Wang Gaofei Weibo earnings Interpretation: The next quarter or slowing subscriber growth Beijing May 15 message, microblogging (NASDAQ: WB) today announced the company as of 31 March 2015. The first quarter unaudited financial statements. Reported microblogging first quarter net revenues of $ 96,290,000, an increase of 43% compared to $ 67.51 million over the same period of last year; based on US Generally Accepted Accounting Principles (GAAP, hereinafter referred to as \u0026 ldquo; GAAP \u0026 rdquo;), attributable to the micro-Bopp through shares Net loss to shareholders of $ 2,894,000, down 94% over the previous year's net loss of $ 47,377,000. After the earnings announcement, Sina Bo Wang Gaofei CEO, CFO Yu Zhengjun, Sina CEO Charles Chao and other executives attended the subsequent conference call with analysts held to discuss results and to answer analysts' questions.
The following is a question and answer session analysts main content: Bank of America - Merrill Lynch analyst: My first question is about your second-quarter revenue forecast looks you expect revenue growth in the second quarter will slow down, I think look, this is due to the first quarter a relatively large envelopes Promotions causing the problem? Second, could you tell us about the first-quarter corporate account data validation and processing of personal data V account? Yuzheng Jun: revenue growth is expected to slow and the reasons for our strategic cooperation with Alibaba related to some of our verticals and Alibaba cooperated, there is no relationship with the red envelope promotion. Basically, the removal of Ali Baba factors, we expect the trends of other businesses in the past few quarters will remain the same. Number of enterprises currently account on the microblogging has more than 1 million. Goldman Sachs analyst: You mentioned recently launched microblogging P4P (pay-for) forms of advertising? Currently you received feedback advertisers like? Such advertising is mainly brand advertisers or SMEs to use? Secondly, when you are expected to accelerate the company's revenue growth can be restored?
Also, I noticed that your monthly active users in accelerating growth, but the growth of daily active users a little behind, I think Japan should increase the number of active users will catch up, but you can explain why both Growth will be a time difference? Yuzheng Jun: If you look at our separate large customers and small business customers advertising income, SME customers will find advertising revenue growth is very fast, basically doubling every year, we believe this trend will continue. VIP advertising revenue in the first quarter is considered a low season for us, if you look at the situation last year, when growth is strong, mainly due to the impact of the Spring Festival. Social advertising at the beginning of the year when it will be relatively large impact. In the second quarter, we expect its sequential growth rate will be faster than the first quarter. Wang Gaofei: number of active users on the issue, in the first quarter, the users will have a lot of second and third tier cities back to the city, some of our activities can encourage them to pull their friends or family to the micro-blog, so our monthly active Number of active users will grow faster than the number of days the user, because some users after Bo entered nuanced take some time to familiarize microblogging use, this part of the new user's login frequency is lower than the old users.
However, our daily active users to use long or remain stable, that is, if these users stay long with the old words when the user is using the same. HSBC's analysts: My question is regarding expected second quarter results, I would like to know about your agreement on $ 380 million of revenue between before and Alibaba, to what effect the performance of the second quarter? Secondly, can Weibo monthly active users according to a second city or men and women look at is the number? Yuzheng Jun: business cooperation contract with our Alibaba three years, this year is the final year of the contract, of course, the future we will continue to negotiate a new contract thing, but a contract between us is a commitment to limit the annual Alibaba advertising revenue generated, and no specific restriction on the circumstances of each quarter, so we made a second-quarter outlook is based on our understanding of the situation is expected this quarter made. Wang Gaofei: on monthly active users, users first-tier cities accounted for about 30%, second-tier and second-tier cities below about 70%, ages aspect specific to approximately 70% to 80% after 80, 80 years ago about 20% to 30%. Piper Jaffray analyst: deferred accounts in the second quarter of the situation that you like? Can you give an approximate expected revenue growth in the second half of this year? Wang Gaofei: We Alibaba Sina Weibo advertising in most of the previous year based on brand advertising, mainly Alibaba some large market promotion activities. This year, with the beginning of the end of last year microblogging vertical development, Alibaba and microblogging start in some verticals together to create some of the products, which is, for example, film and tourism cooperation microblogging based on our strategy to build Some new products, and this year will be on the microblogging Ali for advertising to promote these products, the introduction of these products on-line and in the second quarter, but the specific amount currently we have no plans, so in the second quarter performance expectations which we did not include this section. Piper Jaffray analyst: Do you think the company's revenue will be recovered from the third quarter to the fourth quarter to accelerate growth?
