Q3 2025 Weibo Corp Earnings Call
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Good day, and thank you for standing by and welcome to Weibo reports third quarter 2025 financial results.
This time, all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session.
To ask a question during the session you will need to press star one.
Could you Danielle automated message in this race.
Please be advised that today's conference is being recorded.
Hand call over to your first speaker today.
Dr. Chang from <unk>. Thank you. Please go ahead.
Thank you operator, welcome to Weibo's third quarter 2025 earnings Conference call. Joining me today are Chief Executive Officer, Godfrey Walton and our Chief financial officer feet tall.
The conference call is also being broadcast on Internet and is available to live with the IR website.
Before that match their remarks I'd like to read you received public statement in connection with today's conference call. During today's conference call. We may make forward looking statements statements that are not historical facts, including statements of our beliefs and expectations forward looking statements involve inherent risks and uncertainties and then.
Important factors could cause actual results to differ materially from those contained in any forward looking statements.
People assumes no obligation to update the forward looking statements in this conference call and elsewhere.
Further information regarding these and other risks is included in Weibo's annual report on form 20-F, and other filings with SEC.
Oh the information provided in this press release is occurring as the date hereof Weibo assumes no obligation to update such 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 to gain a better understanding of weibo's comparable operating performance and future prospects and don't get financed.
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Certain expenses gains or losses, and other items that are not expected to result in future cash payments or are not.
All recurring in nature or not not indicative of our core operating results and outlook.
Please refer to our press release for more information about our non-GAAP measures.
Following managements prepared remarks, well open the lines for a brief Q&A session with that I'd like to turn the call back to our CEO coffee wall.
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Thank you Hello, everyone welcome to Weibo's third quarter 2025 earnings conference call.
But at this time, all week, Washington National niches lethal Army and he says.
Thank you for attending.
M E T Shanghai.
On today's call I will share with you highlights of Weibo's product and monetization in the third quarter of 2025.
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On the user front in September 2025, we list and they use reached $578 million and average big huge reached 257 million in the third quarter Weibo's total revenues reached $442 3 million U S dollar.
<unk> or 5% year over year, our total AD revenues reached $375 $4 million, a decrease of 6% year over year. Our non-GAAP operating income reached 132 point they were million U S dollar representing a non-GAAP op margin of 30%.
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In 2025, our overall corporate strategy continue to focus on enhancing user value sustaining weibo's, leading position you hot topics in the entertainment content ecosystem, while reinforcing the competitiveness of our social products building on this we also leverage large language model to enhance our recommendation feeds.
And fish products aiming to increase our user base and engagement next I'll share with you highlights in weibo's product accretion and amortization in the third quarter.
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Our user growth and engagement in 2025, all key product Lee van is.
The upgrade of the homepage information feed which took the recommendation feed asda default default core fee. The reverb has largely rote Aquino users by late July alongside the information feed revamp, we also optimize our recommendation algorithm.
Specially for video content recommendation during the summer vacation leveraging the active entertainment events and hot topics during the summer vacation, we saw significant improvement.
Engagement of the meat and low frequency user group their per capita viewership times down and retention of dark meat and low frequency user group.
Double digit quarter over quarter, which in turn drove protect for capital time spent in the recommendation feed for the whole user group to increase for Q3 quarter over quarter.
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In the third quarter, we implemented two key strategies first we hence the alkylation of the recommendation feed to improve user.
Satisfaction with content, which magic via real time insights.
For example in hot topic distribution, we established user behavior linkage between the recommendation feed and the search function, we use a view and engage with the hot topics in search function, they're showing more precisely targeted content recommendation feed.
This strategy has been proven particularly effective in enhancing the adjuvant and retention among meet and low frequency users LIBOR.
Ladies and hence our algorithm to better integrate video content into their recommendation seat driving deeper content consumption.
We still homepage information fee shifting from a relationship based model to a recommendation based on one video content to be distributed through our recommendation algorithms to reach more precise and broader use of group.
