Weibo Corporation

Good day and thank you for standing by. Welcome to the Weibo Report's fourth quarter and fiscal year 2025 Financial Results Conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Sandra Zhang, IR representative. Please go ahead.

Thank you, operator. Welcome to Labour's fourth quarter and fiscal year 2025 earnings conference call. Joining me today, our Chief Executive Officer, Gao Fei Wang. and our Chief Financial Officer, Fei Cao. The conference call is also being broadcasted on the internet and is available with our 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 forelooking statements, statements that are not historical facts, including statements of our beliefs and expectations. Forelooking statements involving heavy risks and uncertainties, A number of is called actual results to differ materially from those contained in any follow-up statement. The label assumes no obligation to update a follow-up statement in this conference call and elsewhere. and other risks is included in Weibo's annual report on Form 20F and other filings with the SEC. All the information provided in this press release is occurring as the day hero. 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 is for stock-based compensation and certain other expenses. We use non-GAAP financial measures to gain a better understanding of Weibo's comparative operating performance and the future prospects. Our non-GAAP financials excludes certain expenses, gains or losses, or 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 operating results and outlook. Please refer to our press release for more information about our non-GAAP measures. Following management 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 Weibo's first quarter 2025 earnings conference call.

On today's call, I will share with you highlights on Weibo's product and monetization, the review of the progress made in 2025,

Elaborate our strategies for 2026.

先介绍微博在四季度的财务表现。 四季度,微博总营收入达到了10.73亿美金, 年内年上涨4%。 群众广告营收达到4亿美金, 年内年上涨5%。 生子一五收入达到6950万美金, 年内年下降2%。 四季度,公司强总营业业利润达到1亿美金, 强总营业业利润利润为21%。

Starting from our financial performance in the fourth quarter, our total revenues in the first quarter reached $473.3 million, an increase of 4% year-over-year. Our total revenues reached $403.8 million, an increase of 5% year-over-year. Our value added service revenues reached $69.5 million, a decrease of 2% year-over-year. Our non-GAAP operating income in the fourth quarter reached 100.4 million U.S. dollars, representing an operating margin of 21%.

In 2025, Facebook's total revenue will be 17.6 billion U.S. dollars, and the annual revenue will be 15 billion U.S. dollars, and the annual revenue will be 2.55 billion U.S. dollars, and the annual revenue will be 5.236 billion U.S. dollars, and the annual revenue will be 30%.

For full year 2025, our total revenues reached 1.76 billion U.S. dollars, relatively flat year over year. Our total ad revenues reached 1.5 billion U.S. dollars, relatively flat year over year. Our value added service revenues reached 255.6 million U.S. dollars, relatively flat year over year. For the full year 2025, our non-GAAP operating income reached with $6 million, representing a non-gap operating margin of 30%.

In terms of users, in 2020, our monthly user base reached 5.67 billion, and the daily user base reached 2.52 billion. In 2025, the company will increase its user value to the core, stabilize Weibo's hot points and win-win content, stabilize the competitiveness of our social products, and rely on the key construction of large models to push the search engine. The size of AdWords has also increased.

On the user front, in December 2025, Weibo's MAUs reached 567 million, and average DAUs reached 252 million. Throughout 2025, we focused on enhancing user value, solidifying Weibo's leading position in hot topics and entertainment content ecosystems, and strengthening the competitiveness of our social products, At the same time, we leverage to improve our recommendation and search systems, driving both user base and engagement. Next, I will highlight key development in Weibo's product operation and monetization in the fourth quarter.

Our user growth and engagement.

In late July, we completed a structural upgrade of our core homepage infrastructure. and officially rolled out the new homepage with interest-based feed as the primary interface. Our key objective of the upgrade was to leverage in social products, while expanding from only relying on relationship-based mechanisms to distribute content in full user to discover high-quality content more efficiently and providing greater visibility for vertical content across the platform.

In the third quarter, we guarantee that users will be able to use the usual network transition, and the overall switch will be successful. In the fourth quarter, we will focus on two major issues. One is to continue to keep up with the algorithm and improve the efficiency. The users will click, stop, and interact on the platform to enhance the real-time recommendation ability and improve the depth of sales of the content. In the fourth quarter, users will open the app every time to recommend double-layered content consumption and use the market to experience perfect growth. The 2G algorithm leads to a human-to-humanization strategy. It is a platform-based social interaction system that maintains a stable social relationship. It is recommended by the user at the same time as a psychological recommendation. In order to meet the needs of users in the market and the consumer, it is necessary to improve the performance of the user. This type of user-oriented 4G, the first page of the new system, has been improved in terms of market and interaction efficiency. At the same time, the new first page has reduced the threshold for the use of the new user. With the direct investment of the algorithm, the new user-oriented 4G has been improved in terms of the performance of the user.

In terms of execution, in the third quarter, we focused on ensuring smooth transition of the product and minimize the impact on user behaviors. In the fourth quarter, we prioritize two key. First, we continue to refine our recommendation to improve recommendation efficiency by leveraging real-time user behavior, including clicks, timestamp, and engagement. We strengthen our instant recommendation capabilities and facilitated more in-depth content consumption. As a result, in the fourth quarter, both the average information feed viewership and time span per user increased quarter-for-quarter. We rolled out an algorithm-driven audience segmentation strategy to deliver more granular, targeted content recommendation. For users to engage on the platform, we made the stable distribution of relationship-based content within their interest-based feed, keeping a balance between relationship-based content and interest-based content, satisfying users' demand for social content consumption while improving the precision of interest-based content to them. Among these social users, the average improvement in viewership and time spent per refresh and engagement per thousand viewership all increased a quarter of a quarter in the fourth quarter. We also revamped the new homepage with easier onboarding experience for new users. With continued recommendation algorithms, new users' average information feed consumption will refresh and understand as exhibited upward trend.

