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Operator
Welcome to today's Weibo Corporation first-quarter 2014 earnings conference call. (Operator Instructions). I would now like to hand the presentation over to your host for today's conference, Ms. (inaudible) from Weibo Corporation. Please go ahead Ms. (inaudible).
Unidentified Company Representative
Thank you. Good morning. Welcome to Weibo's earnings release for the first quarter 2014. Joining me today are our Chairman of the Board, Charles Chao; our Chief Executive Officer, Gaofei Wang; and our Chief Financial Officer, Bonnie Zhang.
The conference call is also being broadcast on the Internet and is available through Weibo's Investor Relations website.
Before the mentioned presentation, I will like to read you the Safe Harbor statement in connection with today's conference call. During the course of this conference call we may make forward-looking statements, statements that are not historical facts, including statements about our belief and expectations. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Weibo assumes no obligation to update the forward-looking statements in the conference call and elsewhere. Further information regarding this and other risks is included in Weibo's IPO prospectus filed on April 17, 2014, and other filings with the US Securities and Exchange Commission.
Additionally, I'd like to remind you that our discussion today includes certain non-GAAP measures, which include stock-based compensation and certain other expenses, gains or losses and other items that are not expected to result in future cash payments or that are non-recurring in nature or may not be indicative of our core operating results and business outlook. We use non-GAAP financial measures to gain a better understanding of Weibo's comparative operating performance and future prospects.
Please refer to our press release for more information about our non-GAAP measures. Following management's prepared remarks, we will open the lines for a brief Q&A session.
With this I'd like to turn the call over to our Chief Executive Officer, Mr. Gaofei Wang.
Gaofei Wang - CEO
(Interpreted). Thank you and good morning, everyone. Welcome to join us Weibo Corporation's first earnings conference call as a public company. My review and the discussion today will focus on the following three key areas surrounding our operational results for the first quarter 2014 and Weibo's future strategy.
Firstly, I will review the steady growth we have achieved as a leading social media platform and [to help solidify] its leadership. Secondly, I will give you an update on Weibo's monetization, especially on the rapid growth that we have made in monetizing from the native ad solution. And lastly, I would like to share with you how Weibo is positioned and our strategic focuses and our plans in the future.
Starting with the growth that we have achieved in the first quarter, I'm delighted that we are able to report healthy growth in both operational and the financial areas in our first earning release as a public company.
For the first quarter of 2014, total revenue growth 161% year over year to $67.5m. At the same time we are also seeing significant bottom-line improvement with non-GAAP net loss decreasing 74% year over year to $4.8m.
On the operational front, we have stepped up our efforts in event-driven campaigns and adjusted our product strategy in order to grow user scale and engagement. For example, we have seen encouraging results from our user reengaging endeavor by leveraging the public events happening in the first quarter. As a result of these initiatives, in the first quarter we saw fastest growth rates in monthly active users, or MAUs, in the first three quarters. MAU grew 34% year over year to 143.8m in March 2014, while average DAU grew 37% to 66.6m in March 2014.
During the first quarter we have also adjusted our product strategy to improve the quality of content in our users' timeline. We believe these efforts have enabled us to increase the user engagement level in the first quarter. We will continue to dedicate ourselves to optimizing user experience and making it easier for them to acquire information on Weibo.
On the content creation front, we have eased up our efforts in helping our core content creators to distribute content as well as the users to discover content more easily, based on their area of interest. For example, the newly launched discovering people section features bloggers who are verified as experts in specific areas, for example, doctors and professors. This function will help these professional content creators to build up their follower base more quickly and increase their influence on Weibo.
We also launched a new product for users to post long-form content on Weibo. This also aims to facilitate the content generation and the distribution for these professional content creators.
Turning to our second area of focus, update on Weibo's monetization. We started to monetize Weibo through social display advertising in the second quarter 2012. To balance the ad effectiveness and the user experience, we feel it's essential for us to be able to offer native ad solutions on mobile devices. Our answer to this challenge is promote the ad system or more commonly known as (spoken in Chinese) in Chinese, which was beta tested in the first quarter 2013.
