Weibo Corporation

Thank you for standing by. Welcome to the Weeble Reports first quarter 2025 Financial Results Conference call. At this time all participants are in a listen only mode. After the speakers presentation there will be a question and answer session. To ask a question during this session you will need to press star 1 1 on your telephone. You will then be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Sandra Zhang. Please go ahead.

Thank you operator. Welcome to Weeble First quarter 2025 earnings conference call. During today our Chief Executive Officer Gao Fei Wang and our Chief Financial Officer Fei Tao. This conference call is also being broadcasted on the internet and is available through Weeble's IR website. Before the management remarks I would like to read you the safe harbor statement in connection with today's conference call. During today's conference call we may make four looking statements. Statements that are not historical facts including statements of our beliefs and expectations. Four looking statements involving hammer risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any four looking statements. Weeble assumes no obligation to update the four looking statement in this conference call and elsewhere. Further information regarding this and other risks is included in Weeble's annual report on form 20F and other findings with the SEC. All the information provided in this press release is occurring as the date here. Weeble assumes no obligation to update such information except as required at applicable law. Additionally I would like to remind you that our discussion today includes certain non-gap measures which include suffrage compensation and certain other expenses. We use non-gap financial measures to gain a better understanding of Weeble's comparative operating performance and future prospects. Our non-gap financials include certain expenses, gains or losses and other items that are not expected to result in future cash payments or are non-recurring in nature or are not indicative of our core open results and outlook. Please refer to our press release for more information about our non-gap measures. Following mentioned prepared remarks we will open the lines for a brief Q&A session. With this I would like to turn the call over to our CEO, Gao Fei-Wang. Thank you. Hello everyone. Welcome to Weeble's first quarter 2025 earnings conference call.

I would like to give a brief introduction to the first quarter of Weeble.

On today's call I will share with you highlights on Weeble's product and monetization in the first quarter of 2025. On the user front in March 2025 Weeble's MAUs reached 591 million and average DAUs reached 261 million. In the first quarter of 2025 Weeble's total revenues in the first quarter reached 396.9 million US dollars flat -over-year or up 1% -over-year on a constant currency basis. Our total ad revenues reached 339.1 million US dollars flat -over-year and that revenues reached 57.7 million US dollars up 2% -over-year. Our non-gap operating income reached 129.5 million US dollars representing a non-gap operating margin of 33%. In 2025 the company's overall strategy is to focus on the values of users, remain our leading position in hot trend and entertainment content ecosystem and solidify the competitive edge of our social product. On top of that we will prioritize enhancing our recommendations and search functions by integrating large language models and increase investment in vertical and video content ecosystem to drive user scale and engagement. Next let me share with you our insights made in the first quarter of 2025 from three dimensions user growth, the competitiveness of our content ecosystem and monetization.

On

user growth and engagement we focus on the integration of social product and upgrade of our recommendation system aiming to drive user growth and engagement. For relationship based feed in the first quarter we focus on enhancing user experience on social interaction and strengthening social stickiness between content creators and their fans. We achieve this by strengthening the synergy between the content distribution mechanism of relationship based feed and super topics, expanding the distribution of high quality content from super topics to the interest based feed. This approach successfully drives consumption of interest based community content within the relationship based feed while also attracts users to consume and interact in super topics. As a result the interaction efficiency of the relationship based feed which is measured by the engagement per thousand views shows year for year growth in the first quarter. Simultaneously we are preparing for the product upgrade of the information feed. We will further enhance the competitiveness of the interest based feed by the home page interface and enhancing recommendation capabilities powered by large language models creating a better content consumption experience for users. The upgraded version currently under internal test and is expected to open to users during the second quarter.

The increase in the number of users in the content ecosystem.

