Provide updates on the impact of information feed changes, video strategy progress, and user-facing AI developments.

The information feed update, completed mid-Q3 2025, improved user experience, though MAU saw a slight decrease due to strategic channel changes and lower handset shipments. The long-term goal is to enhance user experience, interaction depth, and increase video consumption. Video content saw double-digit YoY growth in time spent, with efforts to attract more creators. On AI, the intelligent search function was upgraded to multi-turn, multimodal queries, and an AI content creation center was established for creators, enabling 1-minute video generation for certified users, with a base of 1 million users for interactive dialogue search. “[Interpreted] So in Q4, we made that interactive dialogue-based search available and experiencing 100% of the growth in terms of users and adoption in Q1. But still at the current stage, the base number of the user for these bigger features only at a level of 1 million.”

Weibo (WB) Q1 FY26 earnings call: the analyst Q&A

Earnings call· Mar 2026 (Q1 FY26)· Information Technology· May 28, 2026

Source: earnings call transcript

Executive summary

Weibo Q1 FY26 — Ad Revenue Growth Driven by AI and Strategic Shifts

Weibo delivered solid Q1 FY26 ad revenue growth, fueled by strategic shifts towards user quality, information feed optimization, and robust AI integration across products and monetization. Despite a modest decline in MAUs, DAUs showed resilience, supported by enhanced video consumption and core user retention. The company continues to balance investment in AI and content ecosystems with profitability, navigating uncertain macro consumption sentiment and industry competition.

Highlights

Total net revenues increased 6% year-over-year to $421.3 million.
Total advertising and marketing revenues grew 9% year-over-year to $369.8 million, driven by Internet services, local services, and automotive verticals.
Average daily active users (DAUs) achieved modest quarter-over-quarter growth, reaching 254 million.
Total time spent on video playback pages achieved double-digit year-over-year growth.
MSCI ESG rating was upgraded from BB to AA, recognizing sustainability progress.

Concerns

Monthly active users (MAUs) experienced a modest decline year-on-year and quarter-on-quarter, reaching 562 million.
Non-GAAP operating margin decreased to 28% from 33% in the prior year, primarily due to increased investments.
Value-added services revenues decreased 11% year-over-year to $51.6 million, mainly due to a decline in game-related revenue.
Advertising revenues from Alibaba decreased 4% year-over-year on a constant currency basis to $43.3 million.
Intensified competition in the handset market and rising component costs may weigh on ad budgets from this sector.

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Advertising and Marketing Revenue growth was supported by improving demand from selected verticals and continued execution in content marketing and performance-based ad products. Internet services, automobile, and local services were major contributors, while FMCG faced a year-over-year gap and online game sector was on a descending trend. Constant currency growth: 3%Largest verticals: FMCG, e-commerce, 3C productsMajor growth contributors: Internet services, automobile, local servicesAlibaba ad revenue: $43.3 millionAlibaba ad revenue YoY growth: 2%Alibaba ad revenue constant currency YoY growth: -4%Promoted feeds ad: largest, solid growth	$369.8 million	9%	—	—
Value-Added Services The decrease was primarily attributable to a decline in game-related revenue. Constant currency growth: -15%	$51.6 million	-11%	—	—

WB operating KPIs by quarter

WB operating KPIs stated on its earnings calls, by fiscal quarter
KPI	This call Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Change vs prior quarter
Monthly active users (MAU)	562M On the user front, in March 2026, Weibo's MAU was 562 million and average daily users reached 254 million. Source: earnings call transcript	561M On the user front, in June 2026, Weibo's MAUs reached 561 million and average DAUs reached 254 million. Source: earnings call transcript	-0.2%
Daily active users (DAU)	254M On the user front, in March 2026, Weibo's MAU was 562 million and average daily users reached 254 million. Source: earnings call transcript	254M On the user front, in June 2026, Weibo's MAUs reached 561 million and average DAUs reached 254 million. Source: earnings call transcript	0%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline
AI Creation Tools for Creators	expansion	Q1 FY26
Weibo Intelligent Search Function	update	Q1 FY26
AI Content Creating Center	launch	Q1 FY26

Risks & headwinds

Modest decline in Monthly Active Users (MAUs) Q1 FY26

562 million MAUs in March 2026, modest decline YoY and QoQ

Mitigation:Strategic focus on enhancing user experience, driving retention, rationalizing channel budget allocation, and optimizing information feed products.

Decline in Non-GAAP operating margin Q1 FY26

28% in Q1 FY26 vs 33% in Q1 FY25

Mitigation:Increased investments in monetization-related initiatives, balancing near-term execution with sustainable profitability and healthy cash flow generation.

