Weibo Company (NASDAQ:WB) This fall 2023 Outcomes Convention Name March 14, 2024 7:00 AM ET
Firm Members
Sandra Zhang – Investor Relations
Gaofei Wang – CEO & Director
Fei Cao – Chief Monetary Officer
Convention Name Members
Timothy Zhao – Goldman Sachs
Thomas Chong – Jefferies
Xueqing Zhang – CICC
Operator
Good day and thanks for standing by. Welcome to Weibo Stories Fourth Quarter and Fiscal Yr 2023 Monetary Outcomes Convention name.
At the moment, all contributors are in a listen-only mode. After the audio system’ presentation, there might be a question-and-answer session. [Operator Instructions] Please be suggested that in the present day’s convention is being recorded.
I might now like to show the decision over to the primary speaker in the present day, Ms. Sandra Zhang from Weibo Company. Thanks. Please go forward.
Sandra Zhang
Thanks, operator. Welcome to Weibo’s fourth quarter and full yr 2023 earnings convention name.
Becoming a member of me in the present day are Chief Government Officer, Gaofei Wang; and our Chief Monetary Officer, Fei Cao. The convention name can be being broadcasted on Web and is out there by way of Weibo’s IR web site.
Earlier than the administration remarks, I want to learn you the Protected Harbor assertion in reference to in the present day’s convention name. Throughout in the present day’s convention name, we might make forward-looking statements, statements that aren’t historic information, together with statements of our beliefs and expectations. Ahead-looking statements contain inherent dangers and uncertainties. A lot of vital components might trigger precise outcomes to vary materially from these contained in any forward-looking statements. Weibo assumes no obligation to replace the forward-looking assertion on this convention name and elsewhere.
Additional data relating to this and different dangers is included in Weibo’s Annual Report on Kind 20-F and different filings with the SEC. All the knowledge supplied on this press launch is happening as of the date hereof. Weibo assumes no obligation to replace such data besides as required underneath relevant legislation. Moreover, I want to remind you that our dialogue in the present day contains sure non-GAAP measures, which excludes stock-based compensation and sure different bills. We use non-GAAP monetary measures to achieve a greater understanding of Weibo’s comparative working outcomes, efficiency and future prospects. Our non-GAAP financials exclude sure bills, positive aspects or losses, and different objects that aren’t anticipated to end in future money cost or are non-recurring in nature, or should not indicative of our core working outcomes and outlook. Please seek advice from our press launch for extra details about our non-GAAP measures.
Following the administration ready remarks, we’ll open the traces for a short Q&A session.
With this, I want to flip the decision over to our CEO, Gaofei Wang.
Gaofei Wang
Thanks. Howdy, everybody. Welcome to Weibo’s fourth quarter and full yr 2023 earnings convention name.
On in the present day’s name, I will share with you highlights on Weibo’s product and monetization, evaluate the progress made in 2023, and elaborate our methods for 2024.
Ranging from our monetary efficiency within the fourth quarter. Within the fourth quarter of 2023, our efforts to enhance consumer acquisition and engagement of high-value customers continued to repay. As well as, we beef-up our initiatives to additional get better the video content material ecosystem, strengthen content material operations, and improve our means to serve choice advertising and marketing. Because of this, regardless of the general sluggish finish market, our complete income within the fourth quarter reached $463.7 million, a rise of three% year-over-year and 5% quarter-over-quarter. Our complete advert revenues reached $403.7 million, a rise of three% year-over-year and 4% quarter-over-quarter. On a relentless forex foundation, each our complete revenues and advert revenues within the fourth quarter would have elevated 5% year-over-year. Our non-GAAP working revenue within the fourth quarter reached $145.9 million, representing a non-GAAP working margin of 31%.
Turning to our full yr monetary efficiency. In 2023, as a consequence of uncertainties of the macro and {industry} surroundings, the restoration of advert demand was a bit unstable. It resulted in decrease than anticipated annual advertising and marketing finances for some purchasers in key industries in contrast with our expectation firstly of the yr, which weighed down the expansion of our advert enterprise. For full yr 2023, our complete revenues reached $1.76 billion, a lower of 4% year-over-year. Our complete advert revenues reached $1.53 billion, a lower of 4% year-over-year. On a relentless forex foundation, each of our complete revenues and advert revenues would have elevated 1% year-over-year. This yr we deal with enhancing our product’s core competitiveness and enhancing working effectivity to navigate by way of challenges from an exterior surroundings. For full yr 2023, our non-GAAP working revenue reached $592.1 million, representing a non-GAAP working margin of 34%.
On the consumer entrance, Weibo’s MAUs reached 598 million and common each day customers reached 257 million within the fourth quarter, including roughly 11 million and 5 million customers year-over-year, respectively.