On top of the traditional social distribution mechanism.
As a result, we saw a notable increase in the distribution of all regional and lead to long short video content in the recommendation feed the enriched mid to long form video content is tending user time spent in the recommendation feed and supporting healthy development of the content ecosystem.
User adoption.
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Meanwhile, we continue to enhance our interest based content operation.
The new large scale content production by content creators around the use of interest and thereby improving the quality and diversity of content supplied through the recommendation feed.
The restructuring of the information feed post strategic significance for LIBOR, which is comparable to our transition comes out accordingly.
On the logical to algorithm basis sweating several years ago.
In the short term user experience with certain use of group may face some challenges.
Ever from long term perspective, the increase the weight of recommendation recommendation content and video content will strengthen weibo's core competitiveness as a social media platform, while laying a solid foundation for sustainable and healthy development of our content ecosystem.
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Well in Susan the efficiency of the homepage recommendation feed we also strengthen social discussion relationship feed ensuring Israel as the cornerstone LIBOR differentiated competitiveness in third quarter. Our efforts focused on two key aspects driving interaction between content creators and therefore.
And stimulating interest based social engagement among users the fully boost our social engagement across the platform.
To further drive the interaction between content creators and their followers.
We upgraded the Corfam mechanism.
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This significantly improved interaction efficiency in the relationship feed which is measured by the ratio of total interactions versus total viewership readout.
Resulting in double digit growth of this ratio both quarter over quarter and year over year in Q3, while further driving content creators motivation to consistently produce high quality content with tax and image.
Second to enhance it.
Ordinary user social interaction around interest based content, we continue to develop the super topics community.
On key summer events concert and any conventions, which young people interested in we encourage user to share meaningful and emotional content around their interest positioning super topics as the phone and useful space for interest data sharing and interaction.
In the third quarter, the number of users who posted an engaged and super topics grew double digit year over year.
This effective initiatives.
Instance, weibo's differentiated advantages in tax and image complementing the homepage recommendation feeds and contributing to the solid development of the platform ecosystem.
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Turning to search product.
Third quarter, we continue to reinforce application in search function, focusing on technical infrastructure upgrades and integration across ecosystem scenarios first.
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Clinical infrastructure, we continue to enhance intelligent search capability to understand user search intent and cotton matching capability, which effectively improve the relevance and accuracy of search results and making it easier for users to find desired content at the same time, we upgraded.
The search model from conventional onetime information search to continuous is slowly exploratory it's.
The split is Florida is exploratory dialogue, enabling users to engage in co lo here.
Conversations with intelligent search and enjoy a more intelligent and seamless information across experience.
Second the integration across ecosystem scenarios, we focus on extending intelligent search application information feed fostering a search as a service use a mindset, we deeply integrated intelligent search into the content consumption experience with enhanced content verification.
And the closing summary features the system leverage AI to assess that.
<unk> of the original post ex extract key information and provide extend the insights helping users quickly access structured and reliable information while consuming content in the third quarter and the use of LIBOR intelligent search product exceeded $70 million with Steve.
And search queries, increasing more than 50% quarter over quarter. This momentum not only reflect uses recommendation of weibo's intelligent search product, but also further contribute to the expansion of LIBOR search ecosystem.
As a result, the total search queries on LIBOR increased 20% quarter over quarter in the third quarter.
Looking ahead, we have countries that deepened the innovative application of AI in search products.
On the technology front, we aim to make search more user aware as for user experience, we strive to deliver a more seamless and intelligent usage journey and in terms of the ecosystem service will become more context.
Contextually relevant these efforts will continuously provide users with a smarter more convenient search experience and the further unlock the value of weibo's content ecosystem.
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Moving on to monetization in 2025, the AD products and sales team focused on two main priorities.
To expand and solidify customers' mindset of truth in LIBOR as the go to platform for content marketing across more industry participants.