We gradually opened this ad system to the small media enterprises from the second quarter 2013 and went through a period where we carefully tested the stableness and the service mechanisms surrounding this new native ad system. At the same time, we have also been collecting feedback from Weibo users as well as our advertising customers and making adjustments and upgrades accordingly.
In the first quarter of 2014 we expanded the customer base of our promoted feed ads and began to offer this native ad solution to selected brand advertising customers and individual users on a trial-run basis. We are currently analyzing feedback from our ad customers and the users in order to optimize our ad effectiveness and the user experience. We plan to open the promoted feed ad system to all of our brand advertising customers in the second quarter.
On the value-added service front, we are making more efforts in gaming, especially mobile gaming area. As our penetration into the second- and third-tier cities goes deeper, we are seeing the key user growth coming from mobile and as well as from younger generation who are born in the 1980s or the 1990s. We believe these trends will bring Weibo a new horizon to grow it [via the net]. We will explore various opportunities in membership base and celebrity-based value-added services in the mobile gaming.
Now let me turn to our next topic, Weibo's positioning and our strategic plans for the future. Our goal is to build our platform for the users to create, distribute and discover content and such platform satisfy our users' needs for both information acquisition and social networking. Through these endeavors we believe we will be able to keep growing our user scale and the customer base and build an ecosystem that provides information and a service to our users, customers, as well as our platform [funders].
First of all, on the user growth front, Weibo is already the largest platform in China for users to create and distribute content publicly. Our core strategy in the coming few years is to take advantage of the rapid growth of China mobile Internet user base and leverage the core attributes of our platform, as well as our competitive advantages to increase our user scale and market share.
Now let me elaborate on our plans from two different perspectives. On the product development side, we plan to lower the user entry barrier through easier onboarding experience. Compared to news app and messengers, Weibo is a more complicated product for users, especially those in tier two and tier three cities. In the past few months we have made a considerable improvement to the user interface, especially on the mobile end, to make it easier for users to interact with the product. We have since seen very encouraging trends in user retention and activity. We will keep moving towards this direction going forward.
Turning to our plan on channels for user acquisition, we will continue to increase our penetration in tier two and the tier three cities, as well as apply users among the younger generation. On the one hand, we plan to work more closely with the telecom operators, handset manufacturers and other strategic [corners] at the product level in order for their users to access Weibo more easily and conveniently.
On the other hand, we plan to strengthen our partnership with the TV station to increase Weibo's influence in the TV audience and related user activities. For example, in the month of February, Weibo collaborated with CCTV in the 2014 New Year Gala and rolled out the Red Packet campaign, leading to almost 180m engagements related to the New Year Gala during the two-day show period.
Secondly, we plan to strengthen our core competitive advantage as an information platform for users to create, distribute and discover content. We will focus on the following two areas. Number one, we will focus on serving all types of content creators, especially those who generate more valuable content and enable them to more easily create and distribute content to the public while growing their influence.
And number two, we will focus more on helping our users to better discover and connect with other users they might be interested in. In addition, we will help our users to more effectively discover and distribute content.
Last but not least, our plan on monetization, we continue to increase Weibo's scale and effectiveness as a social commerce platform by focusing on the following two areas.
Our number-one focus will be on the development of mobile and the native ad products. Weibo so far has become one of the largest universal sign-in systems in China. Through such system Weibo connects our users to hundreds of thousands of websites and applications. As the user activity accumulates on Weibo and our data mining goes deeper, we will put in more efforts to refine our recommendation engine to improve the relevancy and to make the ad formats more native. With these, we are very confident that we will be able to provide a more effective advertising and marketing solution to our customers and help them better engage and serve the users on Weibo platform.
Secondly, teaming up with our strategic partners, we intend to build upon the Weibo platform, a commercial ecosystem that creates a closed loop for product service promotion, payments and a post-sale service based on a social context. During the first quarter of 2014, we launched our payment solution WeiboPay, which is supported by Alipay on the backend. We believe this partnership will significantly increase the efficiency of commercial transactions by connecting the dots from interest generation to direct purchasing activity. At the same time, the partnership will also generate more advertising demand from the merchants who are looking to increase the reach of their products and their services.