Subsequent, let me elaborate our progress made on product operation and monetization within the fourth quarter and our key methods for 2024.
our technique from 2023. Within the first half of the yr, we began to get better consumer visitors within the post-pandemic period within the second half of the yr, whereas sustaining our core competitiveness in [indiscernible] tradition, leisure and sports activities. We strengthened the event of vertical content material ecosystem by way of visitors help for vertical content material, which enhanced the competitiveness and well being of Weibo’s total ecosystem.
On the channel entrance, within the fourth quarter, we maintained cooperation with producers to extend channel funding for the acquisition of high-value customers by way of extra correct [indiscernible] and concentrating on functionality, our consumer engagement has been improved, which laid the inspiration for monetization.
On social attributes, within the fourth quarter, we proceed to execute methods to deal with improvement of content material verticals. On the one hand, we proceed to optimize content material construction for relationship-based feed to bolster the distribution of content material from key verticals and get better the general content material ecosystem. Alternatively, we proceed to counterpoint the methods vertical KOLs work together with their pals and enhance their interplay effectivity. Because of this, KOLs from vertical areas continued to achieve extra visitors and consumer interactions and have become extra keen to generate content material. In 2023, the variety of each day interactive customers and the variety of interactions within the relationship-based feed continued to develop year-over-year. For Tremendous Matter, we launched the brand new features for customers to put up and work together, boosting consumer engagement in the neighborhood. Specifically, for the leisure vertical, we additional enhanced the Tremendous Matter social attributes and interplay for customers’ in-depth dialogue and content material recreation within the leisure sector, leveraging enchancment of the general sector. Because of this, consumer engagement within the leisure vertical elevated considerably in 2023 versus 2022. The variety of DAUs of Tremendous Matter elevated year-over-year and the variety of customers who put up per day and interplay of the Tremendous Matter elevated over 20% year-over-year.
On the content material entrance, within the fourth quarter, on high of retaining the competitiveness of scorching matters, leisure and different benefits key IP-related verticals, we linked our visitors towards verticals to help the {industry} market. For instance, we elevated funding in digital, vehicle, on-line video games, style and sweetness and healthcare verticals to reinforce {industry} companions’ notion of the platform worth and additional improve the competitiveness of our content material ecosystem.
On IP-related content material ecosystem, within the fourth quarter, for leisure vertical, we proceed to spice up the engagement and interplay of high celebrities and elevated the dialogue round their works to strengthen our competitiveness within the followers and leisure work-related content material ecosystem. In 2023, the visitors and interactions within the leisure vertical elevated year-over-year. Specifically, high superstar engagement and posts elevated over 30% year-over-year, with a greater surroundings for leisure work manufacturing and launch. The visitors across the promotion of leisure work and dialogue round these works have elevated considerably year-over-year with complete dialogue growing by greater than 50% year-over-year. The visitors and dialogue round TV collection on Weibo reached the document excessive. When it comes to scorching traits, we encourage nationwide media to prepare discussions of scorching traits within the vertical space, facilitating media’s scorching pattern protection from social information to vertical scorching traits to extend the media engagement within the vertical scorching traits and stabilize consumer demand for consumption and dialogue of the social scorching matters.
On industry-related content material verticals, we proceed to speculate extra assets throughout the platform within the fourth quarter. First, we strengthened the visitors distribution of high-quality vertical content material, elevated the proportion of vertical content material on the platform, and promoted the event of high KOLs in every content material vertical. Second, we adjusted the product mechanism to reinforce visitors help to vertical scorching content material that creates scorching pattern impact, enhancing the notion of industry-related scorching traits. Third, we improved the operation of industry-related vertical matters and occasions, leveraging Weibo’s benefits in cross-vertical operation to information media and high cross-vertical KOLs to put up and have interaction with the vertical content material. All these measures contributed to the continual development of the visitors and interplay in industry-related verticals in contrast with the third quarter. For instance, since October, we now have seen a surge in consumer curiosity in varied respiratory ailments comparable to influenza and mycoplasma. We encourage the media accounts to actively put up content material of widespread science and in addition promote associated content material sharing from vertical KOLs from throughout verticals. Because of this, the overall consumption of the associated scorching matters has exceeded 2 billion, attracting numerous docs to affix and have interaction on Weibo. It has shortly elevated Weibo’s affect within the medical {industry} and established consumer behavior of discovering, consuming and discussing scorching matters within the healthcare vertical on Weibo.
Transferring on to monetization entrance. Within the fourth quarter, due to the e-commerce purchasing festivals, the year-end promotion and tailwinds from recreation license approval, Weibo’s advert revenues grew 3% year-over-year and 4% quarter-over-quarter, leveraging Weibo’s energy in scorching pattern advertising and marketing.
