Phoenix New Media(FENG) - 2023 Q2 - Quarterly Report

Revenue Performance - Total revenues for Q2 2023 decreased by 5.9% to RMB180.2 million (US$24.8 million) from RMB191.6 million in Q2 2022, primarily due to a decline in paid services revenues[3] - Net advertising revenues increased slightly to RMB161.8 million (US$22.3 million) in Q2 2023, compared to RMB160.5 million in the same period of 2022[3] - Paid services revenues decreased by 40.8% to RMB18.4 million (US$2.5 million) in Q2 2023 from RMB31.1 million in Q2 2022, with revenues from paid content down by 52.9$7.7 million) in Q2 2023, with a gross margin of 31.0%, up from 25.9% in Q2 2022[5] - Gross profit for the three months ended June 30, 2023, was RMB 55,937, representing a significant increase of 12.5% compared to RMB 49,636 for the same period in 2022[23] - The company reported a gross profit margin of 31.0% for the three months ended June 30, 2023, compared to 25.9% for the same period in 2022[25] - Net loss attributable to Phoenix New Media Limited was RMB31.3 million (US$4.3 million) in Q2 2023, compared to RMB95.8 million in Q2 2022, resulting in a net margin of negative 17.4$4.1 million) in Q2 2023, compared to RMB87.1 million in Q2 2022, with a non-GAAP net margin of negative 16.5%[10] Operating Expenses - Total operating expenses decreased by 36.6% to RMB91.6 million (US$12.6 million) in Q2 2023, leading to a narrowed loss from operations of RMB35.7 million (US$4.9 million)[7] - Operating expenses decreased to RMB 91,610 for the three months ended June 30, 2023, down from RMB 144,416 in the same period last year, reflecting a reduction of 36.5%[23] Cash and Assets - As of June 30, 2023, the Company had cash and cash equivalents totaling RMB1.08 billion (US$149.0 million)[12] - As of June 30, 2023, total assets decreased to RMB 1,823,078 from RMB 2,030,824 as of December 31, 2022, representing a decline of approximately 10.2%[21] - Current assets decreased to RMB 1,493,473 from RMB 1,661,651, a reduction of about 10.1%[21] - Cash and cash equivalents increased to RMB 145,798 from RMB 95,982, showing a growth of approximately 52%[21] - Total liabilities decreased to RMB 639,065 from RMB 765,601, a decline of about 16.5%[21] - Shareholders' equity decreased to RMB 1,184,013 from RMB 1,265,223, reflecting a decrease of approximately 6.4%[21] - The accumulated deficit increased from RMB (411,074) to RMB (499,988), indicating a worsening of approximately 21.5%[21] - Accounts receivable, net decreased to RMB 309,007 from RMB 428,587, a decline of about 28%[21] - Operating lease liabilities decreased to RMB 59,358 from RMB 80,947, a reduction of approximately 26.7%[21] - Non-current assets decreased to RMB 329,605 from RMB 369,173, a decline of about 10.7%[21] Future Outlook - For Q3 2023, the Company expects total revenues to be between RMB158.5 million and RMB178.5 million, with net advertising revenues projected between RMB148.7 million and RMB163.7 million[13] - The Company aims to enhance monetization efficiency and improve its bottom line while solidifying its leadership position in the media industry[2]