Joining me today, our Chief Executive Officer, Gaofei Wang, and our Chief Financial Officer, Fei Cao. The conference call is also being broadcasted on the internet and is available through Weibo's IR website.

Before the management remarks, I would like to read you the safe harbor statement in connection with today's conference call. During today's conference call, we may make forward-looking statements, statements that are not historical facts, including statements of our beliefs and expectations.

Forward-looking statements involve inherent risks and uncertainties, and a number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. Weibo assumes no obligation to update the forward-looking statements in this conference call and elsewhere.

Further information regarding this and other risks is included in Weibo's annual report on Form 20-F and other filings with the SEC. All the information provided in this press release is occurring as the date hereof.

Weibo assumes no obligation to update such information, except as required under applicable law. Additionally, I would like to remind you that our discussion today includes certain non-GAAP measures, which exclude stock-based compensation and certain other expenses.

We use non-GAAP financial measures to gain a better understanding of Weibo's comparative operating performance and future prospects. Our non-GAAP financials exclude certain expenses, gains or losses, and other items that are not expected to result in future cash [unclear] or are non-recurring in nature, or are not indicative of our core operating results and outlook.

Please refer to our press release for more information about our non-GAAP measures. Following management's prepared remarks, we'll open the lines for a brief Q&A session.

With this, I would like to turn the call over to our CEO, Gaofei Wang.

谢谢。大家好。欢迎大家参加微博财报电话会议。今天我将向大家重点介绍微博2026年第一季度的产品运营以及商业化方面的进展。用户方面，截至一季度末，我们的月活跃用户达到5.62亿，日活跃用户达到2.54亿。一季度，微博MAU同环比均小幅下降，主要由于我们的策略更聚焦于用户体验与留存的增长，渠道预算的投放方向重点转向提升获取用户向活跃用户的转化效率。与此同时，得益于首页信息流产品对核心用户群的优化，以及平台视频内容消费的持续提升，平台的核心用户，包括互动和顶级消费用户的规模和使用频次保持稳健趋势，DAU环比实现小幅增长。一季度，微博总营收达到了4.213亿美元，同比年上升6%，其中广告营收达到3.698亿美元，同比年上升9%。一季度，公司调整后营业利润为1.198亿美元，调整后营业利润率为28%。

Thank you. Hello everyone.

Welcome to Weibo's first quarter 2026 earnings conference call. On today's call, I'll share with you highlights of Weibo's product and monetization in the first quarter of 2026.

On the user front, in March 2026, Weibo's MAUs reached 562 million and average DAUs reached 254 million. Our MAUs experienced a modest decline on both a year-over-year and a quarter-over-quarter basis.

This was primarily driven by our strategic focus on enhancing user experience and driving user retention. We have proactively rationalized our channel budget allocation, shifting our focus towards improving the conversion rate of newly acquired users into active users.

Concurrently, driven by our recent effort to optimize information feed product experience for our core users, which include engaged users and click-oriented users, coupled with the sustained growth in video content consumption on the platform, the scale and engagement frequency of our core users has maintained a solid trend. As a result, our DAUs achieved modest growth quarter-over-quarter.

Our total revenues for the first quarter reached $421.3 million, an increase of 6% year-over-year. Our total ad revenues reached $369.8 million, an increase of 9% year-over-year.

Our non-GAAP operating income in the first quarter reached $119.8 million, representing a non-GAAP operating margin of 28%.

接下来，我从用户增长及活跃、内容生态竞争力、商业化增长三个维度，介绍微博一季度的重点功能进展。在用户增长以及活跃层面，2026年我们将重点提升用户的留存质量，构建高质量、高粘性、可持续的用户增长体系。一季度，首页信息流仍处于去年升级后的体验优化阶段，相关策略在3月起开始体现增效效果，核心用户的内容消费和互动表现开始改善。同时，视频业务的播放页时长持续提升，对用户的时长和留存形成更明显的支撑。首页信息流产品，2026年我们继续围绕升级后的长期方向推进优化，在发挥微博社交关系和热点讨论优势的基础上，进一步强化微博特色内容的宣发能力，建立更稳定、可预期的内容消费体验，持续提升用户对首页信息流产品的信任感。具体来看，一季度我们围绕社交内容、热点内容和垂直兴趣内容的分发平衡，集中推进了一系列的策略优化工作。针对微博核心的社交互动型用户，我们在保障其社交关系内容消费的同时，重点提升热点和兴趣内容的推荐效率。同时，重点强化真人账号、优质原创以及转评内容的分发，并对低质内容和过度营销内容加强治理，改善用户在首页信息流的内容消费体验。相关策略在一季度逐步上线，从阶段性效果看，3月开始看到一定的正向表现，使用首页信息流的社交互动型用户的规模、时长和互动量均呈现逐月改善，相关策略正在对该部分用户群形成更有效的承接。这些初步成效也增强了我们继续推进首页信息流优化的信心。二季度，我们会在社交互动型用户体验优化的基础上，重点针对平台上对推荐流消费占比更高、对内容匹配效率要求更高的用户群体，通过产品策略和内容推荐算法的优化，提升这部分用户在推荐流的连续消费体验，增强微博在推荐内容消费场景中的竞争力。

Next, I will highlight Weibo's key development in the first quarter across user growth and engagement, content ecosystem competitiveness, and monetization. On user growth and engagement, in 2026, we'll focus on improving user retention and building a high-quality, highly engaged, and sustainable user growth framework.

In the first quarter, the information feed still remained in optimization stage post the product upgrade last year, and related strategies began to deliver positive results starting in March, with content

consumption and interactive metrics among our core users beginning to improve. Meanwhile, the sustained growth in time spent on our video playback pages has served as a more solid foundation for the growth of our overall user time spent and retention.