Of course, we also recognize that compared to current recommended current information flow products and current relationship flow products, the trend is fierce. During the transition period, the indicators of some users still exist. This is a challenge in the process of relaying. But with the positive performance of social interaction users and new users, we have also fully improved the correctness of the direction. In the next step, we will continue to play a role in discussing the advantages of Weibo in social hot spots, strengthen the distribution capability of Weibo's special content, and establish a more stable and up-to-date content consumption balance. At the same time, we will improve users' experience, improve users' trust in mobile information technology, and build a solid foundation for long-term user growth, active and commercial value growth for the platform.

In the meantime, we also recognize that compared with the relationship-based feed, the market for the interest-based recommendation feed is highly competitive. In the transitional period, some user metrics remain volatile, which is within our expectation. Nevertheless, the strong content consumption by social users and new users has fully validated our current direction. Going forward, we will continue to leverage web-based social products and hot topics further enhance the distribution of Weibo's unique content. Meanwhile, we will focus on establishing a more stable and predictable content consumption experience, and enhancing user trust and stickiness with the homepage information feed, which lays a solid foundation for long-term user growth, engagement, and monetization.

With the promotion of Weibo as the core distribution scene, video business can break through the barriers of video management. In the second half of 2025, we will focus on two areas of core work. One is to improve the performance of the video by deepening the content and co-operating with the environment. The second is to improve the construction of the video content. While stimulating the production of KRL in the head, the content of the platform is competitive, the system uses the low-end video content to optimize the structure of the project. From the result, the effect is significant. In the second half of 2025,

As the interest-based feeds became the core scenario for distribution, this will facilitate the distribution of our video content, which were previously mainly through relationship-based feeds. For video strategy, in our second half, we focused on two key initiatives. First, enhancing video... by strengthening the synergy between content and scenarios. Second, improve the quality of video content. This involves incentivizing top-tier KOLs to produce more competitive content for the platform, while systematically managing low-quality video content to optimize the supply structure. In the second half of 2025, both the average daily video view time and the producer video view time on the video playback page achieved double-digit growth compared with the half of 2025.

In addition, during the Spring Festival, the release and popularization of the so-called AI video model greatly reduced the threshold of video creation. During the Spring Festival, the number of original video editors who have become bloggers has increased significantly, and the number of original video editors and original video editors have increased by more than 40%. In the future, with the upgrade of AI tools, Video production efficiency and quality will directly increase. We will use the platform's hot points and its IP advantages to open up AI creation tools to the bloggers. This time, the bloggers will have the IP create a second content extension, which will further strengthen the competitiveness of our video content production. For example, this Spring Festival Film Festival, Weibo will launch the second big event of joint-signature films. Through AI tools, the IP of the plot and characters will be created and modified. Furthermore, during the spring festival, the release and widespread adoption of AI video technology and tools significantly lowered the barrier for video creation.

During the period, both the number of original videos and the number of original video content creators among golden and over 40% year-over-year. Looking ahead, as AI technologies continue to evolve and advance, video production efficiency and quality are expected to improve further. In response, we will leverage the platform in hot topics and vertical IPs providing content creators with AI creation tools to support secondary content production and the content extension of vertical IPs. This extends the competitiveness of Weibo video content ecosystem. For example, among those movies released during the Spring Festival, Weibo partnered with the film Belgian, The Blade, launched a fan creation contest where content creators use AI tools to produce creative adaptation based on the flaws and characters. Over a hundred creators participate through the contest, and the main production team interacts with the platform. The campaign sparked a diverse discussion and engaged audience from all over the world, providing a replicable marketing model. Subsequently, This AI-powered presentation model is also being used for the current-day drama, The Lute, helping to boost the show's visibility.

In terms of search performance, the 4G group's overall direction is 3G. We also provide AI-based search services. First, continuous AI capability, which allows users to understand the needs and content in detail. Second, in terms of the high-quality research environment of the characters, we can optimize the search results and user experience, to strengthen Weibo's quality of life. Second, it is a product-based model. From a single-person Q&A to a multi-person Q&A that supports continuous interaction, it satisfies users' demand for more related and more in-depth information. Thirdly, it is suitable for various scenarios in Weibo's global consumption, allowing the delivery function to attract more users. This will also promote the function. The size of the delivery product will be increased in real time. In December, the delivery of MAU has exceeded 80 million. The DAO and carry volume have been increased by double. The carry volume of the delivery platform has been further increased.

Turning to search products, in the first quarter, we continue to focus on providing users with more intelligent and convenient search experience. First, we continue to improve our AI capabilities to improve the accuracy of understanding users' needs and content. In high-frequency search scenarios such as hot topics and public figure search, we leverage intelligent search to optimize search effectiveness and user experience, strengthening the mind-share of search among Weibo users. Second, we upgraded the product form, evolving Weibo intelligence search from a single-round Q&A model to a multi-round conversational system, which better meets users' needs for more coherent and in-depth information discovery and exploration. Third, we expanded implementation of intelligence to more key scenarios, including content consumption and social interaction, reaching a broader user base. These initiatives lead to continued growth in intelligent search user skills and engagement in the fourth quarter. In December, weightless intelligent search MAU surpassed 80 million, with average day use and search queries booked double-digit growth quarter-over-quarter, driving overall platform search query volume further to improve.

Moving on to monetization, in 2075, our ad product and sales team consistently focused on two strategic priorities.

First, continuing to promote Weibo's unique content marketing positioning across all industries. And second, systematically improving ad performance and conversion capabilities by leveraging AI technologies. In the fourth quarter, Weibo's ad revenues grew by 5% year-over-year.

