Weibo Corp (WB) 2024 Q4 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Weibo reports fourth quarter and fiscal year 2024 financial results. (Operator Instructions) Please be advised that today's conference is now being recorded.

您好，感謝您的支持。歡迎閱讀微博2024財年第四季及全年財務業績報告。（操作員指示）請注意，今天的會議正在錄製。

I would now like to hand the conference over to your first speaker today, Sandra Zhang, Investor Relations representative of Weibo Corporation. Please go ahead.

現在，我想將會議交給今天的第一位發言人，微博公司的投資者關係代表桑德拉·張。請繼續。

Thank you, operator, and welcome to Weibo's fourth quarter and fiscal year 2024 earnings conference call. Joining me today are our Chief Executive Officer, Gaofei Wang; and our Chief Financial Officer, Fei Cao. This conference call is also being broadcasted on internet and is available through Weibo's IR website.

謝謝接線員，歡迎參加微博2024財年第四季及全年財報電話會議。今天與我一起出席的還有我們的執行長王高飛；以及我們的財務長曹飛。本次電話會議也正在網路上播出，可透過微博投資者關係網站觀看。

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 forward-looking statements, statements that are not historical facts, including statements of our beliefs 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 statements.

在管理階層發言之前，我想先向大家宣讀與今天的電話會議有關的安全港聲明。在今天的電話會議中，我們可能會做出前瞻性陳述，這些陳述不是歷史事實，包括我們的信念和期望的陳述。前瞻性陳述涉及固有風險和不確定性。許多重要因素可能導致實際結果與前瞻性陳述中的結果有重大差異。

Weibo assumes no obligation to update the forward-looking statements in this conference call and elsewhere. Further information regarding this and other risks is included in Weibo's annual report on Form 20-F and other filings with the SEC. All the information provided in this press release is occurring as the date hereof.

微博不承擔更新本次電話會議及其他場合中前瞻性陳述的義務。有關此風險和其他風險的更多資訊包含在微博的 20-F 表年度報告和向美國證券交易委員會提交的其他文件中。本新聞稿中提供的所有資訊均截至本新聞稿發布之日。

Weibo assumes no obligation to update such information, except as required under applicable law. Additionally, I would like to remind you that our discussion today includes certain non-GAAP measures, which excludes stock-based compensation and certain other expenses. We use non-GAAP financial measures to gain a better understanding of Weibo's comparative operating performance and the future prospects.

除非適用法律另有規定，否則微博不承擔更新此類資訊的義務。此外，我想提醒您，我們今天的討論包括某些非公認會計準則指標，其中不包括股票薪酬和某些其他費用。我們使用非公認會計準則財務指標來更了解微博的比較營運績效和未來前景。

Our non-GAAP financials exclude certain expenses, gains or losses, and other items that are not expected to result in future cash payments or are nonrecurring 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 line for a brief Q&A session.

我們的非公認會計準則財務數據不包括某些費用、收益或損失，以及其他預計不會導致未來現金支付或非經常性或不代表我們核心經營績效和前景的項目。有關我們的非公認會計準則措施的更多信息，請參閱我們的新聞稿。在管理層準備好發言後，我們將開通熱線進行簡短的問答環節。

With this, I would like to turn the call over to our CEO, Gaofei Wang.

現在，我想將電話轉給我們的執行長王高飛。

(interpreted) Thank you. Hello, everyone. Welcome to Weibo's fourth quarter and full year 2024 earnings conference call. On today's call, I will share with you highlights on Weibo's product and monetization, review the progress made in 2024, and elaborate our strategy for 2025.

（翻譯）謝謝。大家好。歡迎參加微博2024年第四季及全年財報電話會議。今天的電話會議，我將與大家分享微博的產品和商業化亮點，回顧2024年的進展，並闡述我們2025年的策略。

Starting from our financial performance in the fourth quarter. Our total revenue in the first quarter reached USD456.8 million, a decrease of 1% year-over-year or relatively flat year-over-year on a constant currency basis. Our total ad revenue reached USD385.9 million, a decrease of 4% year-over-year. Our value-added service revenues reached USD71 million, an increase of 18% year-over-year. Our non-GAAP operating income in the fourth quarter reached USD136.2 million, representing a non-GAAP operating margin of 30%.

從我們第四季的財務業績開始。我們第一季的總營收達到4.568億美元，年減1%，以固定匯率計算年比基本持平。我們的總廣告收入達到 3.859 億美元，年減 4%。加值服務收入達7,100萬美元，較去年成長18%。我們第四季的非公認會計準則營業收入達到1.362億美元，非公認會計準則營業利益率為30%。

For full year 2024, our total revenue reached USD1.75 billion, relatively flat year-over-year or an increase of 1% year-over-year on a constant currency basis. Our total ad revenue reached USD1.5 billion, a decrease of 2% year-over-year. The decrease was mainly resulting from the variance of ad performance across different industries. Our value-added service revenue reached USD256 million, an increase of 13% year-over-year, benefiting from the upgrade and restructuring of our membership service.

2024年全年，我們的總營收達到17.5億美元，年比基本持平，以固定匯率計算年增1%。我們的廣告總收入達到15億美元，較去年同期下降2%。下降的主要原因是不同行業的廣告效果有差異。增值服務收入達2.56億美元，較去年成長13%，受惠於會員服務的升級與重構。

For full year 2024, our non-GAAP operating income reached USD584.1 million, representing a non-GAAP operating margin of 33%. In December, Weibo's MAU reached 590 million and average DAUs reached 260 million. Next, let me share with you our progress made in product and monetization in the fourth quarter.

2024年全年，我們的非公認會計準則營業收入達到5.841億美元，非公認會計準則營業利益率為33%。12月，微博MAU達5.9億，平均DAU達2.6億。接下來我跟大家分享我們第四季在產品和貨幣化方面的進展。

On social attributes, we have two undertakings on the product. On the one hand, we maintain our 2024 strategy for the relationship-based feed by enhancing high-quality content consumption, accelerating the construction of vertical content ecosystem, promoting social interaction features, and increasing the social stickiness in the relationship-based feed. In the first quarter, both the number of interactive users in the relationship feed and interaction rate per 1,000 views saw a solid year-over-year growth.

在社交屬性上，我們對產品有兩個承諾。一方面，我們維持2024年關係型資訊流策略，加強優質內容消費，加速建構垂直內容生態，推廣社交互動功能，提升關係型資訊流的社交黏性。第一季度，關係流互動用戶數、千人互動率年比均穩健成長。

On the other hand, to further enhance user's social stickiness on Weibo, we initiated social product integration plan in Q4 to enhance synergies among Super Topic, individual page, and fans group to align goals across all social products. Product operation, we have clarified that Weibo's social features should focus on the relationship network and social interactions between content creators and fans.

另一方面，為了進一步增強用戶在微博上的社交黏著度，我們在第四季度啟動了社交產品整合計劃，以增強超級話題、個人頁面和粉絲群之間的協同作用，使所有社交產品的目標保持一致。產品營運上，我們明確了微博的社交功能要聚焦於內容創作者與粉絲之間的關係網絡和社交互動。

Specifically, in the first quarter, we focused on product integration of Super Topic with relationship-based feed and My Profile, enabling high-quality content from Super Topic to naturally and efficiently reach users of interest in the relationship feed. This approach not only boosted content consumption and user interaction in the relationship-based feed, but also encourage users to engage more organically with Super Topic, fulfilling their long-tail interest-based social needs and reinforcing user recognition of Weibo as a community. We expect to complete this integration plan in the first half of 2025.

具體來說，第一季我們重點推進了超級話題與關係型資訊流、我的主頁等產品的整合，使超級話題的優質內容能夠自然高效地觸達關係型資訊流中感興趣的用戶。這種方式不僅促進了基於關係的資訊流中的內容消費和用戶互動，還鼓勵用戶更自然地參與超級話題，滿足他們基於興趣的長尾社交需求，並加強了用戶對微博作為社區的認可。我們預計在2025年上半年完成這項整合計畫。

On content ecosystem, in the fourth quarter, we focused on two areas. First, we seized opportunities in hot trends to acquire users and drive traffic while continuing to invest in vertical content to reinforce the development of monetization ecosystem. Throughout 2024, we saw significant growth in the scale traffic and engagement of the vertical, golden and orange verified accounts compared to prior year. For instance, we kept up with the latest hot trends in advancement of AI technology and prioritized development of content ecosystem of AI-related verticals.