To sum up with our discussion today, in the coming two years we will take advantage of the market opportunities and the focus on growing our user base and increase the user activities to build Weibo into an information platform, serving Internet users in China. In addition, on the monetization front, we will focus on developing our mobile and native advertising solution based on user data.
With that, I would like to turn to our CFO, Bonnie, for financial review. Thank you.
Bonnie Zhang - CFO
Thanks, Gaofei, and good morning, everyone. I will walk you through our financial performance for Q1 and then touch briefly on guidance, before opening the call for your questions.
For the first quarter of 2014, net revenue grew 161% to $67.5m. Major revenue components included advertising and marketing revenues and the Weibo value-added service revenue. For 2014 Q1, each component as a percentage of total net revenue is 77% and 23% respectively.
We generate advertising and marketing revenues from social display ad arrangements for key accounts, promoted the marketing arrangements, such as promoted feeds for small media enterprises, which was introduced in the second quarter 2013, and Alibaba ecommerce revenue related to the strategic alliance formed in April 2013.
Our advertising and marketing revenue for the first quarter of 2014 grew 176% year over year to $51.9m compared to $18.8m for the same period last year. A number of factors contributed to our strong performance, including a full quarter of promoted feed marketing solutions adopted by over 7,000 SME clients and a higher ARPU and enlarged key customer base we achieved in this first quarter 2014. Total net revenue contributed by Alibaba was $19.9m in the first quarter. Including ad revenue from Alibaba, top ad revenue-generating industry sectors are FMCG, Internet services and automobile.
For the first quarter of 2014, mobile revenue accounted for 31% of advertising and marketing revenues compared to 28% in the prior quarter. Guided by the mobile first philosophy, we intend to continue to grow our user base and user engagement through improving Weibo mobile functionality. We aim to develop more ad inventories -- more mobile ad inventories that are mobile-enabled, which we believe will help us increase the monetization of mobile traffic. We anticipate the percentage of mobile revenue of our total net revenue will further increase.
We generated VAS revenues principally from fee-based services, which included game-related services, VIP memberships and data licensing service that we introduced in the fourth quarter last year in order to further monetize our user base and the content on our platform. VAS revenues increased 120% year over year from $7.1m to $15.7m in the first quarter 2014. The increase was mainly due to robust growth from gaming-related services and the VIP membership and the data licensing service introduced in the prior quarter.
Turning now to cost and expenses, I would like to remind you that, unless otherwise noted, my comments would focus on our non-GAAP financial measures, which excludes stock-based compensation, amortization of acquired intangibles and the related income tax effect and a changing fair value of investor option liability.
For the GAAP financial measures as well as a reconciliation between the non-GAAP and the GAAP financial measures, please refer to our earnings release posted on our IR website. Our cost and expenses consist of cost of revenues, sales and marketing, product development and the general and administrative expenses, including cost and expenses allocated to us from Sina. Cost of revenue consists mainly of costs associated with the maintenance of our platform, which mainly included bandwidth and other infrastructure costs, labor costs and the turnover tax levied on our revenues.
Sales and marketing expenses consist primarily of marketing and promotional expense, and the salaries, benefits and commission for our sales and marketing personnel. Product development expenses consists primarily payroll-related expense and infrastructure costs incurred for expenses associated with new product development and product enhancement. General and administrative expenses consist primarily of payroll-related expenses and professional service fees.
In the first quarter of 2014, total cost and expenses was $73.1m, up 76% year over year. The increase is driven by headcount and the related overhead cost as we continue to invest in our workforce to scale the business and drive continued product innovation, as well as marketing expenditures.
As mentioned by our CEO in his opening remarks, we have set growing Weibo user base and user engagement as our top priority in 2014. To achieve such goal, we plan to deploy our marketing resources to increase our penetration in the lower-tier cities, collaborate with TV programs and develop a [mean] media ecosystem to create a more content for our platform.
As a result of our strong revenue growth and the relatively low expenditure increase, we reduced operating loss from $15.6m in the prior period of last year to $5.6m in 2014 -- first quarter 2014.
Non-GAAP net loss was $4.8m, [from a] non-GAAP loss of $18.4m in the same period a year ago. Our GAAP net loss in the first quarter was $47.4m, which includes $2.2m of stock-based compensation expense, $0.2m of intangible asset amortization expenses net of tax, and a $40.2m charge associated with the change in fair value of investor option liability. Non-GAAP basic and diluted loss per share for the first quarter was $0.03 compared to $0.13 per share for the same period last year.