In terms of the industry, Weibo's ad revenues grew by 5% year-over-year. In terms of the industry, Weibo's ad revenues grew by 5% year-over-year. In terms of the industry, Weibo's ad revenues grew by 5% year-over-year. In terms of the industry, Weibo's ad revenues grew by 5% year-over-year. In terms of the industry, Weibo's ad revenues grew by 5% year-over-year. In terms of the industry, Weibo's ad revenues grew by 5% year-over-year. Facebook, e-commerce, and social media have also increased their revenue. At the same time, we have reintroduced this model to the local life area to make it more efficient for customers in the delivery service sector to increase the revenue of the web service industry. The car industry is growing, but the mobile phone industry is affected by the fluctuation of new products and subsidies, and the budget is shrinking. The oil industry lacks the movement of new products, and income is still under pressure. Over the past four decades, with the release of domestic AI large models and the professional discussion environment in the field of digital technology, AI has become a platform for the release of new products, technical science, and user taste construction. In the fourth quarter, we focused on capturing marketing opportunities backed with high-budget visibility with e-commerce, automobile, and local service.

serving as the primary driver of top-line growth. Leveraging Weibo's strengths in social products and health trends, Weibo gained stronger recognition from e-commerce clients in delivering key and acquiring high-value users. As a result, the e-commerce sector broke notable year-over-year growth. Meanwhile, we successfully replicated this model to local service sectors, helping service-oriented advertisers such as food delivery platforms, to achieve effective user acquisition in a highly competitive environment. We are pleased to see solid ad growth from local service sector. The automobile sector also sustained steady growth, underpinned by Weibo's vertical ecosystem advantages. On the flip side, the healthcare industry experienced action factoring into product launch get a product launch schedules and subsidy policy fluctuations. The online game sector continues to face pressure, mainly due to the lack of blockbuster game releases. Since the fourth quarter, with the tailwind from intensive release of the latest large language models, Google has become the go-to platform by companies to launch new products, promote AI technologies, and build brand awareness. leveraging Weibo's long-established QoL ecosystem and professional discussion environment in the digital and technology sectors. Recent integration of major AI models, such as Q1 by Alibaba and Zobo by ByteDance, showed nearly 50% increase in related discussion on Weibo, compared with that around 50% throughout last year. This technological upgrade went viral on our platform, which also attracts more out-trans, out-trans related ad budgets.

The AI sector is becoming a clear growth driver for our platforms. If we continue to optimize the QRU resource, it will be a small chain of production and information flow investment, which will allow us to keep improving the comprehensive performance of the brand and the business environment. With the new product release model as an example, the whole year has accumulated the top 100 brands in 22 industries. With the content of the star QRU and the high-efficiency coordination of the information flow investment, The performance has been expanded from volume to transformation, and the transformation has enlarged the complete plan, significantly improving the effect of customer warm-up marketing, and improving the business environment and content marketing conscience. At the same time, the progress of the AI industry in the field of marketing has been improved. In December, the consumption of AI products has reached 40% in the new wave of advertising. At the same time, while the number of customers has been reduced, the algorithm has also continued to optimize the progress of the model and transform the path, further improving the flow of transformation efficiency.

For the full year, despite temporary fluctuation in ad budget due to macroeconomics and industry-specific factors, our revenue structure demonstrates stronger resilience, with content marketing consistently contributing 50% of total ad revenues. Throughout 2025, We continuously optimize the marketing combo of high-quality native content production by KOLs and precise information feed targeting, thereby enhancing Weibo's overall competitiveness in brand awareness and conversion. Taking the new product we launch programs as an example, in 2025, we serve all brand clients across 22 industries. Leveraging synergy between high-quality celebrity and KOL content and feed ad placement. We established a full funnel campaign model from MT5 brand awareness to drive conversion. This campaign model significantly improved clients' marketing effectiveness on all channels, creating a positive synergy between our monetization and our customers. In performance-based advertising, our AI application made notable progress. In December, AI-generated ad creatives already accounted for 40% of consumption in promoting feed ad offerings and the real-time bidding system. AI integration has not only enabled us to greatly reduce advertisers' creative cost, but also improve traffic monetization efficiency to ongoing optimization of bidding models and conversion tasks. Overall, Weibo has achieved its annual revenue target as we beef up organizational execution, AI-empowered capability in 2025. We are pleased to further solidify and enhance competitiveness of Weibo's monetization ecosystem.

As of 2026, we will continue to use Weibo as the core of our user experience and long-term growth. We will continue to create value for users with focus on optimizing user experience and driving long-term retention by balancing traffic operation efficiency with quality.

We are committed to strengthening Weibo's ecosystem and reinforcing its long-term competitiveness. We are further growing our user community and engagement. Next, let me share some color on our key strategies for 2026 on three key fronts, user growth and engagement, content ecosystem, and monetization.

In terms of the overall growth and growth, we will focus on the flow of the current volume, and the continuous growth of high-end and high-end products. As for the customer side, to fully optimize the complete process of new users from activation, growth, to stable use, and enhance the overall efficiency of core users on the channel. Second, the product of information storage, on the basis of 25 years of the completion of the structure change and the formation of capabilities, will continue to optimize the algorithm in the stage of fully implementing the experience improvement and new user operation in the second half of the year, and enhance the reliability and use of connectivity of the first-hand information users, strengthen the user's use of new words, and lead to a steady increase in the market of new users. Third, video content will be the core criteria for user flow and market growth in 2016. In 2015, we have developed a new video content system and achieved excellent results. In 2016, we will increase resource investment, rely on AI technology to improve video understanding and performance, expand original, new video, short film, and other multi-dimensional video content, improve content, algorithm, and their experience, and strengthen video for user traffic flow, increase user size, and promote governance.

