Weibo Corporation (NASDAQ:WB) Q2 2019 Earnings Conference Call - Final Transcript

Aug 19, 2019 • 07:00 am ET


Weibo Corporation (NASDAQ:WB) Q2 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to Weibo Reports Second Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would like to hand the conference over to your speaker today, Ms. Sandra Zhang. Thank you. Please go ahead.

Sandra Zhang

Thank you, operator. Welcome to Weibo's second quarter 2019 earnings conference call. Joining me today

are Chairman of the Board, Charles Chao; our CEO, Gaofei Wang; our SINA Group CFO, Bonnie Zhang; and our VP Finance and Interim CFO, Fei Cao. This conference call is also being broadcast on the Internet and is available through Weibo's IR website.

Before the management remarks, I'd like to read you the Safe Harbor statement in connection with today's conference call. During today's 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. 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 20-F and other filings with the SEC. All the information provided in this press release is occurring as of the date hereof. 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 include 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 and losses and other items that are not expected to result in future cash payments or are nonrecurring in nature or 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 line for a brief Q&A session.

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

Gaofei Wang

(Foreign Language) Thank you. Hello everyone, and welcome to Weibo's second quarter 2019 earnings conference call. (Foreign Language) On today's call, I'll share with you highlights in Weibo's user growth, product and monetization as well as progress we've made on our key initiatives in 2019.

(Foreign Language) Let me start with our second quarter financial results. We are delighted to see solid growth in revenues and user base. Our total revenue reached $431.8 million, up 1% year-over-year or up 7% on a constant currency basis. Advertising and marketing revenues reached $370.7 million, flat year-over-year or an increase of 66% on a constant currency basis, 86% of our ad revenue come from mobile. Non-GAAP net income during the second quarter was $156.4