Second to continuously enhance the performance and conversion capabilities of our AD products in the quarter due to the high base effect from the Olympics last year with a revenue decreased 6% year over year.
From the overall market perspective.
Thanks to the stimulus policy aimed at driving domestic demand and consumption e-commerce platform and related industry, maintaining a relatively high level of advertising spend which supported out third quarter ad revenues.
According to client feedback after several years of <unk>.
Abstention and continuous budget allocation towards performance at the beating for the commercial traffic has become increasingly intense which christie pushed their cost upward.
The government recently issued tax policy that limit the cap of the feed AD spend for tax deduction purpose. These.
This dynamic has driven clients to reevaluate their AD budget allocations, placing renewed emphasis on the value of the brand advertising.
In particular marketing approaches such as celebrity endorsements have generally become a key option for clients to consider in light of this trend leveraging <unk> strengths in slab celebrity resources, we aim to better facilitate client needs across the full celebrity endorsement and marketing.
Lifecycle.
We hope to create richer celebrity marketing playbook, together with clients, helping them enhance their marketing effectiveness.
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Any share more color from an industry perspective competitive dynamics within the E. Commerce sector has persisted since the second quarter benefiting from deeply appreciated with leading e-commerce platforms and revenues from E. Commerce sector achieved notable year over year growth in the third quarter.
Meanwhile, we have been gradually calculating partnership with other business lines within this E Commerce group, noting a more balanced revenue mix and thus laying a solid foundation for the future revenue stability.
AD revenues from the automobile sector sustained year over year growth trend in third quarter.
LIBOR has continued since the Lady five strengths in the new energy vehicle content ecosystem revenue from traditional few vehicles also remained stable this year contributing to improved revenue stability for the ultimate <unk> industry.
In the online game and smartphone sectors revenue declined due to overall budget contraction.
For the food and beverage diary products, and footwear and apparel sectors revenue fell year over year, primarily due to the tough comparable base from last year's Olympics.
With the recovery and strengthen of celebrity marketing clients mindset.
From select celebrity endorsements continued growth year over year.
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On the products front, we have continued to strengthen the application of AI technology across the entire advertising lifecycle. This year we have.
<unk> ad efficiency.
By the third quarter, we have deployed AI capabilities throughout the process from the AD creative production and BD model Optimate optimization to campaign performance improvement.
Notably Waitlist AI AD creative platform blame Trump launched in the second quarter has been widely adopted enabling scalable and personalized AD put that production in both past and image formats.
Furthermore, in the third quarter, we have extended AI generated at 382 video contents.
This upward enables intelligent extraction of key highlights for the pre rolled segment and the generation of Eyecatching cover images.
This not only improves the efficiency and diversity of video AD creative production, but also enhanced targeting precision and the use of viewing experience.
As of the end of October AI generated adequate at creative accounted for nearly 30% of the consumption.
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Besides this to address the common needs of their brand clients.
<unk> clients launch new products via live stream the press conference.
We leverage AI to sleep like live streams, you real time extract the most engaging highlights and transform them into high quality material suitable for Kols distribution.
This highlights a further distributed.
Seat AD product amplifying the overall content reach and influence this.
This model not only addresses client's difficulties in efficiently converting livestream content into shareable materials, but also enable clients to achieve secondary distribution of valuable live stream content to a combination of high quality materials and the precise targeting.
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For example, live stream product launched by a smartphone brand.
Generating material makeup 10% of all materials.
Country ability to as much as 30% of total interactions.
We plan to roll out this model to more brand clients hosting product launch.
Further unlocking the potential of AI in brand marketing in terms of AD performance the upgraded AI powered AD performance model.
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Experimental data shows that the conversion efficiency of both app download apps and from submission campaigns have improved.
AI powered the performance AD models that enable us to better deliver on client and paint objectives.