On user growth and engagement, we'll prioritize retention of quality users in the hope of building a sustainable growth path featuring high value and deeply engaged user community. First, on the channel strategy, we'll upgrade our full lifecycle operation framework to optimize the entire new user journey from activation and onboarding to stable usage and thus enhancing the conversion of acquired users into core active users. Second, for the information-free products built upon the homepage revamp and capability building in 2025, 2026 will mark a new phase of user experience improvement and refined operation. We'll continue to optimize WeWork's algorithm and strengthen user engagement with the homepage information feeds so as to drive static growth in both user engagement and time span. Third, video will become our key strategic driver of user retention and time span in 2026. The homepage revamp in 2025 has paved the way for more efficient video distribution across the platforms. We have already achieved solid progress in improving content quality and fostering user mindset of video consumption on Weibo. In 2026, we will step up investment and leverage AI technologies to enhance video understanding and recommendation efficiency. Meanwhile, we'll work to diversify our video content offerings, including original videos, mindshare-focused videos, and short formats. Through comprehensive upgrades across content, algorithms, and product experience, we expect video to play an increasingly important role in driving user timestamp and retention, supporting continued growth of our user base.

In terms of the content ecosystem, in the second half of the year, we will continue to focus on the hot topic, which is to search for the core business. In terms of the hot topic, we will recommend the recommended traffic and list of high-quality sites. On the basis of the development of the hot topic, we will improve the efficiency of the hot topic in the new and new scene, expand the size and discussion of the content users, and consolidate the core advantages of consumption and discussion in the hot topic. Second, on the social level, we will continue to increase the investment in the long-term community, focusing on the needs of young people, On the content in 2026,

We will continue to focus on three core pillars, how trends, social product, and search product, to further our company's persistence and strengthen our core competitiveness. First, on how trends, we'll explore the synchronization of feed distribution and how trend charts. On top of reinforcing the credibility of the how search products, we aim to enhance recommendation efficiency of how topics within the information feed and expand the scale of users engaging in discussion, which will enable us to reinforce core advantages in hot topic consumption and discussion. Second, on social products, we will continue to beef up investment in super topic products. We will focus specifically on the interest-based needs of young users, deepen the operation of interest-based communities, and enhance their experience. By cultivating social relationship and interactive mindset on the platform, we aim to further boost user sense of belonging and engagement on Weibo. Third, on search product, building on the full roll-out of Weibo intelligent search capability in 2025, we will focus on cultivating a differentiating of our search product in 2026. To elaborate, we seek to highlight innovation in our search features including search users, people, IPs, and hot tracks. By integrating intelligence, Q&A, and conversational search experience, we aim to provide users with more accurate, efficient, and differentiated search services.

In the second half of the year, we will use strategic resources to acquire market share. The IP of a brand is built on the long-term accumulation of stars. More and more brand customers are investing in stars and brand marketing. This trend is gradually emerging in many industries. Under this trend, we will further upgrade the IP marketing service system of the platform, and improve the digital service capability and the perfect marketing strategy of the stars. We will further enhance the competitiveness of the brand in the field of brand marketing, and gradually insert the upper part of the customer marketing decision-making chain, thereby improving the performance of the brand in the field of brand marketing. At the same time, we will surround the core of the core of the core of the core of the core of the core of the core of the core of the core of the core of the core These resources will be more involved in the structure of the current marketing ecosystem. In the short term, there may be a certain stage fluctuation in June and June, but the overall rhythm will be extended to the management of investment output and management, and remain within the budget range that can be controlled. With the product system and customer service capability remaining perfect, we will continue to experience the commercial report after the second half of the year. In the medium term, it will be helpful to further sacrifice the position of the platform in the customer marketing role, and promote a more sustainable income growth. In terms of effective advertising, we will continue to operate in the core industry steadily, to focus on advertising accuracy under the guidance of AI technology, and to further improve the experience. In terms of political service, we will use the goal of steadily growing as a goal, and the focus is to improve the power of the membership system, to strengthen the coverage of the V plus in the focus of the focus of the focus of the V plus in the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus of the focus

Moving on to monetization. In 2076, our key initiative is to capture ad-volume share in the brand and market. Leveraging Weibo's cumulative trends in IP, hot trends, the celebrity ecosystem, we are pleased to see a broad-based trend with more and more brands showing to step up ad budgets in our celebrity and ad marketing. In light of this trend, We upgrade our full-service IT marketing framework to enhance rewards, competitive edge in brand and market. Average service and a comprehensive metric of celebrity ad playbook. We wish to deepen partnership with clients and participate in their decision-making process. In a brand and content marketing ad budget. Meanwhile, will make the prudent resource allocation among selected core marketing scenarios to build a portfolio with stronger competitive modes. This resource deployment will largely be structured around our existing marketing ecosystem. While the fluctuation in profit margin in the short term The overall pacing will be strictly matched based on the ROI and kept within a controllable budget cap. As we continue to refine product ecosystem and the client service capabilities, we expect this initiative to gradually yield returns from the second half of 2026 onwards. In the meantime, This initiative will help further elevate Weibo's position within client marketing decision-making chains, driving more sustainable revenue growth. In terms of performance-based advertising, we maintain steady operations across core industries. Furthermore, empowered by AI technology, we will focus on further enhancing both our targeting position and the overall user experience. Finally, Our value-added service will aim for static growth by refining the privileged system for paid users and spending the coverage of vPlus membership among top-tier content creators in the hope of promoting the creation of the vPlus ecosystem to achieve significant revenue breakthroughs. On organizational efficiency, in 2036, AI to drive front-end business growth will focus on expanding AI adoption across internal operations, enabling teams in product development, operations, and monetization to drive AI tools. to enhance execution efficiency. We believe enhanced technological capabilities and organizational efficiency will be the cornerstone for achieving our strategic goals for 2026.

