength in hot trends and IPs, as well as thriving vertical content ecosystem, we will sharpen our competitive edge of our content marketing and performance at products in the hope of enhancing our capabilities to navigate through business risks in key industries. Inge, in the market, in the market,
Speaker Change #166: Can you have you done some illumination that Archie Pablo to Fool, you know Chipotle shoot you a lot of pin passenger commercial now to be able to do.
Speaker Change #167: And damage.
Speaker Change #168: Why was it that changed at all.
Speaker Change #167: Tony.
I made a relative soft end market in the first quarter, our air revenue were flattish year over year on constant currency basis. During the spring Festival, we are accustomed to the platform resources to customers' marketing campaigns by integrating the HUD chance of LIBOR and market hype for clients, we seek to accommodate.
We kept our advertising revenue flat year-over-year after excluding currency factors. Throughout the Spring Festival period, we maximized the integration of platform resources and coordinated with customer marketing milestones, combining platform hotspots with customer cold periods to maximize the accommodation of customer promotion budgets.
The advertising revenue related to Spring Festival marketing has increased by 50% compared to the same period last year, with the advertising revenue from the platform-operated Spring Festival IP increasing threefold. This growth is attributed to the diversification of our marketing development and the enrichment of our products.
Customers promotion promotion budget as well as much as possible as a result, our gross AD revenues related to the spring Festival AD placements increased by 50% year over year of which gross AD revenue connected to the spring Spring Festival ip's doubled year over year.
More customers from various industries can participate in the marketing hotspots of the Spring Festival, including e-commerce, gaming, footwear and apparel, healthcare, digital products, food and beverages, and other industries.
Speaker Change #169: With our diversified marketing offerings and products customers from more industries can participate in the spring festival marketing campaigns. Therefore outgrowth that revenue from E Commerce online games footwear, and apparel health care digital products, and food and beverage sectors, etc, Oh more than doubled year over year.
During the Spring Festival marketing period, the sales of smuggled goods in Guangzhou more than doubled.
For example, the beverage brand Wanglaoji remembers the most important traditional Chinese festival on Weibo—Spring Festival.
Conveying brand blessings around brand ambassador Zeng Shunxi and several other hot topics. During the Spring Festival IP, more than 300 celebrities will send blessings with the topic of 'Good Luck in the Year of the Dragon,' creating a strong atmosphere and continuously fostering the brand's cultural mindset. The brand's production volume on Weibo increased by 290%.
Speaker Change #169: For example, during this call.
Speaker Change #170: Festival, the beverage brand loyalty launch the sound good wishes campaigns on Weibo through the hot topics around a brand ambassador so shouldnt see such as spring Festival bleeding, a specious worse and the popularity of works oversee hunting celebrities posted posted good fish and.
Mr. Wang's spring e-commerce sales increased by more than 20% year-on-year
Speaker Change: Amid a relative soft ad market in the first quarter, our revenue were flattish year over year on constant currency basis.
Speaker Change: During the Spring Festival, we are custom of platform resources to customers' marketing campaigns.
Speaker Change #171: The topic of good luck in the year of your Dragons to create ambitious atmosphere and enhance the brand mindset of the auspicious deep culture. As a result, the customer successfully abuse marquee hype, which is the brand exposure, although LIBOR, increasing 219 percentage, which drove the growth.
Speaker Change: by integrating the hot trends of web or market hype for clients.
Speaker Change: We seek to accommodate customers' promotion budget as well as much as possible.
Speaker Change: As a result, our growth-out revenues related to the Spring Festival at placement increased by 50% year-over-year, of which growth-add revenue connected to the Spring Festival IPs doubled year-over-year, with our diversified marketing offerings and products.
Speaker Change #172: E Commerce sales of the brand during the spring festival season, Scoop, a good growing 20% year over year.
Speaker Change #173: G fast and easy.
Speaker Change: Customers from more industries can participate in the Spring Festival marketing campaigns. Therefore, our growth that revenue from e-commerce, online games, foodwear and apparel, healthcare, digital products, and food and berry sectors, etc., all more than doubled year for year.
Speaker Change #173: Sure.
Speaker Change #174: Actual Washington here, So I'm sure it comes out.
Cause the highest recorded in conjunction and I'm sure. They will that can reach all yourself and that's one of the occasion to meet you all that you do about the 'twenty, there's a lot of passion.
Speaker Change #174: Sure.
Speaker Change #175: Cohort, which also has a tool shop you as usual that you do.
Speaker Change: For example, during the Spring Festival, the beverage brand Wang Laudji launched the Sand Good Wishes campaigns on Weibo through the hot topics around the brand ambassador, Zong Shui, such as Spring Festival greetings, auspicious words, and the popularity of works.
Speaker Change #175: Okay.
Speaker Change #176: By industry, we are pleased to see the handset online game industry. The same double digit growth year over year. The handset sectors continue to the grow of the high base as we capture a higher wallet share among customers at budget. Thanks to the customers' recognition how can marketing offerings as for the online.
Speaker Change: Over 300 celebrities posted Good Wish under the topic of good luck in the Year of the Dragon to create an auspicious atmosphere and enhance the brand mindset of the auspicious culture.
Speaker Change #177: <unk> with a tailwind from a gaming license approval and our clients growing demand in content marketing and revenue from the from the game sector. Also also grew significantly.
Speaker Change: As a result,
Speaker Change: the customer successfully built market hype, with its brand exposure on Weibo increasing 290 percentage, which drove the growth of e-commerce sales of the brand during the spring festival season, growing 20% year for year.
They jumped higher from here.
So I mean, it was a careful balance with Televisa.
Speaker Change #178: Uh huh.
Speaker Change #179: So without in any way a show of hands. It looks like when you have a choose your if I don't feel hot.
Speaker Change #179: Jim.
Speaker Change: From the perspective of different industries, in the first quarter, both the mobile phone and gaming industries maintained double-digit year-on-year growth. The mobile phone industry, with the stabilization of new customer hotspot marketing, has led to an increase in Weibo's share within customer marketing budgets.
Speaker Change #180: Called loosening up at the Orange Love your thoughts what do you mean by it.
Speaker Change #181: Some of that in 'twenty up shops in particular.
Speaker Change #182: We want all of a sudden total juices going even to me. It doesn't you might as well you can touch I mean piece of a uniform it's reaching.
Speaker Change: From the first quarter, it still maintains a year-on-year growth trend. In the gaming industry, with the favorable issuance of licenses and the accelerated marketing speed based on content ecosystem by clients, the gaming revenue in the first quarter also showed a significant increase.
Speaker Change #183: Ciena chartered yet able to talk to you soon.
Speaker Change #183: Sure.
Speaker Change #183: Same with <unk>.
Speaker Change #184: Pes shutdown dialog that's unusual in nature.
Speaker Change #185: So he made phone calls you mean.
Speaker Change: By industry, we are pleased to see the handset and online game industry sustain double-digit growth year-year. The handset sectors continue to grow of a high base as we capture a higher wallet share among customers at budget, thanks to the customer's recognition of hot-chain marketing offerings.
Speaker Change #186: Sure So junior.
Speaker Change #187: So as you touched on quite a high.
Speaker Change #188: So sure jumping back.
Speaker Change #189: On the huddle to them.
Speaker Change #190: How many cohorts you will go out in the country.
Speaker Change #190: Yeah.
Speaker Change #191: People don't do it.
Speaker Change #191: Yes.
Speaker Change: As for the online games, with the tailwinds from game license approval and the client's growing demand in content marketing and revenue from the game sector also grew significantly.
Speaker Change #191: Well gentlemen, Tim Archer, Tony is I mean, its own ship acquire Sunoco tool.
Speaker Change #192: People, who names on them not selling out of him.
Speaker Change #192: Okay.
Hamilton Jonathan: Hamilton Jonathan.
Speaker Change #194: So I think people are going to do you don't try to the country.
Speaker Change: In the Americas sector, although the overall income of the UK and Turkey has recovered somewhat compared to the previous period, as previously expected, there is still a significant year-on-year decline.
Speaker Change #195: On the fleet side, despite a sequential recovery they'll cosmetic and beauty sector continue to decline year over year as we previously expected.
Speaker Change: Mainly because consumers' consumption concepts and trends have changed, gradually shifting towards more cost-effective ways, leading to international brands' sales still being under pressure, affecting the pace of new product launches and the scale of budget investments.
Speaker Change #196: This was mainly because the cost of the.
Hamilton Jonathan: The consumers concept and trends are gradually shifting toward more cost effective products as we built the sales of the international beauty brands were still under pressure, which negatively affected the pace of new product launch and and that's there's a scalable buckets.
Speaker Change: Even though domestic local beauty brands such as Ruying have continuously improved in product quality and nutrition, their advertising on Weibo continued to increase until the second half of last year. This was aimed at addressing the challenge of significant growth, but it still could not offset the overall revenue impact caused by the decline of international brands.
Speaker Change #197: That said, we are pleased to see continuous improvement of domestic beauty brands in product quality and brand marketing leading to increase the brand AD placement on LIBOR since the second half of last year in the first quarter AD revenues from domestic beauty brands grew over 50% year over year.
Speaker Change: In order to promote the marketing willingness of new products for beauty customers and enhance marketing effectiveness, this year we will strengthen cooperation with e-commerce platforms and domestic brands, and continuously explore the cooperative promotion of new products in the broad sales industry on social platforms and e-commerce platforms.
Speaker Change: Provide better marketing support for customers to achieve more stable growth in the fast-moving consumer goods industry in future quarters.
Speaker Change #198: Over the gross you cannot fully offset the impact of the decline in the international brands on our overall revenue yet.
Speaker Change: In the second quarter, we will attempt to focus on deep cooperation with Tmall in the beauty and apparel industries. By leveraging Weibo's hotspot marketing capabilities, we aim to help merchants' new products gain full-chain value from social influence to e-commerce purchasing power, thereby enhancing customers' perception of the value of Weibo hotspot marketing.
Speaker Change #199: In order to boost clients willingness of new product marketing and improve its performance will strengthen cooperation with e-commerce platforms, and domestic brands and actively east, Florida Synergetic promotion of new products in the F. M C D industry, social and e-commerce platform and provide clients with.
Speaker Change: On the fleet side, despite of sequential recovery, the cosmetic and beauty sector continued to decline year-of-year, as we previously expected.
