2024-06-12 09:06Financial Performance - Total revenue for Q1 2024 was RMB 960.9 million (USD 133.1 million), a decrease from RMB 994.2 million in Q1 2023[6] - Gross margin increased from 51.5% in Q1 2023 to 56.6% in Q1 2024[6] - Net loss narrowed to RMB 165.8 million (USD 23.0 million) in Q1 2024, compared to RMB 179.0 million in Q1 2023[8] - Paid subscription revenue was RMB 449.7 million (USD 62.3 million), slightly down from RMB 454.8 million in Q1 2023[7] - Revenue from vocational training grew by 35.9% to RMB 145.4 million (USD 20.1 million) in Q1 2024, up from RMB 107.0 million in Q1 2023[7] - Operating expenses totaled RMB 768.2 million (USD 106.4 million) in Q1 2024, compared to RMB 729.0 million in Q1 2023[7] User Engagement - Average monthly active users (MAUs) reached 89.0 million in Q1 2024[6] - The company is focusing on improving the trustworthiness of its community to drive user engagement and retention[6] - Monthly active users are defined as the number of unique mobile devices that activated the mobile app at least once in a specified month[10] Share Repurchase Program - As of March 31, 2024, the company repurchased 31.1 million Class A ordinary shares under the existing $100 million share repurchase program, totaling $66.5 million[9] - The board has approved an extension of the 2022 repurchase plan until June 26, 2025, pending shareholder approval at the upcoming annual meeting[9] - The proposed repurchase authorization allows for the buyback of up to 10% of the company's issued shares as of the approval date, excluding treasury shares[9] - The company plans to fund any repurchases using existing cash reserves[9] Financial Metrics and Adjustments - Non-GAAP financial measures, such as adjusted operating loss and adjusted net loss, are used to supplement the review and assessment of the company's operating performance[13] - The adjusted operating loss for the three months ended March 31, 2023, was RMB 157,336 thousand, compared to RMB 165,293 thousand for the previous quarter[23] Future Plans and Events - The company aims to achieve profitability through enhanced operational efficiency and reduced losses[6] - The company will hold an earnings conference call on June 12, 2024, at 7:00 AM Eastern Time[11] - The company will change the ratio of American Depositary Shares (ADS) to Class A ordinary shares from two ADS to one Class A share to three ADS to one Class A share effective May 10, 2024[10] Historical Financial Data - Total revenue for the three months ended March 31, 2023, was RMB 994,220 thousand, a decrease of 12.7% from RMB 1,138,297 thousand for the three months ended December 31, 2022[16] - The number of paid members for professional training was 145,436, compared to 169,272 in the previous quarter, indicating a decline of 14.1%[16] - Gross profit for the three months ended March 31, 2023, was RMB 512,219 thousand, down from RMB 673,100 thousand in the previous quarter, representing a decrease of 24%[16] - Operating loss for the three months ended March 31, 2023, was RMB 216,744 thousand, compared to a loss of RMB 178,158 thousand for the three months ended December 31, 2022[16] - Net loss attributable to Zhihu shareholders for the three months ended March 31, 2023, was RMB 181,355 thousand, compared to a loss of RMB 103,771 thousand in the previous quarter[16] - Total assets as of December 31, 2022, were RMB 6,795,272 thousand, a slight increase from RMB 6,535,376 thousand as of March 31, 2023[22] - Total liabilities as of March 31, 2023, were RMB 2,093,662 thousand, compared to RMB 2,027,808 thousand as of December 31, 2022[22] - The company reported a basic and diluted net loss per share of RMB (0.59) for the three months ended March 31, 2023[18] - Cash and cash equivalents as of December 31, 2022, were RMB 2,106,639 thousand, showing a decrease to RMB 2,194,419 thousand as of March 31, 2023[22]