Turning to balance sheet and cash flow items. As of March 31, 2014, Weibo's cash, cash equivalents and short-term investments totaled $466.2m. The cash used in operating activities for the first quarter of 2014 was $18.2m, capital expenditure totaled $2.8m and depreciation and amortization expenses were $5.3m.
Turning to our second-quarter 2014 guidance, we estimate that our net revenue for the second quarter will be between $74m and $76m.
This concludes our prepared remarks. We are ready for questions. Thank you.
Operator
(Operator Instructions). Eddie Leung, Merrill Lynch.
Eddie Leung - Analyst
Hi. Good morning. Thank you for taking my questions. I have a couple of questions. The first one is about your strategy of getting more users from the lower-tier cities. Just wondering if you have seen any different user behavior, as well as perhaps click-through rates or conversion rates between users from lower-tier cities and the top-tier cities. So this is my first question.
And then secondly, just I want to get a bit more granularity on some of your revenue items. I'm wondering if you could give us the number of corporate accounts in the quarter as well as the revenues from promotional tweets. Thanks.
Gaofei Wang - CEO
(Interpreted). This is Gaofei. I'm taking the first question in terms of the penetration strategy for the lower-tier cities. As I mentioned in my opening remarks, we're putting a lot more effort in the second- and third-tier penetration. That largely is through our strategy on the mobile side. 70% of our traffic now is coming from the mobile users. And we do observe there are certain behavior differences in between the second-tier -- the users from second- or third-tier cities compared to the first-tier users.
What we have noted for the second- and third-tier city users, their primary usage of Weibo is for information acquisition. We actually saw the engagement level for the second-tier city is getting very close or even surpassed the engagement level of our first-tier cities. The similar observation has been observed on the retention rate. However, in the -- for the third-tier cities, the engagement level is somewhat still lower comparing to the first-tier cities.
Bonnie Zhang - CFO
Yes. Eddie, can you repeat on the --? I'll probably take the second question. Can you repeat your second question again?
Eddie Leung - Analyst
Sure. I'm just wondering if you could share with us the revenues from promotional tweets, because you mentioned that there has been some progress over there.
And then also perhaps the number of corporate accounts, just for information. Thanks.
Bonnie Zhang - CFO
The revenue from the small-medium sized enterprise is about $10m. And the number of accounts, our enterprise accounts on Weibo is over 440,000.
Eddie Leung - Analyst
Got it. Thank you very much.
Operator
Piyush, Goldman Sachs.
Piyush Mubayi - Analyst
Hi. It's Piyush. Thanks for taking my question. I have a few questions. Let me just ask them and if you could answer them one by one. The first is could you share with us the number of tweets in the first quarter that corresponded to the 2.8b number that we saw in the fourth quarter so we could get a sense of how that is growing?
The second is could you give us a sense of the sort of seasonality that we could expect? It's still early days for you, and that comes through in a couple of areas. First, and the sub-parts of that question are, first, how should we think of the related party spending and how that gets spent through the rest of the second, third and fourth quarter?
And second with regards to the seasonality that we're observing on DAU-to-MAU ratio, which has slipped to 46.3%, is that a seasonality impact or has that got to do with something specific on how you're growing your customer base in the tier-two cities? Those are the two questions related to seasonality. Thank you.
Charles Chao - Chairman
Okay, Piyush. This is Charles. I will take your questions. On the seasonality issues, I'm not sure what you refer as related party spending. I think it not really has anything to do with seasonality. It just happened to be -- they were in terms of the budget spending by some of our related parties -- partners. But I don't see any seasonalities in that area.
And also in terms of ratio between -- the second question between DAU and MAU, I think this particular month, in the month of March, is special because you probably know we have a lot of big news events during the month of March. And when this happens we typically see higher growth in MAU than DAU, which caused the ratio between DAU and MAU to decrease slightly in the month of March. But I don't think that that would necessarily indicate anything as a trend because it's probably more events driven in the month of March.