Speaker Change #200: Better marketing support we hope these efforts will translate into more stable growth in the F M city of industry in the coming quarters.
Speaker Change: This was mainly because the consumer's concept and trends are gradually shifting to more cost-effective products.
In the second quarter, we attached.
Speaker Change: As a result, the sales of the international beauty brands were still under pressure, which negatively affected the pace of new product launch and thus their scalable budgets.
Speaker Change #201: The in depth completion with Tmall, focusing on the beauty footwear and apparel industries, leveraging weibo's strength in hotel marketing, we aim to create full funnel that to customers for their new product launch from social influence to e-commerce conversion and thus enhance customer's perception.
Speaker Change: That said, we are pleased to see continuous improvement of domestic beauty brands in product quality and brand marketing, leading to increase the brand ad placement on Weibo since the second half of last year. In the first quarter, our revenues from domestic beauty brands grew over 50% year-over-year
Speaker Change #202: Weibo's value in Hudson marketing.
Speaker Change #203: Tony and I kind of national.
Speaker Change #204: So maybe talk about sort of shot you're doing so much more potential for me John.
Speaker Change: However, the growth still cannot fully offset the impact of the decline in the international brands on overall revenue yet.
Speaker Change #205: Also you do touch on his shoulder telling me it was all sorts of nutrition.
Speaker Change #205: Sure that's helpful.
Speaker Change: In order to boost client willingness of new product marketing and improve its performance,
Speaker Change #205: Sure.
Speaker Change #206: Also to ensure that children when dealing in email E G.
Speaker Change: We will strengthen cooperation with e-commerce platforms and domestic brands and actively explore the synergetic promotion of new products in the FMCG industry on social and e-commerce platforms and provide clients with better marketing support.
Speaker Change #207: She's got a bonus but I wouldnt go too.
Speaker Change #208: A team or totally bushman that you know any of the channels.
Speaker Change #209: She doesn't want Greenwald soon.
Speaker Change #210: So I'm just trying to do it for me.
Speaker Change #211: Overall speaking, although revenues from certain industries, such as cosmetics and beauty industry feel short of expectation and that's the overall revenue growth, we delivered decent operating profit, which further increased from last year, San Francisco Sawday execution of our efficiency initiatives leveraging improved operating efficiency.
Speaker Change: We hope these efforts will translate into more stable growth in the FMC industry in the coming quarters.
Speaker Change: In the second quarter, we will test.
Speaker Change: will test the in-depth cooperation with Timor.
Speaker Change: Focusing on the beauty, foodwear, and apparel industries, leveraging web of strength in whole chain marketing, we aim to create full funnel value to customers for their new product launch, from social influence to e-commerce conversion.
Speaker Change #212: <unk> stable profitability and healthy cash flow, we further elevated our financial flexibility, giving us ample room to invest in the vertical content ecosystem to drive user growth and engagements as well as strengthen our monetization competitiveness.
Speaker Change: and thus enhance customers' perception of Weibo's value in hot-chain marketing.
Fay: She's a alitalia topic just on the U S. How would you work with that let me turn the call over to Fay tell for a financial review.
Speaker Change: Overall, although the decline in revenue from the beauty industry has negatively impacted our total income, thanks to the strong implementation of various measures in overall efficiency by the company, we have managed to mitigate the effects.
Fay Tell: Thank you Adolfo and Hello, everyone.
Speaker Change #215: Welcome to live with the first further plenty plenty for earnings conference call.
Speaker Change: We have maintained a high operating profit margin and improved compared to last year.
Speaker Change #216: Let's start with user metrics he much plenty plenty for wave one and six the first punch at $88 million and having to deal with the 255 million female.
Speaker Change: The improvement in operational efficiency, stable profitability, and healthy cash flow have enhanced the company's financial flexibility, allowing us to further invest in the construction of the Weibo ecosystem's competitiveness, increase our user base and activity, and strengthen our commercial competitiveness.
Speaker Change #217: Given our massive user base and increasingly mature he owns their mindset.
Speaker Change: Over speaking, although revenues from certain industries such as cosmetic and beauty industry, feel short of expectation and drive the overall revenue growth, we deliver decent operating profit, which further increased from last year, since the solid execution of our efficiency initiatives.
Speaker Change #218: Proactively adopted arioso strategy plenty plenty for which puts more emphasis on the activation and engagement of high quality yoga mat.
Speaker Change #219: Leveraging effective channel to lessen and optimize the social features and our differentiation in house chat.
Speaker Change: Leveraging improved operating efficiency, stable profitability, and healthy cash flow, we further elevated our financial flexibility, giving us ample room to invest in the vertical content ecosystem to drive user growth and engagements, as well as strengthen our monetization competitiveness.
Speaker Change #220: Turning to financials.
Speaker Change #221: The remainder of my prepared remarks with folks on that got resolved and luxury among our U S. Dollar term and all the comparisons are on a year on year basis, unless otherwise noted.
Speaker Change: Next, let me tell me to Cao Fei, to get to the EGEW's financial review. With that, let me turn the call over to Faytel for a financial review.
Speaker Change #222: We continue to experience happiness to our financial dealings with the volatility or frame change rates in the last 12 months.
Speaker Change: Thank you, Galtze and hello everyone. Welcome to Weibo's first quarter, 2024 earnings content call. Let's start with user metrics in March, 2024.
Speaker Change #223: Since our business, primarily occupancy China, well report our financials in U S. Dollar our financial performance was affected by adverse currency movement.
Speaker Change: Weibo's NU's reached 588 million, and average DAU used the 255 million. Given our massive user-based and increasingly mature user mindset,
Speaker Change #224: Now, let me walk you through our financial highlights for the fourth quarter scientists had before.
Speaker Change #225: Weibo's fourth quarter plenty plenty more that revenue what they found that 95, plus that made it a b class a core process or flattish on a constant currency basis.
Speaker Change: We have proactively adjusted our user strategy in 2024, which put more emphasis on the acquisition and engagement of high-quality users, leveraging effective channel investments,
Speaker Change #226: Operating income was 175.
Speaker Change #227: And Canadian rather than the operating margin of 32%.
Speaker Change #228: Net income attributable to Weibo makes a lot of times at under $6 6 million, rather than and that's margin of 27% that would be the ETR was 41 at that.
Speaker Change: Optimize the social features and our differentiation in HouseChad.
Speaker Change: Turning to financials. As a reminder, my prepared remarks was focused on that Gaii results, all monetary amounts are in the US dollar term, and old comparisons are on a year-and-year basis, unless otherwise noted.
Speaker Change #229: Let me give more color on the fourth quarter 2017 for revenue performance.
Speaker Change #230: Weibo's advertising and marketing revenues for the fourth quarter plenty plenty for what they're fun to 13 9 million a decrease of bad press that a flattish heartburn precedented.
Speaker Change: We continued to experience happiness to our financials. Due to the volatility, our free exchange rates in the last 12 months.
Reflecting low seasonality.
Speaker Change: Since our business primarily offers in China, while we report our financials in US dollars, our financial performance was affected by adverse currency movements.
Speaker Change #231: Happy to Macquarie environment.
Mobile AD revenue welfare fund to the 22 upon fascinated contributed approximately 95% of total AD revenue in terms of growth the online game and the third piece of our docs that terrorists demonstrated a strong momentum.
Speaker Change: Now, let me walk you through our financial highlights for the first quarter, 2024.
Speaker Change: We were first quarter of 2024 net revenue for 3595 plus 5 million, a decrease of 4% of Lattish on a constant currency basis.
Both bookings double digits world.
Speaker Change #232: For the online game sector with that if they did with Brahma mother nature.
License approval and the capture of AD budget of Nuomi, along lockbox her title.
Speaker Change: Operating income was 125.8 million, represent operating margin of 32% percent. Next income achieves both to Weibo, rich 106.6 million, representing a net margin of 27%.
Speaker Change #233: We're also encouraged to see the solid add water and inquiries.
Speaker Change #234: That sector continuing into 'twenty 'twenty four.
Speaker Change #235: Leveraging our years of population around content ecosystem in the frame seaborne coal, but MSHA category continued descending trajectory year over year, though delivering sequential growth.
Speaker Change: Salute to the ETI, I am 41 years old.
Speaker Change: Let me give more color on the first quarter 2020 revenue performance.
Speaker Change: We were advertising and marketing revenues for the fourth quarter, 24, with 339 million, a decrease of 5% of Latch on a counter-crackery basis, reflecting low-seasonality and the affected macro environment.
Speaker Change #236: We're seeing that M C G category, the food and beverage and the apparel sector already where it's harder to positive growth.
Speaker Change #237: Well, the cosmetic and personal care sector still face the challenges from lot of Newport, I personally I'm intense competition among asset for us but.
Speaker Change: Mobile ad revenues were 322.5 million, contributing approximately 95% of total ad revenue.
Speaker Change #238: AD product promotions. This was the largest followed by social display on the pocket in a search.
Speaker Change: in terms of growth. The online game and the 3C product sector demonstrated strong momentum. Both booking double-digit growth.
Speaker Change #239: Revenue from Alibaba for the first quarter.
One 6 million of interest of 23% or 25% on constant currency basis.
Speaker Change: For the online game sector, we benefited from normalization in the game license approval and captured ad budget of newly launched blockbuster titles.
Speaker Change #240: We are pleased to see the solid ask world from Alibaba continues into tiny tiny for SAP.
Speaker Change: We are also encouraged to see the solid-add-wallet increase of concept sector continuing into 2024.
Speaker Change #240: Seth if mother had a pickup in AD budget amidst the intensified competition landscape.
Speaker Change: Leveraging our years of cultivation along constant ecosystem in the first C vertical. For the FMC category, it continued on descending trajectory year over year, though delivering sequential growth.
Speaker Change #241: Before turning to that segment, let me share some preliminary color on the chest and read the second quarter uptime to Italian fall.
On the App that advertisers activate embrace the companion before.
Speaker Change #242: Before the opening of Summer Olympics.
Speaker Change: Within the FMCG category, the food and beverage, and the parlor sectors, already returned to positive growth.
Speaker Change #243: Consumption sentiment also seems to be bottoming out makes the holiday effect and execution of economy female or packages.
Speaker Change: While the cosmetic and the personal care sector still face the challenges from lot of new product pipelines and intense competition among ad platforms.
