2024-11-26 09:00Financial Performance - Total revenue for Q3 2024 was RMB 845.0 million (USD 120.4 million), down from RMB 1,022.2 million in Q3 2023, representing a decrease of 17.4%[10] - Gross margin increased to 63.9% in Q3 2024 from 53.7% in Q3 2023, reflecting improved operational efficiency[11] - Net loss narrowed to RMB 9.0 million (USD 1.3 million) in Q3 2024, a 96.8% improvement compared to the same period last year[11] - Marketing services revenue decreased to RMB 256.6 million (USD 36.6 million) from RMB 383.0 million in Q3 2023, a decline of 33.1%[15] - Paid membership revenue slightly decreased to RMB 459.4 million (USD 65.5 million) from RMB 466.8 million in Q3 2023, a decline of 1.0%[15] - Operating loss narrowed by 75.9% to RMB 84.3 million (USD 12.0 million) from RMB 350.1 million in the same period of 2023[18] - Adjusted operating loss decreased by 70.3% to RMB 87.8 million (USD 12.5 million) from RMB 295.9 million in the same period of 2023[18] - Net loss reduced by 96.8% to RMB 9.0 million (USD 1.3 million) from RMB 278.4 million in the same period of 2023[18] - Adjusted net loss decreased by 94.2% to RMB 13.1 million (USD 1.9 million) from RMB 225.3 million in the same period of 2023[18] User Metrics - Average monthly active users (MAUs) reached 81.1 million in Q3 2024[12] - Average monthly subscription members totaled 16.5 million in Q3 2024[12] Expenses and Cost Management - Total operating expenses reduced by 30.5% to RMB 624.5 million (USD 89.0 million) from RMB 898.6 million in Q3 2023[16] - Research and development expenses decreased by 28.2% to RMB 179.3 million (USD 25.5 million) from RMB 249.7 million in Q3 2023[16] - The company incurred share-based compensation expenses of RMB 48,791 thousand for the three months ended September 30, 2023, which is a significant component of the adjusted operating loss[43] Cash and Investments - Cash and cash equivalents, including short-term investments, totaled RMB 5,048.0 million (USD 719.3 million) as of September 30, 2024, down from RMB 5,462.9 million as of December 31, 2023[19] - Cash and cash equivalents as of September 30, 2024, totaled RMB 3,214,074 thousand, an increase from RMB 2,106,639 thousand as of December 31, 2023[39] Share Repurchase and Equity - The company repurchased 31.1 million Class A ordinary shares under a USD 100 million buyback plan, totaling USD 66.5 million[20] - A cash tender offer repurchased 33,016,016 Class A ordinary shares, representing approximately 11.2% of the total shares outstanding prior to the buyback[21] - The company plans to continue its share repurchase strategy, with a maximum of 10% of total issued shares available for repurchase under the existing plans[20] - The total equity attributable to shareholders was RMB 6,795,272 thousand as of September 30, 2024, compared to RMB 6,008,585 thousand as of December 31, 2023, showing an increase of approximately 13%[42] Future Outlook - The company aims to enhance user experience and community trust to unlock the potential of its brand and user base in the future[13] - The company adjusted the ratio of American Depositary Shares (ADS) to Class A ordinary shares from two ADS to one Class A share to one ADS to three Class A shares[23] - The company will hold an earnings conference call on November 26, 2024, at 6:00 AM ET[24]