Please stop.

Let me turn the call over to face-to-face review of the fourth quarter and fiscal year 2025.

Thank you, Gaofei and Heather, Elizabeth. Welcome to WIPO's first quarter and fifth year, 2025 first conference call. Let's start with user metrics. In December 2025, WIPO's MEUs and average DEUs reached $567 million and $252 million respectively in 2025. Such detailed links of area involving AI technologies, they are highly focused on exploring AI features to transform the whole user experience. AI is now safely integrated into Weibo's recommendation energy, content generation, and search functions, et cetera. Notably, user sales and search queries from Weibo's intelligent search feature grew robustly this year. With intelligent search and reuse exceeding into 2026, we will continue to invest in AI as the cornerstone and growth multiplier for our business, driving a more engaging experience for Reboot user community. As a reminder, my preparatory remarks will focus on the gap results. A monetary amount in US dollar terms and all comparisons are on a year-on-year basis unless otherwise noted. Now, let me walk you through our financial highlights. and fiscal year, 2025. Weibo's post-order $259,000 revenue will fall behind the $4.4 million. An increase of 4% or 1% on a constant currency basis. Operating income was $104.4 million, representing an operating margin of 21%. Net income attributed to Weibo reached $166.4 million. and identity to the EPS was 25%. Before year 2025, total revenue reached 1.76 billion US dollars, relatively flat year over year. Operating income was 523.6 million US dollars representing operating margin of 30%. Net income attributed to Weibo reached 439.8 million US dollars, and identity to the EPS was $1.65. Let me give you more color on post quarter and full year 2025 revenue performance. First, our advertising business. We were advertising and marketing revenues for post quarter 2025 were $403.8 million, an increase of 5% or 2%. Mobile ad revenues were $379.2 million, contributing approximately 94% of total ad revenues. We ended the 2025 on a solid note. Advertising business of both quarters traded better than our expectations, despite weak consumption data by industry. Our largest of three verticals were e-commerce, 3C products, and FMCG. In terms of growth, e-commerce, local services, internet services, and automobiles were the key contributors. We are pleased to see a strong momentum of the e-commerce and local service vectors. Weibo has not only demonstrated its value proposition in driving brand exposure during mega shopping festivals, but also fulfilled the platform's user acquisition needs amid intensified market share competition. The automobile sector has the same solid growth with Porter. Band-fitting from Weibo's robust auto-related content ecosystem and ads from IT vehicle brands. On the flip side, top-line growth and pullback from the energy product sector. The fifth top comparison with concept manufacturers was both Porter last year, when the trading subsidies took effect. The online game sector continued to underperform, mainly due to budget contraction from game developers. Full year 2025 advertising and marketing revenues reached $1.5 billion, largely slashed compared to 2024, selecting diverging performance across our key verticals. Mobile ad revenues contributed 95% of total ad revenue, Our largest of three verticals were FMCG, e-commerce, and 3C products. While e-commerce, internet services, and automobiles did grow, leveraging closer partnership and stimulus policies, they captured higher market share from both the e-commerce and automobile sectors. However, our pillar industries, FMCG, 3C products, and online games, were a descending trend, partially due to tough comparison resulting from incremental ad budget from the Paris Olympics and blockbuster game releases in 2024. The ad product. Promoted fees ad was the largest, followed by social display on the topic and the search. In 2025, we further amplified the synergy between content and monetization ecosystems, reinforcing Weibo's market differentiation around celebrities, IP, and content marketing. On top of these initiatives, we focused on AI-powered ad technology upgrades to revamp Weibo's ad infrastructure. Our real-time business bid ad was the clear beneficiary of AI integration. which could facilitate the smarter ad targeting and the generative AI ad creative solutions. Ad-run news from Alibaba for both quarters were 15 million or 74% in the year 2025, with sustained robust growth. We are encouraged to see Weibo's content and the celebrity ad playbook. We gain traction with Alibaba. amid the current competition and the budget allocation dynamics. Full year ad revenues from Alibaba were $173.8 million, an increase of 49% driven by a deeper collaboration during key e-commerce marketing windows and Alibaba's increased ad spend on its local services initiative. Moving on to value added service. VAT, VAT revenues were 69.5 million U.S. dollars in the post quarter, a modest decrease of 2%. Before year 2025, VAT revenues reported a flattened trend, reaching 255.6 million U.S. dollars, which reflected a small increase in membership revenues, offset by decrease in game-related revenues. Turning to cost and incentives, Total cost and expenses for the first quarter was $372.8 million, an increase of 16%, mainly attributable to higher ad production costs and the step-up in marketing expenses. Full-year costs and expenses reached $1.23 billion, an increase of 5%. Operating income in the first quarter was $104 million, representing operating margin of 21% compared to 30% in the same period last year. Operating income for full year 2035 was $523.6 million, representing operating margin of 30% compared to 33% in 2024. Turning to income tax and the GAAP measure. Income tax expenses for the both quarters was $31.3 million, compared to 20 million U.S. dollars last year. The increase of income tax expenses was primarily due to withholding tax accrued related to all the company's wholly foreign-owned enterprises' monthly earnings. To be remitted to Weibo Hong Kong Limited in the foreseeable future to fund its demand for U.S. dollars in business operations and potential investments, it settled. Full-year income tax expenses were 144.5 million US dollars compared to 110.6 million US dollars in 2024. The increase was primarily due to withholding tax accrued related to all of the company's WUFI entities earnings to be remitted to Weibo Hong Kong Limited in the foreseeable future to fund its demand for US dollars in business and potential investment, et cetera, as well as the recognition of deferred tax liabilities related to equity pick-up gains in 2025. Net income attributable to Weibo in the fourth quarter was $66.4 million, representing a net margin of 14% compared to 23% last year, primarily due to above-mentioned impact from operating margin and income tax. Net income for full year 2025 was $439.8 million, representing a net margin of 25% compared to 27% in 2024. Our budget sheet and the cash flow items as of December 24th, 2025, with what's cash, cash equivalents and the short-term investments, totaled $2.41 billion. Both were provided by operating activities with 181.4 million U.S. dollars. Capital expenditures totaled 10.4 million U.S. dollars. And depreciation and amortization expenses amounted to 15.3 million U.S. dollars on four-year basis. Cash provided by operating activities was 519.5 million U.S. dollars. Capital expenditures totaled 42.4 million U.S. dollars. and depreciation and amortization expenses amounted to $59.1 million. In light of Weibo's solid profitability and healthy cash flow, we are pleased to announce that our Board of Directors has approved an annual cash dividend of $0.61 per ordinary share, or ADIs, for the fiscal year 2025 under Weibo's annual dividend policy. The total dividend payout will be approximately $115 million. With payment expected to be made in May, 2026, looking ahead, we are committed to capitalizing on the transformative AI opportunities and unlocking the potential of our social media platform while maintaining robust financial health, despite uncertainties with consumption sentiment and competition landscape. Our disciplined capital allocation supports our long-term strategies and ensures financial stability, enabling us to deliver sustainable returns to our shareholders. 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 1 and 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again. Our first question comes from the line of Alicia Yap from Citigroup. Please go ahead. Your line is open. Alicia Yap from Citigroup. You may go ahead with your question. Your line is open.