Wed hope for further recovery of our AD business in the second half of the year driven by a 94 three months as well as a relatively easier comparable base.
Speaker Change: The ad product, promoting this ad was the largest, followed by social displays on the topic and search.
Speaker Change #244: Turning to back that revenue what the fixed cost that's made in the fourth quarter.
Speaker Change: Add revenue from Alibaba for the first quarter is 22.6 million, an increase of 23% or 29% on a constant currency basis.
Speaker Change #245: Chris off their percent or an increase of 1% constant currency basis.
Speaker Change #246: Turning to costs and expenses.
Speaker Change #247: Total costs and expenses for the fourth quarter with 216.
Speaker Change: We are pleased to see the solid ad roles from Alibaba continue into 2024. Sankto is moderate pickup in ad budget amidst intensified competition landscape.
Speaker Change #248: $69 7 million, a decrease of 5% mainly due to lower.
Speaker Change #249: And our related expenses and the marks against that.
Speaker Change #250: Operating income in the fourth quarter, one time, that's I mean, that's one 8 million.
Speaker Change: Before turning to web segment, let me share some preliminary color on the trends entering the second quarter of 2024.
Speaker Change #251: Rather than to operating loss of 32% compared to 30 months, Besides Emerson Purion last year.
Speaker Change: On the upside, Advert Hevers actively embrace the Tang Pan window before the opening of Summer Olympics.
Speaker Change #252: Turning to income tax.
Speaker Change #253: Murder income taxes, but for first quarter.
Speaker Change #254: <unk> was $25 million compared to the total one 5 million last year.
Speaker Change: Consumption sentiment also seems to be bottling out with the holiday effect and execution of economic stimulus packages.
Speaker Change #255: That is how much. It was also LIBOR in the fourth quarter with 100, and 606 made it a big bite at the forefront of black ish in them feed her.
Speaker Change: We hope for further recovery of our ad business in the second half of the year, driven by 904 of the month, as well as a relatively either comparable base.
Speaker Change #256: That margin with 27% lapping worth it that's impure last year.
Speaker Change: Turning to VAS. VAT revenue was 56.5 meeting in the first quarter, a decrease of 3% or an increase of 1% on a contract credit basis.
Speaker Change #257: Turning to our balance sheet and the type of items.
Speaker Change #258: Perfect for us plenty of time before.
Speaker Change #259: Weibo's cash cash equivalents and sure to me Blackman.
Speaker Change #260: Those little gray spot at a time without being in the first quarter has provided by all kinds of activities with long times inspection die pardon me that type of expenditure.
Speaker Change: Turning to Cuts and Expenses.
Speaker Change: Total cost and expenses for the first quarter with $269 plus $7 million, a decrease of 5%, many due to lower personnel related expenses and the marketing expense.
Speaker Change #261: One five kilometer and depreciation and amortization expenses amounted to 48 million.
Speaker Change: Operating income in the first quarter is 125.8 median, representing operating margin of 32% percent, compared to 31% in the same period last year.
Before turning to the next session.
Speaker Change #262: Please just one Luckily we have completed the distribution of special dividends of $82 82 of the U S dollar father, and their chef or it yet so our shareholders with other big amount approximately to what kinds of automated looking forward living they haven't committed.
Speaker Change: Turn into income tax under gas measure, income tax spent for the first quarter was 25 million, compared to 2159 million last year.
Speaker Change: Net income retrieved to labor in the first quarter was $106.6 million, a decrease of 4% of lackish in Riem B term.
Speaker Change #263: To consistently return value to our shareholders I think song lyric ways to enhance shareholder at her including but not limited to distributing a dividend.
Speaker Change: Next margin was 27% slackish versus the same period last year.
Speaker Change #263: Besides.
Speaker Change #264: I would also like to provide outfit our ESG initiatives.
Speaker Change: Turning to our seven sheet and cash flow items, as of March 31, 2014. We both cash equivalent and sure-term investments.
Speaker Change #265: In April we released our third yet to report, which details the company's initiatives and progress in key ESG area.
Speaker Change: totaled 3,000, 25 billion. In the first quarter, cash provided by all trade activities was 139.5 million. Capital expenditures total 217 million.
Speaker Change #266: As a security.
Brexit protection human capital calls on quality, social responsibility and the great operations, Yeah, Debra yesterday practice is crap and he never called showcase our long term commitment.
Speaker Change: And depreciation and monetization expenses are mounted to 14.18 million.
Speaker Change #267: So it's a blend of both your bathroom and carbon impact our youth.
Speaker Change: Before turning to the Kranday session,
Speaker Change: We are pleased to announce that we have completed distribution of special dividend of 82 US dollars, of 82 cents US dollars for ordinary share, or ADS, to our shareholders.
Speaker Change #268: They're calling on equator elite business partner and other stakeholders.
Speaker Change #269: Weibo is desktops in the method of making the world a better place they put power off label.
Speaker Change: with average amount of approximately 200 million.
Speaker Change #270: Looking ahead, there except for Florida.
Speaker Change: Looking forward, we remain highly committed to consistently returning value to our shareholders and explore various ways to enhance shareholder return, including but not limited to distributing dividends.
Speaker Change #271: Why are yes, your governance system and he has our yesterday pro forma way.
Speaker Change #272: Where are you in white oak participants and its stakeholders around the LIBOR ecosystem to jointly achieve the thunderbolt investment the goals of the economy.
Speaker Change: Besides, I would also like to provide an update on our ESG initiative.
Speaker Change #273: For us as a therapy.
Speaker Change #274: Our Arab after that sub.
Speaker Change #275: More information of Rguest seat in Florida.
Speaker Change: in April , we released our third ES2 report.
Speaker Change #276: With that let me now turn.
Speaker Change: which details the company's initiatives and progress in the CSG area,
Speaker Change #277: The call over to the operator for the pending session.
Speaker Change #278: Thank you to ask a question you will need to press star one and one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one on one again.
Speaker Change: such as cyber security and privacy protection, human capital, content quality, social responsibility, and green operations, etc.
Speaker Change: The SG practice described in the report showcase our long-term commitments to sustainable development, covering the impact on our users, content creators, employees, business partners, and other stakeholders.
Speaker Change #279: Thank you.
Speaker Change #280: We will now take our first question.
Speaker Change #280: This is from Felix Liu from UBS. Please go ahead.
Speaker Change #280: Oh.
Speaker Change: Weibo is discussed in the vision of making the world a better place with the power of Weibo.
Speaker Change #281: All of the tier one tier one.
Speaker Change #282: It will be below the consensus.
Speaker Change #283: No what that once you said why you said Hello.
Speaker Change: Looking ahead, we will strive to further refine our ESG governance system and enhance our ESG performance.
Speaker Change #283: The outlook.
Speaker Change #283: Hum.
Speaker Change #284: What's up on yet.
Speaker Change #285: Montana town shoes for men and women.
Speaker Change: We invite all participants and stakeholders around the Reibo's ecosystem to jointly achieve the sustainable development goals of the company, as well as the socerity.
Speaker Change #286: What are you too.
That's correct.
Speaker Change #287: Thank you management for taking my question and congratulations on the first quarter beat to consensus.
Speaker Change #287: Patients.
Speaker Change #288: Question is on your outlook for the advertisement business in the second quarter and second half.
Speaker Change: You may visit our IR website to obtain more information of our ESC disclosure. With that, let me now turn the call over to the operator for the PANNAS session.
Speaker Change #289: How is advertiser sentiment trending.
Speaker Change #290: How do you expect or how do you expect your advertisement business to perform and could you maybe elaborate a little bit more on your strategy. Thank you.
Speaker Change: Thank you. To ask a question, you will need to press star 1 and 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again.
Speaker Change #291: Oh, sure, which I'm on it but.
Speaker Change #292: Well I kinda on them, but don't carry I mean, there are some in the or a sense, what you do with sugar.
Speaker Change: Thank you.
Speaker Change: We will now take our first question.
Speaker Change #292: Hi, chip, making sure that to judge how no.
Speaker Change: This is from Felix Liu from UBS. Please go ahead.
Speaker Change #293: There are some of them could you do you will not see room articulate until you quickly because you don't know where you're going to change it no.
Felix Liu: Thank you to the management for taking my question, and congratulations to our company for beating the consensus expectations in the first quarter. My question is about the outlook for the advertising business going forward. Could the management please elaborate on the current sentiment of advertisers for Q2 and the second half of the year, our advertising expectations, business outlook, and specific strategies?
Speaker Change #293: So when you do go to Hong Kong.
Speaker Change #293: Are you sure that actually all of Asia.
Speaker Change #294: Oh, Yeah, sure telomerase long poorly that'd be the outcomes of that problem.
Speaker Change #294: But for.
Speaker Change #295: Sometimes in a bunch of where we've come to our if you go to seven seven shisha shook out and go shopping.
Speaker Change: Thank you, management, for taking my question and congratulations on the first quarter B to consensus expectations.
I heard somebody like kind of on the on the Shabaniyah through her social digital cannot be argued to use your own show in Los Angeles.
Speaker Change: My question is on your outlook for the advertisement business in second quarter and second half. How is advertiser sentiment trending and how do you expect your advertisement business to perform? And could you maybe elaborate a little bit more on your ad strategy? Thank you.
Speaker Change #296: Got it.
Speaker Change #297: Alright. Thank you very much for the question first of all let's talk about our expectation on Q2 and also the second half.
Speaker Change #298: Overall speaking so in last year from Q1, all the way till Q4, we have been seeing an increasing assertion sheets of the advertisement industry had in 2020 for each quarter, but still we are keeping a very cautious matter in this area in terms of our expectation about the recovery of the sentiment.
Speaker Change: I think Q2 and the second half of the year
Speaker Change: Looking ahead, overall, because the estimates for the second, third, and fourth quarters are quite uncertain, they are actually gradually strengthening. As for our estimates for each quarter of 2024, we will be more cautious each quarter.
Of course in Q1 this was a more optimistic.
Speaker Change #298: Patients.
Speaker Change #299: Apart from the cosmetic and beauty products, our industry, we've been seeing a slow recovery and also a quite normal sentiments of the rest of it the other advertisers probably other industries and also in Q2, especially in March and also in April.
Speaker Change: From the situation in the first quarter, it is more optimistic than we originally expected. Most industries, except for the heavy drag from the beauty industry, have actually maintained positive growth.