By {industry}, revenues from the auto and the handset sector sustained strong year-over-year development within the fourth quarter. The expansion was primarily attributable to Weibo’s differentiated benefit of content material advertising and marketing in new product launch in addition to favorable dialogue mild within the areas of digital applied sciences and new vitality automobiles. As well as, the web video games and healthcare industries booked a double-digit development year-over-year within the fourth quarter. As for the healthcare sector, we’re happy to see regular development trajectory of each our {industry} affect and monetization with a surge of consumer curiosity within the healthcare {industry} put up the reopening. Our elevated funding in vertical content material ecosystem of healthcare additionally progressively bear fruit. When it comes to the web recreation {industry}, with tailwinds from recreation license approval and higher recognition of our content material advertising and marketing resolution amongst clients, we captured the chance to advertise the brand new blockbuster titles for key purchasers within the fourth quarter, delivering sustained year-over-year income development. For instance, within the fourth quarter, Tencent’s Dream Star and NetEase Eggy Occasion spent closely on Weibo for brand spanking new recreation marketing campaign. With finances allotted principally to scorching pattern and content material advertising and marketing, we now have delivered sturdy branding impact, beating consumer’s expectation entertained by our distinctive content material advertising and marketing and repair functionality of constructing market hype for the brand new video games. Advert revenues from e-commerce sector additionally boosted year-over-year and quarter-over-quarter development within the fourth quarter, due to the mega e-commerce purchasing festivals.
On the flip aspect, for the wonder and private care {industry}, even with sturdy visitors help to total content material technology, high purchasers had been nonetheless closing out stock throughout the Double 11 purchasing competition, leading to continued finances shifts in direction of performance-based platforms. Due to this fact, the restoration tempo of the wonder and private care {industry} nonetheless fell in need of our expectations, which has turn out to be the key drag for the general advert development in 2023. For one factor, pushed by advert finances shifts from offline to on-line throughout the pandemic, income contributions from the wonder and private care {industry} elevated considerably in 2020 and 2021, which created a excessive base at the moment. This [indiscernible] for one more since 2022, clients have been shifting their gross sales channel for e-commerce dwell streaming platforms, resulting in a decline in advert quantity share of social media and conventional e-commerce platforms. Moreover, we additionally must additional beef up our investments to strengthen Weibo’s competitiveness within the content material vertical of magnificence and private care. We hope to renew optimistic advert development on this sector this or subsequent yr with additional restoration of content material ecosystem and normalization in clients’ gross sales channel changes.
Wanting again on 2023, we confronted challenges from fast shifts in consumer curiosity within the post-pandemic period. Particularly, we noticed a decline in content material consumption demand for information and scorching traits, whereas a surge in consumption demand for vertical content material. Within the meantime, the restoration tempo of the general client market additionally fell in need of expectations, resulting in a reduce in model advert finances for sure clients. In mild of the headwinds from content material consumption and promoting demand aspect, we deal with enhancing the platform’s working effectivity in 2023. We strengthened our competitiveness in scorching traits and social merchandise, additional grown our consumer neighborhood and visitors, in addition to enhanced the monetization worth of the platform visitors. This effort laid strong basis for us to advertise vertical visitors and thus revitalize Weibo’s firm ecosystem and competitiveness.
General talking, though revenues from sure industries fell in need of expectation and dragged the overall income development, we delivered first rate working revenue, which additional elevated from final yr, due to strong execution of our effectivity initiatives, leveraging improved working effectivity, steady profitability and wholesome money stream additional elevated our monetary flexibility, giving us ample room to put money into vertical content material ecosystem and drive consumer development and engagement. In view of the difficult competitors panorama of vertical content material, we’ll take gradual steps to restoring our competitiveness of vertical content material ecosystem whereas deal with solidifying our advantageous areas. It could take 2 to three years to drive up the visitors share of vertical content material on the platform. On this means, we might additional reinforce Weibo’s market affect, obtain wholesome improvement of the content material ecosystem, and thus lay a strong basis to reinforce our monetization effectivity.
In 2024, we’ll deal with rising our consumer neighborhood and engagement, strengthening the competitiveness of our content material ecosystem, in addition to additional enhancing our working effectivity. In mild of the present market circumstances, we attempt to keep up regular income development and enhancing the general effectivity within the meantime. On the operation entrance, we’ll beef-up our efforts to bolster the aggressive fringe of scorching traits and IPs and revitalize our vertical ecosystem on the similar time. On the monetization entrance, we goal to optimize our content material advertising and marketing and performance-based advert merchandise. We consider the execution of those methods will lay a strong basis for our top-line restoration from the consumer, content material and monetization aspect, enabling us to seize market alternatives as soon as the macro-economy will get higher and model advert demand improves.