在內容生態方面，第四季度我們重點關注了兩個領域。首先，我們抓住熱點趨勢的機會來獲取用戶和增加流量，同時繼續投資垂直內容以加強貨幣化生態系統的發展。在整個 2024 年，我們看到垂直、金色和橙色驗證帳戶的規模流量和參與度與前一年相比顯著增長。例如，我們緊跟人工智慧技術進步的最新熱點趨勢，並優先發展與人工智慧相關的垂直領域的內容生態系統。

On the one hand, we captured and operated hot trends of the AI industry on Weibo, generating discussion around AI-related hot topics on Weibo. On the other side, we built a metric of KOLs in the AI-related vertical, encouraging them to generate in-depth technology analysis and industry insights content. Besides, we also launched a series of activities to boost AI-related content creation and interaction to attract users' participation and to make AI more accessible to them.

一方面，我們捕捉並經營微博人工智慧產業熱點趨勢，引發微博人工智慧相關熱門話題的討論。另一方面，我們建立了人工智慧相關垂直領域的關鍵意見領袖指標，鼓勵他們撰寫深入的技術分析和產業洞察內容。此外，我們也推出了一系列活動，推動人工智慧相關的內容創作和互動，吸引用戶參與，讓人工智慧更容易被人們接受。

Looking ahead, our ongoing investment in the AI vertical will not only support the growth of the AI industry, but will also generate more business opportunities in the interest-based user group agencies for the platform, creating a mutually reinforcing relationship between the AI content ecosystem and the monetization ecosystem.

展望未來，我們在AI垂直領域的持續投入，不僅將支持AI產業的成長，還將為平台在基於興趣的用戶群體機構中創造更多商業機會，在AI內容生態系統和貨幣化生態系統之間建立相互促進的關係。

In the fourth quarter, we started transforming the platform's vertical operating system. Our vertical content ecosystem has been built around the content generation by top creators of all verticals and the distribution system of the relationship-based feed. However, with the shift towards interest-based content consumption, our existing vertical operating and management model has been facing challenges.

第四季度，我們開始轉型平台的垂直營運體系。我們的垂直內容生態系統是圍繞所有垂直領域的頂級創作者的內容生成和基於關係的 feed 分發系統構建的。然而，隨著內容消費向興趣化轉變，我們現有的垂直營運管理模式面臨挑戰。

To address this, we recognize the need to form an integrated model to combine KOL account operation with interest-based content operation. Therefore, we launched the Weibo cross vertical initiative in the fourth quarter, aiming to guide content generation around users' interest.

為了解決這個問題，我們認識到需要形成一個綜合模式，將 KOL 帳戶營運與基於興趣的內容營運結合。因此，我們在第四季度推出了微博跨垂直計劃，旨在圍繞用戶興趣引導內容生成。

The initiative encourage top vertical KOLs to generate content with diversified interest, adjust the platform's content incentive policies to foster wider participation and enhance the distribution efficiency of hot topic and recommendation feed. These efforts have provided preliminary validation for a new operation model of interest-based vertical concept and will guide our investment in the development of the interest-based recommendation mechanism in 2025.

該計劃鼓勵頂級垂直KOL創作多元化興趣內容，調整平台內容激勵政策以促進更廣泛的參與，並提高熱門話題和推薦訊息的分發效率。這些努力為基於興趣的垂直概念的新型營運模式提供了初步驗證，並將指導我們在2025年基於興趣的推薦機制的開發投入。

Next, on the monetization front. In the fourth quarter, we continue to focus on strengthening clients' perception of Weibo as the primary platform for the new product launch marketing. Despite that Weibo's overall ad revenue in the fourth quarter decreased slightly year-over-year as revenue from the new product launch marketing grew by double digit year-over-year as we seize opportunity of major industries in the new product launch marketing, increasing our investment to boost content discussion and distribution throughout the new product launch life cycle.

接下來，談談貨幣化方面。第四季度，我們持續致力於加強客戶對微博作為新產品發布行銷主要平台的認知。儘管微博第四季度整體廣告收入同比略有下降，但新品發布營銷收入同比增長了兩位數，因為我們抓住了新品發布營銷中主要行業的機遇，加大了投入，以促進整個新品發布生命週期中的內容討論和分發。

Let's take a closer look by industry. Revenues from both automobile and handset sectors delivered solid growth in Q4, largely driven by Weibo's unique strength in new product launch marketing and facilitating discussions on emerging technologies. For example, for the automobile industry, with the growing market penetration of new energy vehicles, namely NEV in China throughout 2024, Weibo reinforced its position as the main platform for NEV-related discussion.

讓我們按行業來仔細看看。第四季度，汽車和手機領域的收入均實現穩健成長，這主要得益於微博在新產品發布行銷和促進新興技術討論方面的獨特優勢。例如，對於汽車產業，隨著2024年中國新能源汽車（即NEV）市場滲透率的不斷提高，微博作為NEV相關討論主要平台的地位得到鞏固。

As a result, car manufacturers have significantly increased their marketing budget on Weibo, contributing to another year of revenue growth in the automobile sector for Weibo, extending its multiple year upward trend.

受此帶動，汽車廠商大幅增加了在微博的營銷預算，帶動微博汽車領域收入再創一年新高，延續了其連續多年的上升趨勢。

On the flip side, in the fourth quarter, ad revenue from online game, cosmetics, and personal care, and luxury industries were in the descending trend in the fourth quarter. The online game ad revenue saw a year-over-year decline, mainly due to the high base effect from Tencent and NEV's major project investment in the Q4 of 2023.

另一方面，第四季網路遊戲、美妝及個護、奢侈品產業的廣告收入均呈現下降趨勢。網路遊戲廣告收入較去年同期下降，主要由於騰訊2023年第四季的基數較高以及新能源汽車重大專案投入所致。

For the cosmetics and personal care and luxury sectors, although the ad revenue from this sector declined in Q4, the impact of this sector on the overall ad revenue growth is very limited with the adjustment of its revenue scale.

對於美妝個護和奢侈品產業，雖然Q4該產業的廣告收入有所下滑，但隨著其收入規模的調整，對整體廣告收入成長的影響十分有限。

For the overall ad market, in Q4, the government introduced a series of stimulus policies to boost consumption. For instance, the trading policy had a notable positive impact on the digital product and e-commerce sectors. However, it takes time to see when the broader set of economic stimulus measures will translate into the recovery of advertiser and consumer markets.

從整體廣告市場來看，第四季政府推出了一系列刺激政策，以促進消費。例如，貿易政策對數位產品和電子商務領域產生了顯著的正面影響。然而，更廣泛的經濟刺激措施何時轉化為廣告商和消費市場的復甦還需要時間來觀察。

With this policy gradually taking effect, we hope to see the macro economy, consumer spending, and more industries demonstrate a more meaningful rebound. Against this backdrop, Weibo's monetization strategy will continue to focus on leveraging marketing opportunities from the platform-wide and client-driven hot trends while penetrating into a wider range of industries and clients.

隨著這項政策的逐步發揮效果，我們希望看到宏觀經濟、消費支出以及更多產業出現更有意義的反彈。在此背景下，微博的獲利策略將繼續聚焦於利用平台性和客戶端性熱點趨勢帶來的行銷機會，同時滲透到更廣泛的產業和客戶群。

And meanwhile, in serving clients' marketing campaigns for the new product launch or key marketing window, we will strive to deliver better performance in terms of the distribution effect and client feedback. Recapping on 2024, although revenue from a few industries fell short of expectations, which negatively impact on the overall revenue growth, our effective cost management enabled us to sustain a stable operating income. The solid profitability gives us financial flexibility to support our investment in product, technology, and AI area in 2025, which are cornerstones of the Company's long-term development.