Speaker Change #300: Of course that we have seen some of the possibly try and accept that seems that the consumption.
Speaker Change #300: Things to be slowing down however, still we believe that the expectation in the second half and Q3 and Q4 is more optimistic than the tier one and also Q2 of this year.
Speaker Change: However, we also see that in the second quarter, starting from March and April , it seems that many consumer industries in the market are cooling down again. But overall, we are slightly more optimistic about the second half of the year, that is, the third and fourth quarters, compared to the second quarter.
Speaker Change #300: Okay.
Speaker Change #301: You know what I've got a problem you know quintiles on the cuckoo yet.
Speaker Change: [inaudible]
Speaker Change #302: What I'm, telling you shouldn't you saw you're talking about ultra low power Derbyshire show this yet.
Speaker Change: All right, thank you very much for the question. First of all, let's talk about our expectation on Q2 and also the second half as overall speaking.
Speaker Change #303: I'll get rich boy I'll pass over to Paul Mclaughlin, Michele Cook relationships bioequivalence was somewhat.
Speaker Change: So in last year, from Q1 all the way to Q4, we have been seen an increasing of the certainties of the advertisement industry. And in 2024, we are keeping a very precocious manner in this area in terms of our expectation of the recovery of the sentiment.
Speaker Change #304: We are told that you don't get a lot easier to that new employee share kind of what your opportunity is that cheap while creating a system that is yet really any mature.
Speaker Change #305: To choose or choose your I assume with that kind of go through the use of water at Yum Asia. So.
Speaker Change: So, of course, in Q1, this was more optimistic than our expectations.
Speaker Change #306: So it doesn't appear sure she's Alamo group all of them together.
Speaker Change: Apart from the cosmetic and beauty products industry, we've been seen a slow recovery and also a quite normal sentiment of the rest of the other advertisers from the other industries.
Speaker Change #307: Shanghai onto their cookies, she's doing value share go down until you can show us if you go to a ballpark.
But of course yeah.
Speaker Change: And also in Q2, especially in March and also in April , of course, that we have seen some of the possible trend except that seems that the consumption seems to be slowing down. However, still, we believe that the expectation in the second half in Q3 and Q4 is more optimistic than the Q1 and also Q2 of this year.
Speaker Change #308: Oh gosh.
Speaker Change #308: So he does.
Speaker Change #309: I'm going to let up on that.
Speaker Change #310: How long until you publish in peanuts.
Speaker Change #311: <unk> already seen assure people that he chat with them with you and if you're not seeing anything like that.
Les: Les you talked to them since you got caught Hindi movie you can usually get shut off.
Speaker Change #313: Got it.
Speaker Change #313: Okay.
Speaker Change: On the other hand, we have also observed that our customers are increasingly allocating their limited budgets. On one hand, everyone knows...
Speaker Change #314: And also with the limited budget on the advertising most of these budgets are want to be effective.
Speaker Change: Invest in some effective channels, such as live streaming or performance advertising. Additionally, some clients' brand or new product budgets are increasingly being concentrated on specific time points, such as the Spring Festival and holidays that I mentioned earlier.
Speaker Change #315: Advertisement for instance, the lifestream.
Les: And also it is pretty much focusing on the branding as well as some of the promotion of the new brands.
Speaker Change #316: This is going to be focused on the some of the hot topics like the IP of the entertainment programs or the holidays like the Chinese new year et cetera.
Speaker Change: Including some popular IPs from films and TV shows. This trend is actually quite evident when we look at past records. So, as I mentioned, we will focus our main efforts on this.
Speaker Change #316: So we've been seeing a pretty much obvious trends after the allocation of the budget in these areas in the past quarter and of course, another very important thing is that we have to refocus on the hot topic of marketing and also some of the relevant areas like the hot topics of the.
Speaker Change: Strengthen our own core competencies, including some trending marketing topics.
Speaker Change: Holiday hotspots, including some popular topics in films and also e-commerce hotspots like 618 and Double 11, are areas we focus on in our operations. At the same time, we will also strengthen the marketing hotspots for our clients' new products. This is a choice for Weibo to highlight our core competitiveness and competitive advantages in the current market competition.
Speaker Change #317: Festivals and also some of the IP, that's what that's the E Commerce focus for instance, the <unk>.
Speaker Change #318: Ian or double 11 shopping festival and also we have to pretty much focus on the new product marketing and also the new brand marketing as well. So that is to say that I guess the old boy child, we still need to focus on the core competitive in that.
Speaker Change: Good.
Speaker Change #318: Areas of Weibo as a whole.
Speaker Change: And also with the limited budget on the advertising, most of these budgets went to the effective-based advertisement. For instance, the live-stream advertisement.
Speaker Change #318: Okay.
Speaker Change #318: Thompson.
Speaker Change #318:
Thompson: Oh sure.
Speaker Change #320: Pardon me I believe in terms of them should you will tune that should you assume that LIBOR floor.
Speaker Change: And also, it is pretty much focusing on the branding as well as some of the promotion of the new brands.
Thompson: So I'm a shift.
Speaker Change #321: You wish you should email, but what about your account this year.
Speaker Change #322: Southern yellow.
Speaker Change: This is going to be focused on the, for instance, some of the hot topics like the IP of the entertainment programs or the holidays like the Chinese New Year, etc.
Sasha: Oh, Yeah Sasha.
Speaker Change #324: They don't shoot Sheila this year. So it's only really on what kind of I shouldn't be that what you're doing the.
Speaker Change #325: So on the on our shipping you, though Shlomo you cheerfully Keisha you deem the show with him now.
Speaker Change: So we've been seen a pretty much obvious trend of the allocation of the budget in these areas in the past quarters.
Speaker Change #326: Yeah Chi dollar you alone.
Speaker Change #327: You saw one golf show about dollar for thinking and Susan feel cheated.
Speaker Change: And of course, another very important thing is that we have to really focus on the hot topic marketing and also some of the relevant areas like the hot topics
Speaker Change #328: 1000, a Dutch and English on golf ball.
Speaker Change #327: Yeah.
Speaker Change: of the festivals and also some of the IPs, as well as the e-commerce focus, for instance, the 618 or double oven shopping festival.
Speaker Change #329: That's something that I know they don't you wish you much good luck.
Speaker Change #330: 100, <unk> bulk or he or she is sometimes do that shouldn't have a job. So it is one that I'm sure. We can chime in yeah sure Nicole totaled $10 you got to do part.
Speaker Change: And also, we have to pretty much focus on the new product marketing and also the new brand market as well. So that is to say that against the overall trend, we still need to focus on the core competitiveness areas of Weibo as a whole. Okay.
Speaker Change #329: Got it.
Speaker Change #331: [noise] Gordon.
Speaker Change #331: Yeah.
Speaker Change #331: China.
Speaker Change: From the perspective of different industries
Speaker Change #331: Yeah.
Speaker Change #331: Okay.
Speaker Change: In Q2 and the second half of the year, on one hand, we will focus on our demand-driven industries, such as footwear and apparel.
Cynthia This is my central no I wish I knew.
Speaker Change #332: Shop, So GTS will sit on our hands here, if you're going with us in the short term medium at the GPO and the fit that we're kind of out of a higher base and does she found the Queen Wap Chooser of female genital Nacho teach you argue for a lot of the the kind of I'll say that.
Speaker Change: Games, food and beverages, including the health sector, in the second half of the year, there are events like the Olympics and other major events.
Speaker Change #333: They bought that cohort are there some end user I could be off to school. So that's what I said I actually go higher.
Speaker Change: Revenue Increment. In the gaming industry, as we mentioned earlier, our gaming industry used to rely heavily on performance advertising. However, competition in performance advertising has been quite intense in recent years. Under the current circumstances, our content-based advertising, including hotspot event-based advertising, is also gradually increasing. The overall structure of gaming advertising and the gaming ecosystem are rapidly improving. Therefore, we still expect to see these industries driving our growth in the second half of the year.
Speaker Change #334: These are hard up Oxford, I think shorter term value, which is the usual to higher bulk sale that's helpful. Tony.
Speaker Change #333: Tony.
Speaker Change #335: No you've got it won't be like yourself.
Phil: Hello, Phil.
Speaker Change #337: Young way so she actually you'll see it all happens another shuttle bus in the junior Eudocia, Charlestown and farmers aren't yourself I have something that's unknown cope with Asia shut down.
Tony Chunky: Actually one kind of Tony Hawk, and our Hyatt Union, you've got how quickly it bothers I'm not going to go on until nearshore do not come until it got it.
Speaker Change: [inaudible]
Tony Chunky: Uh huh.
Speaker Change: Thank you. You're welcome.
Speaker Change #338: Okay and also in terms of the overall industry, we have been seeing that in Q2 and also in the second half we've been seeing some of the focuses of the driver of the overall demand from the shields industry on footwear acquaintances and also the gaming food and beverage and also to help et cetera.
Speaker Change: OK, then I'll continue speaking.
Speaker Change: Then for some other industries, for example like
Speaker Change: The mobile phone and automobile industries actually already have a relatively large share of the overall revenue. Moreover, in the past two years, we have seen that the market size of these industries has not shown significant growth. In fact, the mobile phone market is still declining.
Speaker Change #338: In the second half of year, we are going to pretty much focus on these.
Speaker Change #339: And also we're going to have a lot of activities that could pretty much drive up the budget update, but Taiwan like the Olympic games. So.
Speaker Change: However, we will see that these two industries still stand out in terms of customer hotspots due to the advantages of Weibo.
Speaker Change #339: That is to say that the industry is like the footwear as what I said, the affordable beverage are going to be contributors to the plasma industry in the second half up yet and also we've been seeing a very good effectiveness turning up.
Speaker Change: Therefore, these two industries have actually maintained relatively good income growth. In particular, the mobile phone industry, which has a market of one billion, has maintained a year-on-year increase of nearly 20%.
Speaker Change: We believe that although some industries are facing challenges in sales and operations, such as the decline in traditional customers in the automotive industry, overall these two industries should still be able to maintain growth this year and will not drag down our overall revenue growth.
Speaker Change #340: Pretty much the focus on the fact based measurement problem, but gaming industry, which used to be the case, but now we have been seeing more and more focus shifted to the content based on but its been and also some of the hot topic, but it's been so that is to say that the overall structure and also have ecosystem update but this one is from the gaming industry.
