Zhihu Inc. Reports Unaudited Fourth Quarter and Fiscal Year 2023 Financial Results
Fourth Quarter 2023 Highlights
-
Total revenues were
RMB1,138.3 million (US$160.3 million ) in the fourth quarter of 2023, representing a 2.2% increase from the same period of 2022. - Gross margin expanded to 59.1% in the fourth quarter of 2023 from 56.4% in the same period of 2022.
-
Net loss was
RMB103.1 million (US$14.5 million ) in the fourth quarter of 2023, narrowed by 42.6% from the same period of 2022. -
Adjusted net loss (non-GAAP)[1]was
RMB91.3 million (US$12.9 million ) in the fourth quarter of 2023, narrowed by 31.9% from the same period of 2022. - Average monthly active users (MAUs)[2]reached 99.0 million in the fourth quarter of 2023.
- Average monthly subscribing members[3] reached 14.2 million in the fourth quarter of 2023, representing a 9.2% increase from the same period of 2022.
Fiscal Year 2023 Highlights
-
Total revenues were
RMB4,198.9 million (US$591.4 million ) in 2023, representing a 16.5% increase from 2022. - Gross margin expanded to 54.7% in 2023 from 50.2% in 2022.
-
Net loss was
RMB839.5 million (US$118.2 million ) in 2023, narrowed by 46.8% from 2022. -
Adjusted net loss (non-GAAP)[1]was
RMB659.1 million (US$92.8 million ) in 2023, narrowed by 44.9% from 2022.
"In the fourth quarter of 2023, we successfully navigated a challenging macroeconomic and competitive environment and achieved meaningful revenue growth and efficiency improvement through our multi-engine monetization approach, bolstered by our valuable community ecosystem," said Mr.
Mr.
Fourth Quarter 2023 Financial Results
Total revenues were
Marketing services revenue[4] was
Paid membership revenue was
Vocational training revenue was
Other revenues were
Cost of revenues decreased by 4.2% to
Gross profit increased by 7.1% to
Total operating expenses were
Selling and marketing expenses increased to
Research and development expenses increased to
General and administrative expenses decreased by 26.0% to
Loss from operations was narrowed by 17.6% to
Adjusted loss from operations (non-GAAP)[1] decreased to
Net loss was narrowed by 42.6% to
Adjusted net loss (non-GAAP)[1]was narrowed by 31.9% to
Diluted net loss per American depositary share ("ADS") was
Cash and cash equivalents, term deposits and short-term investments
As of
Fiscal Year 2023 Financial Results
Total revenues were
Marketing services revenue[4] was
Paid membership revenue was
Vocational training revenue was
Other revenues were
Cost of revenues increased to
Gross profit increased by 27.0% to
Total operating expenses decreased to
Selling and marketing expenses were
Research and development expenses increased to
General and administrative expenses decreased to
Loss from operations was narrowed by 33.1% to
Adjusted loss from operations (non-GAAP)[1]was narrowed by 27.1% to
Net loss was narrowed by 46.8% to
Adjusted net loss (non-GAAP)[1]was narrowed by 44.9% to
Diluted net loss per ADS was
Share Repurchase Program
As of
[1] Adjusted loss from operations and adjusted net loss are non-GAAP financial measures. For more information on the non-GAAP financial measures, please see the section of "Use of Non-GAAP Financial Measures" and the table captioned "Unaudited Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this press release. |
[2] MAUs refers to the sum of the number of mobile devices that launch our mobile apps at least once in a given month, or mobile MAUs, and the number of logged-in users who visit our PC or mobile website at least once in a given month, after eliminating duplicates. |
[3] Monthly subscribing members refers to the number of our Yan Selection members in a specified month. Average monthly subscribing members for a period is calculated by dividing the sum of monthly subscribing members for each month during the specified period by the number of months in such period. |
[4] Starting with the first quarter of 2023, we report revenues generated from advertising and content-commerce solutions collectively as "marketing services revenue" to better present our business and results of operation in line with our overall strategies. Revenues for the applicable comparison periods of 2022 have been retrospectively re-classified. |
Conference Call
The Company's management will host an earnings conference call at
All participants wishing to join the conference call must pre-register online using the link provided below. Once the pre-registration has been completed, each participant will receive a set of dial-in numbers, a passcode, and a unique registrant ID which can be used to join the conference call. Participants may pre-register at any time, including up to and after the call start time.