On the consumer and engagement entrance, in 2024, our product operation will deal with 3 elements. First, we’ll proceed to function intently with strategic channel companions with a deal with enhancing high-value consumer acquisition and utilization frequency. Second, we emphasize on optimizing the construction of social merchandise and additional enhancing the advice effectivity of data feeds within the hope of driving user-scale, social interactions, and engagement. Third, we’ll refine the product vibe and consumer expertise of scorching pattern merchandise as a way to reinforce the mindset and market affect of [indiscernible] customers. In the meantime, we may even attempt to create extra scorching trend-based merchandise, enabling customers to find extra scorching matters and traits enter public dialogue and thus develop the consumer scale and engagement of scorching pattern merchandise.
On the content material ecosystem, we additionally spotlight 3 elements in 2024. First, we’ll proceed to bolster our main place across the ecosystem of leisure and sports activities occasions. Specifically, as for the leisure sector, we’ll strengthen the superstar followers ecosystem to extend consumer interactions and deal with strengthening our strategic cooperation with the promotion and distribution platform of flicks, TV collection and selection reveals. This won’t solely solidify the competitiveness of leisure work-based ecosystem, but in addition drive platform visitors and consumer engagement. Taking the film promotion throughout the 2024 Spring Competition, as instance, leveraging our cooperation with film IP holders across the scorching pattern operation of film plots, superstar followers interactions and prolonged vertical matters. We’re happy to see a 50% enhance in subject dialogue year-for-year giving us confidence in turning into a go-to platform for film promotion this yr. 2024 additionally marks the yr of the Olympics. Our years of cultivation across the sports activities vertical might be paid-off with a chance to realize new document highs in sports-related visitors and discussions.
Second, we’ll proceed to solidify our main place round scorching traits. We hope to receiving the regular development of society and media-related scorching matters. The bottom line is to higher have interaction the media and high content material creators within the distribution and dialogue of scorching matters round vertical traits, enabling the build-out of mega scorching matters. These efforts would hopefully consolidate Weibo’s market affect within the scorching pattern space and facilitate consumer acquisition at a big scale.
Third, we’ll additional strengthen the cultivation of vertical ecosystem in key industries. To elaborate, we’ll develop the quantity and engagement of golden and orange verified accounts, boosting the dialogue of vertical scorching matters and thus reinforcing the synergy between firm ecosystem and monetization ecosystem, which varieties a virtuous self-reinforcing cycle.
Lastly, on the working effectivity, we’ll step-up our efforts in enhancing our monetization competitiveness. We are going to proceed to strengthen the popularity of Weibo’s content material and IP advertising and marketing amongst extra industries and purchasers and thus enhance our aggressive edge in capturing purchasers’ budgets. When it comes to the advert merchandise, we’ll standardize and scale-up the gross sales of our content material and IP advertising and marketing choices. As for performance-based advertisements, we attempt to enhance our service functionality round advert efficiency and content material with a deal with optimizing analysis of advert efficiency of key industries and high purchasers. As an example, the famend down-jacket model Bosideng capitalized on its two product ideas, light-weight and skinny, and reshaping classics in winter marketing campaign of 2023, leveraging a mixture of superstar endorsement and content material advertising and marketing on Weibo. Bosideng deeply bonded with scorching matters round this model ambassador Yang Zi tapping into real-time winter-related traits comparable to temperature drops and white snow to firmly affiliate the model with sustained one in Bosideng. On the similar time, Bosideng leveraged the superstar’s reputation to drive e-commerce visitors on-line whereas selling its opening of the [indiscernible] flagship retailer as a grand occasion offline. Because of this, the gross sales efficiency boosted dramatically within the fourth quarter, with gross sales quantity growing 40% year-over-year. This yr, we’ll standardize our advert merchandise and repair processes to well timed combine widespread IPs comparable to leisure and sports activities occasions with the marketing campaign objective of our purchasers, which can additional promote the monetization worth of scorching traits. On high of those initiatives to drive top-line development, we may even proceed to successfully self-discipline our price bills, strengthen the platform administration, and additional enhance the general working effectivity of our platform.
With that, let me flip the decision over to Fei Cao for a monetary evaluate for the fourth quarter of 2023 and full-year monetary outcomes.
Fei Cao
Thanks, Gaofei, and howdy, everybody. Welcome to Weibo’s fourth quarter and monetary yr 2023 earnings convention name.
Let’s begin with consumer metrics. In December 2023, Weibo’s MAUs and common DAUs reached 598 million and 257 million, respectively, representing a rise of 11 million and 5 million customers on a year-over-year foundation in 2023. Our consumer neighborhood and engagement stay wholesome regardless of dealing with out of pandemic-related visitors in addition to the continuing execution of Egypt and China funding methods.
Turning to financials. As a reminder, my ready remarks would deal with non-GAAP outcomes. All financial quantities are in US greenback phrases and all of the comparisons are on a year-on-year foundation except in any other case seen. We skilled happiness by way of our financials as a result of volatility of overseas change charges all year long. Since our enterprise primarily operates in China, whereas we report our financials in US {dollars}. Our monetary efficiency was affected by antagonistic forex actions.
