Weibo Corp’s Earnings Call Highlights Stable Growth Amid Challenges

Weibo Corp ((WB)) has held its Q1 earnings call. Read on for the main highlights of the call.

In the recent earnings call, Weibo Corp presented a stable performance with promising growth in user engagement and advertising verticals, particularly during the Spring Festival. Despite these positive trends, challenges remain in key revenue sectors such as gaming and handset, alongside flat overall revenue growth. The integration of AI technologies shows potential, yet it has not significantly boosted advertising revenue.

Stable User Growth

Weibo Corp reported a steady increase in its user base, with monthly active users (MAUs) reaching 591 million and daily active users (DAUs) at 261 million. This marks a net addition of 3 million MAUs and 6 million DAUs year-over-year, indicating a healthy growth trajectory in user engagement.

Improvement in Operating Margin

The company achieved a non-GAAP operating income of $129.5 million, representing a non-GAAP operating margin of 33%, up from 32% in the same period last year. This improvement reflects Weibo’s efficient operational strategies and cost management.

Spring Festival Campaign Success

Weibo’s Spring Festival campaign was a significant success, with Gala-related topics surpassing 60 billion impressions and discussions exceeding 500 million. This represents a 50% increase year-over-year, highlighting the platform’s effective engagement strategies during major cultural events.

Ad Revenue Growth in Key Verticals

The company experienced robust growth in advertising revenues from e-commerce, Internet services, and automobile sectors. Notably, there was double-digit growth in spring festival-related ad revenue, showcasing the strength of these verticals in driving Weibo’s advertising business.

AI Integration Enhances Search Capabilities

The integration of DeepSeek and other AI models into Weibo’s search functionality led to significant improvements, with MAUs of intelligent search surpassing 30 million. This advancement underscores the potential of AI in enhancing user experience and engagement on the platform.

Flat Revenue Growth

Weibo reported total revenues of $396.9 million for Q1 2025, which were flat year-over-year, with only a 1% increase on a constant currency basis. This stagnation highlights the need for strategic initiatives to drive revenue growth.

Challenges in Gaming and Handset Sectors

The online gaming sector faced a decline due to a high base effect and fewer new game launches, while the handset sector saw a decrease in ad revenue due to shifts in product launch timelines. These challenges indicate areas that require strategic attention.

Limited Impact of AI on Advertising Revenue

Although AI integration improved click-through rates by 10%, its overall impact on advertising revenue, particularly from information feeds, was limited. This suggests that further innovation is needed to fully leverage AI’s potential in boosting ad revenues.

Forward-Looking Guidance

Looking ahead, Weibo remains focused on enhancing user experience and engagement through the integration of large language models and investments in vertical and video content ecosystems. The company also emphasized substantial growth in interaction efficiency and search satisfaction, with AI-related topics gaining traction among users. These initiatives are expected to contribute to a better understanding and acceptance of AI on the platform.

In summary, Weibo Corp’s earnings call reflected a stable performance with promising growth in user engagement and certain advertising verticals. However, challenges in key revenue sectors and flat overall revenue growth remain areas of concern. The company’s focus on AI integration and enhancing user experience is expected to drive future growth and engagement.