Zhihu Inc. Reports Unaudited First Quarter 2024 Financial Results
First Quarter 2024 Highlights
-
Total revenues were
RMB960.9 million (US$133.1 million ) in the first quarter of 2024, compared withRMB994.2 million in the same period of 2023. - Gross margin expanded to 56.6% in the first quarter of 2024 from 51.5% in the same period of 2023.
-
Net loss was
RMB165.8 million (US$23.0 million ) in the first quarter of 2024, narrowed by 7.4% from the same period of 2023. -
Adjusted net loss (non-GAAP)[1]was
RMB135.7 million (US$18.8 million ) in the first quarter of 2024, compared withRMB120.2 million in the same period of 2023. - Average monthly active users (MAUs)[2] were 89.0 million in the first quarter of 2024.
- Average monthly subscribing members[3] were 14.8 million in the first quarter of 2024.
"We are delighted to start 2024 with a solid financial and operating performance," said Mr.
Mr.
First Quarter 2024 Financial Results
Total revenues were
Marketing services revenue was
Paid membership revenue was
Vocational training revenue was
Other revenues were
Cost of revenues decreased by 13.4% to
Gross profit was
Total operating expenses were
Selling and marketing expenses increased to
Research and development expenses increased to
General and administrative expenses decreased to
Loss from operations was
Adjusted loss from operations (non-GAAP)[1] was
Net loss was
Adjusted net loss (non-GAAP)[1]was
Diluted net loss per American depositary share ("ADS")[4] was
Cash and cash equivalents, term deposits and short-term investments
As of
Share Repurchase Programs
As of
The board of directors of the Company has approved an extension of the 2022 Repurchase Program until
The board of directors of the Company further announces that, in addition to the extended 2022 Repurchase Program, it proposes to conduct a concurrent share repurchase program effective until
[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 "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]
On |
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/10189533/fc960a34f7
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: |
6946527 |
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
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 |
|||||||
|
2023 |
|
2023 |
|
2024 |
|||
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
Revenues: |
|
|
|
|
|
|
|
|
Marketing services |
|
392,137 |
|
465,153 |
|
330,542 |
|
45,780 |
Paid membership |
|
454,769 |
|
455,906 |
|
449,724 |
|
62,286 |
Vocational training |
|
106,998 |
|
169,272 |
|
145,436 |
|
20,143 |
Others |
|
40,316 |
|
47,966 |
|
35,161 |
|
4,870 |
Total revenues |
|
994,220 |
|
1,138,297 |
|
960,863 |
|
133,079 |
Cost of revenues |
|
(482,001) |
|
(465,197) |
|
(417,384) |
|
(57,807) |
Gross profit |
|
512,219 |
|
673,100 |
|
543,479 |
|
75,272 |
|
|
|
|
|
|
|
|
|
Selling and marketing expenses |
|
(445,565) |
|
(527,604) |
|
(477,954) |
|
(66,196) |
Research and development expenses |
|
(182,960) |
|
(232,585) |
|
(197,356) |
|
(27,333) |
General and administrative expenses |
|
(100,438) |
|
(91,069) |
|
(92,917) |
|
(12,869) |
Total operating expenses |
|
(728,963) |
|
(851,258) |
|
(768,227) |
|
(106,398) |
|
|
|
|
|
|
|
|
|
Loss from operations |
|
(216,744) |
|
(178,158) |
|
(224,748) |
|
(31,126) |
|
|
|
|
|
|
|
|
|
Other income/(expenses): |
|
|
|
|
|
|
|
|
Investment income |
|
6,006 |
|
12,279 |
|
16,902 |
|
2,341 |
Interest income |
|
39,493 |
|
38,828 |
|
30,763 |
|
4,261 |
Fair value change of financial instruments |
|
(3,582) |
|
14,780 |
|
9,408 |
|
1,303 |
Exchange (losses)/gains |
|
(5,649) |
|
(937) |
|
120 |
|
17 |
Others, net |
|
6,333 |
|
15,032 |
|
3,043 |
|
421 |
|
|
|
|
|
|
|
|
|
Loss before income tax |
|
(174,143) |
|
(98,176) |
|
(164,512) |
|
(22,783) |
Income tax expense |
|
(4,829) |
|
(4,929) |
|
(1,284) |
|
(178) |
Net loss |
|
(178,972) |
|
(103,105) |
|
(165,796) |
|
(22,961) |
Net (income)/loss attributable to |
|
(2,383) |
|
(666) |
|
950 |
|
132 |
Net loss attributable to |
|
(181,355) |
|
(103,771) |
|
(164,846) |
|
(22,829) |
|
|
|
|
|
|
|
|
|
Net loss per share |
|
|
|
|
|
|
|
|
Basic |
|
(0.59) |
|
(0.36) |
|
(0.59) |
|
(0.08) |
Diluted |
|
(0.59) |
|
(0.36) |
|
(0.59) |
|
(0.08) |
|
|
|
|
|
|
|
|
|
