Weibo - Earnings Call - Q3 2020

Transcript

Speaker 0

Ladies and gentlemen, thank you for standing by, and welcome to the Weibo Reports Third Quarter twenty twenty Financial Results Conference Call. At this time, all participants are in listen only mode. After speakers' presentation, there will be a question and answer session. I would now like to hand the conference to your first speaker today, Ms. Sandra Zhang.

Thank you. Please go ahead, ma'am.

Speaker 1

Thank you, operator. Welcome to Weibo's third quarter twenty twenty earnings conference call. Joining me today are our Chief Executive Officer, Gao Phi Wang and our VP Finance and Interim CFO, Fei Cao. The conference call is also being broadcasted on Internet and is available through Weibo's IR website. Before the management remarks, I'd like to read the Safe Harbor statement in connection with today's conference call.

During today's conference call, we will 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. 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 statement in this conference call and elsewhere. Further information regarding this and other risks is included in the Weibo's annual report on 20 f and other filings with the SEC.

All the information provided in this press release is occurring as of 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 excludes stock based compensation and certain other expenses. We use non GAAP financial measures to bring 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 payments or are not nonrecurring 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 prepared remarks, we will open the lines for a brief Q and A session. With this, I would like to turn the call over to our CEO, Gaofei Wang. Thank you. Hello, everyone, and welcome to Weibo's third quarter twenty twenty earnings conference call.

On today's call, I will share with you highlights on Weibo's user, product and monetization as well as progress we made on our key initiative in 2020. Let me start with our third quarter financial results. In the third quarter, our total revenue reached 465,700,000.0, flattish year over year. Advertising and marketing revenues reached 416,700,000.0, an increase of 1% year over year. 90% of our ad revenues came from mobile.

On the user front, Weibo's MAU grew 3% year over year to 511,000,000 in September 2020, and average DAUs grew 4% year over year to 224,000,000 in September 2020, both representing a decrease of 2% quarter over quarter. 94% of Weibo's MAU came from mobile. This quarter, with growing user base and steady pace and enhancing user engagement and retention as our key strategies for user product operation. We put more emphasis on increasing consumption efficiency of fees and enhancing user social interaction. That said, on the user scale front, post the summer break in August, Weibo's user number decreased in September compared with June.

We have faced incremental headwinds in terms of user growth for the second half of the year, mainly due to negative impact from cutbacks and investments for variety shows and entertainment industries, as well as back to school seasonality. In addition, on engagement front, our user engagement and time stamp were also negatively impact impacted influenced by the intense competition in the user market as short video platform are still aggressively investing in the user acquisition. As such, for one thing, we have based off our investment in social attributes and video video areas from those product and operation perspective to solidify our market competitiveness and user growth, leveraging Weibo's unique platform positioning. For another, we have also stepped up our efforts in channel and strategic partnership since the fourth quarter, hoping to sustain our wider user coverage. On the monetization front, we have further emphasized brand cross performance ad offerings among KA and SME advertisers from key industries and reinforce our competitiveness in the market through business restructure, which are determining factors for our business recovery post the pandemic.

As a result, our top KA in the industry sectors returned to the growth trajectory in the third quarter, entertained by notable growth in the number of brand advertisers, which contributed to the stabilization of our ad business in the third quarter on a year over year basis. In discussing our operating updates for the third quarter, I'll elaborate our progress made in areas of product and monetization. We are facing an increasingly market competition for the second half of the year. In response to this, it's crucial for us to push it's crucial that we optimize our user product to further enhance Weibo's uniqueness and core com compact competitiveness in the social media sector. And meanwhile, we'll step up our investment in video and user community in vertical areas, aiming to enhancing user acquisition capability to cultivate in user's habit of content consumption in this area.

On topic product, it's our core function to serve the public question and discussion around topic, which help to bring new users and enhance user engagement on the platform. And thus, we kept our investment in the content generation, discovery and discussion around topics, as well as extended related content consumption. In the third quarter, BAUs who consumed topics continue to grow double digit year over year and the user discussion around topics grew nicely as well. Moving forward, on the product front, we will optimize post features to encourage user to post and reinforce content discovery and the topic distribution mechanisms to improve the efficiency of content generation. Our operation front, we will further encourage media outlets and KOLs to create topics and participate in topic discussion, which enrich content offering around topics.