In the content ecosystem in 2025 our user part of our position focuses on solidifying our leading position in the hot trends and entertainment sector while continuing to invest in vertical content and video content for systems. This strategy enhances our ability to attract and retain users while increasing user time span. During the Spring Festival a period with abundant entertainment content release we leverage our platform strength in celebrity fans ecosystem, holiday scenes, culture and campaigns and cross vertical operations and integrate hot topics, entertainment content and vertical content to drive users consumption and interactions around Spring Festival related content. On the Chinese New Year's Eve nearly 200 celebrities and KOLs discussed around the Spring Festival Gala and sent electronic red envelopes on Weibo attracting over 30 million users to participate. In addition at the Spring Festival Gala this year gained popularity among the public. The views of the Spring Festival Gala related topics surpassed the 60 billion impressions and discussion around this topic exceeded 500 million on Weibo platform representing a 50% increase year over year. Weibo has achieved a nice user growth during the season with DAUs on Chinese New Year's Eve increasing year over year and the average DAUs and traffic during the Spring Festival season achieving substantial increase compared with the same period last year. Additionally and our perception of Weibo's Houcheng marketing strengthened we saw sustained growth of revenue from Houcheng marketing during the season to be specific advertising revenue related to Spring Festival achieved double digit growth year over year with an even more notable increase in the number of participating advertisers. In the first quarter we decided to see technological advancement driven by foundational large language models. AI related topics continue to gain cross-platform traction on Weibo. For instance topics related to emerging models like DeepSea and Manus quickly went viral. Leading AI model companies, robotic firms and intelligent agent developers have also opened account on Weibo and actively interpreted tech trends and showcased their innovation. This has attracted many influential voices from the technology sector to engage in a spark discussion accelerating the shapes of AI related conversations from each technical communities to the broader public. As a result ultimate users have a better understanding of AI and thus more willing to embrace the AI transformation which in turn drives the integration of AI capabilities across platform products. Weibo has also actively explored and implemented AI technology in multiple business scenarios on the product side. Gradually focusing on several strategic areas including AI powered search, social interaction, content ecosystem, content recommendation and commercial advertising. In March we integrated the latest open source models into Weibo search which delivered a significant upgrade in search capabilities. Weibo intelligent search product is now able to organize and information from multiple perspectives including technical details and public sentiments while suggesting users with key follow-up topics. This has not only greatly improved the answer quality and user experience but also enhanced our competitive edge around trending topics. In April we accelerated the evolution of our intelligent search product and joined it out to all users. AI generated results are now displayed across all trending and general search queries. We have also optimized landing pages with enriched image and video content as well as authoritative media sources. The upgraded product delivers more comprehensive, reliable and higher quality search experience. In March, MAUs of our intelligent search product surpassed 30 million and those DAUs and daily search queries for intelligent search in March grew nicely on a sequential basis. Search satisfaction metrics also showed notable improvement which further drove the user scale and queries of Weibo's general search function. In addition, we are actively piloting AI application in social and advertising products. We are dedicated to investing in the AI transformation to strengthen the core competitiveness of our existing products. As foundational models advance and the cost of computing power decline, we look forward to sharing more updates with you on our progress and the achievement in the AI powered application. Moving on to monetization, in 2025 our ad products and sales strategy focuses on further establishing and solidifying customers' mindset of choosing Weibo as the go-to platform for content marketing across industries as well as enhancing ad product conversion capabilities. In the first quarter, Weibo's advertising revenues grew 1% -over-year on a constant currency basis. Across the broader market, while micro policies to boost domestic demand and consumption are taking effect, advertising budgets remain cautious. We ask them to be unlocked progressively based on the market feedback. Internally, for one thing, we strive to capture clients' marketing demand around the new product launch, major events, and mega trends. Leveraging reinforce the core strength in content and product marketing, we seek to deliver better performance in terms of the distribution effect and client feedback. For another, we remain committed to investing in our real-time bidding information ad product and please risk the positive revenue result from information fees thanks to the increased capability to capture ad wallets. Looking at industry trends, benefiting from the consumption stimulus package, we are pleased to see solid growth. Across a number of industries, the automobile sector continues to deliver growth in the first quarter, driven not only by the contribution from the NEV branch, but also by traditional OEMs accelerating their NEV rollout and increasing their budget allocation to Weibo. The momentum demonstrates Weibo's position as a key product launch and discussion hub for the NEV in the recent years. Coupled with policy tailwinds, Weibo has maintained resilience in ad revenues from the ad sector over the past consecutive years of global growth. In the first quarter, the e-commerce, dairy product, and food and beverage sectors also booked the solid growth, tapping into the key market window during the spring festival. E-commerce platforms in particular delivered robust growth in the first quarter, with e-commerce becoming a significant driver of domestic consumption and e-commerce platform improved operating efficiency. We hope to see higher e-commerce expand on Weibo this year. We will beat back our efforts to seize their high-certainty opportunities by partnering with clients around the trending topics and key e-commerce shopping festivals, and thus expand Weibo's market reach and capture incremental budgets. As for the food and beverage sector, Weibo's celebrity-driven and new product marketing continues to gain traction among client base. In the first quarter, both the number of celebrity and new product marketing projects, as well as related revenues, saw robust -over-year growth. This showcased the scalability of Weibo's differentiated content marketing model across more industries. When clients have celebrity endorsements or new product launch needs, they are choosing Weibo for integrated brand-plus content marketing campaigns.