Moving on to information feed product. In 2026, the strategy focuses on the product optimization after the information feed upgrade, which aligns with our long-term direction.

Building on Weibo's strengths in social network and hot trend discussion, we'll further enhance the distribution capabilities of Weibo's distinctive native content, establish a more stable and consistent content consumption experience, and continue to strengthen users' trust in the information feed. Specifically, in the first quarter, we focus on a series of optimization initiatives aimed at balancing the distribution of social content, trending topics, and vertical interest-based content.

For Weibo's engaged core users, while ensuring their consumption of social content, we also prioritize improving recommendation efficiency for trending and interest-based content. Meanwhile, we further strengthen the distribution of content from authentic accounts, high-quality original content, and reposted content, while stepping up governance over low-quality and overly promotional content to enhance the consumption experience within our information feed.

These strategies were gradually rolled out throughout the first quarter and began to make positive impacts in March. Looking at the preliminary results, the scale, time spent, and engagement volume of the social engaged users within our information feed have all shown month-over-month improvement, demonstrating that our strategy is more effectively retaining and serving this specific user cohort.

These preliminary results have bolstered our confidence to further advance the optimization of information feed product. In the second quarter, building upon the experience improvement for our socially engaged users, we'll place greater focus on user groups that rely more heavily on the recommendation feed and have higher expectation for content matching efficiency.

Through the continued optimization of product strategies and content matching algorithms, we aim to improve the seamless content consumption for these users within the recommendation feed, and further strengthen Weibo's competitiveness in recommendation-driven content consumption scenarios.

视频业务，将成为2026年我们提升用户使用时长和留存的重要驱动力。一季度，我们延续2025年下半年验证有效的路径，视频消费表现持续改善。一季度，播放页总消费时长同比实现双位数增长，环比也保持了提升。其中，人均消费、人均消费时长增长更为明显。具体来看，一季度视频业务重点围绕分发和供给两方面推进。分发侧，我们持续优化视频在首页信息流、热点等核心产品流的推荐转化效率，同时，我们降低低质、重复以及营销化内容的分配权重，推动视频消费时长增长更多来自高质量内容和有效观看行为的提升。供给侧，我们进一步加强优质视频内容的供给，投入更多资源拓展优质视频博主并鼓励他们生产，例如明星大V的生活vlog、热点解读、热门内容二创等具有微博特色的视频内容，并推动流量更多向这些优质内容集中。一季度，头部创作者的原创视频发布人数和原创视频发布量同比均实现双位数增长。同时，围绕短剧、视频播客等多元内容形态的引进，也正在展开探索和试水。另外，借助视频AI模型的持续迭代，我们也持续发挥平台在垂直IP方面的优势，向博主开放AI创作工具，支持他们围绕IP进行视频二次创作和内容延展。截至4月，平台已开放20多个头部剧中版权素材，配合合作方积极共创AI的二次创作活动，累积吸引近3000位博主参与，产出相关AI内容近8000条。与此同时，我们进一步完善微博AI创作平台，为创作者提供图文创作、热点创作、视频生成、版权素材、活动模板等资源，为博主进行创作赋能，帮助他们获得更多的创作素材和灵感启发，并以更低的成本将其内容经验和表达转化为可发布的视频及图文内容，促进博主在微博平台上的内容生态效率的提升。

Moving on to video. Our video business is set to serve as a crucial driver for increasing user time spent and retention throughout 2026.

In the first quarter, we continue with the proven path established in the second half of 2025, and saw continued improvement of video consumption. During the first quarter, total time spent on the video playback pages achieved double-digit year-over-year growth, while also maintaining an upward trend quarter-over-quarter.

Notably, the growth in per capita time spent on video playback pages was even more pronounced. Specifically, during the first quarter, our video business initiatives centered around two key aspects: distribution and supply.

On the distribution side, we continue to optimize the recommendation conversion efficiency for videos across core scenarios, such as information feed and trending feed. At the same time, we reduce the distribution weight of repetitive, low-quality, and excessively commercialized content.

This ensures that the growth in video watch time is increasingly driven by high-quality content and a rise in users' meaningful viewing behaviors. On the supply side, we further strengthen the supply of high-quality video content by investing more resources to attract high-quality video content creators and incentivize their content production.

This includes celebrity and top KOL live vlogs, trending topic analysis, and derivative creation of popular content, all of which are distinctive to our platforms and strategically steers our traffic distribution towards these high-quality offerings. In the first quarter, both the number of top-tier accounts, for example the golden and orange verified accounts, publishing original videos and the number of original videos posted recorded double-digit year-over-year growth.

Meanwhile, we are also exploring and validating the introduction of more diverse video content formats, such as short plays and video podcasts. In the first quarter, leveraging the continued iteration of our video AI large models, we further build on the platform's strength in vertical IPs by opening up AI creation tools to the creators, enabling them to produce derivative video content and expand IP-related content.

As of April, we have made copyright materials available from over 20 top-tier TV drama and variety show IPs on the platform, and have actively collaborated with partners to launch AI-driven content recreation initiatives, which have attracted nearly 3,000 creators and generated nearly 8,000 pieces of AI content. Meanwhile, we further enhanced Weibo's AI creation platform by providing creators with resources such as graphic text generation tools, trending topics creation tools, video generation capabilities, copyright material, and campaign templates.

This empowers creators with richer materials and inspiration, allowing them to translate their content expertise and creative ideas into publishable videos and text-based posts at a significantly lower cost. This in turn has helped improve content production efficiency for creators on Weibo.