Speaker Change: [inaudible]
Speaker Change #340: It's getting better and also as a risk.
Speaker Change: Okay, and also in terms of the overall industry, we have seen that in Q2 and also in the second half We've been seeing some of the focuses of the driver of the overall demand from the shoes industry and footwear for instance and also the gaming food and beverage and also the healthcare etc
Speaker Change #341: We are expecting a positive result on the more optimistic.
Speaker Change #342: A recovery in our second half and also apart from that for the other kind of industries like the handsets and also automotives. According to our estimation. The base number was still quite high so we've been seeing some of the challenges in terms of the automobile industry.
Speaker Change: So in the second half of the year, we are going to pretty much focus on these hot IPs. And also, we're going to have a lot of activities that could pretty much drive up the budget of the advertising like the Olympic Games.
Speaker Change #343: But still we think that there's still some of the uncertainty as to whether we're going to maintain the same growth rate.
Speaker Change #343: As of 2023.
Speaker Change #344: So we need to based on what differentiate at the strat.
Speaker Change: So then to say that the industries like the footwear as well as the food and beverage
Speaker Change #345: And also a core competency in terms of the content market Alex.
While we believe that we still have a very good high ability in terms of the anti risk abilities and also we're seeing that because they have time to see some of the high end.
Speaker Change: are going to be contributive to the agricultural industry in the second half of the year. And also, we've been seeing a very good effectiveness and turning up.
Speaker Change: pretty much the focus on the factor-based advertisements from the gaming industry, which used to be the case. But now we have been seeing more and more focus shifted to the content-based advertisements and also some of the hot topic-based advertisements.
Speaker Change #345: We do see a more allocation of their budgets.
Speaker Change #346: And also any kind of second quarter, but yes, we are able to pay attention to the increasing of this particular project.
Speaker Change #346: So now we do need to be aware that there was still a mess you had that promotes it and then also any at all so most of the industry, we're going to see a very good a recovery.
Speaker Change: So that is to say that the overall structure and also the ecosystem of the advertisements from the gaming industry is getting better and
Speaker Change: And also, as a result, we are expecting a positive result and a more optimistic recovery in the second half of the year.
Speaker Change #347: But oh boy trying to like that but they are still there was a price war and also some subsidies subsidies policies. So the pop it up the automotive industry has actually been down as a result, some of the budget up there, but it's one that's getting shrinkage.
Speaker Change: And also, apart from that, for the other kind of industries like the assets and also automotives, according to our estimation, the base number was still quite high. So we've been seeing some of the challenges in terms of development of these industries, but still, we think that there's still some of the uncertainties that whether we're going to maintain the same growth rate as of 2023. However, still, we need to base on our differentiated strategies and also core competence in terms of the content marketing. And also, we believe that we still have. have a very good high ability in terms of the anti-risk variability.
Speaker Change #348: And also for the other industries, we do see some of the pressures prices like the cosmetics and also the beauty care products.
Speaker Change #349: Shouldn't that we'd been seeing a very good overall quarterly outperformance.
Speaker Change #350: <unk>, almost but still there's a search and a reduction over the past. So this is pretty much in the understanding of that so in Q2, we have to focus on different topics all fast like the other banks and also the others to do more marketing on that.
Speaker Change: And also, we've seen for the hazard industry, some of the high-end hazards
Speaker Change #350: Okay.
Speaker Change #351: So anyway.
Speaker Change #352: So it connects at all that could be a handset and she is to make sure I heard it <unk> that's my view.
Speaker Change: We do see a more allocation of the budget of advertisements. And also in second quarter of the year, we are able to pay attention
All of a sudden it's all for me.
Speaker Change #353: You don't have the feeling that as.
Speaker Change: to the increasing of this particular budget. But still, now we do need to be aware that there is still less new assets promote it. And also in the automotive industry, we've seen a very good recovery.
Speaker Change #354: And you would have a shoulder palais.
Stapleton shall come out to shareholders in the guidance you don't want to touch on is there a healthy amount of up to one but we're talking a lot more time, maybe long enough with us.
Speaker Change: But an overall trend is like that, but still there is a price war and also some subsidies, subsidies policies. So the profit of the automotive industry is actually getting down. As a result, some of the budget of the development is getting shrinked.
Speaker Change #355: You have 10 of them and then they don't tell you showed about Darfur.
Speaker Change #356: BD pressured the deepest hole or teaching had shah sitting down with you if I'm gonna see anyway.
Speaker Change #357: Some golf.
Speaker Change #357: Uh Huh, Yeah, 40 P M at the shut out of it.
Speaker Change: And also for the other industries, we do see some of the pressures, for instance, like the cosmetics and also the VG care products.
Speaker Change #358: We went in to show them and so these guys are behind him anyway of Shanghai.
Speaker Change #359: No way for them to shut down I'm, not able to ensure that our in our financials, you'll do on the show rotation to be all about holiday coming in that yard to go kind of Ontario tissue without a shot so easy to like Oh.
Speaker Change: As I have mentioned, that we've been seen a very good overall quarterly performance and recovery of the performance, but still there is a certain reduction.
Speaker Change: over the past. So this is pretty much an understanding of that. So in Q2, we have to focus on different topics of that, like the other picks and also the others, to do more marketing on this.
Speaker Change #360: At least that's going down the computer inside the us.
Sean: Sure Sean.
The team will be out to only show us how many of their short haul it.
Speaker Change: Okay.
Speaker Change: Additionally, as we mentioned earlier, certain industries are still under considerable pressure in the short term. For example, the beauty industry, which we mentioned earlier, brought us a revenue drag of nearly 5 percentage points in the first quarter.
Speaker Change #362: Another thing that myself and share with you.
Speaker Change #363: Maybe I'll kick off.
Speaker Change #363: Okay.
Speaker Change #364: Alright, and also I would like to share some of the colors on some of the most stressful and that's just last branch doses cosmetics as I have already decided that and can you tell us we had around a 5% reduction on a in terms of the overall revenue from this particular sector.
Speaker Change: So in this part, although we will see that we have strengthened our cooperation with e-commerce platforms, as we just mentioned.
Speaker Change: Including strengthened cooperation with domestic beauty brands, now domestic beauty brands account for 20% of the entire beauty industry's revenue.
Speaker Change #365: And also we don't see now we have been shifted our attention to the collaborations with the domestic our beauty products are Brian.
Speaker Change: 但它毕竟还是 But it's still...
Speaker Change: Unable to resist the decline of international brands, I think on one hand it is because the entire
Speaker Change #366: And also we've been seeing a kind of a pace.
Speaker Change #367: Small a percentage of kind of the total revenue contribution which is only 20%, but still there was a lot of a stressful situation for the decline of the revenue from the international famous brands off the beauty care products. So.
Speaker Change: The overall sales of major international brands in the industry have declined. Additionally, without a doubt, our own competitiveness within the industry has also decreased because the ecosystem has not recovered. This has significantly dragged down our revenue in 2023. In the first half of this year, we observed that in the first and second quarters, it still had a negative impact on our revenue.
Speaker Change #368: This is one of the problems, which is that the international brands are having actually a drilling downhole durable ourselves and also a second where does not recover slowly in terms of the whole ecosystem and also we are waiting to fully recover our core competence and competitive edges. So in 2023 of the overall revenue from this updated industry was decreased.
Speaker Change: Although in the first quarter, the completion of installations increased, the common issues have significantly decreased.
Speaker Change #368: But it also you kind of see that on a year on year basis.
Speaker Change #368: Q1, we still had an EBIT reduction versus the same period last year.
Speaker Change: All right, and also I would like to share some of the colors on some of the most stressful industries. For instance, cosmetics, as I have already said that in details,
Speaker Change #369: Because of the low base in the first half of a year, we are expecting a pretty much I know positive trends for the cosmetics and beauty products industry in the second half of this year.
Speaker Change: We had around 5% reduction in terms of the overall revenue from this particular sector in Q1. And also, we do see now we have been shifted our attention.
Speaker Change #370: That's for the industry and sector. Thank you.
Speaker Change #371: The Chinese outbound and I'm, sorry, if I'm in the home.
Speaker Change: to the collaborations with the domestic beauty products.
Speaker Change #372: <unk> is a shootout children's here.
Speaker Change: brands and also we've been seeing a kind of a very small percentage against the total revenue contribution, which is only 20%. But still, there is a lot of a stressful situation for the decline of the revenue from the international famous brands of the beauty care products.
Speaker Change #372: <unk> I'll, let him go.
Uh huh.
Speaker Change #373: Sure sure.
Speaker Change #374: On top of the balloon channeled into the R&R channel following the usual Shlomo.
Speaker Change #375: I'm not sure that don't have anything like that.
Speaker Change #376: If you don't get any Michel Combes, Nicole did anything Sean.
Speaker Change: So this is one of the problems, which is that the international brands are having actually a driven down of durable sales. And also, second, we did not recover fully in terms of our whole ecosystem. And also, we are waiting to fully recover our core competence and competitive edges.
Speaker Change #377: If only on one or two don't really looking back I'm not actually go down and I Didnt know, Sean that tremendously talented actress and fashion I think also Matt <unk> bulk or shall I am quite bullish on Asia.
Speaker Change #378: <unk> a guarantee.
Speaker Change #379: Tim home could kind of pull back a little higher for National Harbor side that are cool and I think it would be our balance sheet.
Speaker Change: So in 2023, the overall revenue from this industry was decreased.
Speaker Change: And also you can see that on the year-on-year basis in Q1, we still had a little reduction versus the same period last year. But still, you know, because of the low base in the first half of a year, we are expecting a pretty much, you know, positive trend.
So as a woman cohorts with somebody Io tower, Yeah, Tony Mucci to minimum liquidity from kind of a cultural heart Chiffons ive seen from your house.
Speaker Change #380: Or the assumption on the new iPhone downtown corridor there.
Speaker Change #381: It could be a bunch of specialty grocer cuda hip Sheila as you won't be able to cover the xiaomi or bipolar or with a hit here no. They don't.
Speaker Change: for this cosmetic and beauty product industry in the second half of this year. That's for this industry and sector. Thank you.
Speaker Change #382: Thank you so much.
