Financial Performance - Revenues for the year ended December 31, 2022, reached RMB 3,604,919 thousand, a 21.8% increase from RMB 2,959,324 thousand in 2021[32] - Gross profit for 2022 was RMB 1,808,052 thousand, representing a gross margin of approximately 50.2%[32] - Net loss attributable to Zhihu Inc.'s shareholders for 2022 was RMB 1,581,157 thousand, compared to RMB 1,469,465 thousand in 2021, indicating a 7.6% increase in losses[32] - Cash and cash equivalents as of December 31, 2022, were RMB 4,525,852 thousand, up from RMB 2,157,161 thousand in 2021, reflecting a significant liquidity improvement[33] - Total assets as of December 31, 2022, amounted to RMB 8,805,165 thousand, compared to RMB 7,656,239 thousand in 2021, showing a growth of 15%[33] - Total liabilities increased to RMB 2,067,016 thousand in 2022 from RMB 1,961,971 thousand in 2021, marking a 5.4% rise[33] - The company reported a loss from operations of RMB 1,603,751 thousand for 2022, compared to RMB 1,390,709 thousand in 2021, indicating a worsening operational performance[32] - Basic net loss per share for 2022 was RMB (5.19), compared to RMB (6.12) in 2021, showing a slight improvement in loss per share[32] - The company incurred net losses of RMB 1.6 billion (US$228.8 million) in 2022, following losses of RMB 1.3 billion in 2021 and RMB 517.6 million in 2020[76] - Negative operating cash flow was reported at RMB 1.1 billion (US$161.7 million) in 2022, compared to RMB 440.2 million in 2021 and RMB 244.4 million in 2020[76] Regulatory Environment - The company is subject to the Holding Foreign Companies Accountable Act, which may prohibit its shares from being traded in the U.S. if audit reports are not from PCAOB-inspected firms for two consecutive years[24] - The company’s operations in China are governed by PRC laws, and it has obtained necessary licenses for its business operations, but uncertainties remain regarding future compliance[25] - The PRC government has indicated an intent to exert more oversight over overseas offerings by China-based issuers, which could materially affect operations[27] - The company is subject to significant regulatory oversight, which could materially affect its operations and the value of its shares[189] - The interpretation and implementation of existing and future laws may lead to compliance challenges, potentially disrupting business operations[196] - The company may need to obtain additional licenses or approvals as it expands its business, facing uncertainties in regulatory compliance[194] - The company may be classified as a "PRC resident enterprise," which could subject it to a 25% enterprise income tax on global income, adversely affecting operations and investment value[204] - The heightened scrutiny from PRC tax authorities on acquisition transactions may negatively impact business operations and investment value[214] Cybersecurity and Data Privacy - The Cybersecurity Review Measures require internet platform operators with over one million users to undergo cybersecurity reviews if pursuing foreign listings[25] - The company’s PRC legal counsel indicates that it is not currently required to undergo cybersecurity reviews, but future regulations may impose such requirements[26] - The company is subject to complex and evolving cybersecurity and data privacy laws, which may impose additional compliance requirements and operational costs[88] - The PRC Cybersecurity Law and related regulations require the company to maintain the confidentiality and integrity of user data, with potential penalties for non-compliance[89] - New regulations regarding cross-border data transmission may affect the company's operations and require security assessments for data processing activities[90] - Cybersecurity breaches could materially and adversely affect the company's business, operations, and reputation, with potential legal and financial risks[97] User Growth and Market Competition - The average monthly active users (MAUs) increased by 5.6% from 95.9 million in 2021 to 101.3 million in 2022[69] - The company aims to enhance monetization and expand its user base, but faces challenges in maintaining a balance between user experience and revenue generation[75] - The company operates in a highly competitive market and must keep up with technological developments to avoid adverse effects on its business[56] - The company faces intense competition from other online content communities, which may impact user retention and market share[84] Financial Management and Investments - The company has a significant investment in subsidiaries amounting to RMB 5,527,483 thousand, indicating robust growth potential[43] - The company is subject to risks associated with cash management activities, including potential losses from investments in wealth management products due to market and economic conditions[128] - The company relies on third-party payment processors, and any changes in payment processing fees or security breaches could negatively impact revenue and customer trust[129][130] Corporate Governance and Internal Controls - The company has implemented measures to address a material weakness in internal control over financial reporting, including hiring additional accounting staff and developing comprehensive financial reporting policies[142] - The company’s corporate governance could be compromised if the chops of its PRC subsidiaries are not securely kept, potentially binding them to unauthorized agreements[211] Economic and