Let me now stroll you thru our monetary highlights for the fourth quarter and monetary yr 2023. Weibo’s fourth quarter 2023 web income was $463.7 million, a rise of three%, or 5% on a relentless forex foundation. Working revenue was $145.9 million, representing working margin of 31%. Web revenue attributable to Weibo reached $76.4 million and diluted EPS was $0.31.
For full yr 2023, complete income reached $1.76 billion, a lower of 4%, or a rise of 1% on a relentless forex foundation. Working revenue was $592.1 million, representing working margin of 34%. Web revenue attributable to Weibo reached $450.6 million and diluted EPS was $1.88. Working money stream for full yr 2023 reached $672.8 million, a rise of 19%.
Let me offer you extra colour on fourth quarter and full yr 2023 income efficiency. Weibo’s promoting and advertising and marketing income for the fourth quarter 2023 was $403.7 million, a rise of three%, or 5% on fixed forex foundation. Cellular advert income was $379.2 million, contributing roughly 94% of complete advert income. Full yr 2023 promoting and advertising and marketing income reached $1.53 billion, a lower of 4%, or a rise of 1% on fixed forex foundation, with cell advert income contributing 94% of complete as income.
Relating to our This fall efficiency entrance, in line with our expectations, promoting enterprise booked a strong development total with divergent efficiency throughout our pillar advert verticals. By {industry}, our largest 3 verticals had been magnificence merchandise, FMCG and e-commerce. When it comes to development, we’re inspired to see sturdy momentum of handset sector proceed all year long. The handset sector delivered double-digit development for each year-over-year and quarter-over-quarter as clients embraced our platform to succeed in higher-up customers and construct market cap. The e-commerce and recreation sectors additionally demonstrated a strong restoration pattern with double-digit development, leveraging favorable dynamics within the computation panorama and launch of blockbuster titles [indiscernible]. The FMCG class continued on the ascending trajectory. The meals and beverage sector confronted a excessive comparable base due to the World Cup marketing campaign season in 2022. In the meantime, the beauty and private care sector remained underneath stress, affected by smooth gross sales and a stringent advertising and marketing expense management amongst our multinational clients. Additionally, we continued to see advert budgets shift towards — to these platforms to serve the advertising and marketing goal of stock clearance throughout the e-commerce season.
Transferring on to full yr 2023 efficiency, as a consequence of macro uncertainties and consumption weak point, the restoration tempo of our promoting enterprise in 2023 proved to be tough. On a relentless forex foundation, our promoting and advertising and marketing income elevated 1% versus 2022. By {industry}, our largest 3 verticals had been FMCG, magnificence merchandise and e-commerce. With respect to development, magnificence merchandise was the most important contributor to year-over-year development, adopted by e-commerce and vehicle amongst main classes. Nevertheless, discretionary consumption classes comparable to cosmetics and private care, luxurious, attire confronted broad-based heaviness from demand pattern for advert merchandise. [indiscernible] was largely adopted by social show advertisements and matters and analysis. In 2023, in mild of a tepid promoting demand, we centered on revitalizing the content material ecosystem with excessive monetization potential comparable to magnificence merchandise and vehicle. This effort has enabled us to additional strengthen our content material advertising and marketing choices and improve our market differentiation.
Advert revenues from Alibaba for the fourth quarter had been $44.9 million, a rise of 6%, or 8% on a relentless forex foundation, due to modest restoration of consumption market and intensified competitors throughout the mega purchasing competition. Full yr advert revenues from Alibaba had been $111.6 million, a rise of 4%, or 10% on fixed forex foundation, in line with Alibaba’s reasonable pickup in advertising and marketing finances. Alibaba stepped up advertising and marketing spend this yr amid sluggish consumption surroundings, in addition to heightened competitors within the e-commerce sector.
Earlier than turning to VAS section, let me share some preliminary colour on the [TAM] getting into 2024. With the economic system in a state of transition and geopolitical uncertainty in 2024, the macro circumstances and consumption sentiments are turning even more durable to foretell. Regardless of restricted visibility of demand set as a consequence of macro uncertainties, we’re cautiously optimistic on additional restoration of our promoting enterprise in 2024. We hope to additional leverage tailwinds in Weibo’s aggressive sectors, in addition to a collection of mega sports activities occasions. Our crew will beef up gross sales execution to additional unlock the long-term [indiscernible] alternatives, underpinned by our distinctive worth proposition and diversified content material ecosystem.
Worth-added service, VAS, income was $59.9 million within the fourth quarter, a rise of 4%, or 6% on a relentless forex foundation, primarily as a consequence of increased income contribution from game-related enterprise. Full yr 2023 VAS income decreased 6%, or 1% on a relentless forex foundation, to $225.8 million.
