Thank you for standing by, and welcome to the Weibo's First Quarter 2020 Financial Results Conference Call. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to Sandy Zhang, Weibo Investor Relations. Please go ahead.

Thank you, Operator. Welcome to Weibo's First Quarter 2020 Earnings Conference Call. Joining me today are Chairman of the Board, Charles Chao; our CEO, Gaofei Wang; and our Senior Group CFO, Bonnie Zhang; and our VP of Finance and Interim CFO, Fei Cao. The conference call is also being broadcast on Internet and is available through Weibo's IR website. Before the mentioned remarks, I would like to read you the Safe Harbor statement in connection with today's conference call. During today's 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. We will assume no obligation to update the forward-looking statements in this conference call and elsewhere. Further information regarding these 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 under applicable law. Additionally, I'd 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 the 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 nonrecurring in nature or will not be 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.

Thank you. Hello, everyone and welcome to Weibo's First Quarter 2020 Earnings Conference call. On today's call, I will share with you highlights on Weibo's users, products, and monetization, as well as progress we've made on our key initiatives in 2020. Let me start with our first quarter financial results. In the first quarter, our total revenue reached $323.4 a decrease of 19% year-over-year or 15% on a constant currency basis. Advertising and Marketing revenues reached $275.4 million, a decrease of 19% year-over-year or 16% on a constant currency basis, 89% [ph] of our ad revenues came from Mobile. On the user front, Weibo's MAU grew 18% year-over-year to $550 million in March 2020, representing a net addition of approximately 85 million users year-over-year. Average daily users grew 19% year-over-year to 241 million, representing a net addition of approximately 38 million users year-over-year. This is the highest reported year-over-year user growth to date in terms of net addition of MAUs and DAUs. 94% robust MAU came from Mobile. This quarter, amid the coronavirus outbreak in China, Weibo demonstrated its indispensible value as a social media platform leveraging unique strength in serving public conversations between government, media and general public. We are delighted to see strong growth in both use and traffic to our platform with [indiscernible] growing 50% year-over-year. On monetization front, advertisers in broad range [ph] cutback or suspended their ad budgets in response to the business disruptions resulting from the pandemic in short or mid-term. That said, this is all now behind us, as we have the pandemic has driven the transformation of the larger industry and their marking approach presenting long-term opportunity to both our customers and us coupled with ramp up in traffic Weibo is well positioned to further grow its social ad wallet in the…

Thank you, Gaofei and hello everyone. Welcome to Weibo’s first quarter 2020 earnings conference call. Let's start with user metrics. In March 2020, Weibo’s MAU reached $550 million, representing a net addition of approximately 85 million users on year-over-year basis. Weibo’s average DAUs reached 241 million representing a net addition of approximately 38 million users on year-over-year basis. This is the highest reported year-over-year user growth to date in terms of net additions of MAU and the DAU, demonstrating Weibo’s indispensable value as a leading programming platform in China, and further solidifying our strategic mode in the China internet space. Most MAUs represented approximately 94% of total MAUs. Turning to financials. As a reminder, my prepared remarks will focus on non-GAAP results 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 of 2020. The unprecedented COVID-19 had a broad impact on our business operations, revenues and expenses in the first quarter of 2020. Weibo’s first quarter 2020 net revenues were $323.4 million, a decrease of 19% or 15% on a constant currency basis. Operating income were $74.1 million, representing operating margin of 23%. Net income attributable to Weibo were $67.4 million, and diluted EPS was $0.30. Now, let me give you more color on revenues. Weibo's advertising and marketing revenues for the first quarter of 2020 reached $275.4 million, a decrease of 19% or 16% on a constant currency basis. Mobile ad revenues were $246.4 million accountability approximately 89% of total ad revenues up from 85% last year. Moving on to KA. In the first quarter, Weibo’s KA ad revenue reached $127.6 million, a decrease of 24% from 21% on a constant currency basis. Excluding the product transaction revenue impact KA ad revenues would have…

Thank you. [Operator Instructions] The first question today comes from Alicia Yap from Citigroup. Please go ahead.