And also relating to your question on the number of tweets in the month of March, I think the total tweets is about slightly over 3b, between 3b to 3.1b. I don't know the exact number on top of my head. And so it's an increase from 2.8b we reported in the month of December. Okay?
Operator
Philip Wan, Morgan Stanley.
Philip Wan - Analyst
Hi. Thank you for taking my questions. My first question is related your promoted tweets initiative as you are expanding to key accounts. So how -- I wonder how are you going to balance between the SMEs and key accounts in terms of inventory allocation of pricing?
And then I have another follow-up question. Thank you.
Charles Chao - Chairman
Okay. I will take the call. This is Charles. Regarding to balanced inventory and the pricing between the key accounts and SME, I think we're going to use the same system to serve both SMEs and key accounts. But the key accounts may have some special dedicated inventory. And also in some cases we're going to allow them to target audience in a different kind of data structure. For example, the key accounts can target based on ID, user ID and so on and so forth, whereas the SMEs may be only targeting using the CPN model. So that can separate these different kind of needs from different customer base.
And I think we need a little bit of time to experiment in terms of how the bidding process can work between these two different group of customers to get a sense in terms of what exactly we should do going forward. But we're doing some experimenting right now in Q2 and so hopefully we can give you some update in the next quarter.
Philip Wan - Analyst
Right. Thank you. And then my second question is about -- on the cost side. You mentioned a couple of plans to boost user acquisition as well as product improvements. Would you be able to quantify this investment and maybe the impact on margins in coming quarters? Thank you.
Charles Chao - Chairman
Well I think -- this is Charles again. I think we said in our opening remarks and also in different conversations we had previously that we're going to increase the expenditures in two key areas. One is product development. The other is marketing area to obtain more users and to increase user engagement. And some of these actually depending on product development, where we mainly intend to increase our headcount and also the related expenses, which is measurable.
But I think it's -- a lot of time it's incremental that we cannot really say exactly how much incremental costs relate to that extra measure we deployed in terms of product development. But overall we're seeing, as you can see from our Q1 report, that product development increased significantly from December. That actually is mainly reflecting our efforts in that particular area. And you probably will see that trend continue this year in the remaining quarters.
And in terms of product marketing in terms of obtaining more user base and really depending on how effective we can find channels to get more users and get more user retention conversion rate, so it's really depending on how much effort we can have and as to how much channels we have, how effective they are compared to other options we have. But in general we intend to increase their number significantly this year. But in terms of how to quantify that, I think it's probably still too early to say. We probably will give you more update in the next quarter also on that particular cost increase.
Philip Wan - Analyst
Okay. Thank you for the color.
Charles Chao - Chairman
Thank you.
Operator
Dick Wei, Credit Suisse.
Dick Wei - Analyst
Yes. Hi. Thank you for taking my questions. Two questions. The first one is about -- with the key accounts going into the native ads, what kind of inventories now you plan to put in going forward? So that's one.
And the second one is can you update us regarding the sales team structure between Weibo and maybe Sina in order to tap into the key account sales? Thank you.
Gaofei Wang - CEO
(Interpreted). Our current [LO] is below 1% with our strategy to open promoted feed access then to key account customers. We don't expect our [LO] would have any significant increase in the near future.
As I indicated in the opening remarks that we are doing measures to enhance the content quality within our -- within certain timelines. So our focus continues to be balanced that our ad effectiveness or ad display and the user experience.
Charles Chao - Chairman
Dick, this is Charles. If I may add on your second question regarding the key accounts, I don't think we differentiate between key accounts and SMEs in terms of inventories too much. And also in terms of [LO], we count that as a total, not really [LO] for key accounts only. So we're looking at the total [LO] for both key accounts and SMEs. At the current level it's under 1% and so we have a lot of room to increase the [LO] going forward.
But on the other hand, we also will put the priority here in terms of cleaning our content in the information feed so that a lot of sales-driven kind of message can be less -- reached, becomes much, much less in the information feed among users so that the end result can be much better going forward.
Dick Wei - Analyst
Great. Thank you Gaofei and Charles. So I guess my second question is as far as the sales team structure is concerned, I think preparing for separation or the integration for the two sales teams. What's the latest on that? Thank you.