同時，在服務客戶的新品發布會或重點行銷視窗的行銷活動中，力求在分發效果和客戶回饋方面取得更好的成績。回顧2024年，雖然個別行業收入不如預期，對整體收入成長產生負面影響，但有效的成本管理使我們維持了穩定的營業收入。穩健的獲利能力賦予我們財務靈活性，以支持我們在2025年對產品、技術和人工智慧領域的投資，這些都是公司長期發展的基石。

Overall speaking, in 2024, against the backdrop of macroeconomic and industry uncertainties, we focus on beefing up Weibo's competitive edge of our content ecosystem and enhancing operating efficiency as our key goals. Underpinned by the effective cost management, reinforced content ecosystem, and content marketing strategies, we delivered stable profitability for 2024.

整體而言，2024年，在宏觀經濟和產業不確定的背景下，我們把增強微博內容生態的競爭優勢和提升營運效率作為主要目標。在有效的成本管理、強化的內容生態系統和內容行銷策略的支持下，我們在 2024 年實現了穩定的獲利。

Looking ahead to 2025, we'll continue to focus on user value, solidify our leading position in hot trends and the entertainment content ecosystem and reinforce the competitiveness of our social products. On top of this, we will also beef up our AI investments to enhance our recommendation system and further invest in vertical and video content ecosystem. This initiative will solidify the platform's long-term competitiveness as well as drive user community growth and engagement.

展望2025年，我們將持續專注於用戶價值，鞏固在熱門趨勢和娛樂內容生態中的領先地位，並增強社群產品的競爭力。除此之外，我們還將加強人工智慧投資，以增強我們的推薦系統，並進一步投資垂直和視訊內容生態系統。這項措施將鞏固該平台的長期競爭力，並推動用戶社群的成長和參與度。

Next, let me briefly share some color on our key strategies for 2025 on three key fronts, user growth, content ecosystem, and operating efficiency. On the user front, in 2025, our key focus in the user product area is integrating Weibo's social products and revamping the recommendation system so as to drive user growth and engagement.

接下來我來從用戶成長、內容生態、營運效率三個關鍵方面，簡單分享我們2025年的關鍵策略。在用戶方面，2025年，我們在用戶產品領域的重點是整合微博的社交產品並改進推薦系統，以推動用戶成長和參與度。

To elaborate, first, we will consolidate key social products such as Super Topic, My Profile, and Fans Group to improve user interaction and strengthen the social stickiness between content creators and their fans. Additionally, leveraging the synergy between membership and social products, we aim to empower content creators to extend monetization opportunities based on their social network and thus foster greater engagement for both content creators and their followers on the platform.

具體來說，首先，我們會整合超級話題、我的頭像、粉絲團等重點社交產品，提升用戶互動，並增強內容創作者與粉絲之間的社交黏著度。此外，透過利用會員和社交產品之間的協同作用，我們旨在幫助內容創作者基於其社交網絡擴展盈利機會，從而促進內容創作者及其粉絲在平台上的更多參與。

Second, we will upgrade our information feed product by optimizing the homepage interface. Coupled with the strength of the large language model powered interest-based feed, we hope to nurture users' habit of consuming recommended content on the homepage, thereby raising the proportion of recommended content among traffic distribution. By doing so, we endeavor to offer fresh user experience while reinforcing the long-term development of the vertical content ecosystem.

第二，我們將升級資訊流產品，優化首頁介面。結合基於大型語言模型的興趣推播優勢，我們希望培養使用者在首頁消費推薦內容的習慣，從而提高推薦內容在流量分配中的佔比。透過這樣做，我們努力提供全新的使用者體驗，同時加強垂直內容生態系統的長期發展。

Third, we are dedicated to further solidifying our advantage in hot trends. Thanks to the introduction of the open-source model, we will revamp our trends product with focus on enhancing the credibility and influence of the hot search chart. We will also refresh the trending content feed and thus further unlock the synergies between the hot search and such feed. Leveraging a more efficient hot trend distribution system, we could improve the retention for those users recall through hot trends. This effort would greatly benefit the sustainable development of Weibo's hot trend ecosystem in the long run.

第三，我們致力於進一步鞏固熱點趨勢優勢。由於採用開源模式的引入，我們將對趨勢產品進行革新，並專注於提升熱搜榜的可信度和影響力。我們也將刷新熱點內容推送，進一步發揮熱搜與熱點內容推送的協同作用。透過更有效率的熱點分發系統，我們可以提高透過熱點回憶的用戶的留存率。這項舉措將極大地有利於微博熱點生態的長期永續發展。

On the content ecosystem, in 2025, as for the user product and operation, we will focus on reinforcing Weibo's leading position in the hot trend and entertainment sector while continuing to invest in the vertical and video content ecosystem. These initiatives will further enhance Weibo's content capability to compete for users' engagement and time spent among the platforms.

內容生態方面，2025年，在用戶產品和營運方面，我們將重點鞏固微博在熱點趨勢和娛樂領域的領先地位，同時持續投入垂直和視訊內容生態。這些措施將進一步增強微博的內容能力，以在各平台之間爭取使用者的參與度和使用時間。

To elaborate, first, we will beef up Weibo's hot trend operation through lifting investment in the content generation of both media outlets and self-media accounts so as to cater to users' demand for comprehensive and in-depth hot trend consumption and discussion.

具體來說，一是加強微博熱點運營，加大媒體和自媒體帳號內容產出的投入，滿足用戶全面深入的熱點消費和討論需求。

As for the entertainment vertical, we will further drive the engagement of celebrities on Weibo and reinforce the celebrity fan ecosystem to boost social interactions. Additionally, we will continue to innovate on the collaboration models with drama and a variety of show promotion platforms as well as film studios, leveraging Weibo's strength in amplifying word-of-mouth buzz and extending audience reach.

在娛樂垂直領域，我們將進一步推動明星在微博上的參與度，加強明星粉絲生態系統，促進社交互動。此外，我們也將持續創新與電視劇、各類節目推廣平台、電影公司的合作模式，發揮微博在擴大口碑、延伸受眾面的優勢。

These efforts will drive greater content consumption and discussion for the entertainment vertical. For example, during the 2025 Spring Festival, we are pleased to see a 50% year-over-year increase in the number of discussions related to holiday box office, thanks to our operational efforts in movie plot discussion and audience reviews. Notably, for the blockbuster movie, Ne Zha 2, we target at hot topics and audience review, leveraging the exclusive initiatives such as the relay of the celebrity image featuring top films in Chinese cinematic history and coordinated efforts with around 3,000 media outlets.

這些努力將推動娛樂垂直領域的更多內容消費和討論。例如，2025年春節期間，我們很高興地看到與節日票房相關的討論數量同比增長了50%，這得益於我們在電影劇情討論和觀眾評論方面的運營努力。值得一提的是，針對大片《哪吒之魔童降世2》，我們瞄準熱門話題與觀眾評價，利用中國電影史上頂級影片明星形象傳遞等獨家舉措，協同約3000家媒體進行宣傳。

The topic related to Ne Zha 2 generated over 90 billion views and 100 million discussion on Weibo. We are excited to see this campaign ignite public enthusiasm for domestic animated films, contributing to Ne Zha 2 success in surpassing CNY10 billion in box office revenue.

與《哪吒2》相關的主題在微博上產生了超過900億的閱讀量和1億的討論。我們很高興看到這次活動點燃了大眾對國產動畫電影的熱情，為《哪吒之魔童降世》成功突破100億元票房做出了貢獻。

Second, we will continue to strengthen the build-out of industry-specific vertical ecosystems such as digital, automotive, and online games, et cetera. To elaborate, we strive to increase the number and influence of the golden verify accounts and enhance the monetization capabilities of golden and orange verified accounts.

第二，我們將持續加強數位、汽車、網路遊戲等產業垂直生態系統的建置。具體來說，我們致力於增加黃金驗證帳戶的數量和影響力，並增強黃金和橙色驗證帳戶的貨幣化能力。

This approach will enable us to further integrate Weibo's industry-based content ecosystem and monetization ecosystem, creating a virtuous self-reinforcing cycle of user and monetization. This year, we will work to build out an AI-related content vertical and thus support the AI transformation with focus on strengthening discussion around AI trends and expanding content creators' interested user base in the AI field.

