Weibo Corporation (NASDAQ:WB) Q3 2018 Earnings Conference Call - Preliminary Transcript

Nov 28, 2018 • 06:00 am ET


Weibo Corporation (NASDAQ:WB) Q3 2018 Earnings Conference Call - Preliminary Transcript


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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.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.

Wen Li

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 Chief Executive Officer, 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.

Before the management presentation, I'd 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 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. 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 our Weibo's Annual Report on Form 20-F and other filings with the SEC. All information provided in this press release is current as of the date hereof. Weibo assumes no obligation to update such information, except as required under applicable law.

Additionally, I'd like to remind you that our discussion today includes certain non-GAAP measures, which 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 Chief Executive Officer, Gaofei Wang.

Gaofei Wang

Thank you. Hello, everyone, and welcome to Weibo's third quarter 2018 earnings call.

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.

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%.

On the user front, Weibo's monthly active users reached 445.9 million in September, an increase of