On content consumption side, we will further enhance user consumption and discussion around hot topics through more quality content offering within the discovery zone. It is achieved through optimized algorithm mechanism of hot topic chart and hot search functions and collaboration with platform including handset manufacturers. Moving on to social. It's our focus to enhance product social features to drive content offerings and social interaction. First, for relationship based feed, we have further upgraded distribution mechanism and launched a new feature to facilitate user interaction in the feed.

For instance, we reinforced selected content distribution in relationship based feed to beef up social content offerings, such as enhancing traffic social to to post users might to to post the user might have missed and post that was heatedly discussed among users who follow. Additionally, on top of our commentary and repost features, we we added social features to enhance direct interactions among users, such as enabling users to leave message on others' main page. Second, for community products such as Sense Group and Supertopics, we have further enhanced the social attributes and promoted stance social relationship buildup and their interactions are around interest, which in turn drive user social thickness in relationship based fees. As a result, in this quarter, the use of super topic and a number of post interaction and relationship build up in super topic all grew double digit year over year, and nearly 60% of the top KOLs have created their super topics. We believe the progress we have made to strengthen competitive edge of our community products will enable us to tap into growth of the overall self media market, attracting more self media to Weibo and driving user engagement.

That concludes our remarks on healthy healthy events and social attributes as we boost core competitiveness. Next, let me share some color on the progress of video account program. Since the launch of program in July, we have been focusing on optimizing our platform mechanism to better facilitate traffic distribution and sense accumulation around video account, as well as strengthen our brand recognition among video KOLs and users. As of November, we had over 750,000 content creators participating to video account program on Weibo, among which over 13,000 already have send based over a million. Taking the November metrics as an example, the number of daily video submission and daily video viewership, those increased over 30% year over year for those monthly active active video account.

We are encouraged to see a notable trend among Weibo's top content creators to shift to where we video, leveraging introduction of of our video account program. And meanwhile, video account program also attract talent video content creators from other platforms to join and accumulate social assets on Weibo, which will supplement our current payroll network and enrich our content ecosystem. Going forward, for one thing, we'll lower the entry barrier for opening our video app video account, enabling more KOLs to join and benefit from traffic support from video account program. For another, we'll reinforce video content distribution based on social recommendation within the video community, hoping to nurture user mindset to visit the video community and thus further drive video content consumption around video accounts. To sum up, on top of channel investment amid market competition, first, we will solidify our advantage in topic and social media function to grow our user base and improve user engagement so as to enhance our competitiveness in the user acquisition.

Second, we will focus on increasing user time spend and frequency mainly through improvement of content consumption experience of video and the community products and thus enhance our competitiveness in the market. On the monetization front, we continue to reinforce our competitiveness in the advertising market and the team fight overall ad demand recovery internally and solid progress on the monetization system reform internally. As a result, Weibo's advertising revenues have almost returned to the same level last year or increasing 2022% quarter over quarter. Our KAI revenues increased 12% year over year or 33% quarter over quarter. The robust growth was mainly driven by a notable increase in the number of brand customers, which reached historical high this quarter.

From an industry perspective, the FMCG category saw a growth acceleration benefiting from a considerable increase in the number of customers. Although enhanced industry, excluding border transactions, also booked a solid double digit growth. Entertainment, previously hit hard by pandemic, started to come back this quarter, although still feel short short of the same level last year. On top of the overall ad demand recovery, we also achieved this such robust growth to our differentiated value proposition to brand customers, mainly on two fronts. First, leveraging our unique strengths in the distribution and discussion around top IPs, such as blockbuster shows and sports events.

We managed to open up incremental ad inventories by creating content around these IPs. IP based marketing would enable us to tap into a broader customer base as well as drive monetization through content operation. Second, we focus on offering integrated brand plus performance as solution to KA customer to capture higher ad wide especially with auto and FMCG sectors. Moving on to SMEs. Our SME revenues decreased 15% year over year and increased 20% quarter over quarter.

Notwithstanding the gap to the overall revenue level last year, we are pleased to see gaming and online education sectors become the core growth driver of our SME business. This year, we have achieved breakthrough with these two sectors as we beef up our effort to drive conversion and enhance our operation capability. Consequently, our revenues from gaming and online education sector continue to book triple digit growth on an annual basis. For example, we roll off industry specific solutions for these two sectors. More specifically, a product called Big Day to serve customers' new game release marketing needs, as well as iSolution targeting a high school and college examination for online education customers.