這種方式將使我們能夠進一步整合微博基於產業的內容生態系統和貨幣化生態系統，創造使用者和貨幣化的良性自我強化循環。今年，我們將致力於建立與人工智慧相關的垂直內容，從而支持人工智慧轉型，並專注於加強圍繞人工智慧趨勢的討論，並擴大內容創作者對人工智慧領域感興趣的用戶群。

Third, to better align homepage information feed and improve recommendation accuracy, we will further optimize our approach to interest-based vertical content operations, establishing a closed-loop system from content creation to distribution. Instead of primarily managing the engagement of content creators, our focus will shift toward managing their vertical content. This initiative will help drive user base and engagement of the recommendation-based feed on the homepage and facilitate the long-term development of virtual content ecosystem.

第三，為了更好地對齊首頁資訊流，提高建議的準確性，我們將進一步優化基於興趣的垂直內容運作方式，建立從內容創作到分發的閉環系統。我們的重點將不再主要管理內容創作者的參與度，而是轉向管理他們的垂直內容。此舉將有助於推動主頁推薦資訊流的使用者群和參與度，並促進虛擬內容生態系統的長期發展。

Moving on to operating efficiency. In 2025, for our ad product and sales strategy, we seek to create and solidify client mindset of Weibo as the go-to platform for content marketing across a broader range of industries and clients while also improving our ad conversion efficiency.

繼續討論營運效率。2025年，對於我們的廣告產品和銷售策略，我們致力於創建和鞏固微博作為更廣泛行業和客戶的內容行銷首選平台的客戶心態，同時提高我們的廣告轉換效率。

First, in ad sales, we will further leverage Weibo's core strength in content marketing and optimize industry-specific marketing solutions tailored to different sectors to achieve win-win results in the content and business ecosystem with top clients. Additionally, we will reorganize our content marketing service and revamp our sales structure to expand the reach of content marketing across industries and clients.

一是在廣告銷售方面，我們將進一步發揮微博在內容行銷方面的核心優勢，針對不同產業，優化產業行銷解決方案，與頭部客戶實現內容和商業生態的共贏。此外，我們將重組我們的內容行銷服務並改進我們的銷售結構，以擴大內容行銷在各個行業和客戶的覆蓋範圍。

Second, in terms of ad products, we will increase the distribution ratio of native ads, namely content marketing, and enhance the overall marketing experience and ad performance, which will enable us to capture incremental ad wallet share from content marketing. At the same time, we will continue to leverage AI technology in the monetization field to optimize marketing and execution efficiency.

第二，在廣告產品方面，我們將提升原生廣告，也就是內容行銷的投放比例，提升整體行銷體驗和廣告效果，讓我們能夠從內容行銷中獲得增量的廣告份額。同時，我們將繼續在貨幣化領域利用AI技術來優化行銷和執行效率。

Third, we hope to deepen the engagement of VIP members and drive a stable growth in the value-added service by creating greater value for our members with focus on integrating our various membership benefits and creation of entertainment and gaming IPs.

第三，我們希望深化VIP會員的參與度，透過為會員創造更大的價值，推動增值服務的穩定成長，重點在於整合各種會員權益、打造娛樂遊戲IP。

Finally, this year, we are happy to see the product opportunities brought by the open-source large language models. Over the past two years, we have focused on building our basic platform capabilities through integrating all kinds of AI models, which enable us to swiftly switch among AI models to innovate our products.

最後，今年我們很高興看到開源大語言模型所帶來的產品機會。過去兩年我們專注於建構了基礎平台能力，整合了各種AI模型，使得我們能夠快速切換AI模型進行產品創新。

In 2024, we proactively explored on the product front and gradually outline our road map with focus on several key areas, namely AI-powered search, social interaction, content recommendation, and advertising, et cetera. In early 2025, we are excited to see breakthroughs in the areas of large language models, particularly the application of the latest open-source model to Weibo search function, which has significantly boosted the search capabilities.

2024年，我們在產品方面積極探索，逐步勾勒出路線圖，重點佈局AI搜尋、社群、內容推薦、廣告等幾個重點領域。2025年初，我們非常高興地看到大型語言模型領域取得突破，特別是最新的開源模型應用到微博搜尋功能中，大大提升了搜尋能力。

The new version of Weibo intelligent search function powered by the latest open-source model will be rolled out to all users this quarter. Based on the current user group tested, the updated version will improve user search experience on Weibo and drive usage frequency of Weibo's search function. This will transform the positioning of Weibo search from hot trend and real-time search to general search, which will facilitate us to enter into the vertical search market. This potential transformation will also set a high standard for our product experience.

採用最新開源模式的新版微博智慧搜尋功能將於本季面向全體用戶推出。根據目前測試的用戶群來看，更新後的版本將提升用戶在微博上的搜尋體驗，提升微博搜尋功能的使用頻率。這將使微博搜尋的定位從熱點、即時搜尋轉變為綜合搜尋轉變，有利於我們進入垂直搜尋市場。這種潛在的轉變也將為我們的產品體驗設定高標準。

Additionally, we are also actively exploring AI application in social and advertising products. This application will position us well to reinforce our competitive strength, expand our usage scenarios, grow our user community, and as well as facilitate user interaction. We firmly believe that AI technology will transform our product capabilities and further strengthen Weibo's unique value proposition in the social media sector and thus build momentum into our long-term growth.

此外，我們也積極探索AI在社群、廣告產品上的應用。該應用程式將幫助我們增強競爭優勢，擴大使用場景，發展用戶社區，並促進用戶互動。我們堅信人工智慧技術將改變我們的產品能力，進一步加強微博在社群媒體領域的獨特價值主張，從而為我們的長期成長注入動力。

With that, let me turn the call over to Fei Cao for a financial review.

說完這些，讓我把電話轉給曹飛，請他進行財務審查。

Thank you, Gaofei, and hello, everyone. Welcome to Weibo's Fourth Quarter and Fiscal Year 2024 Earnings Conference Call. Let's start with user metrics.

謝謝高飛，大家好。歡迎參加微博2024財年第四季及全年業績電話會議。讓我們從用戶指標開始。

In December 2024, Weibo's MAU and average DAU reached 590 million and 260 million, respectively. In 2024, we have proactively adjusted our user strategy to focus on the acquisition and engagement of high-quality users, leading to an uptick of our DAU versus MAU ratio throughout the year. On the content front, we further optimized our content ecosystem through reinforcement of our core strength and solid execution of our vertical content strategy.

2024年12月，微博MAU達5.9億，平均DAU達2.6億。2024年，我們主動調整使用者策略，專注於優質用戶的取得與參與，使得全年DAU與MAU的比值上升。在內容方面，我們透過增強核心優勢和紮實執行垂直內容策略，進一步優化了內容生態系統。

Turning to financials. As a reminder, my prepared remarks will focus on non-GAAP results. All monetary amounts are in US dollar terms and all comparisons are on a year-over-year basis, unless otherwise noted. Now let me walk you through our financial highlights for the fourth quarter and fiscal year 2024.

轉向財務。提醒一下，我準備好的發言將重點放在非公認會計準則結果。除非另有說明，所有金額均以美元計算，所有比較均以同比為基礎。現在，讓我向您介紹我們 2024 年第四季和財年的財務亮點。

Weibo's fourth quarter 2024 net revenues were USD456.8 million, a decrease of 1% or flattish on a constant currency basis. Operating income was USD136.2 million, representing an operating margin of 30%. Net income attributable to Weibo reached USD106.6 million and diluted EPS was USD0.40. For full year 2024, total revenue reached USD1.75 billion, flattish or an increase of 1% on a constant currency basis. Operating income was USD584.1 million, representing an operating margin of 33%. Net income attributable to Weibo reached USD478.6 million and diluted EPS was USD1.82.

