2025-05-27 08:42Financial Performance - For Q1 2025, the total revenue was RMB 729.7 million (USD 100.6 million), a decrease from RMB 960.9 million in Q1 2024[10] - The gross margin increased to 61.8% in Q1 2025, up from 56.6% in the same period last year, reflecting improved operational efficiency[12] - The net loss for Q1 2025 narrowed to RMB 10.1 million (USD 1.4 million), a 93.9% reduction compared to RMB 165.8 million in Q1 2024[14] - Adjusted net profit (non-GAAP) for Q1 2025 was RMB 6.9 million (USD 1.0 million), compared to an adjusted net loss of RMB 135.7 million in Q1 2024[14] - Marketing services revenue decreased to RMB 197.0 million (USD 27.1 million) from RMB 330.5 million in Q1 2024, primarily due to a strategic focus on improving profit margins[11] - Paid membership revenue slightly decreased to RMB 417.9 million (USD 57.6 million) from RMB 449.7 million in Q1 2024, attributed to a minor decline in average monthly subscribers[11] - Operating expenses decreased by 34.4% to RMB 503.7 million (USD 69.4 million) from RMB 768.2 million in Q1 2024[12] - The company recorded an operating loss of RMB 52.6 million (USD 7.2 million), a 76.6% improvement from RMB 224.7 million in Q1 2024[12] Membership and Subscribers - Average monthly subscription members reached 14.2 million in Q1 2025[10] - The average monthly subscription members are calculated by dividing the total number of monthly subscription members by the number of months in the specified period[20] Cash and Investments - As of March 31, 2025, the company's cash and cash equivalents, along with short-term investments, totaled RMB 4,766.5 million (USD 656.8 million), a slight decrease from RMB 4,859.0 million as of December 31, 2024[15] - Cash and cash equivalents decreased to RMB 3,239,963 thousand as of March 31, 2024, down from RMB 3,999,160 thousand at the end of 2023[31] Share Repurchase - The company has repurchased 31.1 million Class A ordinary shares under the existing USD 100 million share repurchase program, totaling USD 66.5 million[16] - A new share repurchase program is proposed for approval at the annual general meeting on June 25, 2025, allowing for the repurchase of up to 10% of the total issued shares[16] Future Outlook and Strategy - The company aims to enhance commercialization capabilities and unlock significant community value for sustainable growth and profitability[10] - Forward-looking statements are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, involving inherent risks and uncertainties[24] Company Information - The company is listed on the New York Stock Exchange under the ticker symbol ZH and has developed into China's largest online content Q&A community since its launch in 2010[19] - For investor inquiries, the company can be contacted via email at ir@zhihu.com[25] Previous Quarter Comparison - Total revenue for Q1 2024 reached RMB 960,863 thousand, a 11.8% increase from RMB 859,212 thousand in Q4 2023[27] - Paid membership revenue was RMB 449,724 thousand, up 7% from RMB 420,215 thousand in the previous quarter[27] - Operating loss for Q1 2024 was RMB 224,748 thousand, compared to a profit of RMB 11,866 thousand in Q4 2023[27] - Net loss attributable to Zhihu shareholders was RMB 164,846 thousand, a significant decline from a profit of RMB 86,274 thousand in the previous quarter[27] - Total assets amounted to RMB 5,683,060 thousand as of March 31, 2024, slightly down from RMB 5,732,952 thousand at the end of 2023[33] - Total liabilities were RMB 1,523,697 thousand, a slight decrease from RMB 1,537,266 thousand at the end of 2023[33] - Basic net loss per share for Q1 2024 was RMB (0.59), compared to a profit of RMB 0.34 in Q4 2023[29] - Adjusted operating loss for Q1 2024 was RMB (193,571) thousand, compared to an adjusted profit of RMB 23,136 thousand in Q4 2023[35] - The company reported a significant increase in research and development expenses, totaling RMB 197,356 thousand for Q1 2024, up from RMB 146,613 thousand in Q4 2023[27]