Decline in Value-Added Services (VAS) revenues Q1 FY26

$51.6 million, -11% YoY (-15% constant currency)

Mitigation:Primarily attributed to decline in game-related revenue; no specific mitigation mentioned beyond overall strategic focus.

Decline in advertising revenues from Alibaba Q1 FY26

$43.3 million, -4% YoY on a constant currency basis

Mitigation:Fluctuations correlated to Alibaba's marketing strategies, campaign priorities, and product launch schedule. No specific mitigation mentioned.

Intensified competition and rising costs in handset market Ongoing, looking ahead

May weigh on ad budgets from handset manufacturers

Mitigation:Closely tracking new product launch cycles and client budget dynamics, optimizing sales strategy to ensure solid coverage of key clients.

Headwinds in FMCG and online game sectors Q1 FY26

FMCG facing year-over-year gap; online game sector on a descending trend due to lack of blockbuster releases

Mitigation:FMCG saw sequential recovery with celebrity/KOL marketing. For online games, no specific mitigation mentioned beyond overall strategic focus.

Uncertain macro consumption sentiment and industry competition Ongoing

General market uncertainty

Mitigation:Balancing investment needs with operating efficiency and healthy cash flow generation to build a sustainable foundation for long-term development.

Public acceptance and commercialization of AI-generated content Near-term

Not doing massive commercialization yet

Mitigation:Internal testing among KOLs and waiting for public acceptance as a criterion for massive commercialization.

Q&A highlights

What is the Q2 advertising outlook and full-year strategy? How does AI benefit advertising and monetization?

Management noted Q1 ad revenue growth was better than expected in consumption areas, but key accounts in automotive, handset, and e-commerce face stress. Q2 outlook for automotive is positive due to new EV launches, while handset industry sales dropped in H1. E-commerce faces a high base and less intense promotional activities. AI is effective for performance-based ads, material generation, and recommendations, with 40% consumption rate for AI-generated ad materials. AI also facilitates KOLs and celebrities in content creation, but mass commercialization is pending public acceptance.

“[Interpreted] So you can see that AI was quite useful in terms of the ad material generation, [indiscernible] and also the recommendations as well. So in terms of those generated materials for the advertisements, the primary consumption rate was already reaching to about like 40%.”

asked by Thomas Chong from Jefferies · answered by Gaofei Wang

2 min read 5 chapters

Detailed narrative

User Growth and Retention Strategy

Weibo is strategically focusing on enhancing user experience and driving retention, leading to a rationalization of channel budget allocation. While MAUs saw a modest decline to 562 million in March 2026, DAUs achieved modest quarter-over-quarter growth to 254 million, supported by optimization of information feed products and sustained video content consumption.

The company aims to build a high-quality, highly engaged, and sustainable user growth framework throughout 2026.

Information Feed and Video Optimization

Following product updates in mid-2025, the information feed optimization began yielding positive results in March 2026, improving content consumption and interactive measures for core users. In Q2, the focus will shift to users relying on recommendation feeds, aiming for seamless content consumption.

The video business is a crucial driver for time spent and retention, with total time spent on video playback pages achieving double-digit year-over-year growth in Q1, driven by optimized distribution and increased supply of high-quality content.

AI Integration Across Products and Monetization

AI continues to be a significant enabler for Weibo, supporting ad targeting, bidding, and creative generation for promoted feeds and real-time bidding products. Internally, AI tools are expanding to improve execution efficiency across product, operations, and sales teams. The company is also leveraging AI to enhance search capabilities, evolving from single-turn Q&A to multi-turn, multimodal queries, and integrating AI agent capabilities into key scenarios like public figure search.

Content Ecosystem Competitiveness

Weibo is strengthening its core businesses of trending topics, social network, and search. Efforts in Q1 focused on enhancing the credibility of trending lists, deepening community interactions within 'super topics' (which saw YoY growth in active and engaged users), and advancing AI search.

These initiatives aim to improve content consumption efficiency and overall user engagement, reinforcing Weibo's position as a platform for hot trend discovery and public discussion.

Advertising Revenue Drivers and Headwinds

Advertising revenues increased 9% YoY, primarily driven by strong growth in Internet services, local services, and automotive sectors. AI large language model players significantly ramped up marketing investment on Weibo during Chinese New Year. However, sectors like FMCG and online gaming faced headwinds, with FMCG showing sequential recovery in celebrity/KOL marketing, and online gaming declining due to a lack of blockbuster releases.

The handset market faces intensified competition and rising component costs, potentially impacting future ad budgets.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.