Speaker Change #381:
Speaker Change: As for the advertising strategy, we observe that the current market competition is still very intense, and the overall economic growth in advertising is relatively under pressure. Under such circumstances, Weibo's main core strategy is to strengthen our advantageous areas and models. Currently, we are focusing on IP hotspot marketing and customer hotspot marketing.
Speaker Change #381: To the motion that you've done that when we're kind of at that point yet please sure.
Speaker Change #383: Sure Tomorrow I need it tomorrow.
Speaker Change #383: Okay.
Speaker Change #384: I remember that in the future Trinidadian jewelry shop rationalization.
Speaker Change #385: To avoid the time right.
I'm tired old Atlanta, Denver, Shelley shared I assure you got so cheetah some cause you to see any man she's one of 2000 and I'm sure that you feel you actually use without traditional HIPAA Merrill Lynch amongst a shout out to them what should I forgot now of course, you're down converter that chitra, followed that you'll receive them element cuda he'd be a combo therapy or hard to forget that.
Speaker Change: On one hand, we are increasing the sales rate of IP hotspots on the Weibo platform, such as selling during holidays, films, and events. For example, during the Spring Festival, the Olympics, as well as major variety shows and TV dramas.
Speaker Change #386: I mean, I don't know how people were telling me, it's only two months out until it actually at Nevada.
Speaker Change: In this part, we can see that there is still considerable room for improvement, whether in terms of industry coverage or customer coverage. For example, in the film and television industry, the number of our customers compared to iQiyi, Youku, and Tencent Video combined for a single show is still only a fraction of theirs. In this regard, there is still significant potential for growth.
Speaker Change #387: Hi, Leonardo how long would you show us Patrick Fisher shall allow women <unk> Yoshida.
Most of that product.
Speaker Change #388: And also in terms of the overall strategy of boosting this revenue from the British Ministry.
Speaker Change: Then, for the other part, we will strengthen our focus on customer hotspots, mainly the release of new products by customers, such as cars and phones, or some services related to the customer's IP, such as the 618 shopping festival and various customer-related holidays.
Speaker Change #389: Well you know we need to really focus on the particular amounts of time and also focus on the core business models that we already had questions emphasizing Stoke.
Speaker Change: The promotion of the imaging model. In this model, we will see that once successful cases are achieved in certain industries, our coverage rate in that industry can quickly rise to 50%, 70%, or even over 90%. However, for these industries, entering the simulation...
Based on the IP hot topics and also.
Speaker Change #390: Customer related topics and also increasing the sales penetration about these areas. So question is like the Olympic games and also increasing our sales on promotion join the competition days and also some of the very important e-commerce. Some festivals so the current stage where.
Speaker Change: In every industry, creating such cases and driving effects actually requires a cycle. In our past...
Speaker Change: In the past few years, we initially achieved successful coverage of this model in areas such as film and entertainment, and mobile phones. In the past two years, we have done a good job of covering new product launches for clients in the automotive and gaming sectors. However, in other fields, such as beauty, we have not been very successful so far.
Speaker Change #391: <unk> seen a very good improvement of the overall penetration of <unk>.
Speaker Change #391: <unk>.
Speaker Change #391: Yes.
Speaker Change #391: Cases.
Speaker Change #392: Comparing with some of the other brands like the <unk>.
Speaker Change #393: E R youku or touch on videos, so accounting for only.
Speaker Change: However, we will continue to follow this path. This is also a way to strengthen our own advantages.
Speaker Change #393: Several.
Speaker Change #393: Right.
Speaker Change #394: Only accounted for a percentage against that their total customer base.
Speaker Change #395: We are having a very positive signs on this area and also in terms of the other parts of it is related to customers for instance, some of the new product launch and I would also like the new handsets and also the new Automotives and also some of the e-commerce festivals like a six to 18 or double 11 Festival.
Speaker Change: And also in terms of the overall strategy of boosting its revenue from the Buddhist ministry, first of all, you know, we need to really focus on the particular market trend and also focus on the core business models that we already had.
Speaker Change: For instance, emphasizing still on the advertisement based on the IP Hot Topics and also the customer-related Hot Topics.
Speaker Change #396: Now, having a very good success rates of I'll call. It a promotion price incentive plan to some extent and also sometimes if we really focus on these key areas. The overall success rate could be as high as 19%. So still it takes a little bit time, plus a reach final economy of scale, but so you know.
Speaker Change: and also increasing the cells and penetration.
Speaker Change: of these areas. So, for instance, like the Olympic Games, and also increasing our sales and promotion, during these competition days, and also some of the very important e-commerce and festivals.
Speaker Change #396: What we need to do is Bob.
Speaker Change #397: Focus on the old broad trends and also know what's the best.
Speaker Change: So, at the current stage, we've been seen a very good improvement of the overall penetration of our products in this occasion.
Speaker Change #398: The strength that we have to cover but different yes for instance, as many years ago, we were doing a very good job in terms of the breadth.
Speaker Change: But still, you know, comparing with some of the other brands, like the ITE or Yoku or Tonson videos, still we are counting for only several
Speaker Change #399: To be Administrated by the entertainment and also movies.
Speaker Change #400: Television series and also the headsets and two years ago, we weren't doing good jobs in the area of Oh, It's about chips and also gaming of course that it isn't.
Speaker Change: like
Speaker Change: only accounting for dozens of a percentage against their total customer base, but still we are having a very positive trend on this area.
Speaker Change #401: Several quarters it was not that successful in promoting the divestment business among the cosmetics beauty products in the street, but still we will keep our eye.
Speaker Change: And also in terms of the other hot hop is related to concerns.
Speaker Change: [inaudible]
Speaker Change #402: <unk> on the development trying to enter the recovery kind of this industry and also really focus on that.
Speaker Change #402: Industries that.
Speaker Change #403: We believe that our most suitable industry can also affect us for different quarters accordingly.
Okay.
Speaker Change #403: Yes.
Speaker Change: And also sometimes, if we really focus on these key areas, the overall success rate could be as high as 90%.
Speaker Change #404: Until that kind of on a period of time.
Speaker Change #405: So looking at Timberland Holdings Yamaguchi Chagatai shallow.
Danielle: Hey, Danielle.
Speaker Change: So still, it takes a little bit time for us to reach a final economy of scale. But still, what we need to do is that still, you know, focus on the overall trend and also know what's the best industries that we have to cover for different years. For instance, many years ago, we were doing a very good job in terms of development and to the industries like entertainment and also movies and TV series.
Speaker Change #407: The Kingdom Baumgarten Gotta do without telling me it actually it would be although the Audi at that number that.
Speaker Change #408: And then eventually wash on the PMA.
Speaker Change #408: <unk>.
Speaker Change #409: They don't go out without sugar beet show alcohol sales, what do you consider either uninsured Michelle NGO tenders out there got it.
<unk> kind of on the tour.
Speaker Change #410: I'm not sure on Parkways share.
Matt: Hi, Matt.
Speaker Change #412: You're choosing animal that's eating at Mcdonald's issue onshore titanium before when people for the tender.
Speaker Change: and also the hazards.
Speaker Change: And two years ago, we were doing good jobs in the area of automotive and also gaming. And, of course, in recent several courses, it was not that successful in promoting the investment business among the cosmetic and beauty products industry. But still, we will keep our eyes on the development trend and the recovery trend of this industry and also really focus on those industries.
Speaker Change #413: Yes, we had to do when they show, which you touched on one of them and that's on top of that.
Speaker Change #413: Everyone can do you can go to.
Speaker Change #414: Truly tuned on reach you can draw parallels that you show on coffee.
Speaker Change #415: Got it.
Speaker Change #416: And also.
Speaker Change #417: Now you got to heat up if we're comparing the brand based marketing versus the effect based but it's been still being in the latter part experiencing some of the pressures.
Speaker Change: that are, we believe that are most suitable industries and also factors for different quarters accordingly.
Speaker Change #418: And also you can see that the pricing trends for the Carnival brand based marketing I know, but it's been it's always better than the effectiveness based on <unk>, but still we have taken some measures in coping with that challenge process. We are purchasing the top and also using some of the topics.
Speaker Change: Okay.
Speaker Change: Finally, what I want to say is that apart from the brand's hot topic marketing, we will strengthen the effectiveness of external advertising. We also know that in the past two years, there has been considerable pressure from external competition, including overall traffic. Similarly, under the current traffic conditions, the cost of brand and hot topic advertisements is indeed higher than that of performance ads. Therefore, in the past one or two years, our performance ads have been under significant pressure. Looking at this year, we aim to stabilize or grow our performance ads by enhancing the use of traffic and purchasing traffic. We expect that this year, our goal is to see performance ads recover and stabilize or grow. Strictly speaking, we will continue to strengthen our algorithms and investments in this area. However, this year, regarding our overall revenue...
Speaker Change #417: Two.
A very good recovery of the offensive play space.
Speaker Change #419: And also to have a stabilized performance within this year and also in the near future within this year, we are going to emphasize more on our investment and also the implementation of better and more precise algorithm to really boost the performance of this particular path.
Speaker Change #419: Okay.
Speaker Change #420: So after this year.
Speaker Change #420: Okay.
Speaker Change #420: Yeah.
Speaker Change #421: This is all my answer thank you.
Speaker Change: The expectation of growth is more not coming from consumer network resistance.
Speaker Change #422: Thank you.
We will now take our next question.
Speaker Change: And also, now you can see that if we're comparing the brand-based marketing versus the effect-based advertisement still, we've been seen the latter-pond experiencing some of the pressures.
Speaker Change #422: Next question is from Desi Chan from Haitong International. Please go ahead.
Desi Chan: Oh that's.
Desi Chan: That's right.
Glenn: Sure Glenn.
Speaker Change: And also you can see that the pricing trend for the kind of brand-based marketing and advertisement is always better than the effectiveness-based advertisement.
Speaker Change #425: So it feels like people are kind of unusual when you don't do that kind of wildly more European source out.
Speaker Change #425: Changeover.
Okay.
Speaker Change: But still, we have taken some of the measures in coping with that challenge. For instance, we are purchasing the traffic and also using some of the traffic.
Speaker Change #426: Those will come down.
Speaker Change #426: So.
Speaker Change #427: I'm not sure I answered that.
Speaker Change #428: Now how does that help.
Speaker Change #428: With that scenario.
