Q4 & FY 2024 Weibo Corp Earnings Call

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Unknown Executive: I'll be here.

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Unknown Executive: Thank you for watching!

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Unknown Executive: Good day and thank you for standing by. Welcome to the Weibo Reports fourth quarter and fiscal year 2024 financial results. At this time, all participants are in a listen-only mode.

Speaker Change: Good day, and thank you for standing by welcome to the weight of reports fourth quarter and fiscal year 2020 full financial results. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session.

Unknown Executive: 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 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again.

Speaker Change: Ask a question during the session you will need to press star one one on your telephone you would then handle tomatoes message advising you'll have this race to withdraw your question. Please press star one again, please be advised that today's conference is now being recorded I would now.

Unknown Executive: Please be advised that today's conference is now being recorded.

Sandra Zhang: I would now like to hand the conference over to your first speaker today, Sandra Zhang, Investor Relations Representative of Weibo Corporation. Please go ahead. Thank you, operators, and welcome to Weibo's fourth quarter and fiscal year 2024 earnings conference call. Joining me today are our Chief Executive Officer, Gaofei Wang, and our Chief Financial Officer, Fei Cao. This conference call is also being broadcasted on the internet and is available through Weibo's IR website.

I'd like to hand, the conference over to your first speaker today sounds a giant Investor Relations representative with a corporation. Please go ahead.

Speaker Change: Thank you all Cleveland and will come to live with fourth quarter of fiscal year 'twenty 'twenty Four earnings conference call. Joining me today are Chief Executive Officer Coffee, Wang and our Chief Financial Officer. This conference call is also being broadcasted on the Internet and it's available.

Speaker Change: Most of the labor to IR website before the Max to remark I'd like to review the Safe Harbor statement in connection with today's conference call During today's conference call.

Sandra Zhang: Before the management remarks, I would like to read you the safe harbor statement in connection with today's conference. 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 involving inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Weibo assumes no obligation to update the forward-looking statements in this conference call.

Speaker Change: These forward looking statements.

Speaker Change: Got it all historical facts, including statements about beliefs expectations.

Speaker Change: These statements involve inherent risks.

Speaker Change: All certainties and number of employees.

Speaker Change: Cause could cause actual results could differ materially from those competing any forward looking statement weibo.

Speaker Change: Obligation to update the forward looking statement in this conference call and elsewhere.

Sandra Zhang: Further information regarding this and other risks is included in Weibo's annual report on Form 20-F and other filings with the Executive. All the information provided in this press release is occurring as the day heroes. Weibo assumes no obligation to update such information, except as required and to update below.

Speaker Change: Information regarding these and other.

Speaker Change: It is included in Weibo's annual.

Our report on form 20-F, and other filings with the FCC or the information provided in this press release is occurring as the day here.

Speaker Change: Weibo assumes no obligation to update that information, except as required under applicable law. Additionally, I'd like to remind you that our discussion today includes certain non-GAAP measures, which excludes stock based compensation and certain other expenses, we use non-GAAP financial measures.

Sandra Zhang: Additionally, I would like to remind you that our discussion today includes certain non-gap measures, which is to stop this conversation and certain other expenses. We use non-definitional measures to gain a better understanding of Weibo's comparative operating performance and the future prospects. Our non-GAAP financials include certain expenses, gains or losses, and other items that are not expected to result in future cash payment or are non-recurring in nature, or are not indicative of our core operating results and outlook. Please refer to our press release for more information about our non-GAAP measures.

Speaker Change: It's very competitive.

Speaker Change: Comparative operating performance and future prospects.

Speaker Change: Our non-GAAP financial circumstances gains or losses, and other items that are not expected to result in future cash payments or are now becoming.

Speaker Change: Got it.

Speaker Change: Okay.

Speaker Change: Please refer to our press release for more information about how knock on colonial.

Sandra Zhang: Below you mentioned prepared remarks, we'll open the line to a brief Q&A session.

Speaker Change: I know you mentioned in prepared remarks, we'll open your lines, what greif Q&A session with that I like to turn the call over to our CEO Godfrey Walton.

Gaofei Wang: With this, I would like to turn the call over to our CEO, Gaofei Wang. Good afternoon and welcome all to Weibo Corp's staff title call session. Thank you. Hello everyone. Welcome to Weibo's fourth quarter and full year 2024 earnings conference call. On today's call, I will share with you highlights on Weibo's product and monetization, review the progress made in 2024, and elaborate our strategy for 2025.

Speaker Change: [noise] pointing that out.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Thank you Hello, everyone welcome to Weibo's fourth quarter and full year 'twenty 'twenty four earnings conference call.

Bill: Thank you Bill.

Bill: Sure.

Bill: Uh huh.

Bill: Sure.

Bill: Please go ahead Sir.

Bill: Okay.

Bill: On today's call I will share with you highlights on wavelets caught up with monetization review the progress made in 2024 and elaborate Oscar.

Bill: Any kind of like.

Gaofei Wang: 先介绍Weibo在四季度的财务表现。 四季度,Weibo总成收达到了4.568亿美金, 年度年下涨1%,其中广告营收达到3.859亿美金, 年度年下涨4%,增值业务收入达到7100万美金, 年度年增长18%,剔除汇率因素, Our total revenue in the first quarter reached 456.8 million U.S. dollars, a decrease of 1% year-over-year where relative flat year-over-year are constant currency basis. Our total ad revenue reached $385.9 million, a decrease of 4% year-over-year. Our value-added service revenues reached $71 million, an increase of 18% year-over-year. Our non-gap operating income in the fourth quarter reached $136.2 million, representing a non-gap operating margin of 30%. Our total ad revenue reached $17.5 million, a decrease of 2% year-over-year. Ad revenue decreased mainly due to different industry and business standards. Zengzi's annual revenue is $2.56 billion, making up 13% of the year's net profit, mainly due to the upgrade and purchase of members' businesses.

Bill: Changes in LIBOR.

Bill: Gotcha.

Bill: So nonetheless.

Bill: Yeah.

Bill: Shoot.

Bill: Yeah.

Bill: So the yield so.

Bill: You bet.

Bill: She is a liquidity issue.

Sure.

Bill: Okay.

Bill: Uh huh.

Bill: John.

Bill: Got it from our financial performance in the fourth quarter. Our total revenue in the fourth quarter reached $456 $8 million, a decrease of 1% year over year were relatively flat year over year on a constant currency basis.

Bill: Our total AD revenue reached $385 $9 million, a decrease of 4% year over year, our value added service revenues reached $71 million, an increase of 18% year over year, our non-GAAP operating income in the fourth quarter reached 106 30.

Bill: $36 2 million representing.

Bill: Representing a non-GAAP operating margin of 30%.

Bill: Dr <unk>.

Bill: Okay.

Bill: Got it.

Bill: Yes.

Bill: Okay.

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Bill: Yes.

Bill: Sure.

Bill: Eastern.

Bill: So I would leave you with.

Gaofei Wang: The asset exchange factor accounts for 1% of the year's net profit, and the annual net profit after adjustment is $5.81 billion, making up 33% of the year's net profit after adjustment. For full year 2024, our total revenue reached 1.75 billion U.S. dollars, relatively flat year-over-year, or an increase of 1% year-over-year on a constant currency basis. Our total ad revenue reached 1.5 billion, a decrease of 2% year-over-year. The decrease was mainly resulting from the variance of ad performance across different industries. Our value-added service revenue reached 256 million U.S. dollars, an increase of 13% year-over-year, benefiting from the upgrade and restructuring of our membership service.

Bill: She has agreed to it.

Bill: Changing internally.

Bill: Yeah.

Bill: Charlotte.

Got it.

Bill: Thank you Sir.

Bill: Full year 2024, our total revenue reached $1 $75 billion, rather than just flat year over year or an increase of 1% year over year.

Bill: On a constant currency basis, our total AD revenue reached one 5 billion a decrease of 2% year over year. The decrease was mainly resulting from the bellies of outperforming.

Bill: Across different industries.

Bill: Value added service revenue reached $256 million, an increase of 13% year over year benefiting from the athlete and restructuring of our membership service for full year 'twenty thing for our non-GAAP operating income reached 580 $421 million, representing a non-GAAP operating margin.

Gaofei Wang: For full year 2024, our non-GAAP operating income reached 584.1 million U.S. dollars, representing a non-GAAP operating margin of 33%.

Bill: 33%.

Bill: Global demand is even more media player.

Bill: Joey.

Bill: Julie.

Bill: Yes.

Gaofei Wang: In December, Weibo's MAU reached 590 million, and Average DAU reached 260 million.

Bill: I appreciate it.

Bill: In December we just I mean, you raised a 519 million on average do you reach the 260 million net let me share with you our progress made and proud of the monetization in the fourth quarter, especially up with them.

Gaofei Wang: Next, let me share with you our progress making product and monetization in the fourth quarter. 同时社交互动形式提升关系轮的社交敏捷 In order to further enhance the social connection between platform users, we have started to promote the open planning of Weibo and other products, including planning, personal pages, and fan groups. The key point of Weibo is to create a network of connections between Weibo users and fans. 保持各社交产品职业的目标一致, 设计组我们先后加强了 超化内容同关系流, 个人主业产品及社交产品职业的联系, 让超华的优质内容可以更加高效的促进关系流的进去用户,促进关系流消费和互动的同时,也能吸引用户在使用超华的服务。 to raise the needs of the disabled and the need for sexual therapy, and promote the improvement of the community mentality of the platform. We will continue to work on the overall work in the first half of the year.

Bill: If I may.

Bill: Russia, India and China.

Second building himself.

Bill: Thank you.

Bill: But I'll put on the strategic question Michelle Qi.

Bill: Yeah.

Speaker Change: Thank you <unk>.

Bill: T shirt sleeves.

Bill: Cleveland was achieved which you can hang industry issue.

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Bill: The answer to the question Robert.

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Bill: Citigroup.

Bill: Thank you.

Bill: Dot com until I knew the name <unk>.

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Bill: She was actually up.

Bill: Sarah.

Bill: She is truly our future.

Bill: You can access the secret of tissue samples.

Bill: She's on mute.

Gaofei Wang: On social attributes, we have two undertakings on the product. On the one hand, we maintain our 2024 strategies for the relationship-based feed by enhancing high-quality content consumption, accelerating the construction of vertical content ecosystem, promoting social interaction features, and increasing the social thickness in the relationship-based feed. In the fourth quarter, both the number of interactive users in the relationship feed and interaction rate per 1,000 views, so a solid year-over-year growth. On the other hand, to further enhance users' social thickness on Weibo, we initiated social product integration plan in Q4 to enhance synergies among super topics, individual page, and sense group to align goals across all social products.

Bill: Sure.

Bill: Social attributes we have two indications with other products and why have we maintained a 20 times what strategies for the relationship based the peak by having high quality content consumption.

Bill: Salaries in the construction vertical content ecosystem promoting social interaction features and increasing the social stickiness in our relationship based our feet in the fourth quarter. Both the number of in Iraq with users in the relationship feet and interaction rate per thousand views. So a solid year over year of course.

Bill: Other hat to further enhance user social stickies on Weibo, we initiated a social product innovation plans in Q4.

Bill: Synergy synergies amongst different topics.

Bill: Individual page and that's good so online goes across all social products.

Gaofei Wang: product operation, we have clarified that Weibo's social features should focus on the relationship network and social interactions between content creators and fans. Specifically, in the first quarter, we focused on product integration over super topics with relationship-based feed and live profile, enabling high-quality content from super topics to naturally and efficiently reach users of interest in the relationship. This approach not only boosts content consumption and user interaction in a relationship-based feed, but also encourages users to engage more organically with super topics, fulfilling their long-term interest-based social needs, and reinforcing user recognition of Weibo as a community. We expect to complete this integration plan in the first half of 2025.

Bill: Part of operation, we have clarified that with social features should focus on the relationship network and social interactions between contemplate or something.

Bill: Specifically in the first quarter, we focused on we are focused on product and completion of a super topics slipped a relationship base of feet under my profile in enabling high quality content from stupid topic to naturally and efficiently which uses of EBIT in the relationship between these.

Bill: This approach not only boosted content consumption and user interaction relationship based defeat but also e-commerce. It use it to engage more organically with super topic fulfilling their long tail interest based social neat I reinforcing the recommendation of LIBOR as a community we serve.

Bill: For a complete this integration plan in the first half of 'twenty to 'twenty five.

Bill: Yeah.

Gaofei Wang: In this regard, we will make sure to take advantage of the opportunities, past users and traffic, while continuing to support the investment in the construction of industry-level, to support commercial and ecological development.

Bill: Yeah.

Bill: Tom you want to be bothered.

Bill: Thank you Blake.

Bill: Yeah.

Bill: Key features with each season.

Bill: Sure.

Gaofei Wang: That's all for today, I'm Shao.

Bill: Arthur engineered into the future.

Bill: Equally.

Bill: Gotcha.

Gaofei Wang: We will use AI to change the world. In the next 20 years, we will focus on AI content and eco-construction, create AI-related news, and create AI-related topics that are popular on the platform. At the same time, we will create AI-related influential blog posts to promote blog posts' in-depth participation in technical interpretation and industry movements. We also launched a series of AI production and interaction activities to attract more participants and make AI closer to users. In the future, while assisting in the development of the industry, we can also provide more AI-related interests to users on the platform.

Bill: Right.

Speaker Change: Agile pinnacle, the Ark and Anthony could you address that issue.

