Weibo Corp ((WB)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Weibo Corp’s latest earnings call revealed a mixed sentiment, reflecting both growth and challenges. The company experienced significant engagement growth and advancements in AI-driven advertising, yet faced a decline in overall revenue and ad income due to high base effects and sector-specific hurdles. While e-commerce and automobile sectors showed robust growth, gaming and smartphone sectors underperformed.
User Engagement Growth
In September 2025, Weibo reported impressive user engagement metrics, with monthly active users (MAUs) reaching 578 million and daily active users (DAUs) at 257 million. The platform saw a double-digit increase in per capita viewership, time spent, and retention among mid- and low-frequency user groups, indicating strong user engagement growth.
AI Application in Advertising
Weibo’s AI ad creative platform, Lingchuang, has been a significant contributor to the company’s advertising strategy. The platform’s adoption has led to AI-generated ad creatives accounting for 30% of ad consumption, enhancing targeting precision and improving user viewing experiences.
Strength in E-commerce and Automobile Sectors
The e-commerce and automobile sectors were bright spots for Weibo, with ad revenues from e-commerce growing over 50% year-over-year. The automobile sector also maintained year-over-year growth, showcasing these industries as key drivers of Weibo’s advertising revenue.
Ad Revenue from Alibaba
Weibo experienced robust growth in ad revenues from Alibaba, which surged by 112% to reach USD 45.5 million in the third quarter. This highlights a strong partnership and significant contribution from Alibaba to Weibo’s ad revenue stream.
Overall Revenue Decline
Despite growth in certain sectors, Weibo’s total revenues fell to USD 442.3 million, marking a 5% year-over-year decline. Total ad revenues also decreased by 6% year-over-year, reaching USD 375.4 million, reflecting the challenges faced by the company.
Impact of High Base Effect
The decline in advertising revenue was largely attributed to the high base effect from last year’s Paris Olympics, which set a challenging benchmark for comparison.
Underperformance in Gaming and Smartphone Sectors
Weibo’s revenues from the online gaming and smartphone sectors saw a decline, primarily due to budget contractions within these industries, impacting overall revenue performance.
Pressure on Operating Margin
Weibo’s operating income stood at USD 132 million, with an operating margin of 30%, down from 36% the previous year, indicating pressure on profitability.
Forward-Looking Guidance
Weibo’s forward-looking guidance emphasized its strategic focus on enhancing user engagement through product innovations, such as upgrading the homepage information feed and optimizing recommendation algorithms for video content. The company is leveraging AI-driven initiatives in advertising and search products to improve user satisfaction and ad performance. Despite current challenges, Weibo remains optimistic about future growth opportunities, particularly in e-commerce and automotive sectors.
In summary, Weibo’s earnings call presented a complex picture of growth and challenges. While the company made strides in user engagement and AI advertising, it faced revenue declines due to high base effects and sector-specific issues. Looking forward, Weibo is focused on leveraging AI and product innovations to drive future growth, particularly in promising sectors like e-commerce and automotive.