Charles Chao - Chairman
I don't think there's too much update on that since our last call. We have separate teams already for direct sales. For SMEs we have a very independent team for Weibo already, within the Weibo entity. And for the sales team to serve our key accounts, we have two separate teams already. But currently our Weibo team will serve our key account needs for their routine budget. But in terms of campaign budget, it's still served by our -- when I say campaign budget, like a campaign like the World Cup is a campaign.
So we tend to offer integrated marketing package to our key accounts in a campaign. And that is still served by our combined product team for sales. But our intention is gradually move that to our separate team for Weibo. And that's in the process. And we'll probably, depending on how smoothly that goes, we'll probably see that separation next year some time.
Dick Wei - Analyst
Great. Thank you Charles and Gaofei.
Charles Chao - Chairman
Thank you.
Operator
Gene Munster, Piper Jaffray.
Gene Munster - Analyst
Good morning. Four questions (inaudible). Could you give -- disclose the number of large brand advertisers, and separately the number of SME customers? And then I have a follow-up question.
Bonnie Zhang - CFO
I can take this question. I think in my remarks we talk about number of customers. SME customers in the first quarter is over 7,000. And for our key customers, the number for first quarter is close to 140.
Gene Munster - Analyst
Thank you. And then separately, on the payment side, could you give some details in terms of how that [plan started]? And could you break out the number of actual payment transactions? I assume it's very small right now, but [I expect that you're] (inaudible).
Gaofei Wang - CEO
(Interpreted). In the first quarter we have launched WeiboPay, which is supported by Alipay on the back end. And in the first quarter this largely has still been done on a trial-run basis. We have observed over 1m customers have completed transactions using WeiboPay.
What we have observed that comparing this after using WeiboPay -- with WeiboPay or without WeiboPay, that the click-through rate or the completion rate for a purchase transaction on Weibo platform has grown very significantly; it's almost 3 times higher in terms of those rates. Hopefully with that ecommerce customers and also customers who are looking for a high (inaudible) will have much more advertising demand on our platform.
Gene Munster - Analyst
That's helpful. Thank you.
Operator
Yu-Heng Fan, China Renaissance.
Yu-Heng Fan - Analyst
Hi. Good morning. Thank you for taking my question. I just want -- first of all I want to follow in terms of performance [matches] for the promoted feed. What was the average current click-through rate in the quarter? And also for the SME customers, what is your major customer profile? What are the major verticals for your SME customers? Thank you.
Charles Chao - Chairman
Okay. Let me take this question. In terms of the promoted feed advertising, currently we sell based on still two method. One is based on [CPN]; the other is based on [CTE]. So we do not really measure any click-through rate on these transactions. And of course we do have this data, but actually the customer does not actually buy based on click-through rate. And so I think this is not relevant. And I think the customer will track the effectiveness of advertising through their own data or their sales results from the promoted feed advertising.
And going forward, we might introduce different kinds of mechanisms in terms of sale. But at the current level I think [CPN] is still the most effective way we can use for sale of these promoted feed advertising.
And second question regarding -- what's the second question? I'm sorry.
Bonnie Zhang - CFO
I probably can take the second question. I think you're asking the top sectors that contribute the SME revenue. The top three are Internet services, SMCG and the IT industry.
Yu-Heng Fan - Analyst
Thank you. As a follow-up, how was the total revenue -- advertising revenue contribution from mobile in the first quarter and what's your expectation for the next couple of quarters? Thank you.
Bonnie Zhang - CFO
I think I touched on this on my remarks that the revenue percentage from mobile end was 31% comparing to 28% in the prior quarter. As we are putting more and more effort on the mobile end, we believe the ad inventory available on the mobile side will continue to grow. As a result, we anticipate the percentage between the mobile revenue as a percentage of total revenue will increase in the future time.
Yu-Heng Fan - Analyst
Thank you.
Operator
Ming Zhao, 86Research.
Ming Zhao - Analyst
Thank you. Two questions. One is on the promoted tweets. So which month in the second quarter is this product open to the advertisers? So exactly which month? Is this factored into the Q2 revenue guidance, because when we look -- when we assume the promoted tweets to grow strong in the second quarter, that doesn't mean the other revenue lines will be very little growth. So please give us some color to that, please. Thanks.