Participant Online Registration: https://dpregister.com/sreg/10187223/fbcf65bd2c
Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at https://ir.zhihu.com.
A replay of the conference call will be accessible approximately one hour after the conclusion of the live call, until
|
+1-877-344-7529 |
International: |
+1-412-317-0088 |
Replay Access Code: |
4320125 |
About
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses non-GAAP financial measures, such as adjusted loss from operations and adjusted net loss, to supplement the review and assessment of its operating performance. The Company defines non-GAAP financial measures by excluding the impact of share-based compensation expenses, amortization of intangible assets resulting from business acquisitions and the tax effects of the non-GAAP adjustments, which are non-cash expenses. The Company believes that the non-GAAP financial measures facilitate comparisons of operating performance from period to period and company to company by adjusting for potential impacts of items, which the Company's management considers to be indicative of its operating performance. The Company believes that the non-GAAP financial measures provide useful information to investors and others in understanding and evaluating the Company's consolidated results of operations in the same manner as it helps the Company's management.
The non-GAAP financial measures are not defined under
Exchange Rate Information
This announcement contains translations of certain Renminbi amounts into
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
For investor and media inquiries, please contact:
In
Email: ir@zhihu.com
Helen Wu
Tel: +86-10-6508-0677
Email: zhihu@tpg-ir.com
In
Phone: +1-212-481-2050
Email: zhihu@tpg-ir.com
|
|||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||
(All amounts in thousands, except share, ADS, per share data and per ADS data) |
|||||||||||||
|
|||||||||||||
|
|||||||||||||
|
For the Three Months Ended |
|
For the Year Ended |
||||||||||
|
2022 |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
||||
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing services |
572,387 |
|
382,962 |
|
465,153 |
|
65,515 |
|
1,956,480 |
|
1,652,992 |
|
232,819 |
Paid membership |
402,531 |
|
466,784 |
|
455,906 |
|
64,213 |
|
1,230,804 |
|
1,826,557 |
|
257,265 |
Vocational training |
84,591 |
|
144,795 |
|
169,272 |
|
23,841 |
|
248,266 |
|
565,585 |
|
79,661 |
Others |
54,456 |
|
27,622 |
|
47,966 |
|
6,756 |
|
169,369 |
|
153,755 |
|
21,656 |
Total revenues |
1,113,965 |
|
1,022,163 |
|
1,138,297 |
|
160,325 |
|
3,604,919 |
|
4,198,889 |
|
591,401 |
Cost of revenues |
(485,442) |
|
(473,712) |
|
(465,197) |
|
(65,522) |
|
(1,796,867) |
|
(1,903,041) |
|
(268,038) |
Gross profit |
628,523 |
|
548,451 |
|
673,100 |
|
94,803 |
|
1,808,052 |
|
2,295,848 |
|
323,363 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing expenses |
(509,229) |
|
(534,328) |
|
(527,604) |
|
(74,311) |
|
(2,026,468) |
|
(2,048,090) |
|
(288,467) |
Research and development |
(212,495) |
|
(249,662) |
|
(232,585) |
|
(32,759) |
|
(763,362) |
|
(901,452) |
|
(126,967) |
General and administrative |
(123,107) |
|
(114,564) |
|
(91,069) |
|
(12,827) |
|
(621,973) |
|
(418,531) |
|
(58,949) |
Total operating expenses |
(844,831) |
|
(898,554) |
|
(851,258) |
|
(119,897) |
|
(3,411,803) |
|
(3,368,073) |
|
