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

Sep 28, 2020 • 07:00 am ET

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

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Presentation
Executive
Gaofei Wang

First our relationship based feed, we further optimized social content distribution mechanism to drive content consumption efficiency. Secondly, we have enhanced social attributes with Super Topic and Fans Group functions and strengthened topic organization and discussion around Hot Trends and interest-based content.

As a result, we saw an uplift in user interaction and their willingness to post. In June, the total number of users who post content increased over 30% year-over-year and their daily posts grew over 50% year-over-year. To put it into perspective, it remains indispensable for most users to shed light moments and opinions and participate in discussions. And Weibo continued to be a crucial platform to fulfill users' need to express themselves despite the prevalence of video content consumption.

[Foreign Speech]. Next, let's talk about video and live streaming. As mentioned last quarter, we plan to increase investment in the PGC and UGC video content this year. Accordingly, we had provided targeted operation and product support. For UGC video, we focus on traffic expansion and distribution efficiency to drive monetization around UGC video ecosystem. With the stabilized traffic for UGC video content post-pandemic, ad revenues generated through UGC videos in second quarter grew nearly 40% quarter-over-quarter, and the July performance kept the same momentum as well.

For PGC video, leveraging our differentiated vision as a leading social media, we attempted to attract more video content creators to grow on Weibo and enhance our user acquisition capability and traffic in the PGC video market. We have seen some progress made as the scale of PGC content creators continued to expand.

In June, both the number of PGC content creators and their daily video submissions increased over 50% compared with December last year. In July, we launched a project called video account, aiming to further ramp up video traffic and facilitate social relationship establishment by content creators, which we believe will bode well for us to promote content creators engagement and retention on Weibo.

[Foreign Speech]. Turning to live streaming. In the first half of the year, live streaming sector has enjoyed rapid expansion during the pandemic. To capture market opportunities, we launched new initiatives in live streaming during this period and further refined our position and focus for the business. Let me elaborate. The operation of Weibo live streaming is focused on topic-based IP marketing and fans interactions around live streaming content. We rolled out hot topic list of live streaming content with enhanced traffic report, aiming to promote influence of live streaming content on Weibo and strengthened our position as an important marketing channel for the live content distribution.

Take top e-commerce live host as example. In the second quarter, over 60% of the top e-commerce live host has account and broadcast on Weibo and their weekly topic-based posts increased by over two times compared with that before launching the topic list, enticing other hosts to advertise and accumulate fans on Weibo as well.

We also revamped live streaming product to further integrate with Weibo as a