Speaker Change: to have a very good recovery of the effective space based advertisement and also to have a stabilizer performance within this year. And also in the near future within this year, we are going to emphasize more on our investment and also the implementation of better and more precise algorithm to really boost the performance.
And I'm going to go for it and I would go towards <unk>.
Angela: Tony just Angela.
Speaker Change #430: I'm Gonna go to downtown to machinery she talks.
Speaker Change #431: Our school teachers and bundle that I hope will come in <unk>.
Speaker Change #431: Joe.
Speaker Change #431: Sure.
Speaker Change: of this particular part.
Joe: Sure thing.
Speaker Change: Okay.
Speaker Change #433: Uh huh.
Speaker Change: That's all I have to say. Thank you.
Speaker Change #434: I checked me myself.
Speaker Change #434: Doug Thanks for taking my question My question was about the.
Speaker Change: This is all my answer. Thank you.
This call here, we noticed that the number of active users have decreased.
Speaker Change: Thank you.
Speaker Change: We will now take our next question.
Speaker Change #435: That's a good point is that to the revenue per user has improved the army times like we're seeing that indicate implemented also argue with your question. Your destination that you will have Jackie or go strategy. This year.
Speaker Change: Next question is from Daisy Chen from Heetong International. Please go ahead.
Kewei Chen: Okay, thank you to the management for accepting my question. My question is about the user side. For this quarter, I noticed that the number of active users has somewhat decreased, basically returning to the level of early last year or the end of 2020.
Speaker Change #436: More about that adjustment and what kind of data will be forecast.
Speaker Change #436: No.
Speaker Change #436: Maybe.
Speaker Change: However, if we look at it from the opposite perspective, that is, looking at the revenue per user, actually if we calculate it using RBI, it is still increasing. This still indicates that the quality of our users has improved. You just mentioned that this year we need to adjust our user growth strategy.
Speaker Change #437: I'll tell you that they feel comfortable thank amendments.
Speaker Change #438: No that's the junior tranches.
You do have coupons at industrial materials, you've got a lot of which you got home totally Julia childs own balance sheet and how many and what do you do with your well.
Speaker Change: I would like to ask if you could explain in more detail how to proceed, and which user data will be the focus this year. Also, in terms of scale, do you think there is a comfortable or appropriate ceiling for the number of users?
Speaker Change #439: And what we don't know when they will come in the fall.
I will mention that we are counting on them and you do a deal I mean, you see a woman deal with Ginnie Mae room, and she is shipping now.
But when the tissue on the Pip, Nigeria arbitrage or tied to that he was gonna Golden the show to you.
Speaker Change: I would recommend myself, thanks for taking my question. My question is about the user base. This quarter we notice that the number of active users have decreased.
Speaker Change #440: More shipyard Medisoft.
Speaker Change #441: We're jumping off the highway.
Speaker Change #442: Moshe deep Moshe pin pad that you can kind of hypertrophic all.
Speaker Change: But a good point is that the revenue per user has improved in RB times. We think that indicates the improvement of our user quality.
Speaker Change #443: So that's one element to mention on Italian let's finish out my career here at home and garden for nausea, Gummy <unk>. The team drove a majority of lately, but couldn't do the Showtime.
Speaker Change: As you just mentioned that you will adjust your user goals strategy this year, can you tell us more about the adjustments and what kind of user data will be the forecast this year and
Speaker Change #444: Quentin I shouldn't talk you again soon.
Speaker Change #444: You did see some in the us no.
Speaker Change #445: No I'm clear runway lingo exemption nanometer plantar channel in June to.
Speaker Change: Maybe, is there any, is there a ceiling of the user base that you feel comfortable? Thank you, many.
Speaker Change #446: Two accretive action orientation combo amateur tashan going on there.
Speaker Change #447: Tasha and Congo.
Speaker Change #447: Indeed.
Speaker Change: Actually, we proposed in the fourth quarter of last year that we should adjust our strategy operations in the Lab area. Of course, I remember mentioning in the second half of last year that we would increase our investment in iPhone users.
Speaker Change #448: Not just with people anyone wishing to you couldn't be Moshe issued all of that.
Speaker Change #448: Quick on those I'm not sure it will.
Speaker Change #449: And then as you heard from cash on hand.
Speaker Change #450: Without that interest will continue help Alicia can you get into a shipyard that charter.
Speaker Change: When we look at our user structure now, it's actually DEO and MAU. However, within our DEO user group, if we break it down further, the up value of users varies greatly across different models and brands.
Sheila: Thanks Sheila.
Speaker Change #452: Yeah, Yeah, definitely I think illuminometer you'd be at the kind of your own who don't.
Speaker Change #453: If I'm Gonna Hollywood, even do that.
Speaker Change #454: Diesel that they don't get all that done.
Speaker Change: There are some high-end phones or certain brands of phones
Speaker Change #455: And this woman Susie that children I kind of I, certainly could look kind of deal Deagle continued Wendy.
Speaker Change: For example, brands like Apple or Huawei, their prices might be two to four times higher than some other brands' models. So, under our current strategy, especially when we are competing with most social media platforms, we believe that Weibo's characteristics are more...
Speaker Change #456: We're concerned with.
Speaker Change #457: Sorry, but I don't allow quick complement to hang with us on the pizza hut.
Speaker Change #458: Pure rooms, and cool down the mountain to my opinion of why don't you send that patient.
Speaker Change #459: Typically you would touch on Oklahoma, the coaches and hit the pupil conundrum.
Speaker Change #460: Josh Nothing language title Industrial Union people, which you cannot do it for one quick color on that woman to chinalco matching either they assume pool.
Speaker Change: Regarding the production of our trending topics and the UGC (User-Generated Content) from these trending users, we believe that we should spend the same amount of money on the platform to buy more content that can generate more upvotes on the platform.
Speaker Change #461: Pension the aquarium.
Speaker Change #462: How are you doing good yet tanger.
Speaker Change #464: Now who don't that similarly, but I don't congratulate you, let's say, 3% and shortly.
Speaker Change: Generate more content and generate more interactive user groups
Speaker Change #463: Well be looking at.
Speaker Change: Even though this user group may be two to three times more expensive than users from some other channels, we have actually been gradually testing since the second half of last year. There might be some significant adjustments in the first quarter of this year, and we will abandon some.
Speaker Change #465: <unk> talked in a while but seems to me that you could put in there.
Speaker Change #463: Yes.
Speaker Change #466: Arizona, which ends up see how Hugo you guys should offset it.
Speaker Change #463: Yes.
Speaker Change #467: So actually in the last.
Speaker Change #468: Last year Q4, and also the second half of the year, we've already know discussing our strategy on those but again area and now of course that we are focusing on a teu and also Mou, but still we truly believe that not only that we have seen that the <unk> generated from the different asset types and also different Brian.
Speaker Change: The user is relatively cheap, but the user's UP value is also relatively low, possibly the user's
Speaker Change: The interaction is also much lower than that of iPhone and Huawei users, lower in such channels.
Speaker Change: In that case, from our own expectations, we actually prefer to look at the stability of the bearish trend first, because this is more related to our income. Additionally, we will look at the frequency of use by our users.
Speaker Change #469: It's actually pretty much different for instance, we have been seeing that she'd be a pool for those.
Speaker Change #470: Smartphone brands like Huawei, and also iPhone as two to four times higher than the other brands. So as a result, we have to really focus on those really competitive ones.
Speaker Change: For example, in our current user client, our medium to high-frequency users may open it more than ten times a day. The ad cost generated by these users could be several times higher than that of low-frequency users.
Speaker Change #471: Especially in a focusing on those users that is actually able to generate more opinions on a social atop our hotline and also the and in terms of the new gcs as well so that is to say that if we need to spend the budget.
Speaker Change: Another aspect that might not be reflected in our data is that we look at the activity level of the users we acquire through our channels, including the amount of content they contribute, their participation in trending topics, and their interaction with trending content production. We pay more attention to these users because it is not just a matter of revenue; it is also a core factor in the external competitiveness of the entire Weibo platform within the industry.
Speaker Change #472: Acquiring those users we are going to focus on those users with a higher <unk> and also the users that are able to generate more content and also a more interactive so normally of course. The overall spending is around two to three times more expensive than those users with a lower performance, but still we've been seeing a very good positive trend.
Speaker Change: This is our current overall track record. Thank you.
Speaker Change: So actually, in last year Q4 and also the second half of year, we were already not discussing our strategy on this particular area. And now, of course, that we are focusing on the DEU and also MAU, but still we truly believe that not only that, we have seen that the output generated from the different headset types and also different brand.
Speaker Change #473: So we have tested that notion last year and that we're going to keep doing so so for instance in Q1 of this year. We are purposely gave up on some of the cheap to get or low cost of gas users.
Speaker Change #474: Terms of their in store activity and also the upward generation. So we expect to have a very good job you know Dia you.
Speaker Change: is actually pretty much different. For instance, we've been seeing actually the ARPU for those smartphone brands like Huawei and also iPhone, is two to four times higher than the other brands.
Speaker Change #475: The increase because of this focus and also a second but we do expect some of the frequency of the use and by switching on the Weibo App for instance.
Speaker Change: So as a result, we have to really focus on those really competitive ones.
Speaker Change #475: Because on those high frequency users for instance, we might have a.
Speaker Change: For instance, especially focusing on those users, that is actually able to generate more opinions on a social top or hot time and also in terms of the UGCS as well. So that is to say that if we need to spend the budget in acquiring those users,
Speaker Change #476: Turn off the up 10 or more times joined the day and this is really going to contribute to your overall AD inventory and also in.
Speaker Change #477: In the future, we believe that with higher activity on the interactivity and also the higher.
Speaker Change: we are going to focus on those users with a higher ARPU, and also the users that are able to generate more content and also are more interactive. So normally, of course, the overall spending is around two to three times more expensive than those users with lower performance, but still we've been seeing a very good positive trend. So still we have tested that notion last year, and we're going to keep doing so. So, for instance, in Q1 of this year, we purposely gave up on some of the, you know, cheap to get or low cost to get users in terms of their interactivity and also the output generation. So we expect to have a very good, you know, DAU increase because of this focus. And also second, that we do expect
Speaker Change #478: I'm more content contribution this is going to increase the core competence also our weibo as a whole.
Speaker Change #478: Okay.
Speaker Change #479: Ooh can you just repeat I don't we cannot.