Turning to prices and bills, complete prices and bills for fourth quarter had been $317.8 million, a rise of seven%, primarily attributable to increased G&A bills. The rise of G&A bills was primarily resulted from decrease G&A bills booked within the fourth quarter of 2022, primarily associated to the reversal of compensation bills for Jiamian Know-how based mostly on the contingent cost association between us. Full yr prices and bills totaled $1.17 billion, a lower of 5%, primarily attributable to a positive overseas change impression on the reported numbers, in addition to a lower of personnel-related prices. This lower was partially offset by the rise of G&A bills, primarily associated to the popularity of compensation bills of Jiamian Know-how as talked about above.
Working revenue in fourth quarter was $145.9 million, representing an working margin of 31% in comparison with 34% in the identical interval final yr. Working revenue for full yr 2023 was $592.1 million, representing working margin of 34% in comparison with 33% in 2022.
Turning to revenue tax and the GAAP measures, revenue tax expense for the fourth quarter was $72.6 million in comparison with an revenue tax advantage of $18.7 million final yr. The rise was primarily as a consequence of 2 components. First, we booked a reversal of tax liabilities acknowledged within the fourth quarter of 2022 associated to unsure tax positions. Second, we paid and accrued withholding tax associated to earnings remittance from the wholly-foreign owned enterprise, WFOE, to Weibo Hong Kong Restricted. The earnings distribution from onshore to offshore will fund our demand for U.S. {dollars} in enterprise operations and funds of dividends and debt, et cetera. Full yr revenue tax bills had been $145.3 million in comparison with $30.3 million final yr, primarily ensuing from enhance of tax bills within the fourth quarter of tax expense.
Web revenue attributable to Weibo within the fourth quarter was $76.4 million, representing a web margin of 16% in comparison with [30%] final yr, primarily as a result of aforementioned impression from revenue tax. Web revenue for full yr 2023 was $450.6 million, representing a web margin of 26% in comparison with 29% in final yr.
Turning to our steadiness sheet and money stream objects, as of December 31, 2023, Weibo’s money, money equal and short-term investments totaled $3.23 billion in comparison with $3.17 billion as of December 31, 2022. Within the fourth quarter, money supplied by working actions was $218.2 million, capital expenditures totaled $7.5 million, and depreciation and amortization bills amounted to $14.7 million. On a full-year foundation, money supplied by working actions was $672.8 million in comparison with $564.1 million in 2022. Capital expenditures totaled $36.8 million, and depreciation and amortization bills amounted to $58.5 million.
Earlier than turning to the Q&A session, I want to let you understand that we accomplished an providing of USD 330 million convertible bond in December final yr. The bond is because of 2030 with an annual coupon charge of 1.375%. We plan to make use of the web proceeds from the word providing to refinance a portion of the excellent 3.5% senior word due in July this yr. As a part of convertible word issuance, we may even successfully maintain [indiscernible] in US {dollars}, which supplies us extra monetary flexibility in capital allocation sooner or later.
Lastly, given our wholesome profitability and money stream technology, we’re happy to announce that our Board of Administrators has accredited a particular money dividend of USD 0.82 per extraordinary share, for ADS, to our shareholders. The combination quantity of the dividend might be roughly USD 200 million with the cost date anticipated to be in Might. Wanting forward, we stay extremely dedicated to embracing long-term development alternatives, whereas producing extra returns to shareholders and boosting market confidence.
With that, let me now flip the decision over to the operator for the Q&A session. Thanks.
Query-and-Reply Session
Operator
[Operator Instructions] Our first query comes from the road of Timothy Zhao from Goldman Sachs.
Timothy Zhao
My query is relating to our promoting enterprise. May administration elaborate extra in your outlook for the promoting income development for this yr, together with the primary quarter? And particularly, relating to the promoting merchandise, what’s our key technique for this yr?
Gaofei Wang
Thanks for this query. So to begin with, as a result of in 2023, for a lot of completely different quarters, we had lots of uncertainties for offering these explicit expectations. So we stay cautious and prudent in giving the expectations for the entire yr of 2024. So in Q1, we do see a restoration of just about all of the industries. Nevertheless, nonetheless there are lots of uncertainties and in addition challenges referring to the consumption market as a complete. Okay.
And likewise when it comes to the general demand, in 2024, nonetheless, we now have seen among the certainties for some industries, as an illustration, when it comes to the gaming — I imply, the sports activities, as an illustration, within the Olympics, which occurred in July and in addition the start of August. So this has boosted among the finances of commercial for the consumption market, as an illustration, from the meals and drinks and in addition the apparels and in addition the footwear as nicely. So, after all, in 2022, we had really a really excessive base due to the Asian Video games and in addition the World Cup. However nonetheless, we anticipate to have a greater second half of the yr in 2024 than the primary half of the yr. And likewise when it comes to the gaming, we do see lots of uncertainties. So as an illustration, with the booming of the granting of licenses to these avid gamers — to the sport builders, we do — can leverage our benefits when it comes to the content material advertising and marketing, and we want to leverage this benefit and in addition assist to discover and in addition assist lots of new video games to be exploited. So in 2024, we anticipate to have a greater gaming {industry} than that of 2023. Okay.
