ZHIHU(ZH) 36氪·2025-03-27 11:42Core Viewpoint - After years of continuous losses, Zhihu has finally achieved profitability, marking a significant milestone in its financial journey [1][7][32] Financial Performance - In the fiscal year 2024, Zhihu reported a revenue of 3.6 billion RMB, still in a declining trend, but the net loss narrowed to 169 million RMB, a year-on-year reduction of 79.9% [1] - For Q4 2024, Zhihu achieved a revenue of 860 million RMB and a net profit of 86.4 million RMB, compared to a net loss of 103.1 million RMB in the same period of 2023 [1][2] - The adjusted net profit for Q4 was 97.1 million RMB, with an adjusted operating profit of 23.1 million RMB, all exceeding market expectations [1][2] Cost Management - Zhihu significantly reduced costs and expenses in Q4 2024, with costs down by 31.5% to 318.5 million RMB, and expenses down by 37.9% to 528.8 million RMB [9] - The cost reduction was attributed to lower content and operational costs, improved technical efficiency, and stricter management of promotional and personnel-related expenses [9][10] Strategic Focus - The company has prioritized achieving profitability over revenue growth, indicating a strategic shift towards cost control and efficiency [12][14] - Despite a revenue decline of 24.5% year-on-year in Q4, Zhihu's gross profit margin improved from 54.7% in 2023 to 60.6% in 2024, with Q4 reaching 62.9% [11][12] AI Integration - Zhihu views AI as a historic opportunity, launching its AI product "Zhihu Direct Answer" which has seen its monthly active users (MAU) grow to over 10 million [3][6][18] - The integration of AI aims to enhance user interaction and content discovery, leveraging Zhihu's unique content pool to differentiate itself from competitors [19][20][22] Market Reaction - The capital market responded positively to Zhihu's financial results, with its stock price rising over 30% year-to-date [2][3] - Analysts recognize Zhihu's potential in the AI space, highlighting its unique content advantages and the ability to leverage its community for growth [23][32] Future Outlook - Zhihu aims to continue its path towards profitability while exploring AI opportunities, with a target to significantly reduce losses or achieve profitability by 2025 [16][32] - The company is also focusing on expanding its membership services, which contributed nearly half of its revenue in 2024, indicating room for growth in this area [26][27]