The gaming industry is still lacking in the same area, and has been lagging behind Weibo's overall advertising growth. Due to the impact of the -to-head game industry last year, the number of new and elite games has significantly decreased since the mid-20th century. The gaming industry is under pressure throughout the year, and we are actively looking for ways to increase revenue. The gaming industry is still lacking in the same area, and has been lagging behind Weibo's overall advertising growth. Due to the impact of the -to-head game industry last year, the number of new and elite games has significantly decreased since the mid-20th century. The gaming industry is still lacking in the same area, and we are actively looking for ways to increase revenue. The gaming industry is still lacking in the same area, and we are actively looking for ways to increase revenue.

On the flip side, the handset manufacturer sector saw a -over-year decline in the first quarter, primarily due to shift to product launch timelines of -high-end models. Despite Weibo's already strong rally share in this sector, we expect resilient full-year growth from this sector, benefiting from the new product marketing and surge in device products driven by trading subsidies. The online game sector continues to face -over-year decline, which weighed on the overall growth of Weibo's advertising revenue. This was primarily due to a high-phase effect from major campaigns by top online game companies in the first quarter of last year, as well as a notable decrease in the number of new and blockbuster game launch starting from -of-last year. Looking ahead, we expect the online game industry to remain under pressure throughout the year, and we are actively exploring ways to address this heaviness. In the beauty and personal care sector, revenue declined narrow -over-year and broke sequential growth during the quarter. That said, the category's impact on the overall ad revenue has been diminishing. For both the online game and the beauty and personal care industries, we focus on refining our sales strategy according to market conditions and leveraging our competitive advantages. And meanwhile, we will continue to support more KOLs capable of generating high-quality content and strengthening synergies between our content and monetization ecosystems, aiming to increase the volume share of content marketing revenues in this sector. From the ad product perspective, ad revenues from our promoted fee offerings and the real-time bidding system broke the notable -over-year growth in the first quarter. The growth was primarily driven by enhanced product capabilities and a better understanding of client's needs, resulting in significant progress with selected client groups. Moving forward, we will penetrate into a broader client base and better fulfill the needs of different advertisers, leveraging our ad product capabilities. In addition, we are committed to further integrating AI technology to enhance the user experience of ad consumption and streamline client's ad placement, which enable us to further capture performance-based ad budgets. To conclude, in the first quarter, with stable revenue performance, Weibo's operating margin remained healthy, and we have been able to achieve a significant growth in revenue. Next,

let me

turn the call over to Data for a financial review.