Hello?

Due to no response, we'll move on to the next question.

Hello? Hello. Alicia?

Our next question comes from the line of from CICC. Please go ahead. Your line is open.

Thank you for the question. My question is about the AI strategy. As I mentioned, since entering the year of 2026, the overall development of the AI industry has been very fast, including the ability of video production models to improve rapidly, and AI agents are constantly landing on the application side. The way the content is produced and the way users interact will have a deeper impact. Then I would like to ask the management level, under this background, what do you think of the position of Weibo in the era of AI? What are the main investments in the direction of AI application in 2026? I would also like to ask the company how we will combine the operation strategy of AI technology and the platform. Thank you very much for taking my question about AI strategies. As you mentioned in the prepared remarks, since the beginning of 2026, we have seen rapid developments across the AI landscape. Increasing significant improvements in AI video generation models, as well as the increasing adoption of AI agents on the application side. We think this trend could fundamentally reshape both company creation and the user interaction. So connect and share what's your strategy in the AI era and what's our key focus for AI application in 2026. In addition, we would like to integrate the latest AI technologies into platform operations. For example, in content distribution, user engagement, video strategy, and monetization. And lastly, a comment would give us an update on , including its current progress, positioning, and the role in your AI strategy. Thank you.

Okay. There are actually two levels to this question. The first one is that for a product like Weibo, in terms of AI, In terms of the platform, how should we classify AI in the current competitive environment? Let me answer the first question first, which is about the AI product. Last year, we launched the AI product in 2025, and the core was only the subscription. But in fact, we actually did a lot of product planning behind the scenes. Maybe it's because last year's AI model itself was able to focus more on the ability to improve on non-multi-model. So when we really push out the products for the user, we only receive one product on the C-end. What I mean is that it may be more than 10 million. But there are still more products that the company has been constantly trying in the reserves. Then we feel that this year, especially the fourth quarter of last year, December and this year, I think two Um.

Okay, thank you very much. This is actually a very good question. I would like to answer this from two points. The first one is that what is the AI role and also what is the AI planning on Weibo as a product and also what is our competitive positioning of AI if we regard Weibo as a platform. First part is about the Weibo as a product. Last year in 2025, I think that the only product that we have launched targeting the consumer side was a true show in telecom search. But, of course, on the back of that, we had a lot of other plans and strategic plans related to the launch of AI capabilities. Of course, in the past, in terms of the capabilities of the large language models, most of them were focusing on the improvement of the capabilities that are non-multimodal related. So, if you're talking about the only product that we have launched in 2025 targeting the user side, this would be a pure show with tens of millions of users as a scale. So, of course, we have been doing a lot of, you know, tries and experiments on the other related model capabilities. So, you know, in 2025, Q4, especially in December, and in Q1 of 1026, we have been doing a lot of, you know, researches and also focus on the improvement of the capabilities. The first one is that I think that it's a very good timing in terms of the front-end use by having a very good improvement of the communities by combining agents with skills altogether.

Okay. To be specific, in terms of AI products, the first one is the AI improvement of self-search. In fact, the main direction of self-search is through some agents and multi-model capabilities. from the summary of a simple Weibo document, like Domotai, including more questions, including the way of conversation. There may be some tests now. If you can see it in Weibo, this is one direction. In addition, I have a question. What we mentioned just now is that in terms of other productization, As you all know, the core competitiveness of Weibo is still in the video bloggers that we've been recruiting for so many years. We've been following the same strategy in video blogging. However, these video bloggers in the past have transformed into video bloggers. At the beginning, they were successful, but later they encountered some bottlenecks. Of course, we will see the promotion of AI video model capabilities like this in the Spring Festival this year, which allows many of these video bloggers to create videos. their creativity and the ability to convey their stories can actually achieve This is a significant improvement. This is also the reason why we have increased our investment in AI video and AI algorithm this year. We believe that for this part, of course, the gain is also from the first quarter. The gain of video comparison and comparison is relatively fast. We will invest a lot of budget this year, which is a considerable amount of income gain. Thank you, Gordon.