Chao: The so-called deferred accounts, in fact difficult to say, depending on advertisers in the end how to plan how to allocate your advertising budget in each quarter, second quarter, they just put in a relatively small, in the third quarter natural advertisers will invest more more, but we do not know specifically how much will each run in the third and fourth quarters. It is difficult to say-year revenue growth in the third quarter was not the year growth will be higher than the second quarter, but the trend is certainly in the second half of the advertisers will certainly spend more money for advertising. Analyst: You are now advertising system should be to all Alibaba businesses open, then these revenues are recorded in the income from the Alibaba name or the name of income from SME clients? In addition, I would like to know, Alibaba businesses in the microblogging advertising seasonal rhythm is consistent with the advertising industry's seasonal rhythm, or consistent cosplay gurren lagann with the e-commerce industry's seasonal rhythm? Yuzheng Jun: from Alibaba's business advertising revenues recorded in the piece through what channels, depending on their Weibo advertising, if they pass our advertising agency that income from Alibaba, and if they pass that our self-service advertising system It will be credited under the SME advertising revenue.
If you look at our SME customers, a lot of them are electricity supplier related companies, but we also have many O2O companies, as well as many applications open business, fast moving consumer goods companies, etc., if we look at seasonal factors, basically the first quarter It would be the lowest annual revenue season. TH Capital analyst: I would like to know about your vertical development strategy, especially the recent launch of the movie channels you, I would like to know if a film released soon, they promote microblogging, Sina microblogging how to make money from it? Second, you have to cooperate with the television program, and the second and third quarters have any plans? Wang Gaofei: In recent years the average annual compound growth rate of China's film market is between about 20% to 30%, we began to enter the film industry in the last year, mainly through the microblogging inside some from the media and microblogging inside the film industry cosplay xxxholic Some of the promotion to boost our customers and marketing the film side of the film. 2014, substantially all of the Chinese-made films in the microblogging will conduct advertising and marketing, in 2015 our development will be focused on two aspects, one many international movie will start microblogging advertising and marketing, the second is with microblogging the film audience of users increases, some of the fast moving consumer goods category for advertisers begin advertising these movies users, and achieved very good results. In other words, we in the movie, one will get advertising and marketing revenue from the film side, on the other hand will get from fast moving consumer goods, automotive advertisers marketing income category, it is helpful. Television, microblogging in television advertising revenue last year grew very fast, this year, then every year in the second quarter, the third quarter is the focus put on television variety shows, and this year we and Hunan TV, Zhejiang TV, Jiangsu TV and other large TV stations have launched a strategic partnership, but also in these big television program Weibo are their exclusive social media partner, it is expected that second and third quarter of this year we should be derived from advertising in TV variety shows with relatively good Results. Last year we only cooperate with each TV in a TV show, this year with the \u0026 ldquo; a drama two weeks \u0026 rdquo; and other development policies, we expect and Hunan, Jiangsu, Zhejiang, these large TV each program can have stalls cooperation .
Citigroup analyst: My question is about the growing trend of users, you expect the second and third quarters to have the number of new subscribers? In addition, next year, in the vertical development, in addition to the film industry, you will also be developed in what field? Wang Gaofei: user growth, the first quarter is generally our annual monthly active users of the fastest growing quarter, one of our priorities is to take measures in the second quarter of the first quarter of the incoming user to maintain a high degree of retention, so subscriber growth for the second quarter cosplay costumes for sale we will have a more optimistic expectations, but should not be high in the first quarter. Vertical field, we think microblogging development to this stage will be in full swing this year, focused on several areas, the first is associated with the electricity supplier, and the second is from the media related, such as the electricity supplier and we related Ali Baba and some vertical electric business cooperation; from the media area we cooperated'll movies, music and tourism this year in line reviews and other areas of our focus last year.