We have been able to achieve a significant growth in revenue, and we have been able to We have been able to achieve a significant growth in revenue, and we have been able to achieve a significant growth in revenue. We have been able to achieve a significant growth in revenue. We have been able to achieve a significant growth in revenue. We have been able to achieve a significant growth in revenue. As a reminder, my prepared remarks would focus on the MNGAB results. All monetary amounts are in US dollar terms, and all comparisons are on the -to-year basis, unlike otherwise noted. Now, let me walk you through our financial highlights for the first quarter of 2025. Weibo's formal funding of the year 2020 is $14.4 billion. In the first quarter, 2025 net revenue was .6.9 million, flat or an increase of 1% on a constant currency basis. Operating income was 129.5 million, representing operating margin of 33%. Net income attributable to Weibo reached 119.5 million, an increase of 12%. And the diluted EDI was 45%. Let me give you more color on the first quarter 2025 revenue performance. Weibo's advertising and marketing revenues for the first quarter 2025 was 339.1 million, flat or an increase of 1% on a constant currency basis. Value-added service revenue was 57.7 million in the first quarter, an increase of 2% or 3% on a constant currency basis. In line with our expectations, our advertising business continued to stabilize with diverging trends across our major ad verticals this quarter by industry. Our largest three verticals were FMCG, e-commerce, and 3C products. In terms of growth, e-commerce, internet services, and automobiles were the key contributors. E-commerce platform, Alibaba in particular, jumped up ad spend to amplify the spring festival marketing effect and capture surging consumer demand during the holiday season. We are also pleased with the healthy growth of the automobile sector, benefiting from the ongoing secular shift to electronic vehicles. FMCG as a whole decreased by low single digit -to-yearly quarter. Within the category, dairy, food, and beverage products demonstrated an upward trend. While beauty and personal care continued to face a -to-year gap, but the segment showed a clear sequential recovery. On the other hand, the online game sector faced hard times and declined sharply due to lack of blockbuster release this quarter. The handset manufacturers moderated their ad spend with ad this quarter, mainly due to seasonal slowdown in the product launch phase of mid to high end handset devices. This underperforming industry weighed on a meaningful top-line recovery. The ad product promoted this ad was the largest, followed by social display and the topic and search. Ad revenues from Alibaba booked a robust growth of 89%, reaching 42.6 million in the first quarter. The strong momentum of ad revenues from Alibaba was primarily driven by its high profile sponsorship of the Spring Festival Gala to promote its platform and e-commerce events, as well as incremental ad spend in promoting their AI-related products. Value added service revenue was 57.7 million in the first quarter, up 2% -over-year, primarily driven by growth in membership services. The increase in membership revenue was largely fueled by higher output as our IP membership offering reasonable with we were premium user base. Turning to cost and expenses, total cost and expenses for the first quarter were 267.4 million, a decrease of 1%. With decrease in sales and marketing expenses offset by increase in cost of revenues. Operating income in the first quarter was 129.5 million, an increase of 3%. Representing operating margin of 33% compared to 32% in the same period last year. Turning to income tax, undergap, income tax expenses for the first quarter were 24.3 million compared to 25 million last year. Net income achieved with both we were in the first quarter was 119.5 million, an increase of 12%. Representing a net margin of 30% compared to 27% last year. The increase was primarily attributable to operating efficiency and higher net interest and other income. Turning to our balance sheet and cash flow items as of March 31st, 2025. We were cash equivalence and short term investment totaled 2.08 billion compared to 2.35 billion as of December 31st, 2024. The decrease of we were cash equivalence and the short term investment was mainly resulted from the purchase of long term management products in the first quarter of 2025. In the first quarter, cash provided by operating activities was 113.2 million. Capital expenditures totaled 9.4 million and depreciation and monetization expenses amounted to 13.6 million. Before turning to the Q&A session, we are pleased to announce that we have completed the distribution of the annual cash dividends of 82,000 ordinary share or ADIs for the fiscal year 2024. We aggregate amount approximately $200 million in May. In addition, we would like to provide an update on our ESG initiative. In April, we released our first ESG report, highlighting our performance across key areas including green operations, employee development, company ecosystem, social responsibility, information security, and technological innovation. The report underscores our long term commitment to sustainability. For more information on our ESG disclosure, please visit our investor relations website. With that, let me now turn it over to the operator for the Q&A session.

Thank you. As a reminder to ask a question, you will need to press star 1, 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1, 1 again. We will take our first question. And the question comes from the line of Alicia Yap from Citigroup. Please go ahead. Your line is open.

Hello, thank you. Good evening, manager Chen. Thank you for answering my question. I will ask in Chinese first. I actually want to let manager Chen sort out the progress in our Weibo AI search. I want to ask about the new field of advertising revenue in AI. We've revealed more of these deep C models. Have you seen any significant improvements in the advertising materials, smart hair, or ECTM? And have you seen any positive progress in the advertising revenue? Thank you for taking my question. I wanted to ask about overall how you think about your search progress. So, Weibo has actually been doing quite well. So, if you can give us a little bit your future strategy or how you think about the progress in the future. So, we have a lot of questions about the product. Will that still remain within the Weibo to help engage users or will that actually potentially become a separate product down the road? And then second on the AI monetization. So, just wondering how after integrating deep C and all other large language models, how our advertising products have improved in terms of, for example, the app format or the ECTM or even how advertisers are able to put more targeted ads. So, any color from that would be helpful. Thank you.

So, I will answer the first question. As we mentioned in the first quarter, we have been doing some basic AI search based on some open source models last year. But this year, after the release of Deep C, we have been cutting our AI into Deep C models during the spring. And we have seen that the results have improved significantly. So, in March, we should have a larger number of users who have launched a new AI search ability based on Deep C. In March, the number of users has exceeded 30 million. In April, there should be an improvement in the amount of users. This will also effectively boost the overall search for DAO and fast-speed.