微博2024年第四季淨營收為4.568億美元，以固定匯率計算下降1%或持平。營業收入為1.362億美元，營業利益率為30%。歸屬於微博的淨利達1.066億美元，稀釋每股收益為0.40美元。 2024年全年總營收達17.5億美元，以固定匯率計算持平或成長1%。營業收入為5.841億美元，營業利益率為33%。歸屬於微博的淨利達4.786億美元，稀釋每股收益為1.82美元。

Let me give you more color on the fourth quarter and full year 2024 revenue performance. Weibo's adverting and marketing revenues for the fourth quarter 2024 was USD385.9 million, a decrease of 4% or 3% on a constant currency basis. Mobile ad revenue was USD363.5 million, contributing approximately 94% of total ad revenue. Value-added service, VAS revenue was USD71 million in the fourth quarter, an increase of 18%. Full year 2024 advertising and marketing revenue reached USD1.5 billion, a decrease of 2% or 1% on a constant currency basis, with mobile ad revenue contributing 94% of total ad revenue. Full year 2024 VAS revenue increased 13% or 15% on a constant currency basis to USD256 million.

讓我向您詳細介紹一下 2024 年第四季和全年的營收表現。微博2024年第四季廣告及行銷收入為3.859億美元，年減4%，以固定匯率計算下降3%。行動廣告收入為3.635億美元，佔總廣告收入的約94%。增值服務VAS第四季營收為7,100萬美元，較去年同期成長18%。2024年全年廣告和行銷收入達15億美元，下降2%，以固定匯率計算下降1%，其中行動廣告收入佔總廣告收入的94%。2024 年全年加值服務收入成長 13%（以固定匯率計算成長 15%），達到 2.56 億美元。

First, regarding Q4 ad performance. Consistent with our expectations, the advertising business continued to stabilize, though performance varied across our key ad verticals by industry. Our largest industry verticals were three key products, e-commerce and FMCG in terms of growth. Three key products, automobile and internet services were the key drivers of advertising revenue growth on the outset.

首先，關於第四季的廣告表現。與我們的預期一致，廣告業務持續保持穩定，儘管我們主要廣告垂直行業的表現因行業而異。就成長而言，我們最大的產業垂直領域是三大關鍵產品、電子商務和快速消費品。三大關鍵產品、汽車和網路服務是最初推動廣告收入成長的主要動力。

We are encouraged to see early signs of a rebound, increasing product sales as trading subsidies took effect. The automotive sector continued to deliver solid growth, benefiting from the ongoing shift from traditional to electronic vehicles as well as our robust content ecosystem supporting new car launches. I believe that our top line recovery was dragged down by the underperformance of the online game sector as we faced a tough year-over-year comparison due to the concentrated release of blockbuster-party games in the fourth quarter last year.

我們欣慰地看到反彈的早期跡象，隨著交易補貼生效，產品銷售增加。汽車產業繼續保持穩健成長，受益於從傳統汽車到電子汽車的持續轉變以及我們支持新車發布的強大內容生態系統。我認為，我們的營收復甦受到了網路遊戲產業表現不佳的拖累，因為去年第四季重磅派對遊戲的集中發布，導致我們的同比表現不佳。

Additionally, although consumption data shows signs of bottoming out, partly supported by trading policies, certain discretionary categories such as cosmetics, luxury goods, and personal care products remain under pressure.

此外，儘管消費數據顯示出觸底的跡象，部分受到貿易政策的支持，但化妝品、奢侈品和個人護理產品等某些非必需品類別仍面臨壓力。

Moving on to full year 2024 ad performance. Despite macro and competitive headwinds, we maintained a strong advertiser engagement and continued to attract meaningful ad spend from key sectors, while revitalizing the content ecosystem to enhance our monetization capabilities by industry.

展望 2024 年全年廣告業績。儘管面臨宏觀和競爭阻力，我們仍然保持著強大的廣告商參與度，並繼續吸引來自關鍵領域的有意義的廣告支出，同時振興內容生態系統，以增強我們按行業實現貨幣化的能力。

Our largest of the three verticals were FMCG, 3C products, and e-commerce in terms of growth. Internet services, 3C products, and automobile were largest contributors to growth. We are delighted to see sustained growth in ad spending from handset and automobile sector this year, driven by favorable policy similar and strong engagement around new product launch.

從成長角度來看，我們三大垂直領域中成長最快的是快速消費品、3C產品和電子商務。網路服務、3C產品和汽車是成長的最大貢獻者。我們很高興看到今年手機和汽車行業的廣告支出持續成長，這得益於類似利好政策和新產品發布的強烈參與。

The internet service sector also achieved encouraging growth as customers from this sector embrace our platform to reach high-quality users amid an intensified competitive landscape. However, the FMCG category continued on a downward trend. Within the FMCG, the cosmetics and the personal care sector remained under pressure, mainly due to big sales from multinational brands and heightened competition among ad platforms in content.

網路服務業也取得令人鼓舞的成長，因為該產業的客戶在激烈的競爭環境中接受我們的平台來接觸高品質的使用者。然而，快速消費品類別持續呈現下降趨勢。在快速消費品領域，化妝品和個人護理品類依然面臨壓力，主要原因是跨國品牌的銷售大增以及廣告平台之間在內容上的競爭加劇。

The food and beverage industry experienced a solid growth boosted by the Paris Olympics as well as our strong sales capabilities. The ad products, promoting feed ad was the largest, followed by social display and topic and search. In 2024, we further strengthened our market differentiation around top 10 IPs and celebrities, which resulted in decent growth in content marketing.

受巴黎奧運會和我們強大的銷售能力推動，食品飲料行業實現了穩健成長。廣告產品中，推廣資訊流廣告佔比最大，其次是社群展示和主題搜尋。2024年，我們進一步加強了圍繞十大IP和明星的市場差異化，內容行銷取得了可觀的成長。

Ad revenues from Alibaba for the fourth quarter were USD14.3 million, a decrease of 10% or 9% on a constant currency basis, reflecting a relatively muted e-commerce shopping festival amid packed consumption environment. Full year ad revenues from Alibaba were USD116.8 million, an increase of 5% or 6% on a constant currency basis, consistent with Alibaba's moderate pickup in marketing budget.

阿里巴巴第四季廣告營收為1,430萬美元，年減10%，以固定匯率計算下降9%，反映出在消費環境較擁擠的情況下，電商購物節的廣告收入相對低迷。阿里巴巴全年廣告收入為 1.168 億美元，以固定匯率計算成長 5% 或 6%，與阿里巴巴行銷預算的適度增加一致。

Value-added service net revenue was USD71 million in the fourth quarter, up 18% year-over-year, driven primarily by growth in our membership and game-related services. For the full year 2024, net revenues increased by 13% or 15% on a constant currency basis to USD256 million. This growth was largely fueled by strong performance of our as VIP membership service, which effectively meet our users' social needs and by our successful efforts to attract high-quality users with greater purchasing power.

第四季增值服務淨收入為 7,100 萬美元，較去年同期成長 18%，主要得益於會員和遊戲相關服務的成長。2024 年全年淨收入成長 13%（以固定匯率計算成長 15%），達到 2.56 億美元。這一成長主要得益於我們VIP會員服務的強勁表現，該服務有效滿足了用戶的社交需求，也得益於我們成功吸引具有更強購買力的高品質用戶。

Turning to cost and expenses. Total cost and expenses for the fourth quarter was USD320.7 million, an increase of 1%. Full year cost and expenses totaled USD1.17 billion, largely flattish with increase in sales and marketing expenses, offset by decrease in general and administrative expenses. Operating income in the fourth quarter was USD136.2 million, representing an operating margin of 30% compared to 31% in the same period last year. Operating income for full year 2024 was USD584.1 million, representing an operating margin of 33% compared to 34% in 2023.

轉向成本和費用。第四季總成本及費用為3.207億美元，成長1%。全年成本和費用總計 11.7 億美元，基本上持平，因為銷售和行銷費用增加，但被一般和行政費用的減少所抵消。第四季營業收入為1.362億美元，營業利益率為30%，去年同期為31%。2024 年全年營業收入為 5.841 億美元，營業利益率為 33%，而 2023 年為 34%。

Turning to income tax and GAAP. Income tax expenses for the fourth quarter were USD20 million compared to USD72.6 million last year. This reduction is primarily due to the one-off withholding tax accrued in the fourth quarter of last year compared with a normalized recognition in 2024. Full year income tax expenses were USD110.6 million compared to USD145.3 million in 2023.