Bill: The human syndrome.

Bill: That's really cool.

Bill: Yes.

Bill: People who treated.

Bill: It was simply timing.

Bill: Okay.

Bill: At which we issued at anthem.

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Bill: Continued.

Bill: It will be higher this year.

Bill: Oh I see.

Gaofei Wang: Gradually, the AI content ecosystem and business ecosystem will intermingle. On content ecosystem, in the first quarter, we focused on two areas. First, we seized opportunities in hot trends to acquire users and drive traffic, while continuing to invest in vertical content to reinforce the development of monetization ecosystem. Throughout 2024, we saw significant growth in the scale, traffic, and engagement of the vertical golden and orange verified accounts compared to prior year. For instance, we kept up with the latest hot trends in advancement of AI technology and prioritized development of content ecosystem of AI-related vertical. On the one hand, we captured and operated hot trends of the AI industry on Weibo, generating discussion around AI-related hot topics on Weibo.

Bill: Thank you.

Bill: And congrats again.

Speaker Change: Sure content ecosystem in the first quarter she's focused on food and this is.

Speaker Change: If he's opportunity how check to acquire users and drive traffic will continue to invest in vertical content to lean towards the development of monetization ecosystem.

Speaker Change: Throughout 2024, we saw significant growth in the scale traffic and engagement of the vertical Goldman and Orange verified accounts compared to prior years.

Speaker Change: We kept up with the latest hotshot in advancement of AI technology, and the product has to be violent content for system of AI.

Speaker Change: Cool.

Speaker Change: On the upcoming why have we captured all create a culture of the AIE Betsy on Weibo generating discussion around AI related hot topics on LIBOR on the other.

Gaofei Wang: On the other side, we built a metric of KOLs in the AI-related vertical, encouraging them to generate in-depth technology analysis and industry insights. Besides, we also launched a series of activities to boost the AI-related content creation and interaction to attract users' participation and to make AI more accessible to them. Looking ahead, our ongoing investment in the AI vertical will not only support the growth of the AI industry, but will also generate more business opportunities in the interest-based user group agencies for the platform, creating a mutually reinforcing relationship between the AI content ecosystem and the monetization ecosystem.

At site, we built a magic of a O L. A AI related to vertical encourage them to generate in that technology analysis and industry inside the company.

Besides we also launched a series of activities to boost the AI related to content creation and interactions to attract users participation and can make them more accessible to them looking ahead, our ongoing investment in our vertical will not only support the growth of the industry, but will also generate.

Speaker Change: More business opportunity in the interest based user groups agencies for the platform, creating a mutually reinforcing relationship between the AI company, what they've done and the monetization ecosystem lead.

Heather: Thank you Heather.

Heather: So it's a huge asset.

Heather: I'm kidding.

Heather: <unk>.

Heather: The sequential and passenger traffic and reduce ashish.

Gaofei Wang: 但如今,在兴趣内容的推荐消费区之下, 我们的垂直运营管理和服务业面临挑战,需要查试补足账号加兴趣内容,并因此提供了我们的兴趣消费区的一份提供信息。 So, we launched the Weibo Cross-Border Project in the 4th quarter, which aims to promote the production of the two core products. By driving vertical head-to-neck cross-border production of diverse content in the field, and promoting more networks to participate in production based on the policy of small platforms, and combining hot points to promote the optimization of distribution efficiency, we initially tested the feasibility of vertical operation of new models, and also invested in the construction of a new recommendation system for second-line companies. In the fourth quarter, we started transforming the platform's vertical operating system. Our vertical content ecosystem has been built around the content generation by top creators of all verticals and the distribution system of the relationship-based feed.

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Heather: Phil.

Thank you for doing it.

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How much of this was achieved.

Heather: Okay.

Heather: Yes.

Heather: In the fourth quarter, we started transforming the plethora of vertical operating system.

Heather: Vertical content ecosystem has been viewed around the carbon generation by top creators of all verticals and the distribution system of the relationship based defeat al.

Gaofei Wang: However, with the shift toward interest-based content consumption, our existing vertical operating and management model has been facing challenges. To address this, we recognized the need to form an integrated model to combine KOL account operation with interest-based content operation. Therefore, we launched the Weibo cross-vertical initiative in the fourth quarter, aiming to guide content generation around users' interest. The initiative encouraged top vertical KOLs to generate content with diversified interest, adjust the content incentive policy to foster wider participation and enhance the distribution efficiency of hot topics and recommendations. These efforts have provided preliminary validation for a new operation model of interest-based vertical concept and will guide our investment in the development of the interest-based recommendation mechanism in 2025.

Heather: Ever with a shaped toward interest based content consumption.

Heather: Dean vertical operating and management model has been facing challenges.

Heather: That said, we recognize the need to form a uniquely models to combine hail L Council accretion with interest based operation. Therefore, we lost a LIBOR cross vertical initiative in the fourth quarter aiming to guide content generation about use of interests that initiative are encouraging.

Heather: Top vertical kols to generate content with diversified interests Augusta Plaza contract. He he's in his policy to fourth to wider participation and enhance the distribution inefficiencies of hot topic I recommendation feed. These efforts have provided preliminarily validation for our new.

Heather: Accretion model of interest based vertical concept I will guide all investments in the development of the Interstate the recommendation that the mechanism would be 2025 xiaomi.

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Joe: If you live with the people who can be helped with that Joe.

Joe: The heat from tunnel secret PJ downhole chisel intelligently.

The kidney is onshore.

Gaofei Wang: Next, on the monetization front, in the fourth quarter, we continue to focus on strengthening clients' perception of Weibo as the primary platform for the new product launch marketing. Despite that Weibo's overall ad revenue in the fourth quarter decreased slightly year-over-year, ad revenue from the new product launch marketing grew by several digits year-over-year, as we see opportunities of major industries in the new product launch marketing, increasing our investment to boost content discussion and distribution throughout the new product launch lifecycle. In terms of industry, in fact, the mobile phone industry continues to grow steadily in the fourth quarter, mainly due to the unique advantage of Weibo's new product marketing and platform in the new product launch discussion.

Joe: Next on the monetization front in the fourth quarter, we continue to focus on strengthening client perception of Weibo as a final outcome for the new product launch marketing despite that with us although at a level in the fourth quarter decreased slightly year over year and revenue from a new product launch marketing goodbye.

Joe: Double digit year over year as a seed opportunity a major industry in a new product launch marketing, increasing our investment to boost Cochran discussion and distribution through all the new product launch lifecycle.

Joe: She is a little behind that so you do fluctuate.

Speaker Change: Thank you Audrey.

As you recall in Continental Europe.

Speaker Change: Hey, Richard.

Richard: Our financial issue in Chicago, Chicago should lead the enthusiasm we're.

Speaker Change: We're able to HMA and trailing covenants.

Speaker Change: Good compound into Europe.

Speaker Change: So that you've got coming through.

Gaofei Wang: Let's take a closer look by industry. Revenues from both automobile and handset sectors deliver solid growth in Q4, that is driven by Weibo's unique strength in new product launch marketing and facilitating discussions on emerging technologies. For example, for the automobile industry, with the growing market penetration of new energy vehicles, namely NEV, in China throughout 2024, Weibo reinforced its position as the main platform for NEV-related discussions. As a result, car manufacturers have significantly increased their marketing budget on Weibo, In the 4th quarter, the gaming, cosmetics, and design industries have declined. The entertainment industry, mainly because of the investment in Tencent and NetEase's key projects in the 4th quarter last year, has attracted high attention.

Speaker Change: Yes.

Speaker Change: Let's take a closer look by industry revenues from those automobile and the handsets that could deliver solid growth in Q4 that could be driven by weibo's unique stress immune past the launch marketing and facilitating discussion all emerging technologies for example for the automobile industry with a growing market.

Speaker Change: Accretion of new energy vehicles, maybe E N E V in China throughout plenty of time before we will reinforce its position at the main platform for any visa related discussion as a rebel car manufacturer had a significant increase their marketing budget on LIBOR contributing to another year of revenue growth in the automobile sector.

Speaker Change: For Weibo and a multiple year off looks at.

Speaker Change: Citigroup.

Speaker Change: Sure.

Speaker Change: Got you.

Speaker Change: So uhm.

Speaker Change: Between December.

Gaofei Wang: Although the income of the cosmetics industry is declining, as the scale of the income of cosmetics decreases, the overall income of Weibo is also decreasing. On the flip side, in the fourth quarter, ad revenue from online game, cosmetic and personal care, and luxury industries were in the descending trend in the fourth quarter. The online game ad revenue saw a year-over-year decline, mainly due to the high base effect from Tencent and NetEase's major project investment in Q4 of 2023. For the cosmetic and personal care and luxury sectors, although the ad revenue from this sector declined in Q4, the impact of this sector on the overall ad revenue growth is very limited with the adjustment of its revenue scale.

Speaker Change: Got you.

Speaker Change: We don't see any of the shop.

Speaker Change: Sure.

Speaker Change: So if you do get a partial week.

Speaker Change: Sure.

Speaker Change: On the flip side in the first quarter as revenue from online games cosmetic and personal care and luxury industries will either be films in China in the fourth quarter.

Speaker Change: The online game and Oh I get at revenues saw year over year decline, mainly due to the high base effect on cancer and that is major project investment you know Q4, 'twenty 'twenty suite for the cosmetic and personal care and luxury exactly although the AD revenue from this that the decline in Q4, the impactful piece that's her on the overlap.

Speaker Change: Revenue growth is better.

Speaker Change: With the adjustment of who's running the skills.

Gaofei Wang: 从投机广告市场来看,次级政府发布的一些次级消费政策,比如就换新政策对数码和电商行业的付出作用,从投机广告市场来看,次级政府发布的一些次级消费政策,比如就换新政策对数码和电商行业的付出作用, 但更多的经济自营政策,对客户端和消费市场端的回应还需要时间的考虑。 We hope that our policy will have a positive impact on the macroeconomic, consumption, and more industries. In such a large environment, without a business model, it is necessary to fully grasp the hot spots of the platform and the hot spots of the customers, and focus on marketing opportunities, to expand to more industries and customers. At the same time, in order to meet the needs of the customers' new products and large-scale marketing, we need to help the new products and marketing of the market activities of the customers to spread and be effective in a way that is ahead of the industry.

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Speaker Change: So I think that might be equally high due to the balance sheet.

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Speaker Change: So Sheila on Dakota shop with them receiving each outlet.

Speaker Change: Who has shown how quick.

Gaofei Wang: Therefore, in the past 24 years, although the performance of individual industries is not as good as expected, the growth rate of the total revenue has not decreased. However, due to the effective management of the cost of the whole project, our operating profit is still basically maintained.

Speaker Change: So tomorrow.

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Speaker Change: The 2000 to Asia country equal to accumulate when.

Speaker Change: Well, maybe new attitude in Washington D C O N E.

Gaofei Wang: In 2025, the company provided a good financial flexibility in terms of the feasibility of investment in product technology and AI, supporting the company's long-term development. For the overall ad market in Q4, the government introduced a series of stimulus policies to boost consumption. For instance, the trading policy had a notable positive impact on the digital product and our e-commerce market. However, it takes time to see when the broader set of economic stimulus measures will translate into the recovery of advertisers and consumer markets. With this policy gradually taking effect, we hope to see the macroeconomy, consumer gaming, and more industries demonstrate a more meaningful result.

Speaker Change: With our current chief batch order cadence.

Speaker Change: That would equal do so as it moves to the touch panel for.

Speaker Change: So the overall end market in Q4, the government introduced a series of stimulus policies to boost consumption for instance, the trading policy had a notice of a possible positive impact on the digital products and E. Commerce sectors. However, it takes time to see one of the broadest set of economic stimulus measures.

Which translate into the recovery.

Speaker Change: And the consumer market, we seek policy gradually taking effect, we hope to see the macro economy, a few Mcdonald's and more English to demonstrate a more meaningful way Bob.

Gaofei Wang: Against this backdrop, Weibo's monetization strategy will continue to focus on leveraging marketing opportunities from the platform-wide and client-driven hot trends, while penetrating into a wider range of industries and clients. And meanwhile, conserving clients' marketing campaigns for the new product launch or key marketing window will strive to deliver better performance in terms of the distribution effect and client feedback. Recapping on 2024, although revenue from a few industries fell short of expectations, which negatively impacted on the overall revenue growth, our effective cost management enabled us to sustain a stable operating income. The solid profitability gave us financial flexibility to support our investment in product technology and the AI area in 2025, which are cornerstones of the company's long-term development.

Yes, the backdrop.

Speaker Change: Weibo's monetization strategy will continue to focus on leveraging market opportunities from the platform why.

Speaker Change: Copper wire and the client feedback hotshot, well penetrated into a wider range of industries and clients and Meanwhile, we are serving clients marketing campaigns for the new product launch where key marketing window, we have swaps will deliver better performance in terms of the distributions that and client feedback we catch them all.

Speaker Change: Although revenue from a few industries feel shorter reset patient switching activity impact on the overall revenue growth our effective cost management enabled us to sustain our FIFA ultimate team.

Speaker Change: The solid profitability give us financial flexibility to support our investment in product technology and AI area in 2025 retail cornerstones of the company's long term development.