Net loss per ADS (One ADS represents |
|
|
|
|
|
|
|
|
Basic |
|
(1.78) |
|
(1.07) |
|
(1.76) |
|
(0.24) |
Diluted |
|
(1.78) |
|
(1.07) |
|
(1.76) |
|
(0.24) |
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary |
|
|
|
|
|
|
|
|
Basic |
|
305,245,036 |
|
291,056,615 |
|
281,549,707 |
|
281,549,707 |
Diluted |
|
305,245,036 |
|
291,056,615 |
|
281,549,707 |
|
281,549,707 |
|
||||||||
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 |
|||||||
|
2023 |
|
2023 |
|
2024 |
|||
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
Share-based compensation expenses included in: |
|
|
|
|
|
|
|
|
Cost of revenues |
|
4,400 |
|
1,575 |
|
2,497 |
|
346 |
Selling and marketing expenses |
|
8,758 |
|
(7,001) |
|
3,272 |
|
453 |
Research and development expenses |
|
21,205 |
|
(57) |
|
3,680 |
|
510 |
General and administrative expenses |
|
21,555 |
|
12,983 |
|
16,363 |
|
2,266 |
|
||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
(All amounts in thousands) |
||||||
|
||||||
|
As of 2023 |
|
As of 2024 |
|||
|
RMB |
|
RMB |
|
US$ |
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
2,106,639 |
|
2,194,419 |
|
303,923 |
Term deposits |
|
1,586,469 |
|
1,553,663 |
|
215,180 |
Short-term investments |
|
1,769,822 |
|
1,468,801 |
|
203,427 |
Trade receivables |
|
664,615 |
|
638,226 |
|
88,393 |
Amounts due from related parties |
|
18,319 |
|
31,277 |
|
4,332 |
Prepayments and other current assets |
|
232,016 |
|
239,814 |
|
33,214 |
Total current assets |
|
6,377,880 |
|
6,126,200 |
|
848,469 |
Non-current assets: |
|
|
|
|
|
|
Property and equipment, net |
|
10,849 |
|
10,794 |
|
1,495 |
Intangible assets, net |
|
122,645 |
|
117,113 |
|
16,220 |
|
|
191,077 |
|
191,077 |
|
26,464 |
Long-term investments |
|
44,621 |
|
51,176 |
|
7,088 |
Right-of-use assets |
|
40,211 |
|
31,141 |
|
4,313 |
Other non-current assets |
|
7,989 |
|
7,875 |
|
1,090 |
Total non-current assets |
|
417,392 |
|
409,176 |
|
56,670 |
Total assets |
|
6,795,272 |
|
6,535,376 |
|
905,139 |
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
1,038,531 |
|
1,023,973 |
|
141,819 |
Salary and welfare payables |
|
342,125 |
|
332,077 |
|
45,992 |
Taxes payables |
|
21,394 |
|
16,328 |
|
2,261 |
Contract liabilities |
|
303,574 |
|
310,307 |
|
42,977 |
Amounts due to related parties |
|
26,032 |
|
9,491 |
|
1,314 |
Short term lease liabilities |
|
42,089 |
|
33,729 |
|
4,672 |
Other current liabilities |
|
171,743 |
|
165,873 |
|
22,973 |
Total current liabilities |
|
1,945,488 |
|
1,891,778 |
|
262,008 |
Non-current liabilities |
|
|
|
|
|
|
Long term lease liabilities |
|
3,642 |
|
2,861 |
|
396 |
Deferred tax liabilities |
|
22,574 |
|
21,505 |
|
2,979 |
Other non-current liabilities |
|
121,958 |
|
111,664 |
|
15,465 |
Total non-current liabilities |
|
148,174 |
|
136,030 |
|
18,840 |
Total liabilities |
|
2,093,662 |
|
2,027,808 |
|
280,848 |
|
|
|
|
|
|
|
|
|
4,599,810 |
|
4,393,324 |
|
608,468 |
Noncontrolling interests |
|
101,800 |
|
114,244 |
|
15,823 |
Total shareholders' equity |
|
4,701,610 |
|
4,507,568 |
|
624,291 |
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
6,795,272 |
|
6,535,376 |
|
905,139 |
|
|||||||||
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS |
|||||||||
(All amounts in thousands) |
|||||||||
|
|||||||||
|
For the Three Months Ended |
||||||||
|
2023 |
|
2023 |
|
2024 |
||||
|
RMB |
|
RMB |
|
RMB |
|
US$ |
||
Loss from operations |
|
(216,744) |
|
(178,158) |
|
(224,748) |
|
(31,126) |
|
Add: |
|
|
|
|
|
|
|
|
|
Share-based compensation expenses |
|
55,918 |
|
7,500 |
|
25,812 |
|
3,575 |
|
Amortization of intangible assets resulting |
|
3,490 |
|
5,365 |
|
5,365 |
|
743 |
|
Adjusted loss from operations |
|
(157,336) |
|
(165,293) |
|
(193,571) |
|
(26,808) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
(178,972) |
|
(103,105) |
|
(165,796) |
|
(22,961) |
|
Add: |
|
|
|
|
|
|
|
|
|
Share-based compensation expenses |
|
55,918 |
|
7,500 |
|
25,812 |
|
3,575 |
|
Amortization of intangible assets resulting |
|
3,490 |
|
5,365 |
|
5,365 |
|
743 |
|
Tax effects on non-GAAP adjustments |
|
(600) |
|
(1,069) |
|
(1,069) |
|
(148) |
|
Adjusted net loss |
|
(120,164) |
|
(91,309) |
|
(135,688) |
|
(18,791) |
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