轉向所得稅和 GAAP。第四季所得稅費用為 2,000 萬美元，去年同期為 7,260 萬美元。這一減少主要是由於去年第四季累計的一次性預扣稅與 2024 年的正常化確認相比有所減少。全年所得稅支出為 1.106 億美元，而 2023 年為 1.453 億美元。

The decrease mainly reflected a record rise of core profit in 2024, which is in line with our capital allocation plan, including dividend payments. Net income attributable to Weibo in the fourth quarter was USD106.6 million, representing a net margin of 23% compared to 16% last year, primarily due to the above-mentioned impact from income tax. Net income for full year 2024 was USD478.6 million, representing a net margin of 27% compared to 26% in 2023.

這一下降主要反映了2024年核心利潤的創紀錄增長，這符合我們的資本配置計劃，包括股息支付。第四季歸屬於微博的淨利為1.066億美元，淨利率為23%，去年同期為16%，主要由於上述所得稅的影響。2024 年全年淨收入為 4.786 億美元，淨利率為 27%，而 2023 年為 26%。

Turning to our balance sheet and cash flow items as of December 31, 2024. Weibo's cash, cash equivalents, and short-term investments totaled USD2.35 billion. In the fourth quarter, cash provided by operating activities was USD244 million. Capital expenditures totaled USD17.7 million and depreciation and amortization expenses amounted to USD14.4 million on a full year basis.

轉向截至 2024 年 12 月 31 日的資產負債表和現金流量項目。微博的現金、現金等價物及短期投資總額為23.5億美元。第四季經營活動提供的現金為2.44億美元。全年資本支出總計1,770萬美元，折舊及攤提費用總計1,440萬美元。

Cash provided by operating activities was USD639.9 million compared to USD672.8 million in 2023. Capital expenditures totaled USD51.5 million and amortization expenses amounted to 58.1 million. In light of Weibo's robust balance sheet and healthy cash flow position, we are pleased to announce that our Board of Directors has adopted an annual cash dividend policy. Under this policy, the Board has approved an annual cash dividend of USD0.82 per ordinary share for ADS for the fiscal year 2022.

經營活動提供的現金為 6.399 億美元，而 2023 年為 6.728 億美元。資本支出總計5,150萬美元，攤提費用總計5,810萬美元。鑑於微博強勁的資產負債表和健康的現金流狀況，我們很高興地宣布，董事會已採用年度現金分紅政策。根據該政策，董事會批准2022財年每股ADS普通股派發0.82美元的年度現金股利。

The total dividend payout will be approximately USD200 million with payment expected to be made in May 2025. Over the past two years, we have successfully distributed two rounds of bank or cash dividends, each totaling approximately USD200 million.

總股息支出約 2 億美元，預計將於 2025 年 5 月支付。過去兩年，我們成功派發兩輪銀行或現金股息，每輪總額約2億美元。

Looking ahead, our top priority is to seize the transformative AI opportunities while maintaining robust financial health. Our efficient capital allocation supports our strategic priorities and ensure long-term financial stability, enable us to deliver sustainable, predictable dividends to our shareholders.

展望未來，我們的首要任務是抓住變革性的人工智慧機遇，同時保持強勁的財務狀況。我們高效的資本配置支持我們的策略重點並確保長期財務穩定，使我們能夠向股東提供可持續、可預測的股息。

With that, let me now turn the call over to the operator for the Q&A session.

現在，請允許我將電話轉給接線員，進行問答環節。

(Operator Instructions)

（操作員指示）

Xueqing Zhang, CICC.

張學慶，中金公司。

(spoken in foreign language) My question is about AI. As your prepared remarks mentioned, you have a lot of progress on AI and Weibo has also integrated DeepSeek and the usage experience is quite good. So can management elaborate a little more on your future strategy of AI applications in the future?

（外語）我的問題是關於人工智慧的。正如你剛才的演講中提到的，你們在人工智慧方面取得了很大的進展，微博也整合了DeepSeek，使用體驗非常好。那麼管理階層能否詳細闡述你們未來的AI應用策略呢？

(interpreted) Okay. Thanks for the question. So first of all, in the past two years, we've been doing some of the things to further consolidate our efforts in terms of AI.

（翻譯）好的。謝謝你的提問。首先，在過去的兩年裡，我們一直在做一些事情來進一步鞏固我們在人工智慧方面的努力。

First of all, we have been doing the integration of multiple AI large models. For instance, we have been using the capability of API and also the others to emphasize the production, especially the basic products of ourselves so that we are able to have a very good switch in between different models for the different needs to test our businesses.

首先我們一直在做多個AI大模型的整合。例如，我們一直在利用API和其他功能來強調生產，特別是我們自己的基礎產品，以便我們能夠根據不同的需求在不同的模型之間進行良好的切換，以測試我們的業務。

And also second point is that during the past two years, we've been making some of the products based on the capability of large language models, for instance, the intelligent search, the social products and also the content as well as the commentating and also the commercial ads, for instance. We've been doing a lot around those areas.

第二點是，在過去的兩年裡，我們一直在基於大型語言模型的能力製作一些產品，例如智慧搜尋、社群產品、內容、評論和廣告等。我們在這些領域做了很多工作。

And also in 2025, we've been seeing a lot of progress that we made in terms of the development and also the research on basic models. For instance, in 2024, we've been having a lot of discussions on Weibo about AI related to technical issues. But now we've been seeing a lot of more publics are actually joining the discussion about AI.

到 2025 年，我們在開發和基礎模型研究方面已經取得了很大進展。例如2024年我們在微博上有很多關於人工智慧相關技術問題的討論。但現在我們看到越來越多的公眾實際上加入了有關人工智慧的討論。

And also in terms of the DeepSeek, we've been seeing a total number of volume of discussion around 10 million and also the number of reading volumes exceeding 20 billion already. So this has really helped us to see a very good polarization of the topic of DeepSeek and also the other AI-related topics. Of course, this is pretty much challenging in terms of the management of content, but still this has quicken up the speed of the integration between product and AI capabilities.

就DeepSeek而言，我們已經看到總討論量約為1000萬，閱讀量也已超過200億。因此，這確實幫助我們看到了 DeepSeek 主題以及其他與 AI 相關的主題的非常好的兩極化。當然這對於內容的管理來說還是比較有挑戰性的，但這也加快了產品與AI能力的融合速度。

And also in 2025, we're going to be focusing further and continuously on the investment on AI-related technologies and also topics. So for instance, in terms of the full volume realization, we've been seeing that this quarter, we're going to realize the full volume of the search capability among all the businesses that are under testing. And also, second of all, I would like to say that while we are having a further integration of those new models and also the further driving down of the overall cost, this is going to enhance the speed and also accelerate the integration with more capabilities and also AI models.

到2025年，我們將進一步持續關注人工智慧相關技術和主題的投資。例如，就全面實現而言，我們已經看到本季度我們將在所有正在測試的企業中實現搜尋功能的全部功能。其次，我想說的是，當我們進一步整合這些新模型並進一步降低整體成本時，這將提高速度並加速與更多功能和人工智慧模型的整合。

And also in terms of the intelligent search, we've been seeing that in the last year, especially in the middle of 2024, we've been having the large language models of the [100] based on the [Qianwen] model with a parameter of USD72 billion. But in 2025, after the Chinese New Year, we've been switching to the DeepSeek large language models.

在智慧搜尋方面，我們看到在去年，特別是在 2024 年中期，我們已經擁有基於[千文]模型的 [100] 大型語言模型，其參數為 720 億美元。但在 2025 年，農曆新年之後，我們已經開始轉向 DeepSeek 大型語言模型。

And this has further enhanced the capabilities of this particular intelligent search, for instance, the product capability and also with more fine details and all kinds of different angles in answering those questions. So that you can see that in terms of the total number of MAUs using the intelligent search, this has been increasing by 40% and giving us a very good result.

這進一步增強了這種特定智慧搜尋的功能，例如產品功能，以及在回答這些問題時提供更精細的細節和各種不同的角度。因此您可以看到，就使用智慧搜​​尋的 MAU 總數而言，這一數字增加了 40%，這為我們帶來了非常好的結果。

And you can see that among all the results that have been showing to the public, 25% of those results are based on these intelligent search results and integrating the capability with DeepSeek. And also with the further enhancement of the computational power, I believe that starting from this year, --this quarter, we're going to see the service open up to full users, not only those users on the testing scope. And also, this is definitely enhancing the efficiencies of all kinds by double digits.

