Q2 2024 Zhihu Inc Earnings Call Transcript
Key Points
- Zhihu Inc (ZH) achieved a significant improvement in operating efficiency, with gross margin increasing by 5.8 percentage points year over year to 59.6%.
- The company reported a 79.9% year-over-year decline in adjusted net loss, marking the lowest quarterly loss since its US IPO.
- Zhihu Inc (ZH) launched Zhihu Zhida, an AI-powered search initiative, which has shown promising increases in user engagement and market reputation.
- The number of content creators on the platform grew by 12.5% year over year, reaching 74.9 million, with a 16.8% increase in cumulative content pieces.
- User engagement metrics improved significantly, with average daily engagements per DAU growing by nearly 40% year over year and monthly average uploads increasing by over 47% year over year.
- Marketing services revenue decreased by 16.7% year over year to RMB344 million, reflecting ongoing refinement of service offerings.
- Paid membership revenue saw a slight decline of 3.7% year over year to RMB432.7 million, primarily due to a marginal decline in average revenue per subscribing member.
- Vocational training revenue decreased to RMB133.6 million from RMB144.5 million in the same period of 2023, due to strategic refinement of acquired businesses.
- Total operating expenses for the quarter were RMB740.4 million, a 16.7% decrease from the same period last year, indicating cost-cutting measures but also potential constraints on growth initiatives.
- Despite improvements, the company still faces challenges in achieving profitability, with ongoing efforts required to reduce losses and enhance operational efficiency.
Ladies and gentlemen, thank you for standing by, and welcome to the Zhihu Inc., second-quarter 2024 financial results conference call. (Operator Instructions) This conference is being recorded.
At this time, I would like to turn the conference over to Yolanda Liu, Director of Investor Relations. Please go ahead, ma'am.
Thank you, operator. Hello, everyone. Welcome to Zhihu's second-quarter 2024 financial results conference call. Senior management joining me today are Mr. Zhou Yuan, our Founder, Chairman, and Chief Executive Officer; and Mr. Wang Han, our Chief Financial Officer.
Before we get started, I'd like to remind you that today's discussion will include forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. These statements involve inherent risks and uncertainties. As such, actual results may be materially different from the views expressed today. Further information regarding these and other risks and
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