Ladies and gentlemen, thank you for standing by. Welcome to the Weibo Report Fourth Quarter Financial Results Conference Call. [Operator Instructions]. I must advise you that today's conference is being recorded on the 5th of March 2019. I'll now like to hand the conference over to your first speaker today, Ms. Sandra Zhang the Investor Relations Manager. Thank you. Please go ahead.

Thanks, Operator. Welcome to Weibo's Fourth Quarter and Fiscal Year 2018 Earnings Conference Call. During today, our Chairman of the Board, Charles Chao; our CEO, Gaofei Wang; our SINA CFO, Bonnie Zhang; and our VP Finance and Interim CFO, Fei Cao. The conference call is also being broadcast on the Internet and is available through Weibo's IR website. Before the management remarks, I'd 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. A number of important factors 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 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 of the date hereof. Weibo assumes no obligation to update such information, except as required and for the applicable law. Additionally, I'd like to remind you that our discussion today include certain non-GAAP items - certain non-GAAP measures, which include stock-based compensation and certain other items. We used non-GAAP financial measures to gain a better understanding of Weibo's comparative operating performance and the future process. Our non-GAAP financial excludes certain expenses, gains and losses and other items that are not expected to result in future cash payment or are nonrecurring in nature or not be indicative of our core operating results and outlook. Please refer to our press release for more information about our non-GAAP measures. Though we mentioned prepared remarks, we'll open the line for a brief Q&A session. With that, I would like to turn the call over to our CEO, Gaofei Wang.

Thank you. Hello, everyone, and welcome to Weibo's Fourth Quarter 2018 Earnings Conference Call. On today's call, I'll share with you the highlights of Weibo's user growth, product and monetization, review the progress that we have made in 2018 and lay out the strategies for 2019. Let me start with our fourth quarter financial results. We continue to see solid growth in revenues and user base this quarter. Our total revenue reached $481.9 million, up 28% year-over-year, and advertising and marketing revenues reached $470 million, up 35% year-over-year with 84% of our ad revenues coming from mobile. Non-GAAP net income during the fourth quarter was $183.6 million, up 26% year-over-year, representing a non-GAAP net margin of 38%. For full year 2018, Weibo total revenue reached $1.72 billion, up 49% year-over-year. Advertising and marketing revenues were $1.5 billion, up 50% year-over-year. Non-GAAP net income reached $624.2 million, up 54% year-over-year, representing a non-GAAP net margin of 36%. The sustainable growth of Weibo's revenue and profits in 2018 were mainly derived from the following three areas. First, the continued user base expansion has further solidified Weibo's indispensable position in China's mobile advertising market. Second, Weibo's monetization ecosystem continue to evolve to a more sophisticated level, in particular KOL marketing, which leveraged KOL's influence in branding and the performance out of campaigns as it enhanced our monetization efficiency and differentiated us from rivals in a highly competitive market. Lastly, through years of investment in a self-reinforced accounting change monetization ecosystem, we were nurtured and empowered many content generators to grow with the platform and eventually turn them into the build of our ad customers. The native demand from these content creators lay good foundation for Weibo's growth and to the current economic cycle. The market [indiscernible] our content creators, it's an essential component…