Gaofei Wang: Overall, in the past 20 years, in the background of the uncertainty of the overall macroeconomic and industrial environment, the US Department of State has strengthened its platform content competitiveness and enhanced its platform efficiency. 通过同好成本管理,加强内容生态建设,以及内容营销竞争力,实现了全面经营利润,通过同好成本管理,加强内容生态建设,以及内容营销竞争力,实现了全面经营利润, In 2025, we will continue to use value as the core to ensure that Weibo is at the top of the hot spot for cultural and ecological advantages, to stabilize the competitiveness of social products, and to combine AI capabilities to focus on investment and strengthen the recommendation system. and continue to improve the quality and visibility of Weibo. to develop a long-term competitive advantage for the platform and realize the growth of user scale and activity.

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Gaofei Wang: The following are the three dimensions of user growth, content ecosystem competitiveness, platform efficiency, and a brief summary of Weibo's core strategy for the second half of the year. Overall speaking, in 2024, against the backdrop of macroeconomic and industry uncertainties, we focused on beefing up Weibo's competitive edge of our content ecosystem and enhancing operating efficiency as our key goals. Endorsed by effective cost management, reinforced content ecosystem and content marketing strategies, we delivered stable profitability for 2024. Looking ahead to 2025, we will continue to focus on user value, solidify our leading position in hot trends and entertainment content ecosystem, and reinforce the competitiveness of our social products.

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Speaker Change: Overall speaking in 'twenty 'twenty four against the backdrop of macroeconomic and industry uncertainties, we focus on beefing up weibo's competitive edge of our company vision and enhancing operating efficiency I felt he goes and looking by the effective.

Speaker Change: Cost management, leading towards the company's assistant and content marketing strategies, we delivered stable profitability for 'twenty 'twenty. Four looking ahead through 2025, we are continuing to focus on use a battery. So let me say, our leading position in Huntsville, and the entity and that he entertainment company ecosystem and when.

Speaker Change: And fourth the competitiveness of our social products on top of state will also beef up our AI investments to enhance our recommendation system and further in that vertical and the video content ecosystem. These initiatives will solidify the platform's longtime competitiveness as well as glass user community growth.

Gaofei Wang: On top of this, we will also beef up our AI investments to enhance our recommendation system and further invest in vertical and video content ecosystem. This initiative will solidify the platform's long-term competitiveness as well as drive user community growth and engagement.

Gaofei Wang: Next, let me briefly share some color on our key strategies for 2025 on three key fronts, user growth, content ecosystem, and operating efficiency. to further enhance the network of bloggers and fans. At the same time, based on Bozuo's social network, through the combination of member products and social products, we can expand Bozuo's platform space, and promote Bozuo and its fans' activities on the platform. Secondly, we will focus on upgrading the new EU products through the optimization of the first-month products and improve the quality of the new EU by combining large-model capabilities. 实现以内容推荐为核心的首页新一流消费 to improve the recommended traffic ratio of the entire brand, improve the consumer experience of users, and better support the continuous development of the sustainable content ecology.

Speaker Change: And engagement next let me briefly share some color on our key strategies. What time you tend to fly on three key fronts user growth company ecosystem and operating efficiency.

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Gaofei Wang: Third, we will continue to strengthen the competitiveness of hot products, combine the power of open-source models to transform hot products, and improve the credibility and profitability of hot sales. 并改造热点信息流产品,强化各州加热点流的集中效应,以更高效的热点分发体系提升热点照顾用户的留存率,助力内部热点生态的持续发展。 On the user front, in 2025, a key focus in the user product area is integrating Weibo's social products and revamping the recommendation system so as to drive user growth and engagement. To elaborate, first, we will consolidate key social products such as Super Topics, My Profile, and Fans Group to improve user interaction and strengthen the social stickiness between content creators and their fans. Additionally, leveraging the synergy between membership and social products, we aim to empower content creators to expand monetization opportunities based on their social networks and thus foster greater engagement for both content creators and their followers on the platform.

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Speaker Change: On the use of drop in traffic on the five key focus in the use of product.

Speaker Change: Integrating wavelets, social product and revamping that recommendation system, so as to drive user growth and engagement to elaborate first we'll consolidate key social products such as Super topic, My profile enhance group to improve user interaction and Jenson a socialist thickness between common creators in their fab.

Speaker Change: Additionally, leveraging the synergy between membership and social products, we aim to empower contemplated switch data monetization opportunity based on their social networks and that's what we heard engagement for both content creators and this follows on the possible second we will obsolete.

Gaofei Wang: Second, we will upgrade our information feed product by optimizing the homepage interface. Covered with the strength of the large-language model powered interest-based feed, we hope to nurture users' habit of consuming recommended content on the homepage, thereby raising the proportion of recommended content among traffic distribution. We will also refresh the trending content feed and thus further unlock the synergies between the hot search and such feed. Leveraging a more efficient hot trend distribution system, we could improve the retention for those users recalled through hot trends. This effort would greatly benefit the sustainable development of Weibo's hot trend ecosystem in the long run.

Speaker Change: Information feed product that optimizes, the homepage interface, coupled with the strength of the lush English model powered interest based feeds we hope to know should use this habit of consuming a recommended content all the homepage, thereby we think the proportion that's been recommended content among traffic distribution.

Speaker Change: By doing so in endeavour to offer fresh user experience well reinforcing the long term development of the vertical content ecosystem third we are dedicated to further solidifying our advantage in culture. That's through the introduction of the open source model. We have with them are changed plot we spoke of.

Speaker Change: I think they'll credibility and influence of the House search chart. We will also refresh the trending carbon feed and that's further unlock the synergies between the hot search and search feed leveraging a more efficient how China distribution system, we could improve the retention for those user tweets, we called it a hotshot. These.

Speaker Change: Africa, which greatly benefit the sustainable development of LIBOR culture and ecosystem in the long run.

Gaofei Wang: We earn a global revenue of over 130 billion yuan by our催谷工程 team, and slurred 32% of a total profit of 4.7 billion yuan in the relevantworks sector. and other platform users and marketers. First, we will continue to strengthen Weibo's popularity. to increase investment in the media and the self-media ecosystem, to meet the comprehensive and in-depth Japanese consumption and discussion needs. On the other hand, we aim to build up the popularity of celebrities on Weibo, to strengthen the psychological ecosystem and enhance user interaction. At the same time, we will continue to innovate in the interactive mode of movies to strengthen the reputation of the works and the advantages of the platform, and to enhance the consumption of micro-content and the scale of the industry.

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Gaofei Wang: For example, the 25th Spring Festival Gala and our investment in the popularity discussion of the movie plot led to a 50% increase in the number of discussions There are 9 million topics in both websites and online. As a result its interpretation has been criticized by many. In addition there are many negative comments Many viewers sent comments to the textile industry. Where do you learn textile dentistry?

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Gaofei Wang: On the content ecosystem, in 2025, as for the user product and operation, we will focus on reinforcing Weibo's leading position in the hot trend and entertainment sector while continuing to invest in the vertical and video content ecosystem. This initiative will further enhance Weibo's content capability to compete for users' engagement and time spent among the users. To elaborate, first, we'll beef up Weibo's hot trend operation through lifting investment in the content generation of both media outlets and self-media accounts, so as to cater to users' demands for comprehensive and in-depth hot trend consumption and discussion. As for the entertainment vertical, we'll further drive the engagement of celebrities on Weibo and reinforce the celebrity fan ecosystem to boost social interaction.

Speaker Change: On the content ecosystem in 2025, that's where they use a proud of an operation we will focus on reinforcing weibo's, leading position in the heart check and entertainment sector, while continuing to invest in the vertical and video company ecosystem. These initiatives will further he had sleeveless common capability to compete for users.

Speaker Change: Engagement and time spent on all the platforms.

Speaker Change: First we will beef up labor Cartwright accretion so lifting investment you know kind of generation of both media outlets and self media accounts. So in some cases, you're used to seeing so comprehensive and in depth index, how China consumption and discussion that's where the entertainment vertical will further drive the engagement of celebrities on Weibo.

Speaker Change: And fourth a celebrity gaming ecosystem to do social interactions. Additionally, we have continued to innovate on the collaboration model with drama and variety show promotional platform as well as skin students.

Gaofei Wang: Additionally, we'll continue to innovate on the collaboration model with drama and variety show promotion platforms, as well as fueling students' leverage of Weibo's strength in amplifying world-renowned spots and in expanding audience reach. These efforts will drive greater content consumption and discussion for the entertainment vertical. For example, during the 2025 Spring Festival, we are pleased to see a 50% year-over-year increase in the number of discussions related to the Holiday Box office, thanks to our operation efforts in movie plot discussions and audience reviews. Notably, for the blockbuster movie Nezha the Second, we targeted hot topics and audience reviews, leveraging the exclusive initiatives such as the relay of the celebrity image featuring top films in Chinese cinematic history, and coordinating efforts with around 3,000 media outlets.

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Speaker Change: Extending audience audience, which these efforts will drive greater content consumption and discussion for the entertainment vertical for example, during the 'twenty 'twenty five Spring Festival, we are pleased to see a 50% year over year increase.

Speaker Change: The increase in the number of discussions that maybe the holiday box office sexual operation athletes.

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Speaker Change: Notably for the blockbuster movie no doubt the second we talking at hot topics and the audience with us.

Speaker Change: Leveraging the exclusive initiatives such as the relay of the celebrity image featuring top films in China, and Chinese has seen a medical history and coordinate efforts with around 3000 media all of it the topic relating to nor does it generally over it.

Gaofei Wang: The topic related to Nezha the Second generated over 90 billion views and 100 million discussions on Weibo. We are excited to see this campaign ignite public enthusiasm for domestic animated films, contributing to Nezha the Second's success in surpassing 10 billion yuan in box office revenues.

Speaker Change: 19 billion views and 100 million discussion on LIBOR, you decided it's easy and paint ignite public enthusiasm for domestic and he made me feel contributing to know does the second step that is it possible to tenant billings on in box office revenues.

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Gaofei Wang: Promote cross-border international cooperation in business This year, we will focus on building AI industry capabilities, expand the interest groups of AI topics, and help the development of the AI industry. Third, in order to better promote the development of new technologies, 来使现从内容生产到创发的流量品管理,以加进一步推进兴趣取得运营性 Our visit to Zungan is like a trip down memory lane for almost 20 years. 支撑首页推荐信息流入五规模年龄的提升 促进崔区生产的长远发展 Second, we'll continue to strengthen the build-out of industry-specific vertical ecosystems such as digital, automotive, and online games, etc. To elaborate, we strive to increase the number and influence of the Golden Verify account and enhance the monetization capabilities of Golden and Orange Verify accounts.

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Ethan: The tissue.

Ethan: Okay.

Ethan: Second we will continue to strengthen the build out of industry specific vertical.

Ethan: Vertically persistence, especially digital automotive and online games et cetera to elaborate we swipe to increase the number and influence of the Golden Valley by accounts and enhance the monetization capability of gilded and Orange verify outhouse. This approach will enable us to further integrate levered industry based.

Gaofei Wang: This approach will enable us to further integrate Weibo's industry-based accounting ecosystem and monetization ecosystem. Creating a Virtuous Self-Reinforcing Cycle of User and Monetization.

Ethan: Content ecosystem and lifestyle Asian ecosystem, creating a virtuous itself reinforcing cycle of user and monetization. This year, we will work to build out and eye AI related to content vertical and that support the AI transformation with focus on strengthening discussion around AI chat and extending common.

Gaofei Wang: This year, we worked to build out an AI-related content vertical and thus support the AI transformation. We focused on strengthening discussion around AI trends and extending content creators' interest in user base in the AI field. Third, to better align homepage information feeds and improve recommendation accuracy, we will further optimize our approach to interest-based vertical content operations, establishing a closed-loop system from content creation to distribution. Instead of primarily managing the engagement of content creators, our focus will shift toward managing their vertical content.

Ethan: Rate of interest interested it used to be in the eight I feel sure to better align homepage inflammation fees and improved recommendation accuracy.

Ethan: Further optimize our approach to interest based vertical coffee operation, establishing a close loop system. Some contemplation through distribution instead of a prime really managing the engagement of concentrated our focus will shift toward managing their vertical content. These initiatives will help.

Gaofei Wang: This initiative will help drive user base and engagement of the recommendation-based feeds on the homepage In terms of improving platform efficiency, the sales of online advertising products are focused on marketing content on Weibo to build and consolidate in more industries and customers, and improve the effect of advertising products. First, advertising sales will deepen the advantages of content marketing. According to the characteristics of the industry, we will develop a comprehensive content marketing solution to quickly achieve the sharing of content and business ecology with leading customers. At the same time, we will re-create the content marketing service model, adjust the sales price, and fully promote the target of content marketing to expand in the industry and customers.

Ethan: Drive user base and engagement of the adolescent liquidation faithful feet on the homepage and the facility that long term development of vertical company picked us.

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Gaofei Wang: Secondly, advertising products will further improve the distribution ratio of native advertising, improve the marketing effect and experience of native advertising, and help the content marketing advertising budget. At the same time, we will continue to strengthen AI technology in the field of business, to enhance the efficiency of marketing.

Gautam: Yeah Gautam.

Gautam: The team is really the engine blocks and happy to see how many of whom are they each are shovel it yet.

