Weibo Corp ((WB)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Weibo Corp’s recent earnings call painted a picture of cautious optimism, highlighting significant growth in user engagement, revenue, and AI-driven product enhancements, particularly in intelligent search. Despite facing challenges in sectors such as FMCG, gaming, and luxury goods, the overall sentiment was positive, suggesting strategic advancements and a forward-looking outlook.
User Growth and Engagement
Weibo reported impressive growth in its user base, with monthly active users (MAUs) reaching 588 million and daily active users (DAUs) hitting 261 million as of June 2025. This marks a net addition of 5 million users year-over-year, indicating strong user engagement and retention.
Revenue and Monetization
The company achieved total revenues of $444.8 million for Q2 2025, reflecting a 2% increase year-over-year. Advertising revenues also saw a 2% rise, reaching $383.4 million. This steady growth underscores Weibo’s effective monetization strategies.
AI Integration and Product Enhancements
Weibo has made significant strides in AI integration, particularly in enhancing recommendation and search functions. By incorporating large language models, the company increased the proportion of recommended content consumed by users to 43%, marking a 17% improvement.
Intelligent Search Product Growth
The intelligent search product has been a standout performer, with MAUs surpassing 50 million in June. This segment experienced a 60% improvement in queries and a 150% increase in traffic compared to the previous quarter, highlighting its growing importance.
Ad Revenue Growth from Key Verticals
Weibo’s advertising revenue growth was bolstered by strong performances in the e-commerce and automobile sectors. These sectors posted solid year-over-year growth, driven by strategic partnerships and effective marketing efforts.
Challenges in FMCG and Other Sectors
Despite overall growth, Weibo faced challenges in the FMCG sector, which continued to see a year-over-year decline, impacting the company’s top-line recovery. Other underperforming industries included online games, luxury, and entertainment.
Uncertainty in Cell Phone and Gaming Industries
The cell phone and gaming industries are currently facing significant uncertainty. Cell phone sales have declined sharply, and the absence of clear national subsidy policies adds to the unpredictability in these sectors.
Luxury Goods Sector Pressure
The luxury goods sector remains under pressure, affecting Weibo’s advertising revenue growth. This sector’s struggles are indicative of broader macroeconomic challenges impacting high-end consumer spending.
Forward-Looking Guidance
Looking ahead, Weibo anticipates continued growth in the e-commerce and automobile sectors, driven by AI-powered enhancements in ad targeting and content distribution. However, challenges persist in the FMCG and luxury goods sectors due to macroeconomic factors. The company remains focused on leveraging AI to improve efficiency and user engagement, aiming for sustained growth.
In conclusion, Weibo Corp’s earnings call reflected a balanced view of its current performance and future prospects. While growth in user engagement and revenue is promising, challenges in specific sectors highlight the need for strategic adaptability. Overall, the company’s advancements in AI and intelligent search position it well for future success.