(474,383) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
(216,308) |
|
(350,103) |
|
(178,158) |
|
(25,094) |
|
(1,603,751) |
|
(1,072,225) |
|
(151,020) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income/(expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income |
5,922 |
|
11,617 |
|
12,279 |
|
1,729 |
|
70,380 |
|
41,695 |
|
5,873 |
Interest income |
33,671 |
|
40,363 |
|
38,828 |
|
5,469 |
|
68,104 |
|
158,671 |
|
22,348 |
Fair value change of financial |
(4,619) |
|
(7,352) |
|
14,780 |
|
2,082 |
|
(176,685) |
|
(5,170) |
|
(728) |
Exchange (losses)/gains |
(1,524) |
|
(393) |
|
(937) |
|
(132) |
|
71,749 |
|
97 |
|
14 |
Others, net |
6,099 |
|
27,227 |
|
15,032 |
|
2,117 |
|
5,983 |
|
49,236 |
|
6,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income tax |
(176,759) |
|
(278,641) |
|
(98,176) |
|
(13,829) |
|
(1,564,220) |
|
(827,696) |
|
(116,578) |
Income tax (expense)/benefit |
(2,755) |
|
256 |
|
(4,929) |
|
(694) |
|
(14,183) |
|
(11,832) |
|
(1,667) |
Net loss |
(179,514) |
|
(278,385) |
|
(103,105) |
|
(14,523) |
|
(1,578,403) |
|
(839,528) |
|
(118,245) |
Net income attributable to |
(164) |
|
(289) |
|
(666) |
|
(94) |
|
(2,754) |
|
(4,113) |
|
(579) |
Net loss attributable to |
(179,678) |
|
(278,674) |
|
(103,771) |
|
(14,617) |
|
(1,581,157) |
|
(843,641) |
|
(118,824) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
(0.59) |
|
(0.94) |
|
(0.36) |
|
(0.05) |
|
(5.19) |
|
(2.82) |
|
(0.40) |
Diluted |
(0.59) |
|
(0.94) |
|
(0.36) |
|
(0.05) |
|
(5.19) |
|
(2.82) |
|
(0.40) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per ADS (Two ADSs |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
(0.29) |
|
(0.47) |
|
(0.18) |
|
(0.03) |
|
(2.59) |
|
(1.41) |
|
(0.20) |
Diluted |
(0.29) |
|
(0.47) |
|
(0.18) |
|
(0.03) |
|
(2.59) |
|
(1.41) |
|
(0.20) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
304,665,906 |
|
297,742,064 |
|
291,056,615 |
|
291,056,615 |
|
304,836,318 |
|
299,132,894 |
|
299,132,894 |
Diluted |
304,665,906 |
|
297,742,064 |
|
291,056,615 |
|
291,056,615 |
|
304,836,318 |
|
299,132,894 |
|
299,132,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) |
|||||||||||||
(All amounts in thousands, except share, ADS, per share data and per ADS data) |
|||||||||||||
|
|||||||||||||
|
|||||||||||||
|
For the Three Months Ended |
|
For the Year Ended |
||||||||||
|
2022 |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
||||
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
Share-based compensation |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
3,663 |
|
1,630 |
|
1,575 |
|
221 |
|
11,861 |
|
9,751 |
|
1,373 |
Selling and marketing |
5,019 |
|
5,741 |
|
(7,001) |
|
(986) |
|
24,334 |
|
13,882 |
|
1,955 |
Research and development |
15,831 |
|
13,758 |
|
(57) |
|
(8) |
|
62,503 |
|
49,847 |
|
7,021 |
General and administrative |
18,032 |
|
27,662 |
|
12,983 |
|
1,829 |
|
275,197 |
|
91,176 |
|
12,842 |
|
|||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(All amounts in thousands) |
|||||
|
|||||
|
|||||
|
As of 2022 |
|
As of 2023 |
||
|
RMB |
|
RMB |
|
US$ |
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
4,525,852 |
|
2,106,639 |
|
296,714 |
Term deposits |
948,390 |
|
1,586,469 |
|
223,449 |
Short-term investments |
787,259 |
|
1,769,822 |
|
249,274 |
Trade receivables |
834,251 |
|
664,615 |
|
93,609 |
Amounts due from related parties |