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Gaofei Wang: Third, combine the re-organization of social members' rights and interests, and the exploration of literary and game IP resources, to enhance the value of Weibo members, and to promote the improvement of members using Weibo, to achieve a steady growth in income. Moving on to operating efficiency, in 2025, for our ad product and sales strategy, we seek to create and solidify clients' mindset of Weibo as the go-to platform for content marketing across a broader range of industries and clients, while also improving our ad conversion efficiency. First, in AdSales, we will further leverage Weibo's core strengths in content marketing and optimize industry-specific marketing solutions tailored to different sectors to achieve win-win results in the content and business ecosystem with top clients.

Gautam: Sure when you do that.

Gautam: Moving onto the operating efficiency in 2025 floor and part of it still strategy, we seek to create and so let me if I click mindset of Weibo as a go to platform for come from marketing across a broad range of industries and clients. While also improving our AD conversion deficiency first in App.

Gautam: We will further leverage we look of course at Murphy and optimize dealership industry specific marketing solutions tailored to different sectors to what she we read out in the content business ecosystem with top clients. Additionally, we look we organized all come from marketing survey and read that.

Gaofei Wang: Additionally, we will reorganize our content marketing service and revamp our sales structure to expand the reach of content marketing across industries and clients. Second, in terms of ad products, we'll increase the distribution ratio of native ads, namely content marketing, and enhance the overall marketing experience and ad performance, which will enable us to capture incremental ad value shifts from content marketing. At the same time, we'll continue to leverage AI technology in the monetization field to optimize marketing execution efficiency.

Gautam: The structure to expand the reach of content marketing across industries and clients.

Gautam: Second in terms of in terms of that product will increase the distribution ratio of native app at namely Unboxing and enhance the overall walking spirits and AD performance, which will enable us to capture incremental add Wally shifts from content marketing at the same time there continues.

Gautam: Average AD technology in a monetization feed to optimize market.

Gaofei Wang: Third, we hope to deepen the engagement of VIP members and drive stable growth in the value-added service by creating greater value for our members with focus on integrating our various membership benefits and creation of entertainment and gaming items. In 2025, we also saw the opening of large models and the opportunity to launch products. In the past two years, we have focused on introducing various AI models to build a basic platform capability, so that our business can switch quickly when using AI models and constantly try to innovate. At the same time, we have also been actively trying in the product field for the past 24 years.

Gautam: The fusion of efficiency.

We hope to deepen the engagement of VIP members and drives to stay stable growth in the value added services by creating greater value for our members with focus on leading our various membership benefits and create creation of entertainment and gaming I piece.

When we accomplish that.

Gautam: Thank you.

Gautam: So quickly on your <unk>.

Gautam: And what's your general GDP.

Gautam: From the U S.

Gautam: Chrysler children.

Gautam: So thats strategically positioned.

Gautam: Or can you.

Gaofei Wang: At present, we have focused on the combination of business and AI, in the search, social interaction, content recommendation, advertising, and other directions. At the beginning of 2025, we saw some exciting progress on the big model. Among them, the latest open source model can be used in Weibo search, which greatly improves the search ability. At present, based on the latest open source model, the new version will be available to all users in this quarter. At present, from the perspective of the side users, this can help improve the experience of Weibo search and improve the quality of users' search.

Gautam: Your country, which in detail here.

Gautam: So kudos to you got to go from a telecom.

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Gaofei Wang: Let Weibo search's market positioning evolve from hot search and live search to comprehensive search, which is helpful for Weibo to enter the vertical search. Of course, we need to improve our product experience. In addition, the social, advertising, and product applications of AI are also being actively experimented. These have the core competitiveness to improve the existing products of Weibo and the use scenarios for our users to expand, increase the size of the application, and improve the interactivity. We believe that the changes in the ability of new technologies to bring products will definitely further strengthen Weibo's unique advantages in the social media industry and contribute to the long-term development.

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Gaofei Wang: Finally this year, we are happy to see the product opportunities brought by the open-source large-language models. Over the past two years, we have focused on building our basic platform capabilities through integrating all kinds of AI models, which enable us to swiftly switch among AI models to innovate our product. In 2024, we proactively explore on the product front and gradually online our roadmap, which focuses on several key areas, namely AI-powered search, social interaction, content recommendation and advertising, etc. In early 2025, we are excited to see breakthroughs in the areas of large-language models, particularly the application of the latest open-source model to Weibo search functions, which has significantly boosted the search capabilities.

Gautam: Finally, this year, we are happy to see the product opportunities brought by the openings with large language models over the past three years, we have focused on building our basic platform capabilities to integrate them all kinds of AI models, which enable us to swiftly switch among AI model to innovate our product in 2024.

Gautam: Proactively explore other part upfront and gradually all like a roadmap, which focused on several key areas, namely AI powered search social interaction content recommendation and advertising et cetera in early 2025.

I can see breakthroughs in the areas of large language models, particularly as the application of the latest opens with modal two way voice search function, which has to be typically boosting the search capabilities.

Gaofei Wang: The new version of Weibo Intelligent Search Function, powered by the latest open-source model, will be rolled out to all users this quarter. Based on the current user group tactic, the updated version will improve user search experience on Weibo and drive usage frequency of Weibo search function. This will transform the positioning of Weibo search from hot-trend and real-time search to general search, which will facilitate us to enter into the vertical search market. This potential transformation will also set a high standard for our product experience. Additionally, we are also actively exploring AI applications in social and advertising products.

Gautam: The new version of Weibo intelligent search function powered by the latest open source model will be rolled out to all use a fifth quarter based on the current user group passed at the updated version will improve user search experience on LIBOR and drive usage frequency of sleep with dysfunction.

No twist for the positioning of wages from hotshot and real time search too generous ups, which will facilitate us to enter into the vertical market.

Gautam: Potential transformation will also set a high standard for all products feelings. Additionally, we are also actively exploring AI applications in social and tightened products. These application it would position us well to reinforce our competitive set we send our music Nevertheless, well I'll use a community.

Gaofei Wang: These applications will position us well to reinforce our competitive strength, expand our usage scenarios, grow our user community, as well as facilitate user interaction. We firmly believe that AI technology will transform our product capabilities and further strengthen Weibo's unique value proposition in the social media sector and thus build momentum into our long-term growth.

Gautam: And as well as facilitate use of interaction we firmly believe that AI technology will transform our product capabilities and further strengthen weibo's unique value proposition in a social media sector and that's been momentum into our long term growth.

Gautam: Gee I don't want to own it.

Gautam: <unk> has also to do with Arthur and unions, how we do it without that and technical over to face off where it financially.

Fei Cao: With that, let me turn the call over to Fei Cao for a financial review. Thank you Gaofei and hello everyone.

Gautam: Thank you and I'll say it anyway.

Fei Cao: Welcome to Weibo's fourth quarter and fifth year 2024 earnings conference call. Let's start with international. In December 2024, Weibo's MEU and average EU reached 519 million and 260 million respectively. In 2024, we have proactively adjusted our user strategy to focus on the acquisition and engagement of high-quality users, leading to an uptick of our DAU versus MAU ratio throughout the year. On the content front, we further optimize our content ecosystem through reinforcement of our core strengths and solid execution of our vertical content strategy. As a reminder, make prepared remarks with full thumb and thumb raise up.

Gautam: Well look.

Fourth quarter and fiscal year earnings conference call. So that traveler is domestic in December I mentioned before we've looked at it in.

Gautam: And out of the EU.

Gautam: Perfect.

Gautam: That to me at 200.

Gautam: And then secondly, if.

Gautam: You can find the time before we have proactively adapted our strategy to focus on the aggregates I mean database.

Gautam: I need to deal with it.

Gautam: Adding to our uptake of our D. You worth it I mean the ratio there all year on.

Gautam: On the causing problems for.

Florida optimize our content ecosystem.

Gautam: In Switzerland, Our Corp, Dev and the solid execution of our work will come in the strategies.

Gautam: Her name was identical.

Gautam: As a reminder, my prepared remark with Brooke sometimes that resolved.

Fei Cao: All monetary amounts are in U.S. dollar terms, and all comparisons are on a year-over-year basis, unlike otherwise noted.

Gautam: A lot of her New York Telecom.

Gautam: All comparisons are on a year over year basis, unless otherwise noted.

Fei Cao: Now, let me walk you through our financial highlights for the fourth quarter and fiscal year 2024. Weibo's whole quarter 2024 net revenues were $456.8 million, a decrease of 1% of last year's current currency base. Operating income was $136.2 million, representing an operating margin of 30%. Net income attributable to Weibo reached $106.6 million, and diluted EPI was 47%. For whole year 2024, total revenues raised to 1.75 billion, flat-ish, or an increase of 1% across the current debate. Operating income was $584.1 million, representing an operating margin of 33%. Net income of two of those Weibo with 478.6 million and their utility fee add was $1.82 Let me give you more color on both corners and show you how we program your performance.

Gautam: Now, let me walk you through our financial highlights for the saltwater I fiscal year I'm about equal weight.

Gautam: Wait what saltwater I Didnt know before that revenue well find it it's an 8 million I'll be.

Gautam: Right.

Gautam: None of that is oh come to currency basis.

Gautam: Operating income was up almost everything until we get rid of it.

Oh Crazy margin of 35 that net income attributable to weibo because outside of the big answer yet on that that would be the easy up with what is that.

Our full year total revenue base of 1175 feet at flattish.

Gautam: Uh huh.

Frank: Oh, sorry, Frank debate at.

Gautam: Operating income was 500.

Gautam: Eight people unplugging it rather than the operating margin I'll start is there for that.

Gautam: I'm not super grocery for renewable onto the subsidy on six minute.

Gautam: I look at D C at what's that dollar and 82 of that.

Gautam: Let me give you more color on multiple her until you have any timing for that is performing.

Fei Cao: Weibo's advertising and marketing value for the post-quarter 2024 was $385.9 million, a decrease of 4% or 3% on a constant currency basis. Mobile ad revenue was $363.7 million, contributing approximately 94% of total ad revenue. Value-added service, VAT revenue was 71 million in the fourth quarter, an increase of 18%. Four years 2024, advertising and marketing revenues reached 1.5 million, a decrease of 2% or 1% on a concurrency basis, with mobile ad revenue contributing 94% of total ad revenue. Four years 2024, VAT revenue increased 13% or 15% on a concurrency basis to 256 million.

Adam: Wave with Adam.

Adam: Revenue for the fourth quarter understanding for what they claim that they can buy online yet.

Adam: But ah corporate that I'll take a crack on a constant currency basis mobile AD revenue once they find that it took the three funds that need it how could that maybe I can talk about that all the AD revenue like I did a survey last night you want them to fund me at one corner of.

Adam: And things like that both years anytime they want advertising boxes Avenue Victor one 5 million a decrease of two cars that Oh, that's my son Akathisia with mobile AD revenue was 19, 4% up on the advisory vote on it.

Adam: So that revenue increase, especially for that well if it seems like that's a constant currency basis.

Adam: So two kinds of statistics made it.

Fei Cao: First, we're talking Q4I performance. Consistent with our expectations, the advertising business continues to stabilize. Though performance varied across our key ad verticals by industry, our largest three verticals were 3C products, e-commerce, and FMCG in terms of growth. 3C products, automobiles, and internet services were the key drivers of advertising revenue growth on the upside. We are encouraged to see early signs of a rebound in 3C product sales, as trading subsidies took effect. The automotive sector continues to deliver solid growth, benefiting from the ongoing shift from traditional to electronic vehicles, as well as our robust content ecosystem supporting new car launches.

Adam: Are you talking Q4 at four months.

Adam: I'll discuss it with our expectation.

Adam: The business continues to stabilize.

Performance varied across our key AD workaholic like industry, a lot if not greater market call. It less risky part I E car I got a C G.

Adam: Firstly.

Adam: Although mobile and the Internet and a third of it where.

Adam: The key driver of advertising basketball unlocked that we haven't entirely the deep learning side, if I recall, you briefly perhaps sale of trading subsidy to be back.

Adam: Alcohol sector continues to be neighbors, telling as well that'd be gained from the onboarding of ships on traditional electronic we are about our robust content ecosystem support EU car loved it.

Fei Cao: On the flip side, our top-line recovery was jumped down by the underperformance of the online game sector as they faced a top year-over-year comparison due to the concentrated release of blockbuster card games in the post-quarter last year. Additionally, although consumption data shows signs of bulging out, Partly supported by trade-in policies, certain discretionary categories such as cosmetics, luxury goods, and personal care products remain under pressure.

Adam: I believe that our top line recovery with Jetstar and under performance.

Adam: That game sector I think there is a top year over year comparison.

Adam: The other tricky, there's really a blockbuster hockey game in the fourth quarter of last year. Additionally, although I'm fucking daytime show signs of opening up.

Adam: How can they supposedly it is actually in policy circles.

Adam: Discretionary category such as.

Adam: I'm not sure if.

Adam: I just love how are you.

And their partner.

Fei Cao: Moving on to Go Year 2024 Ad for Women, Defy, Medical, and Competitive Advocacy. They maintained a strong Edward-Tizer engagement and continued to attract meaningful advents from key sectors. while revitalizing the company ecosystem to enhance our monetization capabilities by industry. Our largest of three verticals were SMCG, Frisbee Products, and eCommerce in terms of growth. Even as a service, Frisbee Products and Automobile were the largest contributors to growth. We are delighted to see sustained growth in ad funding from the concept and automobile sector this year, driven by favorable policy stimulus and strong engagement around new product launch.

Adam: Moving off the full year.

Adam: <unk> performance is.

Adam: But Michael on the Colorado they've happened.

Adam: Maybe I can just add or type of engagement.

Adam: Okay.

