Weibo Corporation (NASDAQ:WB) Q3 2018 Earnings Conference Call - Final Transcript
Nov 28, 2018 • 06:00 am ET
Ladies and gentlemen, thank you for standing by and welcome to the Weibo Corporation Reports Third Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. (Operator Instructions) I must advise you that this conference is recorded today.
And I'll now hand the conference over to your first speaker, Ms. Wen Li. Thank you. Please go ahead.
Thank you, operator. Welcome to Weibo's 2018 third quarter earnings conference call. Joining me today are our Chairman of the Board, Charles Chao; our CEO, Gaofei Wang; and our Interim CFO and VP, Finance, Fei Cao; and Sina CFO, Bonnie Zhang. The conference call is also being broadcasted on the Internet and is available through Weibo's IR website.
(Forward-Looking Cautionary Statements)
Additionally, I'd like to remind you that our discussion today includes certain non-GAAP measures, which excludes stock-based compensation and certain other expenses. We use non-GAAP financial measures to gain a better understanding of Weibo's comparative operating performance and the future prospects. Our non-GAAP financial excludes certain 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 will not be indicative of our core operating results and outlook. Please refer to our press release for more information about our non-GAAP measures. Following management's prepared remarks, we'll open the lines for a brief Q&A session.
With this, I would like to turn the call over to our CEO, Gaofei Wang.
(Foreign Language) Thank you. Hello, everyone, and welcome to Weibo's third quarter 2018 earnings call.
(Foreign Language) On today's call, I will share with you highlights of Weibo's user growth, product and monetization, as well as our key initiatives in 2018.
(Foreign Language) First, let me discuss our third quarter financial results. We continued to see healthy revenue and user growth in this quarter. Our total revenue reached $460.2 million, up 44% year-over-year. Advertising and marketing revenue reached $409.3 million, up 48% year-over-year with 83% of our net revenue in Q3 from mobile. Non-GAAP operating margin during the third quarter reached 41%.
(Foreign Language) On the user front, Weibo's monthly active users reached 445.9 million in September, an increase of 19% year-over-year. Additionally, the average daily active users in September reached 195.2 million, up 19% year-over-year with 93% of Weibo's MAU from mobile.
(Foreign Language) Thanks to our continuous efforts to enhance the operation and distribution of a trend which are typically either hot issues or popular events discussed by users on Weibo. Weibo has further solidified its leading position as a platform for users to create and consume content. This strategy has allowed Weibo's user scale to continue to expand during the third quarter. Our focus to strengthen our software ecosystem for social interactions among users and content distribution has further increased Weibo's solid position as a social media platform and strengthened our platform effect. In return, more and more advertisers are recognizing Weibo's ability