Speaker Change #480: Mailed them in.
Speaker Change #481: Each local management without SMT type adventure.
Alicia: Sure Alicia.
Speaker Change #483: I don't want to comment obviously, you don't control it.
Speaker Change #483: But not cannot.
Speaker Change #484: And by that I mean, you will click on the shelf.
Speaker Change #485: Actual debt deal that you know how much human outpace sure that he or she went on with Andrew.
Speaker Change #486: Welcome to <unk> Medical's home through e-commerce, tightening or that you can call them <unk> got me.
Speaker Change #487: Country, Cleveland golf with the pension.
Speaker Change: at some of the frequency of the use and by switching on the Waible app, for instance,
Speaker Change #488: Oh sure.
Speaker Change #488: Attachment.
Speaker Change: Really will focus on those high frequency users. For instance, we might have a turn on off the app
Speaker Change #489: And elaborating going up is on the shelf.
Dan will touch on the iPhone.
Speaker Change #490: With them, we can our corridor in Washington, with metallic type items as a shirt to Asia.
Speaker Change: 10 or more times during the day, and this is really going to contribute to overall ad inventory. And also in the future, we believe that with higher activity and interactivity, and also the higher and more content contribution, this is going to increase the core competence of Waible as a whole.
Speaker Change #491: Would you look at the summit.
Speaker Change #492: At Canadian <unk>.
Speaker Change #493: And even on the onshore energy and she never happened.
Speaker Change #494: It would've been cool down on the Sheila.
Speaker Change #495: Today's woman and she tied to maybe was one time, but we don't believe are our strongest without a problem.
Speaker Change: Okay.
Speaker Change #495: Alright.
Speaker Change: If I give you some data, I will see it in our MAU.
And also we are going to see.
Speaker Change: Currently, users acquired through channels account for a little over 20%. When we purchase high UP value users, we will see that with the same budget, we will definitely acquire fewer MAUs. However, in the case of a decline in DAU, we generally hope that the DAU remains stable or does not increase. What I value more is the composition of the DAU. Specifically, the proportion of high UP value users in our mobile client DAU needs to show a significant increase. This way, the value of our users will be enhanced.
Speaker Change #496: In terms of the overall in the US we are mixing a around 20% of the users that are obese.
Speaker Change #497: Purchased and also to acquire users and of course, that's now against those particular acquire users. So.
Speaker Change #498: As a percentage of those users with a higher op, who is quite limited, but still our strategy is that we want to keep a very stable performance of the da you'll figure or a slight increase of the annual number and also in the future we will be focusing on the increasing of.
Speaker Change: It will be higher, my wiring capability will also be stronger, and at the same time, the content generated by these users will be more, and our external competition will also be stronger. Currently, the proportion of iPhone and Huawei users in our current client user base is about 40%. I think this ratio is already relatively high compared to other domestic platforms. Of course, our internal goal is to increase it to 50% or more this year. In this way, we hope...
Speaker Change #498: Those.
Speaker Change #499: <unk> generated.
Speaker Change #499: As this number against the overall <unk>.
Speaker Change #499: And also.
Speaker Change #500: Very important thing is that we really want to focus on the user activity and also the particular content generation capability and also the higher output in order to on the overall basis improved in both the core competence of Weibo as a whole and also now we haven't seen that those terminal users the op.
Speaker Change: For the content production on our platform itself, including screen interactions, there has been an increase of over double digits.
Speaker Change #500: Users of.
Speaker Change: [inaudible]
Speaker Change #501: The brand iPhone and also far away, we've been saying 40% of our users that are using the app and also the terminal that was already higher than the other social media platforms.
Speaker Change: And also we are going to see
Speaker Change: that in terms of the overall MAUs, we have seen around 20% of the users that have these, you know, purchased and also the acquired users.
Speaker Change #502: Internally, we wish that this particular figure could go up all the way its all about 50% or even higher so.
Speaker Change: And of course, that now against those particular acquire users, still the percentage of those users with a higher output is quite limited, but still our strategy is that we want to keep a very stable performance of the DAU figure or a slight increase of the DAU number. And also in the future we will be focusing on the increasing of those high output generated users number against the overall DAU.
Speaker Change #503: In terms of the user generation capability or capability of generating content and also the users.
Speaker Change #503: Our activity et cetera.
Speaker Change #504: <unk> performance in that case, those are really important to us because I know that is going to help us to drive the overall core competence.
Speaker Change #504: With a double digit impact.
Okay.
Speaker Change #504: No.
Speaker Change #505: Sure Tom should not feeling that kind of are trending like Patrick human contribution.
Speaker Change #506: Can you give some sort of shock nowhere until you kind of other children, Croatia I mean.
Speaker Change: And also, you know, a very important thing is that we really want to focus on the user activity and also the particular content generation capability and also the higher up in order to, on the overall basis, improve and boost the core competence.
Speaker Change #507: It's important.
Speaker Change #508: Sharon fan base in the finished yet bulk ordering nationally and be able to or not.
Speaker Change #508: Great.
Speaker Change #508: And to the tune of about 10%.
Right.
Speaker Change #508: Sundar.
Speaker Change: of Weibo as a whole. And also now we have been seen that against those terminal users and the app users of the brand iPhone and also Huawei, we've been seeing 40% of our users that are using the app and also the terminal. This is already higher than the other social media platforms. But still internally, we wish that this particular figure could go up all the way until about 50% or even higher.
Speaker Change #509: Some of them you can order to show a teaser for dealing with him a deep because I really don't.
Speaker Change #510: In countries, where that should go offshore Gulf waiting for.
Speaker Change #511: I want to do in <unk>.
Speaker Change #511: Yeah.
Speaker Change #512: Drilling down the <unk>.
So anyway.
Speaker Change #513: What would kind of say that's seasonal but achievable.
At UDC and their own by looking at the hold on their own.
Speaker Change #514: Combined ship diesel.
Speaker Change: So, you know, in terms of the user generation capability or capability of generating content and also the users, you know, interactivity, etc., these performance indicators are really important to us because, you know, that is going to help us to drive the overall competence.
Speaker Change #515: Because that should also that much are shot down.
Speaker Change #515: Yeah.
And last not least I would like to say that in terms of the whole channel fees.
Speaker Change #516: Keeping flat throughout the whole year.
Speaker Change: with a double-digit impact.
So not only are we want to keep a very stable growth of the overall Mou, but still we really wanted to make sure that we had a very organic growth for that.
Speaker Change: Okay.
Speaker Change: From the perspective of our overall market channel expenses, it should remain basically flat throughout the year. Under such a budget strategy, we might see some fluctuations in MAU (Monthly Active Users). For example, in June and December , due to the higher number of news events and hot topics, MAU might increase to some extent. However, this increase is not due to our channel strategy but rather natural growth. What we are more focused on is, firstly, the stability of DNA or Rio growth, but I am more focused on high-value, highly active users. We aim to see a significant increase, by 5 or 10 percentage points, in the proportion of our low-user base.
Speaker Change #517: Sometimes in June and also in December we had lot of by the Hot news happening and also some of the hot social plans happening so.
Speaker Change #518: We actually have.
Speaker Change #519: <unk> seen that the increase of yoga Avenue, but not organically.
Speaker Change #520: But pretty much organically due to the natural answer then happening joined the central bumps, but not because of our channel strategy. So in the future of course, our core strategy is that we really want to keep a stable or a slight increase on the annual number but more importantly, it would have to focus on the percentage of those high alpha.
Speaker Change: Additionally, we will see that with the influx of these users, the UDC content on our platform, including interactive content, should grow faster. This time, we can see that our overall channel strategy is currently planned in this way. Thank you.
Speaker Change #521: Users of <unk>, which could have around 5% to 10% of the increase which is going to be better and also.
For the whole Weibo platform, we are going to focus on the <unk>.
Speaker Change #521: You just see related content and also the improvement of the overall interactivity and also the content generation. This will be the focus of our effectiveness, while taking some of the appropriate channel related strategies.
Speaker Change: And last not least, I would like to say that in terms of the whole channel fee, it is keeping flat throughout the whole year. And also, not only we want to keep a very stable growth of the overall MAU, but still we really wanted to make sure that, you know, we had a very organic growth for it.
Speaker Change #521: This is the answer for the strategy of our channel.
Speaker Change #521: Okay.
Speaker Change: But sometimes in June and also in December we had a lot of hot news happening and also some of the hot social trends happening. So we did not, we actually have seen that the increase of the overall MAU, but not organically, but pretty much organically due to the natural incident happening during these two months, but not because of our channel strategy.
Speaker Change #522: But thank you. Thank you.
Speaker Change #523: Thank you and we have no further questions and in that case I will hand, the conference back to the speakers for closing remarks.
Speaker Change #524: Thanks, operator.
Speaker Change #525: Our conference call today, Thank you for joining us this season that quota.
Speaker Change: So in the future of course, our core strategy is that we really want.
Speaker Change #526: Thank you. This does conclude the conference for today. Thank you for participating and you may now disconnect.
Speaker Change: to keep a stable or a slight increase on the DAU number, but more importantly, we have to focus on the percentage of those high output users against the DAU, which could have around 5 to 10% of the increase, which is going to be better.
Speaker Change: And also for the whole WaveWo platform, we're going to focus on the content, you know, the UGC related content, and also the improvement of the overall interactivity and also the content generation. This will be the focus of our effectiveness while taking some of the appropriate channel related strategies.
Speaker Change: This is the answer for the strategy of our channel.
Speaker Change: Xièxiè
Speaker Change: Right, thank you. Thank you.
Speaker Change: Thank you and we have no further questions and that case I will hand the conference back to the speakers for closing remarks.
Speaker Change: Thanks all, Peter. This wrap up our conference call today. Thank you for joining us. We'll see you next quarter.
Speaker Change: Thank you. This does conclude the conference for today. Thank you for participating and you may now disconnect.
Speaker Change: Thank you. Thank you.
Speaker Change: Fei Cao Fei Cao Fei Cao Fei Cao Fei Cao Fei Cao Fei Cao Fei Cao Fei Cao
Speaker Change: [inaudible]
Speaker Change: Fei Cao Fei Cao Fei Cao Fei Cao Fei Cao Fei Cao Fei Cao Fei Cao Fei Cao
Speaker Change: Thank you. Thank you.