Adam: Check the need for Aspen from key sector.

Adam: Well, that's what I need the content ecosystem tweeting has our months that they didn't have the ability that industry are a lot of these are very worried about what kind of thing where people are a newcomer.

So you have a line of therapy.

Adam: Perhaps an optimum level well I guess I'll go with her world Yeah.

Adam: With that as well as funny.

Adam: Is that Oh, my God that leap year January February let's call it deal alert and some replacements adopt a new product launch.

Fei Cao: The internet service sector also achieved imperative growth as customers from this sector embraced our platform to reach high quality users amid an intensified competitive landscape. However, the SMCG category continued on a downward trend. Within the SMCG, the cosmetics and personal care sector remained under pressure, mainly due to weak sales from multinational brands and heightened competition among ad platforms. In contrast, the food and beverage industry experienced a solid growth, boosted by the Paris Olympics as well as our strong sales capabilities. The ad product promoting feed ads was the largest, followed by social displays and talking. In 2024, we further strengthened our market differentiation around blockchain, IT, and celebrities, which resulted in significant growth in content marketing.

Adam: I'm sorry, Kurt also like shipping Aragon Globe Petsmart from this sector in Greg's our platform for great high quality users need either but I don't think loved it.

Adam: Over that I'm thinking high grade continued downward chat with me I've got a b D. The cosmetics and personal care remained under pressure many groups, who we feel are multinational Brad and I find it kind of a decent amount at that for you.

Adam: Got.

Adam: The fluids and a battery that treatment heroes all equal.

Adam: I'll, let Peter that the Paris Olympic.

Adam: Our thoughts are abilities.

Adam: As part of that how long do you see that there was a lot of blood or does that still have to say on the topic I'm sorry, if I may.

Adam: 74, before that but that's our market differentiation along of chat and he and I love It with Green Dot money isn't the growth in passenger rocketing.

Fei Cao: Ad revenues from Alibaba for the 12th quarter were $14.3 million, a decrease of 10% or 9% on a constant currency basis, reflecting a relatively muted e-commerce shopping festival amid a tacit consumption environment. Four-year ag revenues from Alibaba were $116.8 million, an increase of 5% or 6% of constant rent basis, consistent with Alibaba's moderate pickup in the marketing bar chart. Then we added the survey, VAT revenue was $71 million in the 4th quarter, up 18% year-over-year, driven primarily by growth in our membership and gains-related services. For the 4th year, 2024, VAT revenue increased by 13%, or 15% on a concurrency basis, to $256.

Adam: AD revenues from Alibaba fourth quarter, reflecting uncertainty that I think that nothing like that on that front that are caused by the fact that they.

Adam: Reflecting a relatively muted ecommerce shopping festival amid attacking it consumption environment.

Adam: Your AD revenue from Alibaba was on fire. It became an eight needed I E trade off I forgotten or things like that.

Adam: So that's the basic concept I just thought that the mother had a peak power maximize it.

Adam: I did a survey that revenue without if you wanted me to ask me the fourth quarter up 18% year over year, driven primarily by growth in our membership and the angry they did historically, but the full year kind of thing before that menu of English that searches like that 15% of the attractive basis to 256 million.

Fei Cao: This growth was largely due to the strong performance of our SVIP membership service, which effectively meets our users' social needs and by our successful efforts to attract high-quality users with greater purchasing power. Currently, total cost and expenses for both quarters was $320.7 million, an increase of 1%. Both-year cost and expenses totaled $1.17 million. with increase in sales and marketing expenses offset by decrease in general and energy distributed expenses. All trading income in the 4th quarter was 136.28, representing an operating margin of 30%, compared to 31% in the same period last year. Operating income for the whole year of 2024 was $584.1 million, representing an operating margin of 33% compared to 34% in 2023.

Adam: This work was not may feel about sort of a pro forma of our active Yangtze memory gets started with its activates our user socially under five hours, except for Acura to attack I pulled the video with or with greater purchasing power parity I forgot I suppose it totaled.

Adam: <unk> expenses for third quarter once they find a country on Sunday I think creates a lot of friends on all your costs I loved it totals 151 7 billion largely flattish with.

Adam: The increase in sales and marketing.

Adam: All of that but equally each of these cities, especially.

Adam: Operating income in the fourth quarter was a long time that the person sleep.

Adam: Yes.

Adam: Oh Crazy logging a perfect with that I'll pass the second one that you'll get them throughout the year.

Adam: <unk> comparable year kind of thing Paul what's that time, Jay a default on language rather than the operating margins, especially for it but that's how powerful pleasure to work with us.

Adam: Great.

Adam: Her income cash.

Fei Cao: Under tax, income tax expenses for post-quarter were $20 million, compared to $72.6 million last year. This reduction is primarily due to the runoff with OD tax approved in the fourth quarter of last year, compared with the normalized representation in 2024. Four-year income tax expenses were $110.6 million compared to $145.3 million in 2023. The decrease mainly reflected Director of Grids, of course, Quartet in 2024, which is in line with our capital allocation plan, including dividends and payments. Net income of Xueqing Zhou's Weibo is a whole quarter of $106.6 million, representing a net margin of 23% compared to 16% of Weibo's net income.

Adam: Income tax expenses for both quarter, what kind of figure that comparison to that'd be cool classically a last year. This reduction is primarily due to the burn off or the type of pool in the fourth quarter of last year compare that makes a lot more of that or the Nissan Titan.

Adam: Paul.

Adam: Full year income taxes.

Adam: Well by the time that I touched on.

Adam: Compared to a lot of times Jake what two five on a friendly then you kind of a story.

The decrease mainly reflected a regular guy a core part that inside the 74 million.

Adam: With our peptide isn't flat, including even in the payload.

Adam: Net income I think it was on the label in the fourth quarter was 106 months after that.

Adam: And that margin upside is that tied to a big take like that last year for my read those without off months of impact from income tax.

Fei Cao: From Arial to the above, manage the impact from the impact. National income for the whole year 2024 was $478.6 million, representing a net market of 27% compared to 26% in 2023.

Adam: Yeah.

Adam: Now I'm, a bogey or kind of any fall well 478 million, representing a nice market outside of China.

Adam: So actually when he speaks for that.

Fei Cao: Turning to our final sheet and title items of December 34th, 2024, Weibo Tech, Tech Equipment, and Short-Term Investment. totaled $2.35 million in the first quarter. Tax provided by operating activities was $244 million. Tax expenditures totaled $17.7 million, and the distribution and monetization expenses amounted to $14.4 million on a four-year basis. Tax provided by operating activities was $639.9 million compared to $672.8 million in 2023.

Adam: Great.

Adam: I wanted to clarify does she and I.

Adam: I thought the December 31st dependent upon equal we will have completely uninsured kind of lessen over the 2535 in the fourth quarter cash provided by operating activities.

Adam: Was 224 E N type of expenditure totaled $17 7 million.

Adam: T J I don't know that they can spend it amounted to 14, plus a full year basis.

Adam: <unk> provided an offer that is let's say country recognize Nike and compared to 672 8 million.

Adam: Heck of a center.

Adam: 61 five.

Adam: Okay I've got one left.

Adam: I think especially among those who didnt get a spotlight on it yet.

Fei Cao: In light of Weibo's robust censorship and health impact of the pandemic, We are pleased to announce that our Board of Directors has adopted an Annual Tax Dividend Policy. Under this policy, the Board has approved an Annual Tax Dividend. of AT2 that Artillery shared for ADI for the peaceful year 2092. The total dividend payout will be approximately $200 million, with payments expected to be made in May 2025. Over the past two years, we have successfully distributed two rounds of financial tax dividends, each totaling approximately $200 million.

Adam: I'm not a big let's go back further sheet unhealthy pathologic addiction, let's say, it's a lot like our Florida, Aircard I thought softer annual cash dividend policy and the policy. The board has a pool that I will pass to eat it.

Adam: It's just too that part of their share for Adi for the people here other than to.

Adam: The total gain of this chaos.

Adam: <unk> 200 million that fathers with payment expected to be made maintenance type of 75.

Adam: Where in the past three or they may have effect Navy shipbuilding is too long with a banker Pasadena and each totaling approximately 200.

Fei Cao: Looking ahead, our top priority is to see the transformative AI alternatives while maintaining robust financial health. Our decision to capital allocation supports our strategic priorities and ensures long-term financial stability enables us to deliver sustainable, predictable dividends to our shareholders.

Looking ahead, our top priority is to see the transformation eight outside of it.

Adam: Me neither of Us say natural house.

Are they concerned that happened on occasion I suppose our objective.

Adam: Power to.

Adam: To ensure long term financial stability and enable us to deliver a sustainable predictable dividend to our shareholder if not let me know.

Unknown Executive: With that, let me now turn the call over to the operator for the Q&A session. Thank you. As a reminder to ask a question, you will need to press star 11 on your telephone keypads and wait for your name to be announced. To withdraw your question, please press star 11 again.

I hand, the call over to the operator for the Q&A session.

Adam: Thank you.

Adam: To ask a question you will need to press star one on your telephone keypad and wait for your name to be announced to withdraw your question. Please press star one again.

Unknown Executive: We will now start with our first question. Please stand by.

Adam: They will now start with our first question. Please standby.

Adam: Yeah.

Adam: Uh huh.

Xueqing Zhang: And the first question comes in the line of Xueqing Zhang from CICC. Please go ahead, your line is now open.

Zhang: And the first question comes from that line of stretching Zhang from CIC. Please go ahead. Your line is open.

Fei Cao: Thank you,管理层,接受提问,我的问题是关于AI的, 那刚刚我听到Prepare Remarks提了很多AI的进展, 包括最近微博之搜也揭露了DeepThink, 那使用方面的体验还不错, 想请公司整体分享一下我们未来在AI应用上有什么样的一个战略思考,谢谢。 Thanks management for taking my question, my question about AI. As your Prepare Remarks mentioned, you have a lot of progress on AI, and the Weibo show has also integrated DeepThink, and the usage experience is quite good. So can management elaborate a little more on your future strategy of AI applications in the future? Thank you.

Adam: Sure.

Adam: And he said when you and I am not going well at $10 per tire Max Killer had go out of the danger of I'll call. It they can't wait Blitz is flowing at J D.

Speaker Change: Michelle tell me that you had something go such a neat things that you saw on my way lives that are you know.

Adam: Those to me on the goods.

Adam: Yeah.

Adam: Thanks management for taking my question My question about her.

Adam: Ah Ah self prepared remarks mentioned, you'll have a lot of progress and the Wedbush and if so how.

It also integrates you see us.

Adam: Terrorists.

Adam: Quite good.

Adam: So can management elaborate a they come on.

Adam: Gotcha.

Adam: Acacia.

Adam: <unk>.

Adam: Yeah.

Fei Cao: First of all, over the past two years, we have been working on several aspects. On the one hand, we focus on introducing various AI models, including the ability of the API, to improve and build our own infrastructure platform. In this way, it is convenient for us to switch models quickly On the other hand, over the past two years, we have been actively trying in product development. You can see that, including search, social media, content ecology, including comments and conversations, and in the field of commercial advertising, we have made some business attempts. Okay, thanks for the question.

Adam: So assuming you could kind of push it out.

Adam: So that's what we do is home in Kingdom are you.

Adam: I'm with you.

Adam: The bulk of API, then a leaf.

Jim Shaw: Jim Shaw.

Jim Shaw: So I don't know if I'm being honest with you the yield.

Speaker Change: Sure sure sure Great question.

Speaker Change: Chip on because I'm in Washington.

Speaker Change: You know I don't know of course, either on their own at that time in each country.

Speaker Change: Public social Apocalypse should Yamaguchi from Pat vocal with it I'm sure you're going to find he's talking about.

Speaker Change: We have totally sure the yield kind of the country.

Speaker Change: Got it.

Fei Cao: So first of all, in the past two years, we've been doing some things to further consolidate our efforts in terms of AI. First of all, we have been doing the integration of multiple AI large models. For instance, we have been using the capability of API and also the others to emphasize the production, especially the basic products of ourselves, so that we are able to have a very good switch in between different models for the different needs to test our businesses. And also, second point is that during the past two years, we've been making some of the products based on the capability of large language models, for instance, the intelligent search, the social products, and also the content, as well as the commentating, and also the commercial ads, for instance.

Speaker Change: Okay. Thanks for the question. So first of all in the past two years, we've been doing some things to further consolidate our output in terms of first.

Speaker Change: First of all we have been doing the integration of multiple large models for instance, we have been using the API.

Speaker Change: And also the others to emphasize the production.

Speaker Change: The basic products help ourselves so that we are able to have a very good switching between different models for the different need to test our businesses and also the second point is that during the past two years, we are making some of the products based on that it can be a bit you all lost language models.

Speaker Change: Touching search for social products and also the content that's what it is.

Speaker Change: Commentating and also the commercial ads for instance, we've been doing a lot around those areas.

Fei Cao: We've been doing a lot around those areas.

Fei Cao: Since the beginning of 2025, we have seen some shocking developments in the field of basic models. Weibo has been discussing AI for more than 20 years, mainly in the field of technology, and has quickly expanded to the general public. This year, DeepSeek has reached nearly 10 million views on Weibo, and the number of readers is close to 20 billion. I think this is a great help for ordinary users to learn about the rapid development of AI. Although this brought some challenges in terms of content management, it also greatly accelerated the speed of product and AI integration.

Speaker Change: Okay.