Thank you very much for this question. So, I think you have been asking two questions. The first one is about the AI search. The second one is about the relationship between AI and also the advertisements. The first question is that in Q1, as we have already stated, that last year, based on the open source models, we've been already providing the preliminary model or the AI search to the users. But after the Spring Festival in China, we've been seeing the launch of Deep C. So, we've been integrating Deep C into our whole facility and do see a very good improvement of our final effectiveness. So, in March, we've been seeing, also we've been launching this particular Deep C-based AI search to the users and seen a very good boost of the number of MAUs. For instance, in March, the number has been reaching over 30 million. And this number will be also growing in April as well. So, we believe that in the future, the number of MAUs and also the volume of query will be improving because of these results.

So, in terms of the user's and the customer's questions. But I think that on two levels, this has already been a great help to our commercial revenue. On the one hand, it has improved the user's, and on the other hand, it has been a great help to

us in terms of the news, the hot topics, the the intelligence search or Tso in this particular area, we've seen a lot of usage of the users. But in terms of the general purpose search, still there is a certain kind of improvement. However, this particular volume increase was not as good as that from the news area, for instance. It is probably because of the natural positioning or the natural feature of Weibo, which is particularly focused on entertainment and news related topics. So, but of course, in terms of the user consumption, we do see about five percent of the increase in terms of the per capita search volume increase. And it does improve a lot on the per capita query, as well as the user retention. So, we are not starting officially the commercialization approach. And also many users are asking us about when we're going to commercialize this. So we think that even if this is not commercialized fully yet, we can see a very good support and boost to our revenues of commercialization and monetization. For instance, the as I have said, the per capita query volume increase because of this. And also, we do see a very good differentiated competitive edges that we've been building or we have been further enhancing in the field of hot topics, news related and entertainment related content search.

If you are concerned, we have done a hot search list service in many domestic mobile products and we have hot searched list service in many products and products. In fact, we have hot searched list service. In the past, we have also communicated with different manufacturers in the past. In the future, we will have more results of self-searching in one aspect of such a list. In addition, when users search for results in these partners, if they are related to the news, we are also trying to see if more can be used to promote the results of Weibo. Then the user clicks and then calls the Weibo account. This is a more effective way to get more new users.

So in terms of whether or not we have a plan to make this intelligent search an independent product, actually, we don't have this plan to make it independent. However, still, this has further maintained our advantage of the intelligent search in the area of hot topics, the news related content and entertainment related content. For instance, we have been finding a very good effect of bringing users from other platforms to the other end by collaborating with some of our partners. For instance, if you have been aware of that kind of results, previously we have been working with a lot of headsets makers here in China and do have pre-installed results of the hot search ranking list. Part of those contents are actually generated or directly quoted from Weibo's intelligent search results. So in the future, probably we can see more results related to this. And also, if in the future all kinds of research results are related to news, we are going to encourage more partners of quoting the intelligent search results from Weibo. And then from that sense, we can make the users click on that hot search ranking results and this will direct the users to the terminal of Weibo. So this is also another very good way of bringing new users onto the Weibo platform.

So we have been working with a lot of headsets makers here in China. Also,

as for the AI for the consumers or the 2C part of AI, we have been seeing that for intelligent search, for instance, in terms of the total structure of this particular product within Weibo, we are still at a very primitive and early stage. So in the second quarter and also in the near future, we are going to see a new user experience of using this intelligent search function of Weibo. For instance, in February and March, it was pretty much based on the Q&A format generating text a majority of the time for those questions that the users were searching upon. But of course, we do have a trial on some of the new multimedia kind of a generated multimedia results been showing in the output results, which has been very much successful. So the overall conclusion is that this year in 2025, we're going to emphasize more on the investments dedicated to the intelligent search product so that we are going to further boost the number of users and also the activity of users across the whole pipeline of our products so that we can really build much better differentiated competitive edges in the future. Thank you.

So we have a very clear increase in the CTR. We can estimate that the CTR is about 10% in some areas and tests. But the CTR increase in the CTM is still around 5.5. And for Weibo, the new flow of sales is not too high in terms of overall revenue. So the overall revenue is not particularly obvious. Yes, and we also have our own projects to look at. AI can improve our brand advertising for some brand-new ads. But this is still relatively early. So overall, the results are pretty good. But because most of our products are still brands, including Hotpoints and QR ads, so overall revenue is not particularly obvious.

As for the second question, the relationship between AI and to what extent can we have better advertisement-related revenue? Actually, we did see a very good facilitation to the boost of the advertisement revenue related to information-based seed. And also we did see a very good improvement of the CTR rate by about 10% or so. But still for the other indicators, we did have only a single digit improvement only. So in terms of the effectiveness of the AI on the advertising revenues, especially the information feed-related revenue increase, we had improvements. But you can see that because overall speaking, the majority of our advertisements are effective based advertisements. So in terms of the overall advertising revenue improvement, still the facilitation and also the boosting effect from the AI technology is still pretty limited.