您可以看到，在向公眾展示的所有結果中，有 25% 的結果是基於這些智慧搜尋結果並與 DeepSeek 的功能整合。而且隨著運算能力的進一步增強，我相信從今年開始，也就是本季度，我們將看到該服務向正式用戶開放，而不僅僅是測試範圍內的用戶。而且，這無疑會使各種效率提高兩位數。

So also, you can see that it's more important for us to see that because of this capability of large language models that we're using now, because of it's a capability to summarize and also help to conclude all the contents that we have been creating and presenting on Weibo platform for the past decade. This is really enhancing the capability of search. So for instance, of course, there are still room for improvements and optimization in terms of the capability of intelligent search based on AI.

所以，你也可以看到，我們更重要的是要看到，由於我們現在使用的大型語言模型的能力，它能夠總結並幫助概括我們過去十年在微博平台上創建和呈現的所有內容。這確實增強了搜尋能力。那麼比如說基於AI的智慧搜尋能力當然還有改進和優化的空間。

Still we can see that those content and also opinions that we have generated on the platform of Weibo during the past more than 10 years, which has been presenting and also organizing our platforms, we can help to summarize and also conclude all these contents so that it is going to add up more values to those long-tail searches instead of just the searches based on hot trends and also the knowledge-based content.

我們仍然可以看到，過去十多年來，我們在微博平台上產生的內容和觀點，一直在呈現和組織我們的平台，我們可以幫助總結和概括所有這些內容，以便為長尾搜尋增加更多價值，而不僅僅是基於熱門趨勢和知識內容的搜尋。

And also with further optimizations and also further integration of multiple and diverse models and emerging of new models, we are going to see better content creating and also better presenting of those content and also a summary of the past year's content, which is going to add a lot of more values to the users.

而且隨著進一步的優化、多種不同模型的進一步整合以及新模型的出現，我們將看到更好的內容創作、更好的內容呈現以及對過去一年內容的總結，這將為用戶增加更多價值。

And also lastly, I would like to say that apart from the capability of search, we have been also applying the AI capabilities on the other fronts, for instance, monetization, the interactions and also better recommendations of more content. So in terms of monetization, we've been seeing a little -- several percentage points of increase in 2024. And I think that this momentum is going to be continuing in 2025 and especially around the area of performance-based ads.

最後我想說的是，除了搜尋能力之外，我們還在其他方面應用人工智慧能力，例如貨幣化、互動以及更多內容的更好推薦。因此，就貨幣化而言，我們看到 2024 年將有幾個百分點的成長。我認為這種勢頭將在 2025 年繼續保持，特別是在基於效果的廣告領域。

Of course, that the total ad revenue of those performance-based ad is not that contributive to the overall ad revenue. So this is not impacting the overall ad revenue as a whole in 2025 and also in the future. But still, we are still actively thinking about the values that we could add to the brand-based ads, especially based on the better and more individualized materials and all the other fronts, which are still under testing. So we're going to see that how much value we can have for the brand-based ads.

當然，這些效果類廣告的總廣告收入對整體廣告收入的貢獻並不大。因此，這不會影響 2025 年及未來的整體廣告收入。但是，我們仍然在積極思考可以為品牌廣告增添什麼價值，特別是基於更好、更個性化的材料以及所有其他仍在測試中的方面。因此，我們將看看以品牌為基礎的廣告能帶來多大的價值。

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

總體而言，在接下來的幾個季度中，隨著進一步的優化和應用，我們希望能夠向公眾和投資者宣布我們在這方面取得的更多進展。

Felix Liu, UBS.

瑞銀的 Felix Liu。

(spoken in foreign language) Let me try to say it myself. Congratulations on the resilient bottom line despite the slight revenue decline in 2024. My question is on the 2025 outlook for advertisement. Considering the economic policy stimulus since September last year, how does management see the macro and consumption trend in 2025? What's management's expectation on your ad performance by industry vertical in 2025? And last but not least, what are your strategies to improve the competitiveness of your advertisement business in 2025?

（用外語說）讓我試著自己說一下。儘管 2024 年收入略有下降，但仍保持穩健的盈利，值得祝賀。我的問題是關於 2025 年廣告的前景。考慮到去年9月以來的經濟政策刺激，管理階層如何看待2025年的宏觀與消費趨勢？管理階層對您 2025 年各行業垂直廣告表現有何期望？最後但同樣重要的一點是，您有什麼策略來提高 2025 年廣告業務的競爭力？

(interpreted) Thanks for this question. So after Q4, we've seen a lot of implementations of the policies by the national government and especially around the area of national subsidies, for instance. So this is impacting immediately on the verticals like automotive and handsets and also e-commerce. But still, for those other industries that are not enjoying this particular national subsidy policies, we're not seeing a very good progress made.

（翻譯）感謝您的提問。因此，在第四季之後，我們看到國家政府實施了許多政策，特別是在國家補貼方面。因此，這會立即對汽車、手機和電子商務等垂直行業產生影響。但對於那些沒有享受到國家補貼政策的其他產業，我們並沒有看到很好的進展。

So in terms of the national subsidy policy, this has been impacting immediately positively on the 3C products and e-commerce industries. So we've been seeing a very good growth of the ad revenue from these areas in Q4.

所以從國家補貼政策來看，對3C產品和電商產業是立竿見影的。因此，我們看到第四季度這些地區的廣告收入成長非常好。

However, in the other areas that are not enjoying this kind of policy, for instance, the beauty and personal care products and luxuries and also the other discretionary industries, we've been seeing a lot of pressures and also stress of growth. So of course, that in the near future, still we have to remain precautious on these areas, especially without those favorable national policies, especially around the budget allocated by the customers in 2025.

然而，在其他沒有享受這種政策的領域，例如美容和個人護理產品、奢侈品以及其他非必需品行業，我們看到了巨大的壓力和成長壓力。因此，當然，在不久的將來，我們仍然必須對這些領域保持謹慎，特別是在沒有那些有利的國家政策的情況下，特別是在2025年客戶分配的預算方面。

And also, second of all, from the other verticals, for instance, in e-commerce, especially among those top platforms like Alibaba and JD.com, definitely speaking, there could be a very affirmative and also confirmative growth in this year, in 2025. And in the other two verticals, handsets and also automotives, we've been seeing a very good integration into the content ecosystem of Weibo.

其次，從其他垂直領域來看，例如電子商務，尤其是阿里巴巴和京東等頂級平台，今年，也就是 2025 年，肯定會出現非常肯定的成長。在其他兩個垂直領域，手機和汽車，我們看到了與微博內容生態系統的良好融合。

And of course, it's very highly competitive for the automotive industry. And also still, we're going to see a lot of subsidies implemented by the OEMs. Still this is going to be very much a beneficial industry. And of course, because of the capability of differentiated competitive strength of Weibo and also very good anti-stress capability of Weibo as a platform, we're going to see a very good growth in this area. And of course, that we've been seeing a trend of decrease for the ICE vehicle, but still this is going to be offset by the growth of the new energy vehicle sector.

當然，汽車產業的競爭非常激烈。而且我們還將看到原始設備製造商實施大量補貼。但這仍然是一個非常有利可圖的行業。當然，由於微博的差異化競爭實力以及微博作為平台非常好的抗壓能力，我們將看到這一領域的非常好的成長。當然，我們看到內燃機汽車呈下降趨勢，但這仍將被新能源汽車產業的成長所抵消。

And also, just now, we've been sharing some of the colors on our investments on the AI capabilities for the performance-based ads, and this has been seen -- this has been giving us very good results by improving the eCPM and also the other parameters.