Speaker Change: Are we in Sweden right now.

Speaker Change: I'm wondering what kind of a trigger to college students on the Tinder nobody will come probably won't add it shouldn't she hears from RSV Angela excuse.

Speaker Change: Excuse me excuse me mentally issues will put all the talking but.

Speaker Change: To name a deep seated up here with a car T.

Speaker Change: Each of them that are good to go down here.

Speaker Change: But we don't see or two you probably won't go too I know you called classroom go Pucci.

Speaker Change: Sanjay that Alicia.

Speaker Change: I'm not sure you should shelter does did she got Joshua yeah.

Industrial corridor.

Fei Cao: And also, in 2025, we've been seeing a lot of progress that we made in terms of the development and also the research on basic models. For instance, in 2024, we've been having a lot of discussions on Weibo about AI related to technical issues. But now we've been seeing a lot of more publics joining the discussion about AI. And also in terms of DeepSeek, we've been seeing a total number of volume of discussion around 10 million and also the number of reading volumes exceeding 20 billion already. So this has really helped us to see a very good popularization of the topic of DeepSeek and also the other AI related topics.

Speaker Change: Yeah.

Speaker Change: And also and putting 25, we'd been seeing a lot of progress that we made in terms of the development and also the research.

Speaker Change: Models for instance in 2024, we've been having a lot of discussions on LIBOR about AI related to technical issues, but now we've been seeing a lot of more publics are actually joining the discussion about AI and also in terms of deep sea. We've been seeing that total number volume off our discussion around 10 million and also the number of sites.

Jim Shaw: Reading volumes exceeding 20 billion already so this has really helped us to be a very good path based on the topic of deep Sea and also the other AI related topics of course this is pretty much shut and Jim in terms of the management of content, but still kind of up to speed up integration between product.

Fei Cao: Of course, this is pretty much challenging in terms of the management of content, but still this is quickening up the speed of integration between product and AI capability.

Speaker Change: <unk>.

Fei Cao: As we can see, in the next 2-5 years, we will increase our investment in AI. We can be sure that the number of full-fledged users will increase in this quarter. As for other businesses, in the next few quarters, we think that with the introduction of new models and the decrease in costs, I think we will see some good progress in the next few quarters. And also in 2025, we're going to be focusing further and continuously on the investment on AI-related technologies and also topics. So, for instance, in terms of the full volume realization, we've been seeing that this quarter, we're going to realize the full volume of the search capability among all the businesses that are on the testing.

Speaker Change: Okay.

Speaker Change: Well you shouldn't create Condor the Ireland.

Speaker Change: And if I'm in a car.

Speaker Change: No. It's a championship for Sundar, you mentioned, China in Colo D, though I hit them pretty beat up trading up the shortfall.

Speaker Change: But that figure to the country of China.

Speaker Change: But she is how the year will cause.

Speaker Change: Who should I see that you'd want in general you're going to see the Gucci.

Speaker Change: Consume them.

Speaker Change: Cool.

Speaker Change: So I'm gonna change out.

Speaker Change: I realize you can do to continue.

Speaker Change: To put it.

Speaker Change: Yeah.

Speaker Change: And also in 2025, we're gonna be focusing further continuously on the investment on AI related technologies and also topics.

Speaker Change: In terms of the full volume realization, we've been seen in this quarter with and I realize the call them all but there's such a can do attitude. Among all the businesses that are on the testing and also our first of all I would like to say that while we are having a further integration of the new model and also the product.

Fei Cao: And also, second of all, I would like to say that while we are having a further integration of those new models and also the further driving down of the overall cost, this is going to enhance the speed and also accelerate the integration with more capabilities and also AI models. In 2014, we launched the 1.2 version of ZISO, which is based on QianWen, a 72-bit model. But we can also see that after 2025, it took us two weeks to switch the model to DeepSec. Indeed, the product effect has been significantly improved, and it is able to clearly sort information and details from all angles, which greatly improves our ability to search for users.

Speaker Change: Driving down the overall cost this is going to enhance the speed and also accelerate the integration with more capabilities and also AD models.

Speaker Change: Okay.

Speaker Change: So look I mean, our financials no doubt going to look like.

Speaker Change: When you're in a neutral right now.

Speaker Change: So we didn't have them at Nissan Chi.

Speaker Change: Joe when.

Speaker Change: Sharp either unless you don't understood okay.

Speaker Change: Our in our O&M to use the hook I don't even know until the city anyway to about even Washington, Sheila what your children are deep sick not sure sure.

Speaker Change: You'll walk with a legal issue with tissue.

Speaker Change: No I didn't go chiefs really good job with the tissue. So she can cause she she's done a position.

Speaker Change: She is a moment of social for relief with M. B a.

Fei Cao: The MAU of ZISO has increased by about 40%. At present, the hot search traffic and 25% of ordinary search queries will display this AI. We expect that the number of users will reach its full capacity by the end of this quarter. We have seen a double-digit increase in the activity efficiency and click-through rate in the test users. This is also a satisfactory result for users. And also in terms of the intelligence search, we've been seeing that in the last year, especially in the middle of 2024, we've been having the large language models of the JISO-100 based on the Qianwen model with a parameter of 72 billion.

Speaker Change: She didn't use disorder.

Speaker Change: Got that.

Speaker Change: The locomotive around hook back into our food with Louis will go to Julien, It's actually bigger Antigua no ooh, maybe two to inflation that was funny.

Speaker Change: Well put out to meet with them to kind of I wouldn't see the hot when you gave that figure that you would shoot me a juncture yung who'll quickly, which is not typical in the especially when would you cut them into any bank, including shelter.

Speaker Change: Can you show everything together are strongest where they got it turns out not doing enough with US you can imagine doing it where those what kishore.

Speaker Change: Alright.

Speaker Change: And also in terms of the intelligent search we've been seeing that in the last year, especially in the middle of 2024, we've been having the large lump with models of that just a one zero based on the churn one model with the parameter.

Fei Cao: But in 2025, after the Chinese New Year, we've been switching to the DeepSea large language models, and this has further enhanced the capabilities of this particular intelligence search, for instance, the product capability, and also with more fine details and all kinds of different angles in answering those questions. So that you can see that in terms of the total number of MAUs using the intelligence search, this has been increasing by 40% and giving us very good results. And you can see that among all the results that have been showing to the public, 25% of those results are based on these intelligence search results and integrating the capability with DeepSea.

Speaker Change: Seven 2 billion, but in 2025 after the Chinese new year, we'd been switching to the deep C class along with models I missed that bothering Colonsay communities also this particular intelligence. So it's Brian so the product capability and also with more volume details on all kinds of different angles and.

Speaker Change: Answering those questions. So that tells you kind of see that in terms of the total number of menus using the intelligence that's been incurred.

Speaker Change: And by 40% and given us a very good results and you'll see that.

Speaker Change: Among all the results have been showing to be public on 25% of those results are based on these intelligent search results and integration that could really itchy what they've seen.

Fei Cao: And also, with a further enhancement of the computational power, I believe that starting from this year, this quarter, we're going to see the service open up to full users, not only those users on a testing scope. And also, this is definitely enhancing the efficiencies of all kinds by double digits. I think the most important thing is that BigModel's summary of Weibo's past content, and its logical compilation, are very effective, which has greatly improved our ability to search. Although we can see that there is still a lot of room for optimization we can see that this version has been able to unify the Weibo content and views This allows Weibo Search to meet the needs of the end-users and the long-term search from a hot-search plus real-time search.

Speaker Change: And also with a further enhancement of the computational power I believe that starting from this year. This quarter, we're going to see these limits are open up to the full our users not only those are usually done the testing with scope and also this is definitely an causing the efficiencies all clients on baidu.

Speaker Change: What did it.

Speaker Change: Okay.

Speaker Change: Would you look only at $20 for sure. It's not once you go you vipul.

Speaker Change: And then even the top tier.

Speaker Change: Well look we're not so much.

So clearly at the top of the tissue the assertion that one could configures Shan Shan is it that you saw that's not so much headroom.

Speaker Change: Got me walking down the fairway kind of dollar took the single button, but it can create backwards she should onyango whats available and they don't want it to work on but she might be either tools or cooking at home as you.

Speaker Change: I forgot my muscles, a tweak or resilient social the tankers are also a critical call a few months, we wont put autonomy as well for the future no one, which obviously is a mood generally Jimmy once you start doing more kind of from let's say the last kind of vocal G. Young problems Chenault chairman I'm watching because we share the people are there any good tissue.

Fei Cao: I believe that with the advanced models, the improvement in multi-tasking, as well as the upcoming new signed models, Weibo will continue to be a platform that can produce high-quality content and diversified views. Through the help of these large models, we will play a greater role. So also you can see that it's more important for us to see that because of this capability of large language models that we're using now, because of its capability to summarize and also help to conclude all the content that we've been creating and presenting on Weibo platform for the past decade, this is really enhancing the capability of search.

Speaker Change: And they were doing about one.

Speaker Change: $1 impact, but when people to ship almost literally their factories to come got it Josh.

Speaker Change: Great.

Speaker Change: So also you can see that it's more important to see that because of this capability. All flash language models that we're using now because of our capability to summarize that also help to conclude all the content that we've been creating and presenting on weibo platform for the past decade.

Speaker Change: Reading capability of search so for instance of course, there is still a room for improvement and optimization in terms of visibility oftentimes it been search based on AI.

Fei Cao: So, for instance, of course, there are still rooms for improvements and optimization in terms of the capability of intelligent search based on AI. Still, we can see that those contents and also opinions that we have generated on the platform of Weibo during the past more than 10 years, which has been presenting and also organizing our platforms, we can help to summarize and also conclude all these contents. So that is going to add more values to those long tail searches instead of just the searches based on hot trends and also the knowledge based content. And also with further optimizations and also further integration of multiple and diverse models and emergence of new models, we are going to see better content creating and also better presenting of those contents and also summary of the past years of content, which is going to add a lot more values to the users.

Speaker Change: We can see that.

Speaker Change: Those content then also opinions, but we have generated on the platform of Weibo part one in 10 years, which have been presenting and also organizing our platform. We can help to summarize and then also conclude all these content. So that is going to add more values to those long tail search is being set up just the searches.

Speaker Change: Based on all the time and also the knowledge based content.

Speaker Change: And also when flood optimizations and also further integration.

Speaker Change: Multiple diverse models and emergence of new models, we're going to see better content, creating and also better presenting all those contents and also some or all the possible, yes content, which is going to add more value to the users.

Fei Cao: In addition to searching, we have confirmed that we will fully expand the AI capability. Other businesses, including commercialization, interaction, and content recommendation, are also accelerating this part of the experiment and gradual expansion. In terms of commercialization, in fact, in 2024, our eCPM has been improved by a few points. I expect it can be improved in 2025, that is, the sales advertisement can have a similar or higher level of improvement. However, because the sales advertisement is not high in our overall income ratio, so we don't see much impact on the overall income. However, we are also testing how brand ads combine with AI channels, including on the presentation of personalized materials.

Speaker Change: Okay.

Speaker Change: Goodbye analyzer for them.

Speaker Change: You shouldn't worry about again ammonia Johnny I'm, not Chicago, you with your bulk or trying to find out who don't they don't cause you ensure your their job pricing.

Speaker Change: Yeah.

Speaker Change: So it's a little caught out or shut them off on me and I kind of find my time or sooner and T shirt.

Speaker Change: And I know, what you could get a shot at getting a T shirt with EZ Io and.

Speaker Change: Do you see yourself at least.

Speaker Change: Regarding occasional not anyway shoveling my comments from here should be see people calls we've looked at Computershare rule. So I'm counting on him at the dumping I won't call you can actually let you know.

Speaker Change: So all of that shows high school children Green parts of that.

Speaker Change: Does that is that even for sure.

Fei Cao: In short, we will see a few records in the future, and we hope to report some results in AI applications to you in the future. Thank you.

Speaker Change: So until I don't know if it comes off and I think that you'd want nishu I really should location and how people I should say hey, even per minute to ship.

Fei Cao: And also, lastly, I would like to say that apart from the capability of search, we have been also applying the AI capabilities on the other fronts, for instance, monetization, the interactions, and also better recommendations of more content. So in terms of monetization, we've been seeing a little, several percentage points of increase in 2024. And I think that this momentum is going to be continuing in 2025, and especially around the area of performance-based ads. Of course, that the total ad revenue of those performance-based ads is not that contributive to the overall ad revenue. So this is not impacting the overall ad revenue as a whole in 2025, and also in the future.

Speaker Change: Okay.

Speaker Change: And also lastly, I want to say that apart from they can't meet you all put such a we have been also apply in the aggregate is on the other pronged monetization our interactions and also better recommendations of more content. So in terms of monetization we've been seeing a little several percentage points of increase in 2000.

Speaker Change: Cool and I think that this momentum is going to be continuing in 'twenty, 'twenty, five and especially around the area outperformed based ads of course that the.

Speaker Change: Total AD revenue all of those performed but that is not that a contributor to the overall ad revenue.

Speaker Change: This is not impacting the overall.

Speaker Change: Revenue as a whole in 'twenty five but also in the future, but still we are still actively thinking about the values that we could add to the brand based ads, especially based on our better and more individualized materials and all the other problems.

Fei Cao: But still, we are still actively thinking about the values that we could add to the brand-based ads, especially based on the better and more individualized materials and all the other fronts, which are still under testing. So we're going to see that how much value we can have for the brand-based ads.