Thank you. Thank you. We will take our next question. Your next question comes from the line of Thomas Chong from Jeffreys. Please go ahead, your line is open.

Thank you for giving my question. My question is about advertising. Can management comment about the Q2 ads and their sentiments and expectations as well as the outlook for different industry verticals? And my second question is about the base of our advertising products and strategies. Thank you.

Okay,

thank you. I have just introduced the whole Q2. And from the Q2's perspective, there are actually too many differences from Q1. One is that it is different from the consumer stock market. I think it is just that the mobile phone industry will recover faster in the second quarter. In addition, the e-commerce market is still growing well in the second quarter.

Okay, so as for the overall trend, I think we have already been eludicated on this topic before. And in terms of the future expectations, so our expectations for Q2 for this particular front is pretty much similar to the final result of Q1, especially those verticals that enjoy a very good consumption boost because of national subsidy policy. For instance, we have seen a very good performance improvement on the automotive industry and also the vertical of headsets. And we are expecting a very good performance from the vertical of e-commerce as well in Q2. And just now we have said that, thank you, Q2. We expect a very good performance from the vertical of headsets. We have seen a good performance from vertical of headsets and automotive. But still in Q1, we had a little bit decrease of the revenue from vertical of the headsets because of the adjustment of marketing cycles of some of the manufacturers. But this industry, I mean the vertical of headsets, will be rebounded to a better track of growth in Q2. And another very promising vertical in Q2, and the future will be healthcare related because of huge increase of the demand and because of the Asian society nowadays and also a further boosting of the demand on cosmetic surgery, etc.

And the game industry, I think we have mentioned it just now, is a bit challenging. And I think on one hand, the headsets of some customers, like NetEase and Tencent, have decreased some of the market investment. And this is actually mentioned in the netease's press release. And then, as a marketing, we are now more through AI advertising, including the ad, through some of the app customers, the ad that the Internet uses to marketing the game, the ad decrease. This is mainly the effort in this aspect.

And also, last year, for some of the challenges, the verticals, we did see a very good improvement in Q1 in terms of their overall revenue contribution on a -by-quarter basis. But still, we do see a lot of stress around these areas. And for some of the overseas brands, we had a decrease of the revenue from them. But still, this was offset by some of the domestic brands' increase. And another very challenging industry is the gaming industry. We are facing a lot of challenges still in the next quarter also. We can see that the budget allocated by Tencent and NetEase has been reduced. And especially, you can see that in the financial statement proposed by NetEase in the recent sense. Also, of course, how to mitigate that impact. We are going to fully leverage the AI advertisements or the performance-based ad increase, and especially some of the Internet-based app related ads to have an offset of the challenge from the gaming industry.

The interview has been said many times. In terms of the company, our core platform positioning, including our customer's new position, is still related to the new product sales and content sales. In the past two years, the company has been focusing on this in terms of operating and advertising. We also catch the customer's new product release, the sales demand during the major sales season and the hot season. This is the company's most important and most effective capability. After we do this, we can stabilize our revenue in terms of customer brand needs and sales needs. From the current situation, we can still hold on to this opportunity in most industries.

In terms of our ad products, our core competitive edges are still in the user's mindset. We've been already regarded as a platform focusing on some new product marketing and content-based marketing. In the past two years of time, we did a very good job in terms of operation and also focused on this competitive advantage, especially while the brands are making the launches of the new products. In the future, we're going to further seize the opportunities from the brand new product launch and those hot topics, for instance. This is the very core part of our competitive edge. We're going to be consistent in doing so and increasing our investment into this. Overall speaking, by doing this and focusing on the products of this kind, we are going to pretty much stabilize the demand and try to get the most part of the budget from those brands.

In terms of performance-based

ads, after 2023, we've been investing a lot into this area. We did see a very good growth coming back in the second half of last year as well. This is point number one. Point number two is that still for some of the information-based pricing-related ads, we'll be focusing on this as well. By doing the AI ads and some of the other technologies and products, we are able to increase the awareness among the users and our existing customers and try to get new ones into the whole pool so that the revenue from this part could be enhanced because of these efforts. OK.

Thank you

very much.

Thank you. This concludes the question and answer session. I'll now hand back to Sandra Zhang for closing remarks.

Thanks, operator, and thank you all for joining us. We'll see you next quarter.

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