而且，剛才，我們已經分享了我們在基於效果的廣告的人工智慧功能方面的投資，而且我們已經看到，透過改善 eCPM 和其他參數，這給我們帶來了非常好的效果。

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

因此，我們看到其他客戶（例如專注於應用程式下載的客戶）的成長情況非常好。所以這很好。我認為，到 2025 年，唯一不確定的產業就是遊戲產業。所以你知道，從 2023 年開始，每年年底，我們都會看到非常好的發布，每隔一兩個季度也會看到新的大型遊戲發布，但這種趨勢在 2024 年已經停止了。

And throughout the whole year of 2024, we did not see a lot of announcements and also launch of the large mobile games and big mobile games. Although we've been seeing some of the announcements and launches of the medium-scale games, but still there are lack of big blockbuster games launched throughout the whole year of 2024. So commenting on the pipelines of our customers. In 2025, we are not that optimistic in seeing a lot of large and blockbuster games launched throughout the year. So the gaming industry is the most uncertain industry in this front in 2025.

而在2024年全年，我們並沒有看到許多大型手機遊戲和大型手機遊戲的公告和發布。雖然我們已經看到了一些中型遊戲的公告和發布，但 2024 年全年仍然缺乏大型重磅遊戲的推出。因此，請評論我們客戶的管道。2025年，我們並不樂觀地認為全年將會出現大量大型、重磅遊戲的推出。因此，遊戲產業是2025年這方面最不確定的產業。

And also in 2025, throughout the whole year, we have to be really precautious on this front. And of course, that because different industries, as I have already stated, had all kinds of different performance and also different level of the pressure or optimistic growth.

而且在 2025 年全年，我們都必須在這方面保持高度警覺。當然，正如我已經說過的，這是因為不同的行業有各種不同的表現，也有不同程度的壓力或樂觀成長。

So what we have to do is that, in 2025, we have to pay close attention to the implementation of the government policies throughout the first half of 2025 and further to see that whether that is going to be further impacting the macro economy and also the overall consumption of China. Of course, that was ideal in the area of demand side. So we have to be really doing something to actively change our supply strategy, supply side strategies, and also the overall strategy of our company.

因此，我們要做的是，在2025年，我們必須密切關注2025年上半年政府政策的實施情況，並進一步觀察這是否會進一步影響宏觀經濟以及中國的整體消費。當然，從需求面來看這是理想的。因此，我們必須真正採取行動，積極改變我們的供應策略、供應方策略以及公司的整體策略。

For instance, as I have already stated, we have emphasized more on the investments on AI capabilities and the integration of AI capabilities can further help us to improve the efficiency of monetization. And also we have to see the trend of our customers when they're launching new products and also emphasizing more budgets on the marketing when they're doing so, so that we are able to do more and better in the ad business and also further enhance the competitive edges of Weibo in this area.

比如說我已經說過了，我們更重視對AI能力的投入，而AI能力的融入可以進一步幫助我們提升貨幣化的效率。同時，我們也需要專注於客戶在推出新產品時的趨勢，並在新產品發佈時加大行銷預算的投入，這樣我們才能在廣告業務上做得更多更好，進一步提升微博在這一領域的競爭優勢。

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

最後但同樣重要的一點是，我必須說，我們的內容營運策略與我們的貨幣化營運策略完全相同。因此，正如我已經說過的，在 COVID-19 之後，我們要做的就是更加重視垂直相關流量的成長，因為你知道在 COVID 期間，我們的大部分流量都與新聞有關。因此，這佔據了 COVID 期間分配到的總流量的很大一部分。

So after the COVID, we have to eradicate the traffic and also emphasize on different strategies. So after COVID and as of now, we have been recovering to almost 50% of the original level before COVID in terms of the traffic of the other vertical-related contents, but still there are rooms for further improvements. So because of that, you can see that for those vertical-related content, in terms of the capabilities of monetization and also the capabilities of the user stickiness, it is way much better than the other traffics.

因此，在疫情過後，我們必須消除交通擁堵，並強調不同的策略。因此，疫情過後到現在，其他垂直相關內容的流量已恢復到疫情前水準的近 50%，但仍有進一步提升的空間。因此，你可以看到，對於那些垂直相關的內容，就貨幣化能力以及用戶黏性的能力而言，它比其他流量要好得多。

For instance, the 90 billion traffic for Ne Zha 2 and 20 billion traffic for the DeepSeek related topics. These topics have better capabilities of monetization. So while we are grasping these opportunities, this is going to help us to further consolidate our strength and also setup a better foundation for the capabilities of monetization in the future. This is what we have to do in 2025 in specific.

例如哪吒2的流量有900億，DeepSeek相關主題的流量有200億。這些主題具有更好的貨幣化能力。所以當我們抓住這些機會的時候，這將幫助我們進一步鞏固我們的實力，也為我們未來的貨幣化能力打下更好的基礎。這就是我們2025年具體要做的事。

Daisy Chen, Haitong International.

海通國際的陳黛西。

(spoken in foreign language) Weibo has announced USD200 million dividend. It's very delightful that the company still maintained the same size and frequency even under such difficult environment for the online ad business last year. We really respect that. Can management share more color on shareholder return policy such as the future plan and the method? Maybe do you want to share? Thanks.

（外語）微博宣布分紅2億美元。令人欣慰的是，在去年網路廣告業務如此艱難的環境下，公司仍然保持了同樣的規模和頻率。我們非常尊重這一點。管理階層能否分享更多關於股東回報政策的細節，例如未來的計畫和方法？也許你想分享一下？謝謝。

Thank you, Daisy. This is Fei. I will take your question. Weibo is focused on a balanced capital allocation strategy that supports long-term growth while delivering value to our shareholders. As we mentioned, over the past three years, our non-GAAP operating margin has remained stable and our operating cash flow reached around USD600 million, giving us the flexibility to invest in AI, in product innovation, and shareholder returns. So we pay dividend, as you mentioned.

謝謝你，黛西。這是菲。我回答你的問題。微博注重均衡的資本配置策略，支持長期成長，同時為股東創造價值。正如我們所提到的，在過去三年中，我們的非公認會計準則營業利潤率保持穩定，營業現金流達到約 6 億美元，這使我們能夠靈活地投資於人工智慧、產品創新和股東回報。因此，正如您所說，我們會支付股息。

And our capital allocation follows some key principles and mainly two key principles. First, driving business growth and staying competitive. AI is playing an increasingly important role in enhancing our product experience. As Gaofei mentioned in his remarks, in Weibo search, and we are actively expanding its application in social and ad products. We remain committed to investing in AI while maintaining a disciplined financial approach to ensure our long-term stability and the profit margin that remains competitive within the industry.

我們的資本配置遵循一些關鍵原則，主要是兩個關鍵原則。一是推動業務成長，保持競爭力。人工智慧在增強我們的產品體驗方面發揮著越來越重要的作用。正如高飛在演講中所提到的，在微博搜尋中，我們正在積極拓展其在社群和廣告產品中的應用。我們將繼續致力於投資人工智慧，同時保持嚴謹的財務方法，以確保我們的長期穩定性和在行業內保持競爭力的利潤率。

And second, enhancing shareholder returns. As you have seen from our announcement, our Board approved annual dividend policy, providing more predictable returns based on our financial performance and capital needs. And this reflects our commitment to delivering sustainable shareholder value while maintaining the flexibility to invest in the long-term growth opportunity, and we are open to other measures such as buyback.

第二，提高股東回報。正如您從我們的公告中看到的，我們的董事會批准了年度股利政策，根據我們的財務表現和資本需求提供更可預測的回報。這反映了我們致力於提供可持續的股東價值，同時保持投資長期成長機會的靈活性，並且我們對回購等其他措施持開放態度。

So going forward, we will continue to refine our capital allocation strategy, leverage AI to strengthen our product capabilities, and create long-term value for our shareholders. I hope this answers your question.

因此，展望未來，我們將繼續完善我們的資本配置策略，利用人工智慧來增強我們的產品能力，並為股東創造長期價值。我希望這能回答你的問題。

Thank you. We will now conclude the Q&A session, and I would like to hand back to Sandra Zhang for any closing remarks.

謝謝。我們現在將結束問答環節，我想將發言權交還給 Sandra Zhang，請她做最後發言。

Thank you, operator, and thank you all for joining our conference call today. This wraps up our call. We'll see you next time.

謝謝接線員，也謝謝大家今天參加我們的電話會議。我們的通話到此結束。我們下次再見。

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

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。

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.

本記錄中標記（翻譯）的部分是由現場通話中的翻譯人員說的。翻譯由贊助此活動的公司提供。