Geopolitical Risks - A severe or prolonged downturn in the Chinese or global economy could materially and adversely affect the company's business and financial performance[146] - Geopolitical tensions, particularly between the US and China, may negatively impact the company's business environment and financial condition[154] - Future outbreaks of contagious diseases could lead to cancellations or delays of offline events, adversely affecting business operations[153] Content and Community Management - The company relies on high-quality user-generated content to attract and retain users, which is critical for maintaining its community culture and brand reputation[66] - The effectiveness of the company's algorithms, such as TopicRank, is crucial for managing content operations and user experience[85] - The company has faced fines and penalties due to illegal content in its community, which could materially and adversely affect its reputation and operations[112] - The company may not effectively identify or remove objectionable content, leading to regulatory challenges and negative publicity[111]

Financial Data and Key Metrics Changes - In Q4 2022, total revenues increased by 9% year-over-year to RMB 1.1 billion, marking the third consecutive quarterly revenue increase [7][19] - Adjusted net loss decreased by 44%, with adjusted net margin narrowing to minus 12% from minus 24% in the same period of last year [7][25] - GAAP net loss in Q4 was RMB 179.5 million, narrowing by 53.2% on a yearly basis and about 40% sequentially [24][25] Business Line Data and Key Metrics Changes - Revenue from paid membership totaled over RMB 400 million in Q4, with a year-over-year growth rate of 93% [7][20] - Vocational training revenue reached RMB 84.6 million in Q4, a significant increase of 281% from RMB 22.2 million in the same period of 2021 [20] - Revenue from enterprise-oriented business, including online advertising and CCS, decreased by 23% year-over-year in Q4 due to pandemic-related disruptions [8][21] Market Data and Key Metrics Changes - Average monthly active users (MAUs) grew to 101 million by year-end 2022, with a 14% year-over-year increase in content creators, totaling 53.1 million [6][19] - Daily education-related searches increased significantly, accounting for a meaningful portion of total daily searches in Q4 [14] Company Strategy and Development Direction - The company is focused on a "Community Ecosystem First" strategy, aiming to expand high-quality content and user engagement [6][19] - Plans to invest in AI-based large language models (LOMs) and enhance technical capabilities to improve user experience and content creation [15][16] - The company aims to grow its user-oriented business, particularly in paid memberships and vocational training, which are expected to contribute significantly to total revenues [19][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2022 due to COVID-19 and economic turmoil but expressed confidence in the company's resilience and growth potential [6][19] - The company anticipates continued growth in its community and education-related businesses, with a focus on technology investments to enhance operational efficiency [39][56] Other Important Information - As of December 31, 2022, the company had cash and cash equivalents of RMB 6.3 billion and had repurchased 6.5 million Class A ordinary shares at a total cost of USD 16.7 million [25] Q&A Session Summary Question: What are Zhihu's strategies for integrating large language models? - Management is evaluating both self-development and collaboration with third parties to empower content creation [28][30] Question: What are the company's priorities for 2023? - The company will continue with its ecosystem-first strategy, focusing on community and education-related business growth [33][35] Question: How is the advertising and CCS business recovering? - Recovery depends on the macroeconomic environment in China, which may take time [42] Question: What is the outlook for gross profit margin and breakeven timing? - Gross profit margin improved to about 56% in Q4, with expectations of around 50% on average moving forward [44][45] Question: What is the strategy for the membership business? - The membership business is expected to achieve high growth, with a focus on enhancing the content creation ecosystem [46][51] Question: What are the medium to long-term goals for the education segment? - The education-related business is seen as a massive market with opportunities for both organic growth and M&A [52][55]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 Zhihu Inc. （於開曼群島註冊成立以不同投票權控制的有限責任公司） （股份代號：2390） 截至2022年12月31日止年度業績公告 知乎（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈，本公司、其附屬公司及 綜合聯屬實體（「本集團」）截至2022年12月31日止年度（「報告期間」）的未經審計 年度合併業績（「未經審計年度業績」），連同2021年同期的比較數字。該等年度業 績乃根據美國公認會計準則（「美國公認會計準則」）編製，並已由董事會審核委員 會（「審核委員會」）審閱。 於本公告內，「我們」指本公司及（倘文義另有所指）本集團（定義見「一般資料」一 節）。 1 財務表現摘要 | --- | --- | --- | --- | |----------------------------------|-------------------------|-------------------- ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 Zhihu Inc. （於開曼群島註冊成立以不同投票權控制的有限責任公司） （股份代號：2390) 內幕消息 截至2022年12月31日止季度及全年 未經審計財務業績 | --- | --- | |------------------------------------------------------------------------------------------------------------------|------------------| | | | | 本公告乃根據香港聯合交易所有限公司證券上市規則第 13.09 例（第 571 章）第 XIVA 部刊發。 | 條及證券及期貨條 | | 知乎（「 本公司 」）欣然宣佈本公司及其附屬公司及綜合聯屬實體截至 31 日止三個月及財政年度的未經審計簡明合併業績。 | 2022 年 12 月 | 本公司欣然宣佈，根據美國證券交易委員會（「 ...