Okay, and of course, a second point I would like to say is that in terms of the AI product, of course, you could see that we've been seeing a very good improvement of the capability of Jisho, and especially this year, combining the capability of agents and multimodal-based. So, for instance, in the past, this particular Jisho as a product was pretty much focusing on the summary based on text. But now, it is able to have the dialogue generation and also multi-question and clearly answering capability. And if you're interested, you can actually test this feature of Zhishou on the website of Weibo or on the app of Weibo. And second part is about the productization of other ends. So, in the past, you know that our Weibo's core capability was still based on the text and image. And, of course, we tried to make some of the core content creators of those text and images to, you know, commit them or, I mean, to shift them to become the video creators. Of course, in the past, that kind of transformation was quite successful, but later on, we have been seeing some of the constraints and limitations. So now, with the improvement of the capabilities of AI, those content creators are going to be more creative and also increasing the activities of the storytelling and the expressions as well. So that is exactly the reason that we're going to invest in a lot on this particular, you know, technology related to video generation and also we've been investing heavily into the computational power improvement and increasing. And also in Q1 of this year, you've been seeing a very good, you know, growth of our, you know, video generation and video content on Weibo platform quarter by quarter or year by year. And also we've been seeing a very good profitability against this. And I believe that this is going to be the major source of our revenue growth as well as the profit growth. So the AI accounts you know, content creation or those content creators are now going to be having more capabilities with the empowerment of AI to actually, you know, generate more videos directly or, you know, using the AI or gentle AI community to actually convert the text images into videos. Okay.

Another thing is the positioning of Weibo as a platform. First of all, as I mentioned in the screen, Weibo as an AI model's usage, transmission, and promotion platform is something we have to do well. In fact, because of Weibo's huge user base and technology and digital exposure, it has the strength on Weibo. In fact, the AI model itself Even if the platform is not pushed, there will be more and more AI content in the platform. It also brings us a higher volume during the Spring Festival. It's very different. Last year, DeepSeq was mainly based on media reports, but this year's Seedance, including the new models, are basically all about how to use them, including the recent Open Cloud. In fact, the main focus is on how users can use it on the platform. This will actually be more helpful for our own ecosystem. This is a content transmission platform. Another one is based on our original open platform. You will see that recently we are working with some major models, including Qemmy, including this kind of JLM, and we are working with some of the main open cloud. Recently, the lobster is more popular. Of course, we have quickly reached a consensus on the interface platform. For example, The original platform's accumulation in terms of technology, in fact, today, we can quickly switch to a platform that provides information content for AI models. This is to say, in the case of the open comment interface with Q&A, Q&A is currently in the daily Q&A And the second big part of the answer would be that we regard Weibo as a platform and how we are facilitating this particular AI notion.

So, first of all, you know, that now on Weibo platform, we were actively disseminating the knowledge related to the AI and AI application and also promoting the AI-related content. Because of our large user base and especially, you know, those active content creators on the science and technology realm or on a digital, you know, product realm are still quite active in generating content and helping disseminate knowledge about AI on Weibo platform and using Weibo platform. So, as a platform, you know, we are going to keep continuously, you know, doing that. And also, this helps us to generate a lot of traffic and attract the users, especially during the 23-year period, for instance. So, last year, you know, it was pretty much about deep-seek and connectivity with that. But still, you know, this year, we've been seeing more AI models and getting connected on Google platform like the QNN. or open claw which is getting very very popular reasoning but still relating to those new models um i think that the major um content on our platform would be the discussions that we have for promote to generate in terms of how to use and how to apply those a new model uh new new ai or agenda ai so um you know in the past we um always um regarded as the open platform and, of course, provide our capability to connect with the large-numbered models like QEMI, QN, or Zhihu recently, which are all doing their own version of the open-cloud-related agenda AI. So we are now getting a very good connectivity with those cloud-like agenda AI capabilities. And, of course, now Weibo as a platform has already been successfully switched to a platform that is servicing the need of AI application and also the dissemination of AI-related content. So, for instance, with QWin, we have been successfully, you know, getting API connection in terms of the commenting features. So the volume of the comment through QWin has already been reached to the same level as for that of the Drusso feature or commenting features. So in total, I believe that all those AI models or agenda AIs were actively using the large user base of Weibo and also, you know, on our platform doing a lot of more interactions with the users about the AI-related contents.

Okay. Okay, thank you.

Thank you. Thank you very much. Thank you. We'll now move to our next question. Our next question comes from the line of Alicia Yap from City Group. Please go ahead. Your line is open.

Hi. Can you hear me? Yes. Hello, okay, yeah, thanks for taking my questions. 管理层晚上好。 我有一个问题是关于我们广告业务的, 就是建立现在的宏观定义的形式, 还有AI相关产品竞争激烈的情况下, 管理层如何看待我们广告组, Weibo is how to embrace these AI movements to help our advertising growth. management share with us in light of the current macro situations and also the intensified competitions of the AI product, how is management see the advertiser budget sentiment and their ad spam, and what is the growth expectation management asset for Weibo for 2026, and what is the overall advertising strategy and how Weibo can leverage and embrace the, you know, the AI applications to enhance the ad growth, and also how Weibo has been using the AI to improve the operating efficiency. Thank you.