Hi. Thank you. Good evening management. Thanks for taking my questions. Congrats on the solid results. Can management elaborate on the recovery status and also the budget readiness for the KA account versus the SME? And any specific trend you're seeing from multinational KA accounts showing more cautious in spending and if you could give some colors on major industry, but because how are some of the impacted factors seeing the recovering trend and their willingness to spend? Thank you.

First let me share some color on Weibo’s first quarter performance and recovery that we have seen so far. For KA business we actually saw healthy year-over-year growth trends. In January prior to the coronavirus outbreak, prior to active coronavirus outbreak since last late January [indiscernible] involving Chinese revenue cutback, [indiscernible] impact to the pandemic entering into April since getting normalized with domestic epidemic being effectively contained and business resumption underway. Accordingly, we are seeing a sequential recovery of ad spend from those advertisers with either flattish or modest growth trend on an annual basis. However, now the national brands probably would take a more cautious [indiscernible] aspects given the impact it is having from pandemic in the home market, which might have a ripple effect on China ad budget. So FMCG industry, consumer staples such as food and beverage turned out resilient and exhibit a general stabilized trend in the first quarter. While the [indiscernible] such as cosmetics and personal care subsector largely impacting the first quarter as severe customers reduced or postponed their ad spend in the action to the delay in the new product launch. For the second quarter, ad budgets from the top customers in FMCG verticals are picking up sequentially. Also the [indiscernible] of the sectors revenues from [indiscernible] actually increased year-over-year in the first quarter despite disruption in the introduction of offline promotion in the first quarter. During the pandemic we have introduced online product launch solution to further tap into the partnership from offline to online sectors. And looking ahead, I think mobile handset introduction really compensated in the domestic area and this accelerated trends of the budget partnership from offline to online. So we will further emphasize on optimize the cost to the sector and capture the ad dollars from the handset…

Okay, thank you. A - Gaofei Wang Okay, thank you.

Thank you. The next question comes from Binbin Ding of JP Morgan. Please go ahead.

Good evening management. Thanks for taking my questions. My first question is regarding the competition in the ad market. I think in last year, one of the major concerns among investors is the oversupply of ad inventory. And many of them just to mention that again, how does management view the supply-demand situation in this year especially post the COVID-19? Will there be any changes to the competitive landscape because of the pandemic? And I have a follow-up question on the potential opportunity from the COVID-19. So have you identified any new the behavior changes during the pandemic, and I think you mentioned a number of new initiatives, such as live concert online for that launch. Can you elaborate on the topic and how is Weibo positioned to capture these opportunities? Thank you.

Worldwide is the answer for, I already mentioned and an over advertized market with some softness on the demand side, especially for the SME sector and oversupply of inventory in the market. And we are very well positioned for capturing the opportunity brought by the partnership from offline to online as the leading social media platform. We have influence on media, celebrity and the KOL [indiscernible] and we also have a very strong growth in our overall user base and also the – you know we can also tap into new opportunities with the online product launch, which we're hoping to capitalize on that partnership. And we do see [indiscernible] to improve our product monetization maturation rate consistently in traffic feed and the growth of our platform. And the pressure we see from the platform is the feed is a few challenging offer and surely the platform and we will focus on three areas to improve our overall ad impact in the market to upside the [indiscernible]. First, [indiscernible] shall we see the integrated vending class performance at a high change it is very influential in the market and it also adds – we keep focus on for our products and operations. I have made an overall ad budget CapEx led by the pandemic. We expect the key customer to - and that's more on the commercial front on top of spending needs. If a new product launch and various e-commerce related promotion by brands is becoming kind of must have scenario in their budget allocation. For new product launch, as I mentioned earlier our product, all in product release resonate as well with the handset customers and we are also penetrating through the FMCG vertical as well. And for e-commerce really the promotion by brands. We will have to…

This concludes our question-and-answer session. I’d now like to hand the call to Ms. Sandy Zhang for any closing remarks.

Yes, thank you, operator. This concludes our call. Thank you for joining us. We will see you next quarter.

This does conclude our conference for today. Thank you for participating. You may now disconnect.