And likewise in 2022, we did see the enhancement of our competitiveness and in addition the proportion of the advert finances in opposition to the overall income — in opposition to the overall finances of the advertisements of our clients is definitely rising as nicely. However nonetheless in 2024, whether or not these industries are nonetheless going to get pleasure from the identical momentum in Weibo, it’s just about unsure and in addition difficult. As an example, take the examples of the headsets and in addition the automotive industries. So, as an illustration, in 2023, we had an excellent development when it comes to the handset {industry}, which was double digit. And likewise, we had a rise of the overall advert finances proportion allotted to Weibo in 2023. However nonetheless, in 2024, we nonetheless stay cautious when it comes to sustaining the identical momentum of the expansion for the handset {industry} versus that of 2022. Nonetheless, we now have seen a better-than-expected cargo of the handset {industry} in Q1. However nonetheless all through the entire yr of 2024, there’s a large uncertainty about this.
And turning to the automotive {industry}, we now have gained a pure benefit in serving to to advertise these merchandise of recent vitality automobiles. However nonetheless as a result of worth conflict and a finances decreased for the advertisements for the ICE automobiles, nonetheless we discovered it fairly difficult to keep up the identical momentum of the expansion of our enterprise within the automotive {industry} than that of final yr. However nonetheless, total talking, we’re nonetheless protecting an excellent momentum of sustaining a really excessive competitiveness and in addition the attraction of a better finances of the advertisements from our clients. Okay.
And likewise, final however not least, I want to share among the colours on the industries of the wonder and beauty merchandise. In 2022 and 2023, we had suffered from among the challenges due to the {industry} itself. So in 2021, due to the COVID and in addition due to our excessive focus in selling the leisure and in addition the visitors attraction, so we had a reasonably good yr in 2021 and in addition 2022. However moderately talking, there are lots of challenges occurring and headwinds occurring within the cosmetics and sweetness merchandise industries, as an illustration, the excessive competitiveness and in addition the value conflict engaged by virtually all of the manufacturers. And likewise, they had been reducing their allocation of the advert finances, total talking. And likewise, you possibly can see that there are slightly bit switch of the finances from the industrial or the standard e-commerce {industry} to the dwell stream. So this gave us lots of pressures when it comes to the allocation of finances to the brand-based efficiency, brand-based advert, or the e-commerce-based advert. So nonetheless, there are nonetheless lots of challenges.
And likewise in 2024, initially, we want to have a stabilized efficiency of the wonder and cosmetics {industry} and allocation of the advert finances. However nonetheless, in Q1, we thought that was lower than anticipated and in addition lower than optimum — and optimized. So you possibly can see that, for these worldwide manufacturers, nonetheless they’re slightly bit far-off from their full restoration. And likewise, we do see the restoration of the home manufacturers, however nonetheless, it isn’t the time for them to extend their advert finances. So after all, total talking, we nonetheless want that we might have a really steady vertical just like the cosmetics and sweetness merchandise. However nonetheless, so far, we expect that this {industry} continues to be essentially the most difficult {industry} in opposition to our complete enterprise portfolio. Okay.
And likewise lastly, I need to say that when it comes to the general technique, as we now have already acknowledged in our ready script, you possibly can see that our focus of this yr might be nonetheless emphasizing on these IP scorching traits, and in addition the content material advertising and marketing in order that we will enhance our competitiveness and in addition achieve more cash and in addition finances from the overall finances of our clients. And likewise, second of all, we want to additional enlarge the consumer base and in addition the overall scale of that and specializing in these monetizable visitors. In order a complete, in 2024, nonetheless very a lot focus and in addition the primary driver for us to develop additional is to getting extra finances from our clients and in addition thus we will develop our total enterprise.
Operator
The subsequent query comes from the road of Thomas Chong from Jefferies.
Thomas Chong
My query is about our methods in 2024 with regard to customers and our content material ecosystem. And then again, how ought to we take into consideration our AIGC methods?
Gaofei Wang
And likewise for this query, to begin with, let me speak to you concerning the total consumer technique in 2024. So in 2024, nonetheless, we’re going to keep the identical finances for the advertising and marketing actions that of 2023. So for the handset {industry} in 2023, we do see a lower of our complete shipments, however nonetheless we had a web achieve of MAU of over 10 million and in addition over 5 million of web achieve of DAUs due to a really deep strategic collaboration with the handset makers, so as to see that we will have a really low consumer acquisition price. And likewise, total talking, by specializing in the leisure and in addition the new traits and scorching matters, we now have additionally an excellent positioning in getting the customers from outdoors of the Weibo.