内容生态竞争力方面，2026年我们将继续围绕热点、社交、搜索三大核心业务，重点提升内容生态的健康度与核心竞争力。一季度，我们在内容生态上的着力点主要是提升热点消费质量、深化社区互动深度和AI搜索能力，增强用户在微博的内容消费效率和参与体验。热点方面，一季度我们重点推进热搜榜单的影响力与可信度建设，通过优化榜单的排序机制，提升榜单内容的质量，并改善落地页内容供给和讨论氛围，带动用户在热搜场景下的内容消费和讨论活跃度的提升。相比去年四季度，一季度用户在热搜场景下的人均消费时长和人均讨论量均有所提升。用户在热搜产品下消费粘性的增强，也进一步巩固了微博作为热点发现以及公众讨论首选平台的竞争地位。社交方面，我们今年的目标是通过更丰富的社群玩法和更强的互动机制，提升用户在兴趣圈层内的参与深度和复访意愿。一季度，超话社群继续围绕明星、IP、赛事等场景推进产品能力的建设和活动机制的运营，对用户活跃形成了持续带动。超话整体日活跃用户规模、互动用户同比保持增长。随着AI能力在产品研发提效和内容理解上的应用提升，我们会继续围绕社交核心需求，加速社交互动型产品和功能的迭代，进一步提升用户在微博的社交满足度和社群归属感。搜索方面，随着AI能力的持续提升，一季度，微博智搜从单依问答总结升级为支持连续追问、并能够理解视频、图文内容的智能搜索体验。同时，我们结合AI Agent的能力，围绕人物搜索、热点搜索，在搜索落地页和评论区的微博核心场景开展产品探索，提升用户搜索体验和效率，强化微博差异化搜索价值。

Moving on to content ecosystem competitiveness. Throughout 2026, we'll continue to focus on our three core business: trending topics, social network, and search, while further enhancing the health and core competitiveness of our content ecosystem.

In the first quarter, our focus within the content ecosystem was on enhancing the quality of trending topic consumption, deepening community interactions, and advancing our AI search capabilities. Through these efforts, we aim to significantly improve users' content consumption efficiency and their overall engagement experience on the platform.

With respect to hot trends, in the first quarter, we focus on strengthening the influence and the credibility of our trending list. We optimized the ranking mechanism, improved the quality of content presented on the list, and enriched the content supply and discussion atmosphere on the landing pages.

These efforts drove higher content consumption and more vibrant discussion under the hot trend scenarios. Compared with the fourth quarter last year, both average time spent and average discussion volume per user under the hot trend scenarios increased in the first quarter.

The strengthened stickiness of user engagement around hot trends further reinforced Weibo's competitive position as the go-to platform for hot trend discovery and public discussion. On social attributes, in 2026, we aim to deepen user engagement and increase revisit intention within interest-based communities, leveraging richer community engagement features and stronger interaction mechanisms.

In the first quarter, the Super Topics community continued to enhance its product capabilities and standardized event-based operations across categories such as celebrities, IPs, and sports events, which sustainably drove user engagement. As a result, both DAUs and engaged users of Super Topics recorded year-over-year growth.

With AI further integrated into product development efficiency and content understanding, we will continue to center on core needs of users of community products, accelerating iteration of interactive community products and features, and thereby further improving users' social fulfillment and sense of belonging on Weibo. On search products, as we continue to enhance our AI capabilities, in the first quarter, we have upgraded our Weibo intelligent search function from a single Q&A summary into an AI-powered multi-turn follow-up queries, and can understand multimodal content, including videos and images with text.

Meanwhile, we integrated AI agent capabilities into key scenarios, such as public figure search and hot trend search, and conducted product developments on search landing pages and comment sections. Leveraging AI agent capabilities, we enhanced users' search experience and efficiency, and further reinforced Weibo's differentiated value proposition in the search market.

在商业化增长层面，我们延续推进2025年以来广告产品和销售团队坚持的两大战略，持续推动微博独特的内容营销价值向更多的行业和客户渗透，并同步结合AI能力，系统性提升广告的效果转化能力。一季度，微博广告收入同比增长9%。整体来看，微博在新品发布、春季营销、赛事及明星营销等确定性场景中，继续发挥热点加社交加内容营销的差异化优势，带动多个重点行业实现增长。分行业来看，一季度增长明显主要来自于互联网服务、本地生活以及汽车等垂直行业。互联网软件和应用一季度同比增长显著，主要得益于平台获取互联网服务行业增量预算。例如，春节期间，各AI大模型应用加大了推广力度。微博依赖在科技、数码等领域的KOL生态和专业讨论氛围，有效承接了AI厂商的新品发布、技术科普和用户的口碑建设需求，带动相关营销收入明显增长。我们认为，随着AI技术和应用的持续迭代，AI相关内容将成为微博内容生态的重要增量。5月，微博平台AI专业博主规模、日均AI热点数量及AI相关内容讨论量较1月均提升超过30%。AI技术革新正在持续激发平台上的内容创作和用户讨论，也将进一步有助于在内容生态成长和商业化增长之间形成正向循环。本地生活行业，在餐饮竞争的延续，叠加春节旺季的影响，也成为一季度增长较快的行业之一。汽车行业，主要由政策支持和新车发布的带动。客户围绕新品上市、用户口碑和品牌声量建设，保持较稳定的投放，一季度也实现了同比双位数增长。手机行业，一季度同比虽然实现小幅增长，但从行业环境看，市场竞争仍在加剧。尽管国补以旧换新政策持续支持，但芯片和内存成本上升、存储成本上涨等对客户利润形成了巨大压力，客户预算后续预计面临一定的压力。我们会根据新品的节奏和客户的预算变化，优化售卖策略，保持对重点客户的覆盖。其他垂直行业方面，鞋服行业一季度同比双位数增长，主要是多项赛事、运动户外品牌集中发力以及明星官宣的带动，相关客户借助赛事和代言人事件，提升品牌关注度。上季度我们提到，部分品牌客户在明星及IP内容营销方面有所回暖。一季度，这一趋势在若干重点行业项目中继续显现，相关收入保持同比增长，并对微博平台内容营销业务形成有效补充。明星营销一直是微博内容营销能力中的特色组成部分。过去一个季度，我们更多从提升客户服务深度和投放效率出发，围绕客户的品牌目标、预算水平和目标受众，结合微博在热点、IP、明星和KOL生态中的资源，提供更有针对性的资源匹配、内容策划和传播承接服务，帮助客户实现品牌曝光和用户互动。目前，相关产品和服务能力仍在持续优化，部分项目已经看到较好的执行效果和客户反馈。后续，我们会继续推进明星及IP内容营销服务，将其作为提升我们品牌客户的内容合作深度和内容营销竞争力的重要组成部分，并与平台的整体广告产品体系形成协同。接下来，让我转给曹飞介绍一季度的财务结果。

