Weibo Corporation (NASDAQ:WB) Q3 2022 Earnings Call Transcript

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And also, that is the reason why we have to diversify the monetization method. And even if currently speaking, we have our VAS accounting for the total revenue, which is about only 13%, not very high. But actually, I think that is significantly important for us to maintain the fundamental line for our monetization itself and especially based on the traffic. So second thing, in terms of our e-commerce and also the mini shop of Weibo, so actually, we are having a model of combining the platform with the product. And also, as you all know, that we always keep a very good relationship with JD and also Taobao and also the other alliances as well. So in terms of this one, we are always keeping a very good collaboration with those very good e-commerce with a very high ARPU.

And also, this is very efficient for us to generate enough cash flow and especially for those scenarios of online plus offline as well. And also, we can see that this is especially important for us to leverage the capability and also the advantage of Weibo as a platform and especially helping those offline organizations to actually have a very good select of the merchant and also helping to improve the quality of the users by guaranteeing a very good model of placing order within this particular station and also having to guarantee a very good agreement ulfilment and also the performance. We’ve been having a very good growth on this particular segment. And also, third of all, talking about the members. As you can see that during the past development, we have been actually having a very stable and also mature membership system.

So on one hand, this is actually very good to guarantee a benefit that is specifically unique to those loyal members of our Weibo platform. And also, this is very good for us to actually bring a lot of monetization capabilities and opportunities for those content creators as well. So this is actually even going to further boost the activity and also enhance the ability of the monetization. And also, previously, in the last year, we had a lot of restrictions from the entertainment industry, and also that was a little bit impactful to our total business. But actually, you can see that while we are upgrading the benefits that we are providing to the users and also the members in specific, in Q3, we have seen that the revenues and also the loyalty of the numbers actually improved in Q3.

And also, if you are sharing some of the colors on the V plus membership system, so we are having a kind of a year-over-year growth on this area and especially in the area of health care, Internet and also the other segment, we are keeping a very good growth year-over-year. And also, this is giving us a more space, of course in the future to further enhance this particular segment of the V plus membership system. And also in our membership system is a very important revenue which we regard as a non-advantageous revenue to Weibo. And this is really significant. So in the future, we are going to further enhance more functions and also dedicating ourselves into, for example, first of all, SVIP and also second is the V plus system, which is targeting in specifics, those are content creators.

So this is a very good way for us to improve the monetization and also the revenue of the content creators, and also, this is going to be very beneficial to Weibo in the long run as well.

Operator: With that, ladies and gentlemen, that concludes today’s conference call. Thank you for your participation. You may now disconnect.

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