Weibo: Weibo Corp (WB) Q4 2024 Earnings Call Highlights: Navigating Challenges with Strategic AI ...

In This Article: Total Revenue (Q4 2024): USD456.8 million, a decrease of 1% year-over-year. Ad Revenue (Q4 2024): USD385.9 million, a decrease of 4% year-over-year. Value-Added Service Revenue (Q4 2024): USD71 million, an increase of 18% year-over-year. Non-GAAP Operating Income (Q4 2024): USD136.2 million, representing a non-GAAP operating margin of 30%. Net Income (Q4 2024): USD106.6 million, with a net margin of 23%. Total Revenue (Full Year 2024): USD1.75 billion, relatively flat year-over-year. Ad Revenue (Full Year 2024): USD1.5 billion, a decrease of 2% year-over-year. Value-Added Service Revenue (Full Year 2024): USD256 million, an increase of 13% year-over-year. Non-GAAP Operating Income (Full Year 2024): USD584.1 million, representing a non-GAAP operating margin of 33%. Net Income (Full Year 2024): USD478.6 million, with a net margin of 27%. Cash, Cash Equivalents, and Short-term Investments (End of 2024): USD2.35 billion. Cash Provided by Operating Activities (Q4 2024): USD244 million. Capital Expenditures (Q4 2024): USD17.7 million. Dividend Policy: Annual cash dividend of USD0.82 per ordinary share for ADS, totaling approximately USD200 million. Warning! GuruFocus has detected 6 Warning Signs with WB. Release Date: March 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript . Positive Points Weibo Corp ( NASDAQ:WB ) reported a stable non-GAAP operating margin of 30% for Q4 2024 and 33% for the full year, indicating effective cost management. The company's value-added service revenues increased by 18% year-over-year in Q4 2024, driven by growth in membership and game-related services. Weibo Corp ( NASDAQ:WB ) maintained a strong user base with 590 million MAUs and 260 million DAUs as of December 2024, showing solid user engagement. The company is actively investing in AI technology to enhance product capabilities, including intelligent search and content recommendation. Weibo Corp ( NASDAQ:WB ) announced a USD200 million annual cash dividend, reflecting a commitment to shareholder returns despite a challenging ad market. Negative Points Total revenue for Q4 2024 decreased by 1% year-over-year, with ad revenue declining by 4%, indicating challenges in the advertising sector. The online game, cosmetics, personal care, and luxury industries experienced a decline in ad revenue, impacting overall growth. Despite government stimulus policies, certain discretionary categories remain under pressure, affecting ad performance. The gaming industry is uncertain for 2025, with a lack of large game launches impacting ad revenue potential. Weibo Corp ( NASDAQ:WB ) faces competitive pressures in the advertising market, requiring strategic adjustments to maintain growth. Q & A Highlights Q : Can management elaborate on Weibo's future strategy for AI applications? A : Gaofei Wang, CEO, explained that Weibo has been integrating multiple AI large models to enhance product capabilities, such as intelligent search and social products. In 2025, Weibo plans to focus on AI-related investments, aiming to improve search capabilities and integrate AI models to enhance content creation and monetization. Q : What is the 2025 outlook for advertisement, considering economic policy stimulus? A : Gaofei Wang, CEO, noted that while national subsidies positively impacted sectors like automotive and e-commerce, other industries such as beauty and luxury remain under pressure. Weibo plans to leverage AI to improve ad performance and focus on industries with growth potential, like e-commerce and automotive. Q : Can management share more about Weibo's shareholder return policy? A : Fei Cao, CFO, stated that Weibo is committed to a balanced capital allocation strategy, focusing on long-term growth and shareholder returns. The company has adopted an annual dividend policy and remains open to other measures like buybacks, while continuing to invest in AI and product innovation. Q : How does Weibo plan to improve the competitiveness of its advertisement business in 2025? A : Gaofei Wang, CEO, emphasized the integration of AI capabilities to enhance monetization efficiency and the focus on content marketing strategies. Weibo aims to capitalize on new product launches and industry trends to strengthen its ad business. Q : What are Weibo's strategies for user growth and engagement in 2025? A : Gaofei Wang, CEO, outlined plans to integrate social products and revamp the recommendation system to drive user growth. Weibo will focus on enhancing user interaction and social stickiness, leveraging AI to improve content recommendations and user experience. For the complete transcript of the earnings call, please refer to the full earnings call transcript . This article first appeared on GuruFocus .