Moving on to monetization. We have continued to execute on two key strategies that have underpinned our ad product and sales teams since 2025: first, driving broader adoption of Weibo's unique content marketing value across more industries and clients; and second, systematically improving ad conversion effectiveness by leveraging AI capabilities.

In the first quarter, Weibo's ad revenues increased 9% year-over-year. Overall, Weibo continued to leverage its differentiated strength in hot trends plus social plus content marketing across proven marketing scenarios, such as new product launches, Chinese New Year campaigns, sports events, and celebrity marketing, leading to growth across multiple key industries.

By industry, the main growth contributors in the first quarter were vertical sectors such as internet service, local service, and automobiles. The internet service sector delivered robust year-over-year growth, primarily driven by incremental budget we captured from internet service companies.

For example, during the Chinese New Year period, various AI large language model players ramped up their marketing investment. Leveraging Weibo's strong KOL ecosystem and professional discussion environment in digital and technology verticals, we effectively fulfilled AI companies' marketing need in areas such as new product launches, technology education, and word-of-mouth building, which resulted in a notable increase in related marketing revenues.

We believe that as AI technologies and applications continue to evolve, AI-related content will become a major incremental driver of Weibo's content ecosystem. In May, the number of AI-focused professional content creators, the average daily number of AI-related hot trends, and the discussion volume of AI content on Weibo all increased more than 30% compared with January this year.

This technological transformation in AI has been continuously stimulating content creation and user discussion on our platform, and will further build a flywheel between content ecosystem enrichment and monetization growth. The local service sector was also among the fast-growing sector in the first quarter, supported by ongoing competition in food delivery, as well as seasonal boosts from the Chinese New Year holiday.

The automobile sector delivered double-digit year-over-year growth, primarily driven by favorable policies and new vehicle launches, relatively stable ad spend around new product launches, user reputation building, and brand awareness. The handset sector recorded modest year-over-year growth in the first quarter, but looking ahead, market competition in the sector continued to intensify.

Despite ongoing support from trading subsidies, rising chip and memory cost continued to put pressure on handset manufacturers' profitability, which may weigh on their ad budget going forward. We'll closely track new product launch cycles and clients' budget dynamics, and optimize our sales strategy accordingly to ensure solid coverage of key clients.

Among other verticals, the apparel and footwear sector achieved double-digit year-over-year growth in the first quarter, primarily fueled by the Winter Olympics, concentrated marketing campaigns by sports and outdoor brands, and celebrity endorsement activities, through which advertisers effectively leveraged events and celebrity moments to boost their brand awareness. As mentioned last quarter, we have seen a recovery trend in demand for celebrity and IP-based content marketing from certain brand advertisers.

In the first quarter, this trend continued to play out in a number of key industries and campaigns, with related revenues maintaining solid year-over-year growth and providing a meaningful supplement to our overall content marketing business. Celebrity marketing has always been a distinctive component of Weibo's content marketing capabilities.

Over the past quarter, we focused more on enhancing service depth and ad placement efficiency for clients in this area. Based on clients' brand objectives, budget levels, and target audience, we integrated Weibo resources in hot trends, IPs, celebrities, and KOL ecosystems to provide more tailored resource matching, content planning, and campaign execution services.

This initiative enabled clients to effectively achieve brand exposure and user engagement. While our products and service capabilities are still being further refined, we have already seen encouraging execution results and clients' feedback in some of the pilot projects.

Looking forward, we'll continue to advance our celebrity and IP content marketing services, positioning them as a key component to deepen collaboration with brand advertisers and enhance our content marketing competitiveness, while driving greater synergy with our overall ad product portfolio. With that, let me turn the call over to Fei Cao for financial review.

Thank you, Gaofei, and hello, everyone. Welcome to Weibo's first quarter 2026 earnings conference call.

Let's start with user metrics. In March 2026, Weibo's MAUs and average DAUs reached 562 million and 254 million, respectively.

During the first quarter, we continued to focus on user quality, retention, and engagement. MAUs saw a modest sequential decline, mainly reflecting our ongoing rationalization of channel investment and the transition following our information feed revamp.

At the same time, DAUs remained resilient and improved slightly quarter-over-quarter, supported by better retention of core users, continued optimization of the home page feed experience, and improving video consumption. AI continued to serve as an important enabler across our product, content, and monetization systems.