Zhihu Inc. (NYSE:ZH) Q3 2022 Earnings Conference Call November 30, 2022 7:00 AM ET Company Participants Jingjing Du – Head-Investor Relations Zhou Yuan – Chairman and Chief Executive Officer Sun Wei – Chief Financial Officer Conference Call Participants Steve Qu – Goldman Sachs Xueqing Zhang – CICC Ashley Xu – Credit Suisse Yiwen Zhang – China Renaissance Operator Ladies and gentlemen, thank you for standing by, and welcome to the Zhihu Inc. Third Quarter 2022 Financial Results Conference Call. At this time ...

[Clarification Announcement](index=1&type=section&id=Clarification%20Announcement) [Clarification Regarding the Chinese Version of the Q3 2022 Earnings Announcement](index=1&type=section&id=Clarification%20Regarding%20the%20Chinese%20Version%20of%20the%20Q3%202022%20Earnings%20Announcement) This announcement clarifies a data inconsistency in the Chinese version of the Q3 2022 earnings announcement, correcting vocational training revenue figures while other content remains unchanged Vocational Training Revenue Comparison Before and After Correction (Q3 2022) | Item | Q3 2022 (Corrected) (RMB Million) | Q3 2021 (RMB Million) | YoY Growth (%) | | :--- | :--- | :--- | :--- | | Vocational Training Revenue | 78.0 | 14.0 | 457.1 | - Vocational training revenue's **strong growth** is primarily attributed to the company's introduction of **more diversified courses**, attracting an **increase in paying members**[1](index=1&type=chunk)

Financial Performance - Total revenue for the six months ended June 30, 2022, was RMB 1,579,243 thousand, representing a 41.4% increase from RMB 1,116,638 thousand in the same period of 2021[7]. - Gross profit for the same period was RMB 735,145 thousand, up 13.2% from RMB 649,224 thousand year-over-year[7]. - Operating loss increased to RMB (1,108,844) thousand, a 60.0% rise compared to RMB (692,999) thousand in the prior year[7]. - Net loss for the six months was RMB (1,101,304) thousand, reflecting a 70.5% increase from RMB (645,777) thousand in 2021[7]. - Adjusted net loss, a non-GAAP measure, was RMB (811,200) thousand, which is 105.9% higher than RMB (393,905) thousand in the previous year[7]. - Total comprehensive loss for the six months ended June 30, 2022, was RMB (940,327) thousand, compared to RMB (747,933) thousand in the same period of 2021, representing an increase in comprehensive losses of approximately 25.7%[97]. User Engagement and Growth - Average monthly active users (MAUs) reached 103.7 million, a 15.7% increase from 89.7 million in the same period last year[7]. - Average monthly paying members increased to 7.7 million, representing a significant growth of 75.8% from 4.4 million in 2021[7]. - Average monthly page views rose by 18.0% to 573.5 million in the first half of 2022[15]. - 73.8% of average monthly active users were under 30 years old as of June 30, 2022[15]. Revenue Streams - Paid membership revenue increased by 75.1% year-on-year in the first half of 2022[13]. - Content commercialization solutions revenue grew by 42.3% to RMB 467.2 million from RMB 328.3 million year-over-year, reflecting continuous efforts in developing this business line[27]. - The company generates revenue through paid membership services, allowing users to access exclusive content for a duration ranging from one to twelve months[141]. - Advertising revenue is primarily derived from contracts with clients, with major formats including display ads charged on a cost-per-thousand-impressions (CPM) basis and cost-per-click (CPC) model[142]. Expenses and Costs - Total operating expenses increased to RMB 1,844.0 million from RMB 1,342.2 million year-over-year[29]. - Cost of revenue rose to RMB 844.1 million, representing 53.4% of total revenue, compared to 41.9% in the same period last year[30]. - Sales and marketing expenses for the same period were RMB 1,039.0 million, up 31.5% from RMB 789.9 million in 2021, primarily due to increased promotional and advertising expenses to attract new users and enhance brand awareness[33]. - Research and development expenses increased to RMB 390.1 million, a 72% rise from RMB 226.9 million in the previous year, reflecting ongoing investments in technology infrastructure and an increase in R&D personnel[33]. Corporate