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Entering into the fourth quarter, we will focus on capturing market opportunities from sector with high budget visibility such as the E. Commerce sector, we will beef up our efforts to further extend the penetration of our Brent plus come from marketing approach across key industries sustained growth momentum.
In the automobile sector and thrive for recovery in the consumer goods at the same time we.
We will continue to drive the application of AI, the AD creative generation and AI placement optimization with the hope of offering smarter and more efficient advertising solution.
Lines of all sizes, and thus further strengthen weibo's differentiated competitiveness in the out of tightening market. How much you can talk to how tightly managing that.
Let me turn the call center to pre sell for our financial review.
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Thank you Dorothy and Hello, everyone.
Welcome to <unk> third quarter 2025 earnings conference call.
Let me start with operating metrics.
Number five.
And then you add <unk> there's.
Subsequently subsea admit it until 557 million respectively.
And could we see a workday semi ratio year on year.
This year over year.
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During last year.
Part of that first quarter, we calculated the revamp our information feed and prioritize the recommendation feed because of the consumption.
We're encouraged by early signs of some improvement.
With each visit with feet.
On the video content, we will use it.
Bill such priorities from what you've had in the third feature continue world robustly quarter over quarter lithium habit into search.
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Exceeding $70 million in the third quarter lift.
This growth was mainly driven by our AI technology upgrades.
Which allow us tobacco meet user complement search and discovery on the platform.
Turning to financial a reminder, my prepared remarks with Brooks online category beyond a month or a month.
Longer term.
Comparisons on a year over year basis alive.
Unless otherwise noted.
Let me walk you through our financial highlights for the third quarter 2025.
Weibo's third quarter 2025, net revenues were 442 4 million U S dollar.
<unk> growth of 5% or 4% constant currency basis.
Operating income was $132 million, representing an operating margin of 30%.
Net income attributable to Weibo mix alone.
$7 million.
The EPS was <unk> 42 of them.
Let me give you more color on third quarter 2017.
Revenue performance.
Weibo's advertising and marketing revenue for the first quarter. It sounded quantified what we funded $75 4 million U S dollar.
Down, 6% or 5% constant currency basis.
Value added service revenue was $56 million up 2%.
With advertising business saw a modest decline primarily due to the high base effect from last year.
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Notably the e-commerce sector.
Corded over 50% year over year growth driven by similar policy amid at both domestic demand and consumption.
Lastly to be increase the AD budget across multiple business lines.
These platforms.
Including traditional e-commerce activities on the local service initiative.
Weibo continued to demonstrate its unique value in jewelry brand awareness and user acquisition, but e-commerce platforms.
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The automobile sector September some in the world this quarter.
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On the other hand.
We see a significant year over year decline in the food and beverage.
The apparel industry again due to the high base effect from last year's Olympics.
As both Bruce B products.
Midyear government back to the subsidies.
Encourage as many consumers to upgrade their phone or home.
Earlier, this year, which leads to software shipments and lower ASP items from advertisers in the second half.
Other underperforming sector with an overall top line recovery included all on gain.
Lots of video to a top year over year comparison on overall AD budget of the contraction in the sector.
By product category.
I won't give us feed ads remained the largest contributor followed by social display ads on the topic on the search placements.
Yeah, so aggressively transformed the entire lifecycle of Weibo's ad products.
From creative generation to add treatment Luckily, our real time video feed products sustained double digit growth.
Driven by AI powered AD tech upgrades.
Nothing has the conversions and the IRI for advertisers.
Particularly for App download and read the generation compound.
AD revenues from Alibaba reported to back the growth of 112%.
Fourthly platform.
$5 million in the third quarter.
We're pleased with the strong momentum from Alibaba this year driven by deeper collaboration during key marketing windows and Alibaba increased ad spend.
Local services initiatives.
Value added service revenue grew 2%.
66, 9 million U S dollars in the third quarter, mainly due to a modest increase.
Meals from scale related business and membership services.
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<unk> expenses for third quarter were 110 Park Pertamina U S dollar.