Charles Chao - Chairman
Sure. I think we said we're having to experiment for the promoted feed advertising to be utilized by our key accounts. And that was mostly done starting, I think, from December last year. And we did more experiments in the first quarter. And I think we're more confident right now. I think we just launched our -- officially launched our promoted feed advertising to all key accounts, just either this week or last week. I forgot. Yes, last week. Sorry the week before actually, so in the month of May.
And so we expect there will be more revenue generated from promoted feed from key accounts in the second quarter. But that does not really impact the growth of our SME growth from promoted feed advertising. I think they will continue to grow in the second quarter. And overall we believe that over the period the revenues from promoted feed advertising will account for a larger percentage going forward.
Ming Zhao - Analyst
Okay. Just one question also on the mobile monetization. So can you just give us some update about the percentage of revenue coming from mobile? And what is preventing it to growing -- from growing faster and accounting for bigger revenue percentages?
Bonnie Zhang - CFO
I think -- let me take this one. For the first quarter, mobile revenue as a percentage of total advertising and marketing solution revenue is about 31% compared to 28% in the prior quarter. We are building more and more mobile inventory as our focusing hasn't been on the mobile end. As a result, we do anticipate that percentage will go higher in the future time.
Charles Chao - Chairman
Well, I think -- let me elaborate a little bit further here. I think in terms of the number, we said it's about 30% right now. And I think over the period we believe that, as Gaofei mentioned in his opening remarks, that mobile will be our focus. And the mobile advertising we're seeing, the information feed will be our focus for advertising growth in the future. But that takes time in terms of building us the data effectiveness of advertising and the customer base.
And more importantly it's also depending on -- when you exclude our -- the spending from Alibaba's demand, then the mobile is accounting for a big percentage. And we believe that it will increasingly become a larger part of our total advertising because it will grow parallel to our traffic ratio. But, as you know, Alibaba generates most of their revenues still from PC. And they're not utilizing our mobile inventory too much at the current level. So really depending also on how much they're going to utilize our mobile inventory going forward for their advertising will have a direct impact on our total advertising for our mobile going forwards.
So when you look at this number, probably it's more -- I think it's better to exclude the Alibaba spending so that you will see the mobile spending will increase significantly quarter over quarter. And we expect that some time next year it's possible that mobile will surpass PC for the total advertising, excluding Alibaba spending.
Ming Zhao - Analyst
Thank you very much.
Operator
Jiong Shao, Macquarie.
Jiong Shao - Analyst
Thank you for taking my questions and congrats on the first quarter out of the gate. I have two follow-ups. First is on the ecommerce and payment. I think you noted earlier you have 1m users who have used your WeiboPay. I was wondering, do you have a number you can share with us in terms of number of transactions, ecommerce transactions or [GNV] conducted on the Weibo platform in the first quarter? That's my first follow-up.
And the second follow-up is on mobile. You provided MAUs/DAUs for your entire platform. I was wondering, would you be able to share with us these figures just for your mobile, just for your Weibo ATT, and how those numbers have been trending the last couple of quarters? Thank you.
Charles Chao - Chairman
Let me take the first question and Gaofei will probably take the second one. In terms of the mobile payment, we just, as Gaofei said, we are still in the experimental period in terms of testing how effective -- efficient the mobile payment is. And our objective at the current stage is not really generating GNV, but rather we'll want to have more people using their payment and become our payment user and also having to make the payment process more efficient and smooth.
So at the current stage we're not really looking for the GNV and the number of transactions, but really looking at how many people have actually utilized this payment system so that we can introduce more products and transactions going forward to this user base. And we probably can give you more color in the future quarters when we have more experience in this particular area. And Gaofei probably can take the second question.
Gaofei Wang - CEO
(Interpreted). We don't disclose mobile MAU or DAU on a standalone basis. What we can give you is on the DAU end, about 70% is coming from our mobile users.
Jiong Shao - Analyst
Okay. Thank you, Charles.
Charles Chao - Chairman
Thank you.
Operator
Thank you, management. Ladies and gentlemen, this concludes our conference call for today. Thank you all for your participation and goodbye.
Editor
Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the Company sponsoring this Event.