Governance - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination and Corporate Governance Committee to oversee specific areas of the company's affairs[58]. - The Audit Committee consists of three independent non-executive directors and is responsible for reviewing the financial reporting process and risk management systems[59]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange rules, except for the separation of the roles of Chairman and CEO[55]. - The company will continue to review and monitor its corporate governance practices to ensure compliance with the latest corporate governance code[55]. Share Structure and Equity - The company has a dual-class share structure with A shares having one vote per share and B shares having ten votes per share, with B shares representing approximately 38.52% of the voting rights[51]. - The company will issue 19,211,343 A shares to dual-class shareholders upon conversion of all issued B shares, which is about 5.90% of the total issued A shares[52]. - The company has a total of 19,211,343 Class B ordinary shares held by MO Holding Ltd, representing 100% of that class[70]. - The company has a total of 1,550,000,000 Class A common shares and 50,000,000 Class B common shares as of June 2022[179]. Cash Flow and Liquidity - Cash and cash equivalents, along with restricted cash, decreased by 4.8% to RMB 70.2 billion as of June 30, 2022, from RMB 73.7 billion as of December 31, 2021[39]. - Net cash used in operating activities was RMB (515.1) million, compared to RMB (145.7) million in the previous year[40]. - The liquidity assessment indicates that cash and short-term investments are sufficient to meet the company's operational and financial commitments for at least the next twelve months[128]. Investments and Acquisitions - The company acquired 55% of Prez Limited for a total purchase price of RMB 83.9 million, with the remaining 45% subject to a five-year service period for the founder[165]. - The company acquired 55% of Yincheng Limited for a total purchase price of RMB 35.6 million, with the remaining 45% subject to a six-year service period for the founder[165]. Variable Interest Entities (VIEs) - The company has established contracts that grant it actual control over the VIEs, ensuring it can influence their economic performance significantly[113]. - The VIEs' financial results are consolidated into the company's financial statements, reflecting their importance to the overall business model[110]. - The exclusive business cooperation agreement allows the foreign-invested enterprises to receive substantial economic benefits from the VIEs, with service fees paid by the VIEs amounting to RMB 149.9 million and RMB 231.5 million for the six months ending June 30, 2021, and 2022, respectively[114]. Stock Incentive Plans - The company has implemented equity incentive plans, with expenses recognized based on the fair value of the granted equity incentives[146]. - The total equity incentive expense recognized in profit or loss for the six months ended June 30, 2022, was RMB 278.3 million[198]. - The maximum number of shares to be issued under the 2022 incentive plan is capped at 39,128,194 shares[194].

Zhihu Inc. (NYSE:ZH) Q2 2022 Earnings Conference Call August 30, 2022 7:30 AM ET Company Participants Jingjing Du - Head of Investor Relations Yuan Zhou - Founder, Chairman & Chief Executive Officer Sun Wei - Chief Financial Officer Conference Call Participants Xueqing Zhang - CICC Ashley Xu - Credit Suisse Operator Ladies and gentlemen, thank you for standing by and welcome to the Zhihu Inc. Second Quarter and Half Year Interim '22 Financial Results Conference Call. [Operator Instructions] Today's conferen ...

Zhihu Inc. (NYSE:ZH) Q1 2022 Earnings Conference Call May 25, 2022 8:00 AM ET Company Participants Jingjing Du - Head of Investor Relations Sun Wei - Chief Financial Officer Yuan Zhou - Founder, Chairman & Chief Executive Officer Conference Call Participants Xueqing Zhang - CICC Steve Qu - Goldman Sachs Ashley Xu - Credit Suisse Yiwen Zhang - China Renaissance Operator Ladies and gentlemen, thank you for standing by and welcome to the Zhihu Inc. First Quarter 2022 Financial Results Conference Call. [Operato ...