And likewise, in 2024, because of this, we had virtually a flat, or slightly bit extra finances allotted to this space than in 2023. We do see an excellent restoration of the social scorching traits and in addition the leisure {industry} and improved by the efficiency throughout the Chinese language New Yr interval. And so, thus, we’re very assured to have an excellent consumer achieve and in addition consumer scale in 2024 than of 2023 and in addition a a lot better one. Additionally, the interior challenges nonetheless are that, to begin with, we want to deal with a shift of the visitors of leisure and social scorching matters to the verticals as a result of by having extra visitors of the vertical or vertical traffics, we’re capable of enhance the consumer stickiness and improve our monetization effectivity and in addition enhance our competitiveness. So earlier than the COVID, earlier than 2019, we had virtually 58% of our visitors allotted to vertical traffics. However nonetheless, throughout the COVID interval, we had a lower to virtually round 47% to 48% by the tip of 2022. We had an excellent technique to get better that after that, however nonetheless — it’s nonetheless at a stage of round 50%. So within the subsequent 2 to three years of time, by specializing in extra efforts taken on this space, we hope to extend the overall vertical visitors because the — quantity of the overall visitors to about 60% or extra in order that we’re capable of improve the consumer stickiness, the effectivity of monetization and in addition our total competitiveness as a complete. Okay.
And likewise referring to AIGC, we now have acknowledged a number of feedback already previously annual efficiency or among the quarterly efficiency bulletins. Nonetheless, now we want to have openmindedness to make use of the LLMs and in addition specializing in the functions of these massive language fashions. So as an illustration, in 2024, nonetheless we now have among the instructions of the appliance. Initially, when it comes to the AI assistants, helping the interactions between the brand new followers and followers and in addition the KOLs, we now have been doing loads to essentially improve the interactiveness between the brand new followers and among the followers and in addition their KOLs. So now, you possibly can see that round 5% to 10% of the general interactions between the followers and KOLs are literally supported by the AI assistants.
And likewise second of all, when it comes to completely different verticals, so final yr, we just about centered on the verticals of magnificence and beauty merchandise and in addition to facilitating the technology and the manufacturing of the content material on this space. And likewise this yr, we want to additional increase the appliance of the content material technology to a different 4 to five completely different verticals. So final yr, 8% of the contents on this cosmetics and sweetness merchandise space was generated by the AI instruments. And likewise this yr, we hope to have round 10% to fifteen% of the content material generated by AIGC facilitations, which continues to be difficult to say. And likewise for the opposite areas, as an illustration, the AI robots and in addition among the commercializations or monetizations utilizing AI to help, it’s nonetheless in an experimental part. So we do not have a really detailed goal or a determine to be shared with everybody. Okay.
Operator
Our final query comes from the road of Xueqing Zhang from CICC.
Xueqing Zhang
We seen that the corporate introduced particular dividend this quarter. So with the capital allocation and shareholder return plan this yr, can administration share extra on the share buyback and dividend plan sooner or later?
Fei Cao
Xueqing, thanks in your query. That is Fei. As talked about in my ready remarks, Weibo maintained an honest profitability and comparatively sturdy functionality to generate working money flows. In 2023, our non-GAAP working revenue reached $592 million, representing a non-GAAP working margin of 34%. We generated working money stream of roughly $673 million in 2023, representing a year-over-year enhance of 19%. So when you can keep in mind final yr, after we distributed a particular money dividend for the primary time, final Might, we talked about sure rules we might adhere to in use of our money. Initially, we at all times prioritize supporting enterprise development and strengthening our platform’s aggressive benefits comparable to investing in content material ecosystem, in vertical areas and AIGC, and any alternatives which intently associated to our enterprise. After which, along with investing in our personal enterprise improvement, we definitely want to make sure shareholder returns. In order you understand, our Board of Administrators has accredited the distribution of one other $200 million particular money dividend, after we made the USD 200 million money dividend final yr. So going ahead, we anticipate to proceed paying out dividends to our shareholders and progressively formulate a brand new money dividend distribution coverage. The Board would primarily cite the dividend quantity based mostly on the — our firm’s revenue efficiency within the earlier fiscal yr, whereas additionally contemplating components comparable to our money stream, our monetary situation and the capital necessities. So wanting forward, we’ll proceed to discover varied methods to reward our traders, our shareholders, together with the dividend payouts and the inventory repurchases. These measures might be fastidiously thought of and aligned with our core goals and topic to our Board approval. We are going to talk the progress with market and with our traders in a well timed method. So I hope this will deal with your query.
Operator
There aren’t any additional questions right now. I want to hand the decision again to administration for closing.
Sandra Zhang
Thanks all for becoming a member of us, and we’ll see you subsequent time.
Operator
That does conclude in the present day’s convention name. Thanks in your participation. You could now disconnect your traces.