In the fourth quarter, we saw a 2% or 3% increase in RMB. It's about the same as the previous quarter. In terms of Q1, the overall increase is about the same as last year. There is a significant increase. We also saw that this wave... The increase in traffic, especially the traffic related to AI, actually led to the addition of some new customers. In addition, the Milan Winter Olympics in February, although there are other problems, also brought about a certain growth in revenue. In terms of the specific industry, I think because the overall consumption is still some, especially Q4, compared to Q3, the overall consumption is still a bit reversed. But I also see Currently, this year, China has set a 4.5% increase in consumption. From our own customer industry, e-commerce, cars, In this industry, we expect to see a growth in 26 years. There is uncertainty between mobile phones and games. I think mobile phones are still in a stage. Of course, some people say this stage is more than a year. After all, the price of memory will lead to the improvement of many original low-end brands. But as far as I know, in the mobile phone industry, our customers on Weibo Okay, so thank you for this question.

First of all, we had about the air revenue growth of about 2% to 3% in Q4. And then Q1, you know, in terms of the growth rate itself, we had a single-digit growth. We're going to have a single-digit growth versus the same period of last year. And also a second point I would like to say is that because of the traffic growth, especially the AI-related traffic growth, we have been bringing in a lot of our new customers onto our platform. And, of course, in February, we had the Winter Olympics took place in Milano. And that helped us to also, you know, generate a little bit on the revenue as well. And in terms of consumption, so we had a slowdown in Q4 versus the Q3 area in terms of the revenue from the consumption area. But still, you know, this year, the national government has made a plan of having around 4% of the growth in the total consumption area. So talking about these verticals, so first of all, e-commerce and alternatives, we believe that there will be a very good growth happening to these two verticals in 2026. As well as for the handset and the gaming industries, there are some of the uncertainties. But for the handset, I would like to say that probably the growth is happening on a periodic basis. Now, because of the memory price is increasing, so we've been seeing a lot of the selling price increase for some low to medium-end models of the handset. But still, you know, on our platform, for most of the advertisers of the mobile phone makers, most of them are actually spending money to do advertisements on the medium to high-end models. So, still there are some of the uncertainties. So, approximately, the headset industry is going to be experiencing a flat performance of this year.

Okay. 整体来看的话,刚才其实在script里面讲到, 20年我们从全行业来看的话, In addition to the effect of active sales ads on customers, there is also a decrease in the effect of editing. We see that some of our customers are gradually returning to celebrity and brand sales, especially celebrity sales, and the demand for this kind of event sales is relatively strong. Of course, we have seen such a trend in the past 25 years. For example, the number of sales of customers related to celebrities is rising, although the up value has not risen very quickly. In 2016, as I mentioned earlier, we will upgrade our entire Weibo marketing service system. Through more services and our collaboration, we will be able to reach the top of the customer marketing strategy. Specifically, in 2016, we hope to enter a wave of income growth. The expected growth is mainly from the first one, which is the celebrity marketing. In 2015, we saw a very obvious trend in the demand of customers for celebrity marketing. The number of customers and the number of projects has basically increased over the years, but the value has not increased. For example, the number of customers who put star resources in Weibo is not rich enough. This time, we will focus on foreign foreign foreign foreign which is about 50% of the total sales volume. In 2025, we will further increase the investment in QR, which will improve the budget for content marketing. The third one is probably effective advertising. Effective advertising has maintained a growth channel for 25 years. Currently, our total sales volume is about 17%, which is about 3-4% higher than it was a year ago. On the one hand, we still have a good algorithm, but on the other hand, we need to combine AI

So the next point I would like to answer is for the point about different kind of advertisements. So according to what we have mentioned in the prepared script, In 2026, you know, we've been seeing a kind of a very good improvement of that. But still, we experienced a very tense competition in terms of the performance-based ad and something like that. So, of course, in 2025, we have been observing that some of the advertisers were coming back to the original, you know, marketing mechanisms, for instance, the KOL or celebrity-based or the event-driven. So in 2005, we've been seeing a very good increase in terms of the celebrity-based advertisements, in terms of the sales volume, but not necessarily the improvement of the ARPU itself. So, in 2026, we have certain strategies to deal with that situation. First of all, as we have already mentioned that the service provision system is going to be totally updated. So, now we focus more on the quality service provision and helping us to actually embed into the upstream of the decision-making chain of our customers, i.e., advertisers. And in 2026, we've been seeing a lot of, we are very confident in generating a lot of ad revenue growth from this area. And also second point is for those return plans, which is KOL-based marketing or the celebrity-based marketing. And we've been seeing a very positive trend of some of the advertisers of coming back to this notion of doing marketing. So, of course, At the current stage, as I have already said, that the approval wasn't that much, you know, improved because of less diversification of the choices of the KRLs. So I think that, you know, we will, first of all, put several products into one as a package and deliver to our customers. And second, that we provide a very good cost-based advantage to our customers in order to deal with the situation, helping to actually improve and increase the output at the same time. And the third one would be the content-based marketing. And for different, you know, verticals, we had been experiencing some volatility there. But still, overall speaking, the content-based marketing had been seeing a very good growth. And at the current stage, of course, we've been seeing that it is contributing to about 50% of our total revenue. And in 2026, we will be focusing more on the investments onto those KOLs and trying to actually achieve a very good momentum carrying on effect And the next point I would like to say is the performance-based ad, of course. So we had a very good growth in 2025, and this, you know, the performance-based ad is contributing or is accounting for about 17% of our total revenue, ad revenue, and which increased by about three to four percentage points versus the year before. So now, you know, what we have as strategies are, first of all, optimizing the algorithms,

and second of all helping to actually you know improve and increase the cpi with the facts okay okay all right thank you thank you there are no further questions at this time so i'll hand the conference back to sandra for closing remarks

Thank you, operator. This wraps up our conference call today. We'll see you next quarter.

This concludes today's conference call. Thank you for participating. You may now disconnect. Speakers, please stand by.