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Ben.
Operating income in the third quarter with 100, particularly like.
Representing operating margin of 30% compared to 37% last year.
Turning to income tax under.
GAAP measure.
Income tax expenses for third quarter were $57 $2 million compared to a perfect to $2 million last year.
Due to the recognition of $29 4 million U S dollar the Florida tax liability related to E comm, yet in the third quarter by 75.
Net income attributable to Weibo in the first quarter with loan funds or the public cloud 7 million U S. Dollar.
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Representing a net margin of 25% compared to 30% last year, primarily attributable to the top of that rider.
Turning to our balance sheet and cash flow items as of Sept.
Lumber.
195.
Cash cash equivalents and short term investments.
Puzzled to bond for 4 billion U S dollar compared to $2 $35 billion as of December 31st funding coming for the.
The decrease of Weibo's cash cash equivalents and the shortcoming Blackman with mainly resulted from the culture of long term wealth management products on the payment of the annual dividend to our shareholders and was partially offset.
But operating cash flow in the past three quarters this year.
The third quarter.
Cash provided by operating activities was $200 million.
Capital expenditure at one one.
U S dollars and depreciation and amortization expenses.
Market of $215 $4 million.
With that let me now turn the call over to the operator for the Kennedy session.
Thank you management, we will now begin the question and answer session to ask a question. Please press star one on your telephone and wait brand name to be announced.
You can see a request please press star one again.
Our first question comes from the line of Alicia Yap of Citigroup. Please go ahead.
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Thanks management for taking my question can management share with us.
Overall, all advertising outlook for the fourth quarter and also 2026. So any color that you can provide in terms of the growth rate for fourth quarter and also how should we be thinking about the overall AD revenue growth into next year and then what is your <unk>.
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Alright. Thank you for the question. So according to the financial report that we have just delivered in Q3, we have been seeing the overall decrease of the AD revenue primarily due to several reasons. The first one is that we had a high base last year due to the Olympic games and also a second is that even if we had a poor performance of the Hudson.
The industry and the verticals of gaming and also we had a little bit better.
<unk> from E Commerce, and Automotives, but I think that on the overall basis. This is actually the performance within our expectation looking forward to Q4, we have been seeing that in the second half of this year overall speaking the overall statistics up the consumption related thinkers are actually slowing down and we've been seeing that.
Some certain provinces and cities the national subsidy policies have been seeing some kind of mental health.
Wins like the limitations on the spending as well as the exiting so I think that this is going to have a continuous impact on the industry as well as <unk>.
Automotive industry next year, because we are not foreseeing any kind of exiting of the national subsidy policy for this industry for certain regions.
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So these are some of the uncertainties that we've been witnessing but still makes up of these uncertainties. We could see some of the certainties for next year and also 2026 and specifics. So you know that in 2025, we do not have any hot topics or hot trends that's happening in <unk>.
126, we are expecting several important events like the Winter Olympics and also the World Cup as well so this will be.
Bringing a better placement of the advertisers from the consumer goods verticals.
With that in Q3, the decrease the performance of the AD revenue primarily was due to the decreased.
Decreased performance of the AD placement from the.
Consumer goods industry Okay.
Okay.
Okay.
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So as a result, it's very difficult for me to give you a very precise prediction of our performance in 2026.
Having said that in Q4, we may have seen some of the important things first of all is that there are actually a theorist by more fierce competition for the e-commerce industry, especially from the offline scenario and targeting the life service lifestyle service, we used to have weibo used to have actually quite low percentage or the market share in this break.
But still we do see there is comps.
Competition going on for the food delivery and lifestyle services as well as the other relevant ones. So that is to say that in Q4.
Expecting a huge demand increase in this particular area.
Okay.
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How long you guys have obviously kind of how should we see.
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Okay.
And also for the E Commerce of course, I've been already shed some of the colors on this.