Speaker Change: Which are still on the testing.

Speaker Change: So we're going to see that so how much value. So we can have for the brand based ads. So overall speaking and our conclusion that then the next several quarters with a further optimization and also the applications. We hope that we are able to announce to the public and also made more progress that we're making and that's front. Thank you.

Fei Cao: So overall speaking, in a conclusion, that in the next several quarters, with the further optimizations and also the applications, we hope that we are able to announce to the public and also investors more progress that we have been making in this front. Thank you.

Speaker Change: Yeah.

Speaker Change: Thank you.

Felix Liu: We will now take our next question. Please stand by. And the next question comes from a line of Felix Liu from UBS. Please go ahead, your line is now open. Thank you for accepting my question, and congratulations on the firm's stable profit in 2024, considering the background of income suppression. My question is about the company's advertising business in 2025. Considering that the economic stimulus policy has been constantly landing since September, what is the company's outlook and consumer trend for 2025, and what is the company's expectation of the advertising industry in 2025? In addition to the macro, I would also like to know what strategy and layout the company has to improve the market competitiveness of advertising business in 2025.

Speaker Change: We will now take our next question.

Speaker Change: Please standby.

Speaker Change: And the next question comes from the line of steel it can use from UBS. Please go ahead. Your line is now.

Speaker Change:

Speaker Change: And she said plenty of times, they don't want it to go.

Speaker Change: Consequences.

Speaker Change: And when you can then do it.

Speaker Change: So yeah.

Speaker Change: Now one of the ones, we feel quite good.

Speaker Change: Hum.

Speaker Change: Colleague.

Speaker Change: So a couple.

Speaker Change: But I'll go a deep well of course that the idea.

Speaker Change: One Saturday tissue jumping on the ones that are equal.

Speaker Change: How do you I wouldn't yet call yes.

Speaker Change: On the cheap.

Speaker Change: Hello, one why now.

Yes, that'd be helpful.

Speaker Change: Yeah, so actually it won't reach the call. So thank you on that.

Fei Cao: Thank you. Let me translate myself. Thank you for accepting my question, and congratulations on the resilient bottom line, despite the slight revenue decline in 2024. My question is on the 2025 outlook for advertisement, considering the economic policy stimulus since September last year. How does management see the macro and consumption trade trend in 2025? What's management's expectation on your ad performance by industry vertical in 2025? And last but not least, what are your strategies to improve the competitiveness of your advertisement business in 2025? Thank you. Weibo Corp But as of now, apart from cars, mobile phones, and e-commerce, there is no comprehensive transmission to more industries.

Speaker Change: Okay.

Speaker Change: Let me translate myself. Thank you Mani thanks for taking my question and congratulations on that.

Speaker Change: On the bottom line, despite the slight decline in 2024.

Speaker Change: Questioned me about 2025 outlook for advertisement.

Speaker Change: Considering the economic policy.

In September last year.

Speaker Change: As mentioned I see.

Speaker Change: And of course, something trade in China.

Speaker Change: From 2025, Oh, what nine spending expectation you are at.

Speaker Change: By industry vertical in 2025, and last but not least what are your strategies to improve the competitiveness of advertisement business.

And plenty of punch back thank you.

Speaker Change: Okay.

Speaker Change: Okay.

She did not.

Speaker Change: So Julien I know go down to sort of push on paper.

Speaker Change: You negotiate assumed uncle uncle, who I can see here, starting on them, which I'm kind of Emil.

Speaker Change: Sure Chitra show to you is that they're going through a new York tremendous I'm not too good of a pick up.

Fei Cao: There is no doubt that China's stock policy for 3C digital and e-commerce has had a devastating effect on the growth of the industry in the fourth quarter. But we will also see that the consumption of non-essential goods such as cosmetics, will continue to be suppressed. In addition, we will see that the overall public relations economy will need time to judge the prospects of some industry customers. In the customer market, we will also see a 25-year budget investment. In most industries, in addition to the clearly state-owned industries, there is also an attitude of caution and observation.

Speaker Change: Hollywood and you'll go with doing so do you since these remarks, Dan Fujii.

Speaker Change: Could you do that summed up much at all on the granting of a shop.

Speaker Change: The bedroom here, we are kind of dark telling me it's on a therapeutic became yakubu can start from.

Speaker Change: And that's in a phase B C. P C P in the shelf.

Speaker Change: Sure fake side Shimmer and shine.

Speaker Change: <unk> excuse me together in the Meanwhile, I jumped on a plane when do you kind of implement it because of the satcom I don't I'm not sure it will come up.

Shashi game pipeline and of course at home you know quick kind of argue these are cool.

Speaker Change: The conference call.

Speaker Change: Chile globally right now.

Speaker Change: Kitchen Cook at home like the credit card.

Speaker Change: Sure.

Fei Cao: Thanks for this question. So after Q4, we've seen a lot of implementations of the policies by the national government, and especially around the area of national subsidies, for instance. So this is impacting immediately on the verticals like automotives and assets and also e-commerce. But still, for those other industries that are not enjoying this particular national subsidy policies, we're not seeing a very good progress made. So in terms of the national subsidy policy, this has been impacting immediately possibly on the 3C products and e-commerce industries. So we've been seeing a very good growth of the revenue from these areas in Q4.

Speaker Change: Thanks for the question. So after careful saying implementation itself the policies by the national government and especially around the area of our national subsidies for instance, so this is impacting immediately on the verticals like automotive and how does that then also are you caught.

Speaker Change: Thomas.

Speaker Change: So for those other industries that are not enjoying the particular national subsidy policies. We don't we're not seeing a very good progress made so in terms of the national subsidy policy, because that's been impacting they immediately possibly on the <unk> products and the e-commerce industry. So we've been seeing a very good growth of the bedroom and revenue from these areas in Q4.

Fei Cao: However, in the other areas that are not enjoying this kind of policy, for instance, the beauty and personal care products and luxuries, and also the other discretionary industries, we're getting a lot of pressures and also stress of growth. So of course, in the near future, still we have to remain precautious on these areas, especially without those favorable national policies, especially around the budget allocated by the customers in 2025. If you look at the industry, there is no doubt that the e-commerce industry will see a more definitive growth this year, especially for leading brands, such as Alibaba and JD.

Speaker Change: And the other areas that are not enjoying the kind of policy for instance, the beauty and personal care products and luxury.

Speaker Change: And also the other country in the street, it's a good thing.

Speaker Change: Russia and also stress of growth so of course that tough and I know the future is still we have to remain cautious on these areas, especially without those are favorable national policies, especially around the budget allocated by the customers in 2025.

Speaker Change: Okay.

Speaker Change: We will send a copy of it.

Speaker Change: How are you wouldn't there.

Speaker Change: I'm not sure you'll be darn sure. These you know you got commission the ECL because generally people passion.

Speaker Change:

Speaker Change: Got you okay.

Speaker Change: Oh, my gosh, it should be changed.

Speaker Change: So I mean I don't want to.

Speaker Change: Comes out people in total.

Speaker Change: Got it Ashish I'm not sure if you can show that kind of on that yes sure.

Speaker Change: Okay got it.

Speaker Change: Who do you think it's still true.

Speaker Change: So Sheila I don't know, if you're going to need to be at Juliet.

Speaker Change: Okay. So the child would share your current with future She's battery, usually when they don't even show the Tidewater team doing really once you're on kind of the when we took a fair amount of confusion if you don't go.

Fei Cao: Although fuel cars are still at a downward trend, in general, the growth of new energy should be able to offset the downward gap in fuel car budget. Okay, and also second of all, you know, from the other verticals, for instance, in e-commerce, especially among those top platforms like Alibaba and JD.com, definitely speaking, there could be a very affirmative and also confirmative growth in this year, in 2025. And in the other two verticals, assets and also automotives, we've been seeing a very good integration into the content ecosystem of Weibo. And of course, it's very highly competitive for the automotive industry.

Speaker Change: Sure and language, but easier to take a shower and not sure. If your factoring something she likes she knew yet I don't think it's some guy and kind of go be sheltering God.

Speaker Change: Could you say something on a trickle.

Speaker Change: Okay and also second of all you know from the other verticals for instance in E Commerce.

Speaker Change: Especially among those top platforms like Alibaba and JD dotcom definitely speaking there could be a very affirmative and also confirmatory of our growth and this year in 'twenty five and in the other two verticals has that then.

Speaker Change: And then also Automotives are we just seeing a very good integration into the content ecosystem of Weibo.

Speaker Change: Of course, it's very highly competitive for the automotive industry.

Fei Cao: And also, still, we're going to see a lot of subsidies implemented by the OEMs. So this is going to be very much a beneficial industry. And of course, because of the capability of a differentiated competitive strength of Weibo, and also a very good anti-stress capability of Weibo as a platform, we're going to see a very good growth in this area. And of course, that we've been seeing a trend of decrease for the offset by the growth of the new energy vehicle sector. Okay. 嗯,那另外一項的話呢,就得益於我們去年在校園廣告,我提到的投入,因為在ETPM的時候, However, in the past 24 years, the mobile game industry has not been able to support the market.

Speaker Change: Also oh, we're going to see a lot of subsidies are.

Speaker Change: Implemented by the Oems. So this is gonna be very much a beneficial industry and of course because of the capability of a differentiated competitive prescribed off label and also a very good anti stress that converted to you all by Weibo as a platform.

Speaker Change: Yeah very good growth in this area and of course that we've been seeing a trend of decrease for the IC E vehicle, but still this is going to be offset by the growth of the new energy vehicle sector.

Speaker Change: Okay.

Speaker Change: Not the amount of kind of on a good day.

Speaker Change: Any chance that show up on the island.

Speaker Change: These scandals.

Speaker Change: Uh huh.

Uh huh.

Speaker Change: And rather than put out a.

Speaker Change: She had a shot at a coupon of about that.

Speaker Change: <unk> used approximately equal between the two.

Speaker Change: Could it be possibly a T shirt.

Speaker Change: That's right.

Speaker Change: Shooting ranges.

Speaker Change: Are you shifting away our son Nguyen.

Speaker Change: Two questions for me.

Speaker Change: People don't do that either you'll sheets here for two weeks at our field.

The battery the RSC engineers here sure.

Speaker Change: So he or she began tissue female adobe at now going through from Chicago, South Florida.

Fei Cao: There has not been a budget or a space for growth. Although there have been some medium-sized games, they have not been successful. Take a look at the cluster of players we added and made this game. Weibo Corp Weibo Corp I think in the next 2-5 years, the gaming industry may not be as optimistic as it used to be. And also, just now we've been sharing some of the colors on our investments on the AI capabilities for the performance-based ads. And this has been given us very good results by improving the eCPM and also the other parameters.

Speaker Change: Yeah, So Tim Goss, you're absolutely sure occasionally will ship the Ts EMEA profile.

Speaker Change: Yeah, I don't want to include with our pipeline come back kind of on the army and surety Yoshida ceiling tile picture, you'll see that they're going to pull out here.

Speaker Change: No wonder so somebody that she does.

Speaker Change: Sure.

And also I'm just now we've been sharing some of the colors on our investments on the activities for the performance based ads and that's that's been seen this has been given us very good results by improving the ECP and also the other parameters.

Fei Cao: So we've been seeing a very good growth of the other customers, for instance, that are focusing on the app downloading, for instance. So this was good. And in 2025, the only industry I believe that is not certain, that is uncertain, for instance, is the gaming industry. So you know that since 2023, every year at the end of each year, we're going to see a very good publishing and also announcements of new large games every one or two quarters. But this trend has stopped in 2024. And throughout the whole year of 2024, we did not see a lot of announcements and also launch of the large mobile games and big mobile games.

Speaker Change: So we've been seeing a very good growth of the other customers.

Focusing on the App downloading for instance.

Speaker Change: So this was good and in 'twenty five the only industry I believe that is not certain that there's all sorts of importance is the gaming industry.

Speaker Change: So you know that seems 2023 every year at the end of each year, we're going to see a very good publishing and also announcements of new large games every one or two quarters, but this trend has stopped in 2024 and.

Speaker Change: And throughout the whole year of $1 four we did not see a lots of announcements and also launch of the large mobile games and the big mobile games.

Fei Cao: Although we've seen some of the announcements and launches of the medium scale games, but still there are a lack of big blockbuster games launched throughout the whole year of 2024. So commenting on the pipelines of our customers, in 2025, we are not that optimistic in seeing a lot of large and blockbuster games launched throughout the year. So the gaming industry is the most uncertain industry in this front in 2025. As I said earlier, we are still very clear about the overall outlook for the next two to five years. Because there is a big difference between different industries.

Speaker Change: Although we can see some of the announcements and launches of the medium scale, our games, but still there or lack of a big blockbuster games launched in the throughout the whole year upon quite cool so I'm, commenting on the pipeline fill for our customers.

Speaker Change: Five we are not that optimistic and seen a lot of large and the blockbuster games launched throughout the year. So the gaming industry is the most on the street in this front in 2025.

Speaker Change: Okay.

Speaker Change: So it's a special thing going on there yeah yeah.

Speaker Change: Hum and so I'm sure you do not have to be out here from England, but don't come here She's got a tiny share too.