Thank you, Gaofei, and hello, everyone. Welcome to Weibo's Fourth Quarter and Fiscal Year 2018 Earnings Call. Before the detailed financial review, I'd like to remind you that my prepared remarks will focus on non-GAAP results and all comparisons on a year-over-year basis unless otherwise noted. In addition, as we adopt to new revenue guidance since January 2018, we are ordered to provide investors with comparison under the same basis and they also indicate our current shared revenues for expand figures under the old revenue guidance, which excludes revenues or expenses related to barter transactions and add back value-added tax to the reported current period of financials. Now let me walk you through our financial highlights for the fourth quarter and the fiscal year 2018. Weibo's fourth quarter 2018 ad revenues were $481.9 million, up 28%. Operating income was $186.4 million, representing an ad - representing an operating margin of 39%. Net income attributable to Weibo was $183.6 million representing a net margin of 38%. Diluted EPS was $0.80 compared to $0.64 last year. For full year 2018, total revenues reached $1.72 billion, delivering an annual growth of 49%. Operating income was $662.2 million, up 45% and representing an operating margin of 39%. Net income attributable to Weibo was $624.2 million, up 54%, representing a net margin of 36%, up from 35% last year. Diluted EPS was $2.73 compared to $1.18 in 2017. Let me give you more color on fourth quarter and the full year 2018 revenue growth. Advertising and the marketing revenues for the fourth quarter 2018 reached $417 million, up 25% or 32% on a constant-currency basis. Mobile ad revenues were $315.1 million, up 33% or 40% on constant-currency basis, representing 84% of our total ad revenues, up from 79% last year. Full year 2018 advertising and…

[Operator Instructions]. First question comes from the line of Thomas Chong from Crédit Suisse.

I have two questions. My first question is about our expectation regarding the advertising trend in first half and second half of this year. Should we expect revenue reacceleration as we go into the second half when things are getting normalized? And second question is about - with regard to market share gain story. Should we expect Weibo to continue to gain market share in the next 3 to 5 years despite we see macro uncertainties?

Other than the key accounts and SME sort of split, let me further break our customer base into three category. The first category, we referred to those customers who were affected by policy changes in 2008 that would have - the example of online gaming and the entertainment business. What we see is these are - the revenue from these segments were negatively impact in 2018 while heading into 2019, while with the policy become a lot more clear, we see a recovery pass for these segments. One thing I would like to indicate that the corresponding traffic related to this industry segment are very - are doing very well on our platform. So it's just a matter of time as customers are coming back with their ad dollar. So our traffic will be able to meet their demand. However, in terms of online gaming, we think that recovery process could be a bit slower. That's why we have not factoring in that much of incremental revenue from the online gaming part in the first half. As I indicated in the - my remarks, on the KA part, we continue to see our budgets shift from the TV to the online. And on the online part, the social marketing part continue its trend taking more shares from other segments. And on top of that - on top of these two factors, what we have noted other than the branding awareness or branding coverage needs from key accounts, there would be more demand on the performance side for our KA customers. In particular, after the connection we had at the e-commerce platform, with the data we have, we see stronger growth in the KA demand. So that's not only from the brand advertising, but just more so it's from their performance…

We'll move on to the next question from Binbin Ding from JPMorgan.

Given we're running out of time, I will be really quick on two questions. So first is on the MAU growth target in 2019 and the corresponding user acquisition strategies. Second is video feed monetization. Given you have launched your new version of Weibo app on a larger scale, can you share some color on operating metrics regarding the user adoption of the video functionality and also what is your monetization plan now on video feeds in 2019?

In terms of the MAU, I would just reiterate. Most of our user acquisitions through the preinstallations, through handset manufacturers, that will be our major channel investment. In last year, we also supplement that investment with spending in TV stations and top app - top applications. And for this year, I think we slightly will continue this path, but it was more optimization on the components of how the amount is being spend on the handset manufacturers and under the TV and under the application - top applications. So for 2019, the spending will be optimized with more focus to retain the new users and their engagement rate with the platform. We feel a bit less pressured in terms of the MAU acquisition. Well, I think you understand that we have pushed out our video community on our product from fourth quarter last year. In terms of video content, we will definitely have a leading competitive edge in terms of breaking news, hot events and/or celebrity vertical, these types of things. However, compared to other short video platform, for those content - for those content that's pure for user consumptions where we have - we don't have - I think we are in short of that. So our strategy for 2019 is encourage more Big V or top content creators in verticalized areas to create and distribute their video contents in our video community.

This concludes our conference for today. Thank you for joining us. We'll see you in the next quarter.

Ladies and gentlemen, that does conclude the conference for today. Thank you for your participation. You may now disconnect your lines.