On the monetization side, AI-powered targeting, bidding, and ad creative generation continued to support promoted feeds and real-time bidding ad products. Internally, we are also expanding the use of AI tools to improve execution efficiency across product, operations, and sales teams.

Turning to financials. As a reminder, my prepared remarks would focus on non-GAAP results.

Monetary amounts are in US dollar term, and all comparisons are on a year-over-year basis unless otherwise noted. Now, let me walk you through our financial highlights for the first quarter 2026.

Weibo's first quarter 2026 net revenues were $421.3 million, an increase of 6%, or 1% on a constant currency basis. Operating income was $119.8 million, representing operating margin of 28%.

Net income attributable to Weibo reached $91.9 million, and diluted EPS was 34 cents US dollar. Let me give you more color on the first quarter 2026 revenue performance.

We started the year with our advertising business returning to year-over-year growth, supported by improving demand from selected verticals and continued execution in content marketing and performance-based ad products. Weibo's advertising and marketing revenues for the first quarter 2026 were $369.8 million, an increase of 9%, or 3% on a constant currency basis.

By industry, our largest three verticals were FMCG, e-commerce, and 3C products. In terms of growth, internet services, automobile, and local services were the major contributors.

Advertising revenues from internet companies increased primarily due to incremental advertising spend from leading players in the sector. The automobile sector also saw substantial growth, supported by auto-related content ecosystem and ad spend from electric vehicles.

For handset sector, advertising revenues recorded modest growth, but we remain mindful that their marketing budgets may face pressure amid the intensified competition within the handset market, as well as rising component costs. As for areas facing headwinds, FMCG continued to face a year-over-year gap, although we saw sequential recovery as certain advertisers resumed spending in celebrity and KOL marketing campaigns.

The online game sector was still on a descending trend due to lack of blockbuster release this quarter. By ad product, promoted feeds ad was the largest, followed by social display, and search and topic.

Promoted feeds delivered solid growth, benefiting from better ad matching in the revamped information feed, continued demand for Weibo's differentiated IP and content marketing solutions, and deeper AI integration in targeting, bidding, and creative generation. These product improvements helped advertisers combine brand exposure with more measurable conversion objectives.

Ad revenues from Alibaba for the first quarter were $43.3 million, an increase of 2% year-over-year, or a decrease of 4% on a constant currency basis. The modest decline of revenues from Alibaba was primarily due to high base last year, which included one-off revenues from promotional ad budget for Alibaba's sponsorship of Spring Festival in 2025, and AI-related budget in the first quarter last year.

Ad spend from Alibaba highly correlates to its own marketing strategies, which may fluctuate with Alibaba's campaign priorities and product launch schedule, etc. Value-added service revenues were $51.6 million in the first quarter, a decrease of 11%, or 15% on a constant currency basis.

The decrease was primarily attributable to decline in game-related revenue. Turning to costs and expenses.

Total costs and expenses for the first quarter were $301.5 million, an increase of 13%, mainly due to higher ad production cost and marketing spend, partially offset by the decrease of general and administrative expense. During the quarter, we continued to make measured investments in selected monetization-related initiatives, primarily around advertising product capabilities, content marketing ecosystem, and client service offerings.

We will continue to manage the pace of these investments with ROI discipline and within a controllable budget framework. Operating income in the first quarter was $119.8 million, representing operating margin of 28%, compared to 33% in the same period last year.

While operating margin declined year-over-year due to these investments, we remain focused on balancing near-term execution needs with sustainable profitability and healthy cash flow generation. Turning to income tax.

Under GAAP, income tax expenses for the first quarter were $15.7 million, compared to $24.3 million last year, mainly due to decrease in deferred tax liability related to equity pickup adjustment. Net income attributable to Weibo in the first quarter was $91.9 million, representing a net margin of 22%.

Turning to our balance sheet and cash flow items. As of March 31, 2026, Weibo's cash, cash equivalents, and short-term investments totaled $2.59 billion, compared to $2.41 billion as of December 31, 2025.

In the first quarter, cash provided by operating activities was $154 million. Capital expenditures totaled $11.9 million, and depreciation and amortization expenses amounted to $15.5 million.

Let me share some color on our shareholder returns. We have completed the distribution of the annual cash dividend of 31 cents per ordinary share or ADS for the fiscal year 2025, with aggregate amount of approximately $150 million in May 2026.

We will continue to take a disciplined approach to capital allocation, balancing shareholder returns with financial flexibility needed to fund our long-term product, AI, and content ecosystem initiatives. Overall, first quarter was a quarter of continued transition and steady execution.

While macro consumption sentiment and industry competition remain uncertain, we saw initial signs of stabilization in core user engagement and advertising demand. We will continue to balance investment needs with operating efficiency and healthy cash flow generation as we build a more sustainable foundation for long-term development.

Before turning to the Q&A session, let me provide you a brief update on ESG front. In April, we published our fifth ESG report, highlighting our efforts across social value, tech empowerment, information security, employee development, content ecosystem, and green operations.

MSCI also recently upgraded our ESG rating from BB to AA, recognizing our progress in sustainability, innovation, and social responsibility. Please visit our IR website for more information.

With that, let me now turn the call over to the operator for the Q&A session.

晚上好，谢谢管理层接受我的提问。我的问题是关于微博的广告方面的。管理层如果是看Q1，还有现在目前的情况来看的话，可以分享一下我们二季度微博广告的展望？另外管理层可以分享一下我们在2026年我们在广告的战略上的一些更新？还有另外一个问题呢是关于AI方面的。管理层现在我们应该怎么去看在AI在广告还有商业化的作用？谢谢。Hi, good evening. Thanks management for taking my questions.

