Weibo Corporation (NASDAQ:WB) Q1 2020 Earnings Conference Call - Final Transcript

May 19, 2020 • 07:00 am ET

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Weibo Corporation (NASDAQ:WB) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Thank you for standing by and welcome to the Weibo First Quarter 2020 Financial Results Conference Call. [Operator Instructions].

I would now like to hand the conference over to Sandra Zhang, Weibo Investor Relations. Please go ahead.

Executive
Sandra Zhang

Thank you, operator. Welcome to Weibo's first quarter 2020 earnings conference call. Joining today, are Chairman of the Board, Charles Chao; our CEO, Gaofei Wang; Senior Group CFO, Bonnie Zhang; and our VP Finance and Interim CFO, Fei Cao. The conference call is also being broadcast on Internet and is available through Weibo's IR website.

Before the mentioned remarks, I would like to read you the Safe Harbor statement in connection with today's conference call. During today's call, we will 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 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 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 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 financials exclude certain expenses, gains or losses and other items that are not expected to result in future cash payments or 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.

Executive
Gaofei Wang

[Foreign Speech].

Thank you. Hello everyone. Welcome to Weibo's first quarter 2020 earnings conference call.

[Foreign Speech].

On today's call, I'll share with you highlights on Weibo's user product and monetization, as well as progress we made on our key initiatives in 2020.

[Foreign Speech].

Let me start with our first quarter financial results. In the first quarter, our total revenue reached $323.4 million, a decrease of 19% year-over-year or 15% on a constant currency basis. Advertising and marketing revenue reached $275.4 million, a decrease of 19% year-over-year or 16% on a constant currency basis. 89% of our ad revenues came from mobile.

[Foreign Speech].

On the user front, Weibo ended the year [Phonetic] from 18% year-over-year to 550 million in March 2020, representing a net addition of approximately 85 million users year-over-year. Average DAUs grew 19% year-over-year to 241 million, representing a net addition of approximately 38 million users year-over-year. This is the highest