A：Hello, everyone, and welcome to Weibo's earnings conference call for the first quarter of 2026. Today's main agenda includes progress reports on product operations and commercialization.

A：Total revenue in the first quarter reached $1.0213 billion, up 6% year-on-year. Among them, advertising revenue was 0.3698 billion US dollars, up significantly year on year. Adjusted operating profit was $0.1198 billion and adjusted operating margin was 28%.

A：As of the end of the first quarter, we had 0.562 billion monthly active users and 0.254 billion annual active users. Although the monthly active users in the first quarter decreased slightly from the previous quarter, we paid more attention to the improvement of user experience and retention rate, as well as the improvement of conversion efficiency. Thanks to the continued growth of home page information flow products and users' consumption of platform video content, the interaction and click consumption scale and frequency of core users maintained a steady trend, and monthly active users achieved a small increase month-on-month.

A：In terms of user growth and activity, we are committed to improving the retention quality and high stickiness of users. In the first quarter, the homepage information flow product was still in the experience optimization stage after last year's upgrade. The strategy began to show results from March, and users' content consumption and interactive performance improved. The video service continues to grow in playback time, providing stronger support for overall user time and retention.

A：In 2026, we will continue to optimize our homepage information flow products in the long-term direction of the upgrade, give full play to the advantages of Weibo social relations and hot discussions, strengthen content distribution capabilities, establish a stable and predictable content consumption experience, and continue to enhance user trust. Specific measures include balanced optimization of distribution for social content, hot content and vertical interest content, as well as strengthening the efficiency of hot and performance recommendation, increasing the distribution of high-quality original content for real-life accounts, and strictly controlling low-quality content and over-marketing content. The relevant strategy was gradually launched in the first quarter. From the stage effect, since March, the scale, duration and interaction volume of social interactive users using the home page information flow have shown a monthly improvement trend.

A：Capital business will be an important driving force for us to improve the usage time and retention rate of users in 2026. In the first quarter, the effective path of verification in the second half of the past two years was continuously realized. The performance of video consumption continued to improve, achieving double-digit growth year-on-year, and maintaining improvement on a month-on-month basis. The growth of per capita consumption market was more obvious.

A：The video business focuses on both distribution and supply. We continue to optimize the recommendation conversion efficiency of video in core products such as home page information flow and hot spots, reduce the distribution weight of low-value repeat and marketing content, and promote the growth of the video market more from high-quality content and effective viewing behavior. On the supply side, we have strengthened the supply of high-quality video content, invested more resources to expand high-quality video bloggers, and encouraged them to produce video content with microblog characteristics, such as star big V's life vlog, hot spot interpretation and hot content creation. These initiatives have led to double-digit growth in the number of original video releases by head creators and year-on-year growth, while promoting the evolution of short videos, video podcasts and other content forms, effectively attracting users' viewing time.

A：In the first quarter, Weibo focused on the three core businesses of hot spots, social networking and search, focusing on improving the health and core competitiveness of the content ecology. Specific measures include: optimizing the ranking mechanism of the hot search list to enhance the content quality of the list, improving the supply of landing content and discussion atmosphere; Using AI to enhance search capability, for example, through intelligent search experience and combining AIAG capability, product verification is carried out in scenarios such as person search and hot spot search, thus improving user search experience and efficiency and strengthening the differentiated value of search products.

A：In terms of community interaction, Weibo first enhances user participation and services through rich community play and interaction mechanisms. For example, the hyperphone community promotes the construction of product capabilities and activity mechanisms around star IP, events and other scenarios, driving user activity and achieving year-on-year user growth. At the same time, through the research and development of AI technology products, Weibo will continue to pay attention to the core needs of users, accelerate the iteration of interactive products and functions, and enhance users' social satisfaction and sense of community belonging. Weibo continues to promote the strategic execution of advertising products and sales teams at the level of commercial growth, penetrates the value of content marketing into more industries, and combines AI capabilities to enhance the ability to transform advertising effects. In the first quarter, advertising revenue increased by 9% year-on-year, including new product release, Spring Festival marketing, events and star marketing and other deterministic scenarios, microblogging to play hot and social and content marketing differentiation advantages, to help a number of key industries to achieve growth. In addition, the advertising revenue of vertical industries such as Internet services, local life and automobile has increased significantly, reflecting the influence and marketing effect of the platform in specific fields.

