Weibo's Q1 2025 Earnings Call: Contradictions Rise Over Advertising Strategy, AI Impact, and Revenue Growth

Advertising strategy and performance, advertising revenue impact of AI, advertising revenue growth outlook, AI impact on advertising, and advertising revenue expectations and vertical growth strategy are the key contradictions discussed in Weibo's latest 2025Q1 earnings call.



User Growth and Engagement:
- In March 2025, Weibo's MAUs reached 591 million and average DAUs reached 261 million, representing a net addition of 3 million and 6 million users on a year-over-year basis.
- The growth in user metrics was driven by disciplined channel spending, attracting and engaging a vibrant user community, and maintaining a healthy DAU to MAU ratio, indicating strong user engagement and platform stickiness.

Revenue Performance and Ad Trends:
- Weibo's total revenues for the first quarter reached $396.9 million, flat year-over-year or up 1% year-over-year on a constant currency basis.
- The growth in revenue was primarily attributed to a stabilization of the advertising business with diverging trends across major ad verticals, including robust growth in e-commerce and automobile sectors, despite a decline in online game and handset sectors.

AI Integration and Monetization:
- Weibo integrated large language models and AI technology in multiple business scenarios, including AI-powered search, social interaction, content ecosystem, and commercial advertising.
- The integration of AI capabilities improved search capabilities, user experience, and competitive edge, which is expected to drive user scale and engagement in the future.

Operating Efficiency and Dividend Payout:
- Weibo's operating income was $129.5 million, representing an operating margin of 33%, with a 3% increase year-over-year.
- Improved operating efficiency, stable profitability, and healthy cash flow enhanced financial flexibility, enabling the company to payout an annual cash dividend of $0.82 per ordinary share for ADS.