Based on the trend so far we see in Q1 and recent months, can management comment about Weibo advertising outlook in Q2? In addition, can management also comment about our advertising strategies, any updates for the full year?

Separately on AI, can management share about how it benefits advertising and monetization? Thank you.

我先说一下就是Q1跟下半年的这个整体的预期的这种情况。从Q1的情况看呢，广告收入同比增长9%，按人民币口径是增长大概3%左右，略微超过我们之前的预期。那一季度增长主要还是来自于互联网软件和应用，特别是AI应用投放，以及本地生活和汽车等的垂直行业的一个增长。好了。

Thank you for the question. Let's talk about the overall recap of Q1 performance as well as the expectation of the second half of the year.

We had a year-on-year growth of about 9% of the advertising revenue in Q1. If we're talking about the definition of RMB, it was about 3% of the growth.

In Q1, primarily the advertising revenue growth was driven by the internet-based software deployment and AI-related investments, as well as the other local lifestyle and automotive industry related.

Okay. 虽然从Q1的整体消费行业来看的话呢，虽然我们广告保持了一个同比比预期稍微好一些的增长，但是我们看我们重点的行业客户其实还是压力比较大的。例如说我们的汽车行业，今年我们的大部分客户可能销量都是同比下降两位数以上的。那我们的手机行业的客户的营收其实也出现了一定程度的下降，主要还是因为存储的一个成本的上升，很多客户的产品都进行了调价。那电商行业呢，这是我们原来比较大的行业，但是客户其实就为竞争，它的利润还是受到了一定的压力。这就是我们主要的一些行业客户，就是虽然说我们收入在增长，但是客户本身的经营压力还是会比较大的。好了。

Okay. Next, I would like to say that in Q1, overall speaking, we had a better-than-expectation growth of our ad revenue in terms of the consumption area.

If we're talking about the key accounts that we have, especially from different verticals, we've been seeing a stressful situation. For instance, in terms of automotive sales, they've been experiencing double-digit decrease.

For the handset, they had also a decrease in terms of their overall revenue because of the additional cost of the memory, and most of the handset makers have to adjust their overall price. Also for e-commerce, we've been experiencing also the stressful profitability situation.

Even if our ad revenue was growing, we had still a stressful operation for our customers. Okay.

那从二季度和后面的预期来看，就是我觉得虽然面临这种外部消费的这种压力，但是我们不同行业的客户其实表现还是不一样的。汽车行业呢，虽然大家销量都在下降，但是我们的客户并没有减少新品的推出，其实今年汽车行业的新品的推出速度反而比去年还会更多一些。所以我们会看今年的1季度、2季度可能未来的季度我们还是会保持一个比较快的一个增速，因为得益于现在电动车的这个新品的推出在加速，而在微博上相关的这种科技啊，包括新能源的讨论氛围和生态是比较完善的，所以说这部分呢，我们的增长应该还是可以看得到的。好了。

Okay. Next, in terms of Q2 and also the future outlook, I think that although we've been seeing a stressful operational situation for consumption industry, we did have the different responses from different customers.

In terms of automotive industry, at the current stage, they've been experiencing some of the decrease of their sales volume. However, they were not just stopping in terms of the promotion activities for their new products and new product launches as well.

This year, we've been seeing more new product launches than that of last year. In Q1 and Q2, as of the near future, I think that this is going to be accelerated.

As you can see that we always have more and more frequent launches of new EVs. Also Weibo is a very good and natural ecosystem to generate and stimulate the discussions around the topics of technology-related and new energy related.

Okay. 那手机行业一方面来讲，我们现在还不好不好说这个下半年的趋势。那确实上半年的我们的大部分客户他销量都出现了一定程度的下跌，但是我们也会看到今年部分客户其实推出新品，尤其是中高端产品的节奏在明显加快。但是下半年整个的暑期他们的一些产品的节奏有可能会有一定调整。其实今年苹果在中国他的价格体系也做了一定调整，他对手机的国产品牌厂商还是有一定压力的。所以我们需要去看一下客户在下半年产品推出的节奏。也就是说，我们的预算其实更多的和客户推出新品的节奏和新品的数量相关，其实跟本身的客户的经营业绩并没有特别直接的联系。好了。

At the same time, for the handset industry, as you can see that it is difficult for us to have a very correct prediction of the performance in the second half of the year, but the industry did experience a drop of their sales volume in the first half of this year. Of course, this year, however, still we are seeing more launches of new products and new smartphones, and especially increase in the frequency of the smartphone launches for the medium to high-end segment.

In summer holiday, we might been experiencing some of the adjustments of the strategy from the handset industry. Of course, this year, we've been seeing Apple proactively adjusted their price, causing some of the stressful situations to some of the Chinese handset makers.

As a result, our ad revenue and ad budget was primarily related to the frequency of the new product launches of the different verticals, as well as the sales, but not necessarily related to the operational result of the customers in different verticals. Okay.

那电商和本地生活包括快消，快消主要是在二季度开始就已经是一个高基数了，因为去年有外卖大战。今年来讲的话呢，虽然外卖行业也有一定竞争，但是肯定不会像去年的投放这么的激烈。我们觉得后面二三季度其实还是有一个高基数下面的同期的压力的。然后呢，快消因为三季度进入到6月份因为有世界杯，所以说我们也在看有些客户会增加一定程度的投放，从我们的角度上讲还是会去尽量争取这方面的预算。好了。

Also, lastly, let's talk about some of the other industries like the e-commerce and local lifestyle, as well as the FMCG industry. For the e-commerce, we've been already had a very high base number in entering to Q2.