24,798 |
|
18,319 |
|
2,580 |
Prepayments and other current assets |
199,249 |
|
232,016 |
|
32,679 |
Total current assets |
7,319,799 |
|
6,377,880 |
|
898,305 |
Non-current assets: |
|
|
|
|
|
Property and equipment, net |
7,290 |
|
10,849 |
|
1,528 |
Intangible assets, net |
80,237 |
|
122,645 |
|
17,274 |
|
126,344 |
|
191,077 |
|
26,913 |
Long-term investments |
- |
|
44,621 |
|
6,285 |
Right-of-use assets |
100,119 |
|
40,211 |
|
5,664 |
Other non-current assets |
22,450 |
|
7,989 |
|
1,125 |
Total non-current assets |
336,440 |
|
417,392 |
|
58,789 |
Total assets |
7,656,239 |
|
6,795,272 |
|
957,094 |
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable and accrued liabilities |
916,112 |
|
1,038,531 |
|
146,274 |
Salary and welfare payables |
283,546 |
|
342,125 |
|
48,187 |
Taxes payables |
25,975 |
|
21,394 |
|
3,013 |
Contract liabilities |
355,626 |
|
303,574 |
|
42,758 |
Amounts due to related parties |
24,861 |
|
26,032 |
|
3,667 |
Short term lease liabilities |
53,190 |
|
42,089 |
|
5,929 |
Other current liabilities |
165,531 |
|
171,743 |
|
24,189 |
Total current liabilities |
1,824,841 |
|
1,945,488 |
|
274,017 |
Non-current liabilities |
|
|
|
|
|
Long term lease liabilities |
43,367 |
|
3,642 |
|
513 |
Deferred tax liabilities |
11,630 |
|
22,574 |
|
3,179 |
Other non-current liabilities |
82,133 |
|
121,958 |
|
17,177 |
Total non-current liabilities |
137,130 |
|
148,174 |
|
20,869 |
Total liabilities |
1,961,971 |
|
2,093,662 |
|
294,886 |
|
|
|
|
|
|
|
5,653,696 |
|
4,599,810 |
|
647,870 |
Noncontrolling interests |
40,572 |
|
101,800 |
|
14,338 |
Total shareholders' equity |
5,694,268 |
|
4,701,610 |
|
662,208 |
|
|
|
|
|
|
Total liabilities and shareholders' equity |
7,656,239 |
|
6,795,272 |
|
957,094 |
|
|||||||||||||
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS |
|||||||||||||
(All amounts in thousands) |
|||||||||||||
|
|||||||||||||
|
|||||||||||||
|
For the Three Months Ended |
|
For the Year Ended |
||||||||||
|
2022 |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
||||
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
Loss from operations |
(216,308) |
|
(350,103) |
|
(178,158) |
|
(25,094) |
|
(1,603,751) |
|
(1,072,225) |
|
(151,020) |
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
42,545 |
|
48,791 |
|
7,500 |
|
1,056 |
|
373,895 |
|
164,656 |
|
23,191 |
Amortization of intangible |
3,490 |
|
5,365 |
|
5,365 |
|
756 |
|
11,053 |
|
19,585 |
|
2,758 |
Adjusted loss from |
(170,273) |
|
(295,947) |
|
(165,293) |
|
(23,282) |
|
(1,218,803) |
|
(887,984) |
|
(125,071) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
(179,514) |
|
(278,385) |
|
(103,105) |
|
(14,523) |
|
(1,578,403) |
|
(839,528) |
|
(118,245) |
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
42,545 |
|
48,791 |
|
7,500 |
|
1,056 |
|
373,895 |
|
164,656 |
|
23,191 |
Amortization of intangible |
3,490 |
|
5,365 |
|
5,365 |
|
756 |
|
11,053 |
|
19,585 |
|
2,758 |
Tax effects on non-GAAP |
(600) |
|
(1,069) |
|
(1,069) |
|
(151) |
|
(2,400) |
|
(3,806) |
|
(536) |
Adjusted net loss |
(134,079) |
|
(225,298) |
|
(91,309) |
|
(12,862) |
|
(1,195,855) |
|
(659,093) |
|
(92,832) |
View original content:https://www.prnewswire.com/news-releases/zhihu-inc-reports-unaudited-fourth-quarter-and-fiscal-year-2023-financial-results-302099216.html
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