Second is that in terms of the automotive industry, we believe that it will be actually performing quite good in Q4.
First of all I know due to the anti evolution policies, we've been seeing that some of the customers.
Advertisers from the list.
Particular industry.
She is like.
Price competition on the price war and the first half of this year those advertisers did not pretty much focus a lot of the revenues on the product promotion or the mindset establishment. So I think that this situation will be getting better in the second half of the year and talking about the auto loans.
How does that then also game industries.
As the industry and we know that this was primarily impacted negatively by the.
Kind of exiting the national subsidy policy.
In the second half of this year, we've been seeing that accepts Apple the rest of the other how does that make because we're having a deteriorating.
Sales volume.
That's the reason why we do see lower frequency of the new phone launch and for gaming industry. You can see that from a financial report of Metis or <unk>. They did not have a lot of new game releases in the second half of this year, but of course, they are claiming that in 2026 Q1, we're going to see some of the new game.
Since launch from these two major game makers, but still as for whether or not theyre going to be allocating more budget on those business still answer alright.
Alright.
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Alright.
Second point on the overall strategy. So we are talking about two directions. The first one is that.
In the previous years, none of those budget.
<unk> was pretty much placed on the performance based AD and we did not see a lot of our spending.
From those advertisers on the mindset related areas and also after COVID-19 in order to consume more logs, we do see.
And our behaviour yourself.
<unk> on the live stream e-commerce.
So I think that to this year, we've been seeing a very obvious trend that there are more budget allocated to the areas of establishing and building the mindset. So as the traditional advantageous platform on this particular area of Weibo is definitely going to seize this opportunity.
I think that we have and our focus on the hot topics and parallel, especially top notch kols.
In terms of the integrated marketing so we do see the trend of increasing budget from these advertisers on those fronts. Okay.
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Okay.
On the second point is on the hitting at and also performance based AD. So last year, we have been seen a decrease of overall.
Revenue AD revenue contributed to the overall revenue from the performance based ad, but.
Recently in the past three years, we have been dedicating a lot of efforts in making one of our products and the performance based AD and also increasing in updating our technologies and also most importantly, we've been applying I don't know if AI technologies to really have a very good boost of the revenue from the performance based AD. So you can see that in Q3, and we had a.
A lot of increase on this area, so because not only because of the overall daytime traffic and also the adjustments of our strategies, but most importantly, I think that overall use of AI technology is really important so we will be expecting a very good increase of those performance based ads.
Okay.
Sure.
Alright pretty much for the answer for those question. Thank you.
Thank you for the questions one moment for the next question.
The next question will come from the line of Leo you from CLSA. Please go ahead.
Hey, good morning, guys.
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Sure.
Hi, Joe.
Thanks management for taking my question I have two questions on to our product commercialization and firstly is on the strategy and the progress of intelligent search do.
Do we have the commercialization times already in the fourth quarter and what are the application can management share and SEC.
Question is on the inflammation seed reverb.
Initial feedback from users content consumption and engagement and how would that translate into revenue growth in the future. Thank you.
Okay.
When you come in.
Thanks, guys here, how about Sysco that you got the 17th SNU tool box.
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That's what I've got to call it.
Okay do yoga car down to <unk>. So that you can talk about.
No.
That's just opened similar thing.
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Essentially what you have people you know, it's a silver bullet.
Would you pay it back on the current outlook, but maybe you know that you don't have that regardless of LTI free.
The control that you got somebody that's trying to Hollywood TCE it from here.
Shouldn't that so thiago opex synergies how long ago.
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So this open since you will create formulation if you believe in the unique opportunity to have higher be out the door so as Archie.
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Sure.
Got it.
Alright.
So thank you for this question first of all we can see that in terms of the intelligent search as we already said that this has been increased a lot in Q3 in terms of the overall products. So resulting in a very good performance for instance in September <unk> exceeded $70 million and in terms of the Tru and also the <unk>.
But we had a quarter by quarter increase of over 50%. So.