Of course, also for the industry, some of the promotion activities, and especially budget allocated to the fast food delivery was not as intense as before. This is going to be not that stressful.

Also, I would like to comment on FMCG. Entering to the second half of year, we are going to have the World Cup as activities.

I believe that we are trying our best to catch the opportunity to gain that ad revenue or ad budget from that customer. Okay.

另外一个问题就是关于AI方面的一些策略。就是刚才有问，其实刚才script里面也提到了，就是AI其实现在在对于效果广告方面，一个素材生成，然后呢竞价，包括算法推荐的方面，其实利用场景会越来越越来越多。那目前AI生成素材在我们竞价广告里面的消耗已经差不多将近40%左右。那整个一季度的信息流的效果广告的eCPM也提升了一个环比的一个同环比都有一个提升，同比可能增幅在两位数左右。好了。

Also, you can see that talking about the AI topic, as we have already previously stated, that the AI was primarily very effective on the effective-based or the performance-based ads. You can see that AI was quite useful in terms of the ad material generation, the eCPM, and also the recommendations as well.

In terms of those generated materials for the advertisements, the primary consumption rate was already reaching to about 40%. In Q1, in the information-based feed, we had a double-digit growth, especially talking about eCPM and the other relevant areas.

Okay.

另外大家都知道我们的主要的核心收入是在品牌广告方面。其实AI在品牌，包括明星啊内容营销方面，我们也在进行测试。实事求是来看的话呢，从春节之后的这种实际的产品的进展而言，还是比较快的。那它不管是在明星代言方面，还是在一些KOL包括一些新的产品的代言方面，其实AI生成广告素材和品牌这种TVC方面已经展现出来了不错的能力。但是我们在1季度2季度都会看到公众对于AI在这种基于明星啊、基于热点内容生成内容方面，还是有一定的情绪的接受度的障碍的。所以说我们目前在当前阶段并没有把类似的产品进行商业化，而是在小范围的包括跟客户、包括跟明星在进行测试。我觉得这个其实正式进行商业化，还需要一定程度的时间和公众接受度，我们才会对外推出。 Also,

of course, you know that Weibo is very good at doing the business in the advertisement industry for the brand-based advertisement and key customers advertisements. We are very good at doing the business of the celebrity-based or the content-based marketing.

At the current stage, we've been having a very good progress in terms of adoption of the AI among those KOLs and also the celebrities as well. AI is pretty much useful in generating those ad materials for those KOLs to be very much facilitative.

Of course, in Q1 and Q2, we've been seeing some of the headwinds in terms of the adoption rate as well as the acceptance by the public in terms of those ad generated by AI or those contents generated by AI. At the current stage, we're not doing the massive commercialization as for the front, but still we are doing some internal testing among the KOLs, and the public acceptance is the criteria for us to evaluate before we go massive commercialization.

Okay. 好，谢谢。

Thank you. 谢谢。

好，谢谢。管理层晚上好。能不能首先请管理层分享一下信息流改版之后对于整个用户增长以及对于用户活跃这边的一个带动情况？另外上个季度公司也是提到我们视频的策略会作为今年的重要的发展商业方向。那目前我们看到视频策略这块的推进情况怎么样？那么也能不能分享一下就是对于下一个阶段我们重点的标是什么？另外关于关于AI的用于层面，用于产品层面，我们公司近期近期有哪些重要的进展？谢谢。Also thanks management for taking my question.

Could you please share some update on the impact of the feed revamp on user growth and user engagement? Last quarter, we highlighted video strategy as a key focus for this year.

Could you please provide an update on the progress so far, as well as the key priorities and targets for the next phase? Lastly, could you please also share recent developments on the AI front in terms of user-facing products?

Thank you.

信息流改版方面我们是2025年就是差不多去年的三季度中完成的整体用户的一个覆盖，就我们现在整个产品体系是以推荐流为主。那这上线的这几个季度我们一直在升级和优化我们用户体验，去更好的承接用户的内容消费的需求。那一季度的话呢，就是我们从整体数据看呢，我们的MAU跟DAU同比微小幅度下降，这个主要还是一方面是渠道投放策略有一些调整的原因。一方面这里面有手机出货量的下降，所以预装用户一定程度的来下降。还有一个一季度在渠道获客方面，因为AI应用其实一季度是主要投放的旺季，其实某种程度上我们也用户的获客成本也有一定的上升。所以说但是我们的核心用户，其实我们讲社交用户或我们的点击消费型的用户，其实同比都还是保持的一个增长。而且到二季度之后，那用户的规模、消费时长和互动量，尤其是消费时长和互动量都有一个双位数的提升。好了。 Okay.

Thank you for this question. As for the update of the information-based feed, we've been seeing that this was actually completed in about Q3 of in the middle of Q3 of 2025, and before which we had primarily based on the recommendation-based feed.

When we actually had that update and adjustments, we've been seeing a very good improvement of the user experiences in the front. In Q1, we had a little bit decrease of MAU and DAU of the of this side, primarily due to the strategic strategy changes of channel placement and also some of the low shipments of the handset, we had, lower number of pre-installments and also the users as well.

In Q1, you can see that we've been seeing a very good, user acquisition, we've been seeing a user acquisition cost increase because it was actually the hot season in terms of the AI application adoption and also the usage. At the same time, still we are keeping very, good number in terms of the social-based users and also the clickbait users.

In after Q2, we are going to see a very good improvement both in terms of the, time spent, total time spent as well as the interactive volume.