At product like at product like this, effectively fulfill customers' marketing need around product launch and key timing leading to broader customer coverage and a higher ad wallet for us in return. With respect to other sectors, we continue to focus on optimize optimizing customer mix, expand the customer base, and, improve ad quality this year. During this quarter, we took steps to optimize on areas where we frequently receive negative user feedback by setting higher ad quality standards. Despite the short term revenue loss, we believe the improvement on the overall ad quality will benefit us in expanding our customer base and optimizing ad performance in the long run. Finally, let me share some color on the progress with our ad products and technologies.

First, we took a targeted approach to improve ad algorithm and trust distribution strategy. A good example is the game Rise of Kingdom, a blockbuster game. In view of customers go to reach targeted user group rapidly upon release, we refined our ad attribution and backhand system to accommodate such marketing need, allowing this customer to to reach incremental targeted user beyond the original group and gain higher conversion. As a result, we could better fulfill customers' new game release goals while helping the customer enhance its marketing efficiency significantly. Significantly, enable us to capture incremental ad budget.

Build upon such success success story, our next step is to put together an industry specific ad solution and make the standard ad offering for the gaming industry. Second, we will focus on tech optimization around our full funnel marketing in the next few quarters. For example, with the Internet service sector, we advanced our app technology to deliver better app download experience and the completion rate through optimization on the download and registration process. We successfully lowered the app activation cost by over 50%. Third, to address customer lead generation need, especially with education, e commerce, cosmetic surgery industries, etcetera.

We facilitate the easy buildup of our landing page using our own CMS. Currently, customers who use our CMS showed their conversion rate improved improving by over 50% upon the adoption. With solid execution of the above initiative, we are well positioned to capture higher performance ad wallet in the market. With that, let me turn the call over to Fei Cao for financial review. Thank you, Dongfei, and hello, everyone.

Welcome to Weibo's third quarter twenty twenty earnings conference call. Let's start with user metrics. In September 2020, Weibo's MAU reached five eleven million representing a net addition of approximately 14,000,000 users on a year over year basis. Weibo's average DAUs reached two twenty four million, representing a net addition of approximately 8,000,000 users on a year over year basis. Let's turn to financials.

As a reminder, my prepared remarks would focus on non GAAP results and all the comparisons on a year over year basis unlike otherwise noted. Now let me walk you through our financial highlights for the 2020. Weibo's third quarter twenty twenty net revenues were 465,700,000.0 flat or decrease of 4% on a constant currency basis. Excluding the high end of our guidance, operating income was 179,400,000.0 representing an operating margin of 39%. Net income attributable to Weibo was 152,900,000.0 and diluted EPS was $0.66 Now let me give you more color on revenues.

Weibo's advertising and marketing revenue for the third quarter twenty twenty increased 1% to 415,700,000.0. Mobile ad revenues were 376,100,000, contributing approximately 19% of total ad revenues, up from 87% last year. Moving on to KA. In the third quarter, Weibo's KA ad revenue reached $221,200,000 an increase of 12% year over year and 33% quarter over quarter. Leveraging a nice rebound in domestic consumption and ongoing digital transformation, our KA business demonstrated great recovery momentum with a number of brand advertisers spending with us this quarter hitting record high.

We are delighted to see a growing number of brands recognizing Weibo's unique value proposition in connecting to younger generation, leveraging KOLs influence as well as delivering on brand plus performance goals. This quarter, on top of traditional brand budget, paid customers mostly allocated higher budget to performance driven products such as speed and the QL marketing offerings to drive users all the way down the funnel, which presents us this opportunity to capture incremental ad wallet in the long run. Industry wise, the strength in our key business was relatively broad based this quarter with growth fueled by key sectors such as FMCG, automobile and luxury category, etcetera. On fleet side, entertainment, travel and real estate sectors remained on the negative growth trajectory, but we are seeing early signs of recovery following ease up of restrictions on theaters and tourism. Turning to SMEs, in the third quarter, Weibo's SME ad revenues reached $166,400,000 a decrease of 15% and an increase of 20% quarter over quarter.

