Weibo Corporation (NASDAQ:WB) Q2 2020 Earnings Conference Call - Final Transcript

Sep 28, 2020 • 07:00 am ET


Weibo Corporation (NASDAQ:WB) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to Weibo Reports Second Quarter 2020 Financial Results Conference Call. [Operator Instructions]. And after the speaker's prepared remarks, there will be a question-and-answer session.

[Operator Instructions]. I would now like to hand the conference over to your first speaker for today, Ms. Sandra Zhang. Thank you. Please go ahead, ma'am.

Sandra Zhang

Thank you, Operator. Welcome to Weibo's Second Quarter 2020 Earnings Conference Call. Joining me today are our Chief Executive Office, Gaofei Wang; and our VP Finance and Interim CFO, Fei Cao. This 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 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. 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 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 exclude 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 nonrecurring in nature or are not indicative of our core operating results and our 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.

Gaofei Wang

[Foreign Speech]. Thank you. Hello everyone, and welcome to Weibo's Second Quarter 2020 Earnings Conference Call.

[Foreign Speech]. On today's call, I'll share with you highlights on Weibo's users, product and monetization as well as progress we made on key initiatives in 2020.

[Foreign Speech]. Let me start with our second quarter financial results. In the second quarter, our total revenue reached $387.4 million, a decrease of 10% year-over-year or 7% on a constant currency basis. Advertising and marketing revenues reached $340.6 million, a decrease of 8% year-over-year or 5% on a constant currency basis. 89% of our ad revenues come from mobile.

[Foreign Speech]. On the user front, Weibo's MAU grew 8% year-over-year to $523 million in June 2020 and average DAUs grew 9% year-over-year to $229 million in June 2020. 94% of Weibo's MAU came from mobile.