Okay. 长期看呢，其实我们之前也解释过，我们这次大的产品的一个改版，一方面其实还是包括去突破我们原有的关系流的这样一个延续了十几年的一个产品体验。虽然说在市场里面还是包括在用户层面还是有不小的挑战，但是核心目的两个方面目标，一方面还是能够释放微博优质内容的价值，通过算法的能力来提升我们用户的消费体验和消费深度。然后呢，另外一方面更核心的我们还是希望通过这样的一个机制，在视频方面可以说突破我们原来的社交关系的一个限制，可以帮助我们吸引更多的视频博主来入驻微博，然后呢提升他们的内容生产和分发，加强平台上面视频生态的建立，从而提升我们整个平台在视频消费的占比和总时长。好了。

In the long run, our overall objective of doing the update and changes of this existing product is that we would like to, first of all, get rid of those user experience that was primarily based on the relationship-based feed. Of course, at the current stage, there are still some of the challenges from the user side in terms of the acceptance and getting used to this new version.

Still, in the long run, we have two objectives by doing this kind of change. First is that we hope that we are going to fully release the value of Weibo to those consumers.

At the same time, using our algorithm to better enhance the user experience and also the depth of the user interaction on the social media. Second point is that we hope that our total video consumption in terms of the time spent and also the total video-based consumption could be further improved because of this kind of strategy.

Also, we would like to attract more bloggers to be on the Weibo to open account and generate more video contents. Also this would be helping them to do more deployment and the placements as well as the generation and production of the video-related contents.

This would be really helpful for us to increase the time spent on video-related content on Weibo. Okay.

那从视频的这种结果来看呢，一方面从用户数角度看，目前的视频消费的用户数已经同环比都明显提升，而且在DAU中的占比也超过了三分之二。那逐步强化了用户来微博消费视频的心智。而且从时长角度来讲的话呢，总消费时长也实现了同比双位数的一个增长。我觉得更关键的是在视频的供给侧，尤其是我们打破了推荐流之后，我们可以更多的引入更多资源和预算来拓展站外的优质视频博主来到微博，而且用推荐流可以给他们更多流量并鼓励他们生产。那一季度我们加快了站外视频博主的引入，而且通过流量扶持、激励的运营措施，结合推荐算法，可以提升他们在微博整体的视频的宣发效率和视频的供给。好了。 Also

in terms of the overall result of this particular strategy for the video front, first of all, of course, we've been seeing actually a very good growth of the number of users consuming the video-related contents on Weibo. You can see that this was pretty much forming a new mindset of the consumers on the video-related contents.

We had a very good double-digit growth year-on-year in terms of the time spent on the video-related contents on Weibo. On the supply side of the video contents, because of this recommendation-based feed, we hope that we are able to attract more creators and bloggers from outside of Weibo by providing them with the more resources and also more budget.

Based on this new algorithm and new incentives plan and encouragement plans, we hope that we are able to attract more and more those external bloggers and also content creators to be landing on Weibo and helping us to enrich the supply of video content. Okay.

在AI方面来讲的话呢，去年其实我们一直在产品技术研发方面，然后一直鼓励大家使用这个AI，去开发新的产品。去年其实智搜在年终推出之后，然后2025年用户规模和搜索量其实都高速增长，但在今年一季度其实还是遇到了一些挑战。因为特别是AI这些独立工具在今年一季度有一个爆发的增长之后，我们会看到我们的用户的一些消费行为在发生一些变化，从搜索向对话式的搜索就有一个明显的迁移。那这种对话式的搜索在微博用户里面是我们今年在去年四季度推出之后，到今年一季度也有环比有个百分之百的增长，但是它的用户规模其实现在也只在百万的层级。这个今年其实也是我们AI产品重点要去突破的一个方向。好了。

In terms of the AI, we had a lot of R&D and investment and try to encourage people to actually use AI to facilitate what they do. When we launched the Zhisou in 2025, we had actually a very good boost in terms of the total volume of search.

Still, in Q1, we had some of the challenges because at the current stage, we've been seeing a lot of AI tools that were emerging. On a consumer side, more and more consumers are now trying to use the interactive and dialogue-based search instead of just pure search function.

In Q4, we made that interactive dialogue-based search available and experiencing a 100% of the growth in terms of users and adoption in Q1. Still, at the current stage, the base number of the user for this particular feature is only at a level of million.

We hope that in the future, we are able to further boost that and further strengthen our AI-related strategy on this front. Okay.

同时来讲的话呢，在一季度我们面向头部创作者也推出了AI创作工具和创作中心，然后呢覆盖图文、视频等场景，帮助大V结合热点和平台的特色的版权素材生成这种图片，包括视频。而且我们跟即梦，包括千问合作，也推出了这种现在基本上都是数秒，我们推出了1分钟左右的视频。这个效果还是不错，但是目前我们还是只向微博的千V内容全面开放，还没有向所有用户去开放这样的一个功能，因为在目前阶段还是比较高的单位成本。 In Q1, yeah,

in Q1, especially, targeting those content creators, we are now establishing an AI, content creating center facilitating those, content creators to generate the text and images as well as the video contents as well. At the current stage, you can see that we had a lot of, important, key account or the key content creators that had a very good, video generated through our in the center and those text and images as well.

Also, we've been seeing a very good, collaboration with Jimeng and [T-Pay-One?] or Qianwen to actually have the capability to help the content creators to generate the video with a length of 1 minute long, which primarily it's about like, several seconds or 10 or so seconds, but we are able to help to generate the videos of 1 minute long.

This, of course, is the feature, but it's not accessible by all the users, but at the current stage, we're only providing this to some of the new certified users. In the future, we hope that we are able to have a roll out.

Before that, we are going to have further consolidation in internally.

Okay. 好的，谢谢。

Thank you. 谢谢。

Thank you.