The descending trend of our SME business was mainly attributable to two factors. First, the recovery pace of offline merchants continued to lag behind the overall SME sector and weigh down the growth of SME ad revenue. And second, as we mentioned last quarter, our initiative to clean up low quality customers and ad creative also negatively impacted our SME revenue. On asset, gaming and education sectors continued to book table data growth year over year bolstered by further improvement around the bidding efficiency and performance. In September, we officially launched our revamped ad leading system, SuperSensuken Free, featuring a series of updates optimized CPX video, and the KOL ad offerings in the hope of driving ROI for customers through more direct response features, better ad relevancy, and the higher ad placement efficiency.

Ad revenues from Alibaba for the third quarter increased 52% to RMB29.2 million. The momentum of ad spend from Alibaba reflects our strengthened cooperation in driving value for brands and merchants to achieve branding plus performance purpose through integrated ad campaigns on both platforms. That's that ad spend from Alibaba highly correlated to its own business operation, especially its marketing strategies, which may change from time to time. As such, we cannot ensure that such robust growth will be sustainable in the future. Value added service, VAS revenues decreased 11% to $49,100,000 in the third quarter, primarily due to decrease of live streaming revenues, partially offset by an increase in membership revenues.

Turning to costs and expenses. Total costs and expenses for the third quarter increased 3% to $286,400,000 The increase was primarily due to the higher bad debt provision and the personnel related costs, partially offset by decreased marketing spend. Operating income in the third quarter was 179,400,000.0 representing operating margin of 39% compared to 41% last year and 31 in the second quarter. Turning to income tax and the GAAP measure. Income tax expense for the third quarter was $30,000,000 compared to $31,400,000 last year.

Net income attributable to Weibo in the first quarter was $152,900,000 representing a net margin of 33% compared to 38% last year and 30% in the second quarter. Turning to our balance sheet and the cash flow items, as of 09/13/2020, Weibo's cash, cash equivalents and short term investments totaled $3,200,000,000 compared to $2,400,000,000 as of December 3139, mainly due to net proceeds of $714,300,000 received from the wayward senior note offering in July 2020. In the 2020, cash provided by operating activities was 235,200,000.0 Capital expenditures totaled $10,700,000 and depreciation and amortization expenses amounted to $7,700,000 Now let me turn to financial outlook. We anticipate our fourth quarter twenty twenty net revenues to increase by 1% to 3% year over year on a constant currency basis. This forecast includes revenue estimate of our interactive entertainment company, which was acquired and consolidated to our company in November 2020 and represents approximately 2% of our revenue estimate this quarter.

This forecast reflects Weibo's current and the preliminary view and is subject to change. With that, let me now turn the call over to the operator for the Q and A session.

Speaker 0

Certainly. Ladies and gentlemen, we will now begin the question and answer session. We have the first question from the line of Alisa Yap from Citigroup.

Speaker 2

Good evening, management, and thanks for taking my questions. I have two questions related to advertising. Number one is related to the overall ad budget sentiments and recovery trend in China. It seems, you know, China is on track for a decent recovery. But given the seriousness of the pandemic outbreak in other countries, do you have you seen or do you think it will affect the ad budget, you know, on onto the worries of the the the outbreak in other countries in terms of the app sentiment.

Then second is related to the competition. It seems that management continue to mention the intensified competition from the short video companies in terms of the app such as allocation. So not too sure will this intense competition continue into next year, or do you think given Weibo product is recovering, I mean, it's improving, should we see the competitive landscape be actually moderate and improving over time? Thank you.

Speaker 3

Okay. So let me give you the answer for the very first question. So let's talk about the data of q three. Let's divide it into the brand and also SME. First of all, talking about the brand ads, you can see that because Weibo is a very large company.

So I don't think the pandemic is impacting the ads revenue or budget of the brand so far. But talking about the SME, I think that in the 2020, we really had a big impact because previously our SME budget previously focused on offline primarily speaking, especially those kind of industries like O2O and also finance. So I think that we made some changes on the SME side. So this year, we move further to the online business and especially the online education, e commerce and gaming, etcetera. So second of all, I would like to say that in terms of our strategy focusing on the brand customers, currently speaking our brand revenue or ad revenue from the brand customers is relatively small compared with the other big companies.

