ZHIHU(02390)2023-11-29 08:40Financial Performance - Total revenue for Q3 2023 was RMB 1,022.2 million (USD 140.1 million), an increase of 12.1% compared to RMB 911.7 million in Q3 2022[6] - Net loss for Q3 2023 narrowed to RMB 278.4 million (USD 38.2 million), a decrease of 6.5% from RMB 297.6 million in Q3 2022[9] - Adjusted net loss (non-GAAP) for Q3 2023 was RMB 225.3 million (USD 30.9 million), a reduction of 10.1% from RMB 250.6 million in Q3 2022[9] - Total revenue for the three months ended September 30, 2023, was RMB 1,022,163, a decrease of 1.8% compared to RMB 1,044,209 for the same period in 2022[15] - Net loss attributable to Zhihu shareholders for the three months ended September 30, 2023, was RMB 278,674, slightly improved from RMB 279,841 in the previous quarter[16] - The total net loss for the nine months ended September 30, 2023, was RMB (1,398,889) thousand, compared to RMB (736,423) thousand for the same period in 2022, representing an increase of about 89.8%[18] - The adjusted net loss for the nine months ended September 30, 2023, was RMB (1,061,776) thousand, compared to RMB (567,785) thousand in the same period of 2022, reflecting an increase of approximately 86.7%[18] User Metrics - Average monthly active users (MAUs) reached 110.5 million in Q3 2023[6] - Average monthly subscription members increased by 35.9% year-over-year to 14.8 million in Q3 2023[6] Revenue Streams - Paid membership revenue grew by 39.2% year-over-year to RMB 466.8 million (USD 64.0 million) in Q3 2023[7] - Vocational training revenue surged by 85.6% year-over-year to RMB 144.8 million (USD 19.8 million) in Q3 2023[7] Profitability and Expenses - Gross profit increased by 23.4% year-over-year to RMB 548.5 million (USD 75.2 million), with a gross margin of 53.7%[7] - Total operating expenses rose to RMB 898.6 million (USD 123.2 million) in Q3 2023, compared to RMB 723.0 million in Q3 2022[8] - Operating loss for the three months ended September 30, 2023, was RMB 350,103, compared to RMB 327,220 for the same period in 2022, indicating a worsening of 7.0%[15] - The company reported a significant increase in operating losses, with Q3 2023 losses reaching RMB (350,103) thousand, compared to RMB (278,599) thousand in Q3 2022, marking an increase of about 25.7%[18] Cash and Assets - Cash and cash equivalents, term deposits, and short-term investments amounted to RMB 5,654.2 million (USD 775.0 million) as of September 30, 2023[9] - Cash and cash equivalents decreased to RMB 3,133,073 as of September 30, 2023, down from RMB 4,525,852 as of December 31, 2022[17] - Total assets as of September 30, 2023, were RMB 7,048,255, a decrease from RMB 7,656,239 as of December 31, 2022[17] Share Repurchase Program - As of September 30, 2023, the company repurchased approximately 18.3 million Class A ordinary shares under its existing $100 million share repurchase program, totaling about $42.6 million[10] - The company’s share repurchase plan was approved by shareholders at the annual general meetings held on June 10, 2022, and June 30, 2023[10] - The company has extended its existing share repurchase program until June 10, 2024[10] Non-GAAP Measures - The company uses non-GAAP financial measures, such as adjusted operating loss and adjusted net loss, to supplement its review and assessment of operational performance[12] - The company emphasizes that non-GAAP financial measures may not be comparable to similar measures presented by other companies[12] Future Events - The company will hold an earnings conference call on November 29, 2023, at 6:00 AM EST[11]