ZHIHU(US:ZH) Prnewswireยท2024-11-26 09:05Core Insights - Zhihu Inc. reported total revenues of RMB845.0 million (US$120.4 million) for Q3 2024, a decrease from RMB1,022.2 million in Q3 2023, indicating a year-over-year decline of approximately 17.4% [2][7] - The company's gross margin improved to 63.9% in Q3 2024 from 53.7% in Q3 2023, reflecting enhanced operational efficiency [3][11] - Net loss narrowed significantly to RMB9.0 million (US$1.3 million) in Q3 2024, down 96.8% from RMB278.4 million in the same period of 2023 [3][14] Financial Performance - Total revenues for Q3 2024 were RMB845.0 million (US$120.4 million), compared to RMB1,022.2 million in Q3 2023, marking a decline of 17.4% [2][7] - Marketing services revenue decreased to RMB256.6 million (US$36.6 million) from RMB383.0 million in Q3 2023, primarily due to a strategic focus on margin improvement [7] - Paid membership revenue slightly decreased to RMB459.4 million (US$65.5 million) from RMB466.8 million in Q3 2023, attributed to a marginal decline in average revenue per subscribing member [8] - Vocational training revenue fell to RMB105.1 million (US$15.0 million) from RMB144.8 million in Q3 2023, driven by lower contributions from acquired businesses [9] Cost Management - Cost of revenues decreased by 35.6% to RMB304.9 million (US$43.4 million) from RMB473.7 million in Q3 2023, due to reduced content and operating costs [10] - Total operating expenses decreased by 30.5% to RMB624.5 million (US$89.0 million) from RMB898.6 million in Q3 2023, reflecting improved operational efficiency [11] - Selling and marketing expenses decreased by 27.4% to RMB388.0 million (US$55.3 million) from RMB534.3 million in Q3 2023, due to more disciplined promotional spending [12] User Engagement - Average monthly active users (MAUs) reached 81.1 million in Q3 2024, indicating growth in user engagement [4] - Average monthly subscribing members were 16.5 million in Q3 2024, reflecting the company's efforts to enhance its subscription model [5] Strategic Initiatives - The company introduced the 'Professional Search' feature to enhance user experience and engagement, building on the success of its AI-powered search tool, Zhihu Zhida [6] - Management emphasized a commitment to reducing losses and improving profitability, achieving the lowest quarterly loss since its U.S. IPO [6][14] Share Repurchase Programs - As of September 30, 2024, Zhihu repurchased 31.1 million Class A ordinary shares for a total price of US$66.5 million under its existing share repurchase program [17] - The company also conducted a cash tender offer, repurchasing 33,016,016 Class A ordinary shares, representing approximately 11.2% of its total issued shares before the repurchase [18]