So because previously and also as of now we pretty much focus on the top companies and also top brands. So you can see that of course we have a very steady growth of our number of customers especially the brand customers. And also in 2021 we have some kind of changes and also adjustment over our strategy. For example, now we are going to enlarge and expand the name list of those brand customers especially focusing on the inclusion of regional brands and also those national fashionable brands as well. So you can see that in the next one, two years, we are going to see that more revenues or we are going to see more revenues coming from those middle and brand customers.

Okay. And also, next, I would like to say that talking about the SME part. So because I think that SME is really a kind of a sector in our business that is heavily impacted by the pandemic because previously we pretty much focused on the O2O business and also there's wedding dress, photographing and also e commerce or financial industry. So you can see that the O2O because of the pandemic impact, this was heavily like dropped and declined. And also second of all, we willingly dropped out some of the customers, for example, in the financial industry or cosmetic surgery industry.

So the SME side, we have a strategy that we are going to leverage the abilities of the existing team to focus more online, especially online education and also gaming as well. So that is the reason why we are seeing a very good result of growth. And also next year, our focus will be using the same SME team to further optimize the end the online business and also to prioritize our services provided to those online brands and customers and especially focusing on the network service apps downloading service for example. And also because that this year we have big growth on the gaming industry. So that's why we are now pretty much more focused on the provisional services to those app downloading and other relevant areas.

So second, talking about the impacts on the competition landscape of the short video. So you can see that we have, first of all, the indirect impact from this particular competition for the brand customers in specific or brand ad, if you like. So if we're talking about this competition, we are talking about the indirect competition first of all from the long video side. But you can see that this year because of this pandemic and also the lower down investment going to the entertainment sector, we can see that those brands are now preferring to invest their money into making videos on Weibo, Bilibili or RED instead of those traditional platforms of making long videos. So I think that is a favorable trend toward us.

And also, I want to say that in the SME sector, we still feel a little bit stressful con con confronting the competition from the short video platform. Because comparing with the text and also image like Weibo, we do see the advantages maintaining in the short video platform. But also what we have to do is that we wanna focus on the service provision as well as the optimization of our algorithm for the ad as well. So you can see that this year, we're doing very good job on gaming, especially q three. So you can see that it is helpful for us to get more budget from those brands and also customers.

Also next year we're going to focus on getting more budget from the other famous customers in those cosmetic surgery area or e commerce or Internet service, etcetera. So that it is very much hopeful for us to get more budget from those short video platforms as well. But overall speaking, in a short run, I still believe that short video platform is very much advantageous in terms of making ads, over the text and image oriented platform like Weibo. So and also I have to say that I'm talking about the specific competition with the short video platform on the SME side. First of all, we are going to further invest into making more high quality short videos on our side.

So you can see that we have been always focusing on investment on this area. So this year, we are also building up more inventories of the advertisements as well at the same time based on short videos. And second of all, not only we are trying to focus on the content, but also we would like to focus more on the customers' conversion rate by putting ad and budget over our platform. So you can see on the education side, we're pretty much focusing on not only doing ad, but also making the conversion rate increase for them. So this is actually a kind of a hybrid way for us to contact or for us to overcome the challenges from the short video platforms.

Speaker 1

Okay. Thank you.

Speaker 4

Thank you. Next question comes from the line of Tian Hou from Th Capital. Please ask your question.

Speaker 5

So it's it's it's continued on the short review. The company has made a great progress on the short review. The last quarter, we mentioned the company had about half million authors already opened their short video account. So I wonder how many of them opened the account by the '23. And in the 02/2021, what is the company's goal in terms of how many accounts do we plan, you know, or work on to open?

And for the advertising revenues, generally, by short video, what's the percentage of total does the company expect that to be? That's my question. Thank you.

Speaker 3

So first of all, in our previous presentation, I mentioned a little bit about it. So let's just recap from it. So first of all, overall speaking, we have over 700,000 accounts already opened on the video account. And also talking about those account having over 1,000,000 followers, we have 13,000 of them already. So the growth rate is very good and glad.

So, of course, that and having said that, that is still relatively way smaller comparing with the number of We media that we have or self media that we have on Weibo. So given the fact that creating the content of video is way more difficult than that of creating a text and image like we traditionally did in Weibo. So in the future, I think the number of video accounts will be still remain relatively small against the total number of accounts that we have. And second of all, let's talk about our strategy, which is very clear already in our group. So first of all, in terms of production, first, of course, we are going to emphasize more on encouraging those capable offers to create more high quality videos on our side.