Fei Cao: We will continue to observe the situation in the first half of the next two to five years. We look forward to more policies like this, and these policies gradually landing can have a significant positive impact on the macroeconomic consumption and related industries. In the case of uncertain basic knowledge at the demand side, our focus is still on the strategic adjustment at the supply side and the optimization of our advertising products. For example, enhance the application of AI in these commercial areas to improve our commercial efficiency. Specifically, our customer service will be able to catch the demand for new products, major nodes, and major hot spots.

Speaker Change: That you want to kind of tie into a shipyard.

Speaker Change: Quit tissue tissue guinta, our national money. That's another example that you can pump when she got a tree that anyone can do other things with high G E.

Speaker Change: He created when do your chauffeur.

Speaker Change: She used to be enjoying now.

Speaker Change: Children, but shouldn't you know Tito just she wants on them too hard to find out who need run that's what I tried to whom it all the time here.

Speaker Change: If you would shutdown had that fish I don't have any.

Speaker Change: The U T. If you want to take a shiny volatile shot the juicy couture.

Speaker Change: I'm sure you're probably cope with the shipyard to Nike idea, so not really material, but that you shouldn't Bobby was I know you should or shouldn't be you saw it on the call. He wishes to you don't want I'm not sure not unique.

Fei Cao: We will continue to enhance the core advantages of Weibo in content marketing and new product marketing to improve our market competitiveness. And also in 2025, throughout the whole year, we have to be really precocious on this front. And of course, that because different industries, as I have already stated, had all kinds of different performance and also different level of the pressure or optimistic growth. So what we have to do is that in 2025, we have to pay close attention to the implementation of the government policies throughout the first half of 2025. And further to see that whether that is going to be further impacting the macroeconomy and also the overall consumption of China.

Speaker Change: Got it.

Speaker Change: And also in 'twenty 'twenty five a throw the whole yeah, we have to be really cautious on this front and of course that because different industries as I have already stated and all kinds of different performance and also different level of the pressure or optimistic growth.

Speaker Change: So what we have to do is that implying quite fine if we have to pay close attention to the implementation of the governments policies throughout the first half of the 25 and our father to theater, whether that is going to be further impacting the macro economy and also the overall consumption of China of course that Todd.

Fei Cao: Of course, that was ideal in the area of demand side. So we have to be really, you know, doing something to actively change our supply strategy, supply side strategies, and also the overall strategy of our company. For instance, as I have already stated, we have emphasized more on the investments on AI capabilities, and the integration of AI capabilities can further help us to improve the efficiency of monetization. And also, we have to see the trend of our customers when they're launching new products and also emphasizing more budgets on the marketing when they're doing so, so that we are able to, you know, do more and better in the ad business, and also further enhance the competitive edges of Weibo in this area.

Speaker Change: It was an ideal in the area of the mountain side, So we have to be ready.

Speaker Change: You know doing something to actively change our supply strategy supply five strategies and also the overall strategy of our company for instance, as I have already stated we have emphasize more on the investments on <unk>.

Speaker Change: And the integration of AIG, but it's just kind of further help us to improve the efficiency all quantified patients and also we have to see the trend of our customers are when.

Speaker Change: When they're launching new products and also emphasizing more budgets on a marketing when theyre doing so so that we are able to.

Speaker Change: Two more and better in the AD business and also further enhance our competitive edge is off label in this area.

Speaker Change: Okay.

Fei Cao: In terms of the overall strategy, our content management strategy and our business management strategy are actually the same. For example, after the pandemic, we have always told everyone that the most important thing we have to do is to do verticalization. Because during the pandemic, our new capacity ratio was actually too high. We spent about a few years trying to raise the ratio of our original verticalized content and industrialized content as much as possible. Now, in the overall platform, the vertical content has been restored to nearly 50%, but there is still a relatively high space for innovation.

Speaker Change: No.

Speaker Change: Don't you put out that kind of on a tissue mill.

Speaker Change: He's got a home in Cheyenne.

Speaker Change: Sure sure.

Speaker Change: Well no issues of course, you should compare that John I need to go through them until he dantonio, that's what she was doing.

Speaker Change: So a change of heart.

Speaker Change: T J shoen, and we're gonna be teachers, who cook ALDA when you got that.

Speaker Change: Can you I missed the game show up I wouldn't be young I had thought they'd on trees.

Speaker Change: So based upon their long acting upon them in the same period, but you're not sure gotcha matching that that to me the key panning in tissue and then let's see I didn't even know you increase without saying to Baton Rouge.

Speaker Change: I Hope you all called it you got shaken agenda, not when you don't need to repeat the anemia trades of private practitioners should be shooting and she's going to go down on the Cheyenne Joshua opinions out evenly over and yes, you Bill opened a daughter Tucson attribute all of that.

Fei Cao: We believe that the vertical flow of the entire platform is actually much higher in terms of commercial value and e-commerce value than in terms of performance. And the annuality of users is much higher. As we just mentioned, the flow of 90 billion New York movies and 20 billion DeepSeek will be much higher than the flow of some social media and the value of users' lives. No matter how the outside industry changes, we still need to build a good foundation. This will also build a good foundation for the future of the industry, whether it is the male-dominated economy or the commercial economy.

Speaker Change: Joe by either I think.

Speaker Change: But you know these six anyway, I'll tell you and be sure sure.

And you can calculate you include she's got it okay.

The thing with tissue between Quanta however.

Oh My gosh.

Speaker Change: I think it's useful.

Speaker Change: Good how are you.

Speaker Change: Got home and who actually learning from them are xiaomi phones shutdown of me that says it's okay.

Fei Cao: This is our overall strategy for the next 2-5 years.

Fei Cao: Thank you. And also last but not least, I have to say that the strategies of our content operation is exactly the same as the strategies of the operation of our monetization. So, as I have already stated, after COVID-19, what we have to do is that emphasize more on the traffic graphs of the vertical related traffics. Because we know that during the COVID period, most of our traffics are related to news. So, that has taken a larger proportion of the overall traffic allocated there during COVID. So, after the COVID, we have to eradicate the traffic and also emphasize on different strategies.

Speaker Change: And that's what it is.

Speaker Change: And also last not least I have to say that the strategies of our content operation is exactly the same as the strategy is off the operation of our monetization. So as I have already stated after COVID-19, but we have to do is that that besides on the Tropic cross of the Ah <unk>.

Speaker Change: Nicole related topics, because you know that during the Covid period, most of our traffic so related to news. So that has taken a larger proportion of the overall traffic.

Speaker Change: During COVID-19. So after the Covid, we help to eradicate the topic and also emphasize on different strategies. So off the COVID-19 and as of now we have been recovering to almost 50% of the original level before COVID-19 in terms of trying to think of the other vertical related content, but still there are rooms for other <unk>.

Fei Cao: So, after COVID, and as of now, we've been recovering to almost 50% of the original level before COVID in terms of the traffic of the other vertical related content. But still, there are rooms for further improvements. So, there because that you can see that for those vertical related content, in terms of the capabilities of monetization, and also the capabilities of the user's thickness, it is way much better than the other traffics. For instance, the 90 billion traffic for NERJA, the second, and 20 billion traffic for the DeepSeek related topics, these traffics have better capabilities of monetization.

Speaker Change: Improvements so that because that you can't see that but those vertical related content in terms of the capabilities of our monetization and also the capabilities of the user stickiness. It is way much better than the other topics for instance, the ER now.

Speaker Change: 8 billion.

Speaker Change: Traffic for the second and put a bit in the topic for the deep sea talk really topics.

Speaker Change: <unk> has a better communities all quantified vision. So while we are crossing these opportunity your business is going to help us to further consolidate our scrap and also set up a better foundation for the community about monetization in the future. This is what we have to do in 2020 quiet specifics. Thank you.

Daisy Chen: So, while we are grasping these opportunities, this is going to help us to further consolidate our strength and also set up a better foundation for the capabilities of monetization in the future. This is what we have to do in 2025 in specifics. Thank you. We will now go to our next question. Please stand by. And the next question comes from the line of Daisy Chen from Haitong International. Please go ahead, your line is now open. Good evening, Manager Chen. Thank you for accepting my question. I see that we have announced a $200 million stock market this quarter.

Speaker Change: Thank you.

Speaker Change: We will now go to our next question. Please standby.

And the next question comes from the line of Daisy Chan from Haitong International. Please go ahead. Your line is now.

Speaker Change: Oh gosh.

Daisy Chan: Sure Oh, well kind of a bunch of other people had assembled and of course.

Daisy Chen: I want to say that in the last year, when the advertising industry was in a difficult situation, we still maintained the growth frequency of the stock market and the size of the stock market. This is a very admirable behavior. My question is, can you share more information about shareholder returns with us? For example, future plans and methods, Thank you, Management, for taking my question. Weibo has announced a $200 million dividend. It's very delightful that the company still maintains the same size and frequency, even under such difficult environment for the online business last year. We really respect that.

Speaker Change: Well I'm sure that <unk> put in golf right now.

Daisy Chan: <unk> had some hostile Walmart logical.

Daisy Chan: A logical question.

Daisy Chan: Mhm and alcohol.

Speaker Change: Hershey Coffeehouse do I can tell you just feel like now or once you show a couple of things Tim Glenn had shrunk.

Daisy Chan: I'm told by an equal don't play policy.

Speaker Change: Sure well I know, what you're about to baccarat friendship.

Daisy Chan: It sounds like all of them.

Daisy Chan: Thank you management for taking my question Weibo has turned out to talk I mean, I just thought I'd give it and.

Daisy Chan: It's very clear that for that to the company's steel banking bust in size and frequency and even under staffed with a cocky about much Florida on it and keep looking back a year.

Daisy Chan: We really respect without cannot imagine shambaugh higher shareholder return policy that you in the future.

Fei Cao: Can Management share more color on shareholder return policy, such as the future plan and the method? Maybe, do you want to share? Thank you. Thank you, Alicia. This is Fei. I will repeat your question. Weibo is focused on a balanced capital allocation strategy that supports long-term growth while delivering value to our shareholders. As you mentioned, over the past three years, our market has remained stable, and our operating cash flow reached around $600 million, giving us the flexibility to invest in AI, in product innovation, and shareholder returns. So we paid dividends. And our capital allocation follows some key principles, mainly two key principles.

Daisy Chan: So they thought maybe maybe just want to.

Daisy Chan: Uh huh.

Daisy Chan: Thank you.

Daisy Chan: I think that you can see I love your question.

Daisy Chan: We brought in a balanced capital allocation allocation charity.

Speaker Change: Oh, no no growth, while delivering value to our shareholders.

Daisy Chan: I could imagine over the past three years.

Daisy Chan: Not that often in the market have to amend that stable and our operating cash flow a rich dialogue because I didn't need any I saw there.

Daisy Chan: The flexibility to do that yeah.

Malaysia and shareholder return and still maintain a beta that you.

Daisy Chan: Imagine and are attracting a lot of pieces are for those.

Daisy Chan: Some key principles and they need to keep raising all that far.

Fei Cao: First, driving business growth and saving competitiveness. AI is playing an increasingly important role in enhancing our product experience, as Gaofei mentioned in his remarks in WayForward Search, and we are actively expanding its application in social and ad products. We remain committed to investing in AI while maintaining a disciplined financial approach to ensure our long-term stability and a profit margin that remains competitive within the industry. And second, enhancing shareholder returns, as you have seen from our announcement, our board approved an annual dividend policy providing more predictable returns based on our financial performance and capital needs. This reflects our commitment to delivering sustainable shareholder value while maintaining the flexibility to invest in long-term growth opportunities, and we are open to other measures such as buy-back.

Daisy Chan: Dragging business well, let's see.

Daisy Chan: <unk> competitive.

AI, playing at an increasingly causing them to go hunting hour.

Daisy Chan: We're not hearing a selfie lessons in English is not no.

Speaker Change: Weibo's search and we are actively expanding its application.

Daisy Chan: I forgot.

Daisy Chan: I mean, we are committed to that team as well.

Daisy Chan: I think the plan right now.

Daisy Chan: To ensure our long term stability and and the pumping market.

Daisy Chan:

Hi, Patrick.

Daisy Chan: Let's see.

Daisy Chan: Second enhancing shareholder return.

Daisy Chan: As you'll have seen from our announcement our board approved a new dividend policy, providing a more a more predictable return based on our financial performance and our capital needs.

Daisy Chan: And he says that our commitment to delivering sustainable shareholder value well in any the flexibility to last a long time.

Daisy Chan: I know that all end to two other matter, that's not that bad and so going forward, what where they'll cut here too is that our capital allocation strategy leverage AI to judge that are part of that is.

Fei Cao: Going forward, we will continue to refine our capital allocation strategy, leverage AI to strengthen our product capabilities, and create long-term value for our shareholders. I hope this answers your questions. Thank you.

Daisy Chan: And to create long term value for our Trafalgar, hopefully all of that thinking.

Daisy Chan: Thank you.

Daisy Chan: Okay.

Daisy Chan: Thank you.

Sandra Zhang: We will now conclude the Q&A session and I would like to hand back to Sandra Zhang for any closing remarks. Thank you, operator, and thank you all for joining our conference call today. This wraps up our call.

Oh.

Daisy Chan: We will now conclude the Q&A session and I would like to hand back to Sandra Zhang for any closing remarks.

Daisy Chan: Thank you operator, and thank you all for joining our conference call today are they swept up I'll call. We'll see you next time.

Unknown Executive: We'll see you next time. Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

Daisy Chan: Yeah.

Speaker Change: Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.

Daisy Chan: Yeah.

Daisy Chan: Okay.

Daisy Chan: [music].