A：In the first quarter, the明星IP content marketing business showed a recovery trend with同比增长 in related revenues from several key industry projects. This业务形成了对飞博平台内容营销的有效补充。

A：The star marketing service was enhanced by focusing on improving the depth of customer service and delivery efficiency, combined with the hot IP stars and QL ecological resources owned by Weibo, to provide more targeted content planning and dissemination and acceptance services to help customers realize brand exposure and user interaction.

A：AI has served as an important enabler across the company's product content and monetization systems. It supports promoted ads and real-time bidding ad products and is being used to improve execution efficiency across product operations and sales teams.AI is continuing to serve as an important enabler in the company's advertising products, providing support for promoted fees and real-time bidding ads. The company is expanding the use of AI tools to improve execution efficiency across product operations and sales teams.

A：The company's net revenues for the first quarter were $421.3 million, an increase of 6% or 1% on a constant currency basis compared to the previous year. The operating income was $119.8 million, and diluted EPS was $0.34. The company plans to continue investing in monetization-related initiatives and is focused on balancing near-term execution needs with sustainable profitability and healthy cash flow generation for the second quarter.

A：The advertising business returned to year-over-year growth supported by improving demand from selected verticals, continued execution in content marketing, and performance-based ad products. The revenues for the first quarter were $421.3 million, an increase of 6% or 1% on a constant currency basis.

A：The largest contributors to the growth in advertising revenues were FMCG, e-commerce, and 3C products. Internet services, automobiles, and local services also made significant contributions.

A：The FMCG sector continues to face a year-over-year gap in advertising revenues despite sequential recovery in some advertisers' spending on celebrity and influencer marketing campaigns. The online game sector is experiencing a descending trend due to a lack of blockbuster releases this quarter.

A：Q1 advertising revenue increased by 9% year-on-year, with a real increase of about 3%, slightly exceeding expectations. This growth was mainly due to the introduction of Internet software and applications, especially the growth of vertical industries such as AI applications and local life and automobiles. Although the overall consumer industry advertising maintained a slightly better-than-expected year-on-year growth, customers in key industries are still facing greater pressure. For example, sales in the automotive industry have declined by double digits year-on-year, and customer revenue in the mobile phone industry has also declined, mainly due to storage costs. Rising product price adjustments. Although the e-commerce industry is large, customer profits are squeezed due to increased competition. Although our revenue is growing, the pressure on customers in these industries is still high. Despite the presence of external consumer pressures, customer performance varies across industries. Sales in the automotive industry have declined, but the speed of new product launches has not slowed down. The number of new products launched this year even exceeds that of last year. Thanks to the accelerated launch of new electric vehicles and related technological innovation and the improvement of new energy ecology, we expect to maintain a relatively fast growth rate in the coming quarter. In the mobile phone industry, the trend in the second half of the year is still unclear. Customer sales have fallen in the first half of the year, but the pace of launching some customers, especially mid-to-high-end products, accelerated last year. In addition, Apple's price system adjustment in China has put some pressure on domestic manufacturers, and the pace and quantity of new products will affect our budget in the second half of the year. E-commerce and local life industries have a high base in the second quarter, but with the impact of events such as the World Cup, the third quarter may face year-on-year pressure, and we will try our best to win the budget.

A：At present, the AI in the effect of advertising material generation, bidding and algorithm recommendation and other aspects of the application scenarios are increasing, AI generation material in static advertising consumption of nearly 40%, the first quarter of information flow effect advertising VCPM ring and year-on-year have increased, the increase in double digits. In terms of brand advertising, we are testing the application of AI in star marketing and other fields, and the products made after the Spring Festival have made rapid progress. However, the public still has obstacles to the acceptance of AI generation based on star hot content and advertising content. Therefore, it has not been commercialized at present, but has been tested with customers and stars in a small range, waiting for the right time and communication acceptance before launching.