So by those capable authors, I mean the media or KOLs or those food or delicious food accounts and also those fashionable brands or fashionable accounts or those cosmetic KOLs as well. So not only they can get the traffic from the video itself, but also they can gain an extensive traffic or feed from the Weibo itself from those text and image users. And second of all, the strategy is that we are going to attract more external accounts or external creators to join Weibo to publish their short videos at the same time. For example, we wanna attract those people from Bilibili or watermelon or TikTok, etcetera. So at the same time, not only they can generate videos on Weibo video account, but also they can actually at the same time publish some text and image to show their attitude and sometimes interact with their followers by commenting, etcetera.

So you can see that this particular part, the hybrid model is the one that we enjoy the most growth or the biggest growth this year. So I'm also talking about the consumption side. The first thing is that for those creators of videos, not only they are publishing their videos, but also at the same time text and images as well. So if we're talking about the followers of those KOLs, you can see that the average time spending is like two times higher than that of the time spent on text and image only. So this kind of average time spending can help us to improve our activities.

And also second thing is that we can see that in Weibo we can create such kind of an independent space for the advertisements and also for the video based consumption behavior as well. So this is really helpful for us to gain more budget and gain more revenue from the ad part. And also, we can build up a very good inventory of high quality video and also advertisements as well. And finally, let's talk about the objective that we have. Of course, in the short run, we're going to focus on the investment driven strategy, which is to say that we are not saying that all the creators of the videos should actually give us more consumption payback higher than our investment, not necessarily speaking.

So that is to say it's pretty much the case that in the short run we're going to invest more than the revenue coming from those creators. So we have actually of course two aims. The first is that we are going to encourage more text and image creators to convert to the high quality video creators. And second of all, we are going to attract more external creators from other platforms to arrive on Weibo account video account to create more videos and at the same time interactive content based on images and text. So that is a very good strategy for us to further differentiate Weibo from other platforms and also give us a sustainable revenue contribution from the ad part and video side as well.

Speaker 1

You. Thank you. Your

Speaker 4

last question comes from the line of Miranda Chuang from Bank of America. Please ask your question. Thank you, operator, and good evening, management. Thanks for taking my questions. Can you please share with us your preliminary outlook for the advertising business in next year, in particular, the Aspen settlement of your advertisers in the various industries?

Speaker 3

Okay. Mhmm. So overall speaking, talking about the industrial outlook. So continuously, we're not going to only focus on KA, but also SME at the same time. And also, we are now trying to focus more on each different verticals.

And also second, combine the brands together with the effectiveness and conversion of that particular ad. So this is a very comprehensive and holistic strategy for this business. So you can see that in the future, we can see that by doing that, we are going to increase the branding and also increase the SME side as well or effectiveness as well. So you can see that we are going to focus more on the verticals like automotives, gaming and also FMCG as well. So for example gaming, this year we pretty much focus on those new games published this year.

And also they can they have a huge demand of getting a very good effectiveness of more gamers and also high quality contents of games as well. Also, let's talk about the industry of gaming for example. So because that now we are trying to focus on the quality or the quality oriented customers. So that is to say on the gaming side, now we can see that we are primarily very much very well collaborated with AliGame, Tencent or Libby's for example. And they are making high quality games at the same time.

So they're pretty much gaining more traffic from Weibo. But if you are continuously making some of the games like the web page game, etcetera, which does not necessarily need to build up the brand, but only focusing on the factors in this kind of advertisement, I don't think that they are going to get out further traffic from Weibo. So that is to say that we are going to see a very good growth on those concentrated verticals especially those top brands concentrated areas, but not that distributed or like scattered area. So overall speaking, while we finish our monetization strategy implementation, we're going to see that in the future, we are going to continuously focusing on those customers that are investing more into the their high quality area. So especially in the future, if the brand, not only the brand customers, but also SME, if they have more budget focusing on the online advertisement, we are going to collaborate and also track those ads.

Okay.

Speaker 4

Thank you. Thank you. Ladies and gentlemen, that does conclude our conference for today. Thank you for participating.