Of course in terms of the monetization of the intelligence such first point is that we do see a very good increase of the overall intelligent search base volume and that was resulted in the performance like in Q3, we had a query and the increase by about 20% quarter by quarter.
Actually provided with a very good traffic to.
<unk> will have a better performance on this and the second point is that of course at the current stage, we do not have the ability of all the consumers I mean, the customers are not having those particular requirements of placing the AD precisely just based on the Internet and search results, but this did actually provided some multi impacts too.
The customers because for instance, we are able to use the GE.
Due to.
Facilitate better product and better content creations, and helping the customers on our spending or advertisers in understanding the new product related issues and some of the other important.
Things now.
Also issues as well so.
This is going to be generating a lot of.
Add assets for our advertisers so that they are able to use in the near future of course. This is not going to be directly from the customers, but I think that in the future the customers and advertisers are able to put more weight on this particular parts of the intelligent search so I do think that.
In the future, we're going to see a very good increase.
The brand based AD revenue.
Or the overall budget of the performance based ads.
Okay.
No go ahead go ahead since you deal with it.
Go ahead.
Because you got too much for me.
Sure sure.
Angela to electronic or coming out of the out years for this initiative.
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Got it.
And also the second question is pretty much based on the information feed so as we have already stated that we had an updated version of the modification of this information based feed in 2025.
Already provided to the users so we've been already finishing the.
First page switch for information feed in July but of course, it takes time for the users to get used to this and not sure that habit amusing, but still I think that this particular, new information feed is going to be very useful and beneficial.
Two the overactivity of the users and also improving the overall retention and a total time spent on the consumption as well. So I think that this is also going to be lowering the threshold for the uses of using weibo.
Okay.
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Alright.
Of course.
Now this particular kind of modification or the version update is pretty much like what happened years ago from the time spend based to the non time spend base and of course at the current stage within that there are a lot of variations between different versions. So it still takes time for the user to adopt this.
A new kind of a platform or it takes time for them to nurture their habits of using but still I think that on the overall basis did have a lot of benefits.
Impacting the overall consumption behaviors and also of course in LIBOR, we are going to continuously focusing on the upgrades and optimization of our products as well.
Okay.
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Got it.
And.
Also I think that this is a very good to have certain kinds of improvements on coupons. The first one is that of course is going to impact some of the new users using in a process of this particular product because he used to be the case that the users need to log on to Weibo and established.
Following a relationship before they could take any action on consumption of the content by the kind of stage. This particular processes and have waived so that we at the same.
Starting point as the other competitors for this particular part so the users are able to consume a very good quality oil content in the very beginning and second is that for the existing business of course from the experience standpoint. It still takes time for them to be adopted adopting this new cost.
That then also.
Stablish and the new using habits, but still I think that the kind of stage. This is primarily given us.
Other opportunities, especially for those new users to take actions on consumption more frequently without even establishing a following.
Relationship.
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Yeah.
Alright.
And also I need to add another point, which is the third point that is for the video based consumption. So we know that in the past four dose of mineral consumers I think that the videos are actually very difficult for the users to actually consume upon.
So that was impacting a lot of the original social based on relationships and we know that in the past for those content creators, especially the video content creators and is very difficult for them to establish a social relationship with the users and also consumers as well so even if on the.
The relationship based feed it is also very difficult for those video content creators to expose their content in front of the <unk>.
Wide audience.
Also for the hot topics such because of the real time list of this.
There are content, especially the video based content and is also very difficult for them to expose their contents as well, but now also the change we can see that we are going to proactively recommending more.
Video based content.
To the users.
This is going to be very very important for weibo in the long run.
From a growth standpoint, or from the standpoint of enhancing our core competitive edge.
Yes.
Thank you.
Thank you for the questions about the question and answer session with that.
I would like to conclude the conference call today. Thank you all participating you may now disconnect your lines.
Okay.
[music].