Globenewswireยท2025-05-27 09:00Core Viewpoint - Zhihu Inc. reported its first-ever non-GAAP net income for the first quarter of 2025, reflecting effective operational strategies and AI integration, despite a decline in total revenues compared to the previous year [3][4]. Financial Performance - Total revenues for Q1 2025 were RMB 729.7 million (US$ 100.6 million), down from RMB 960.9 million in Q1 2024 [4][8]. - Non-GAAP net income was RMB 6.9 million (US$ 1.0 million), a significant improvement from a net loss of RMB 135.7 million in the same period of 2024 [8][12]. - Gross margin increased to 61.8% in Q1 2025 from 56.6% in Q1 2024, attributed to monetization enhancements and operational efficiency improvements [7][8]. Revenue Breakdown - Marketing services revenue decreased to RMB 197.0 million (US$ 27.1 million) from RMB 330.5 million in Q1 2024, due to strategic refinements in service offerings [4]. - Paid membership revenue was RMB 417.9 million (US$ 57.6 million), slightly down from RMB 449.7 million in Q1 2024, primarily due to a marginal decline in average monthly subscribing members [5]. - Vocational training revenue fell to RMB 94.5 million (US$ 13.0 million) from RMB 145.4 million in Q1 2024, mainly due to lower contributions from acquired businesses [5]. Cost Management - Cost of revenues decreased by 33.3% to RMB 278.6 million (US$ 38.4 million) from RMB 417.4 million in Q1 2024, driven by reduced content and operating costs [6]. - Total operating expenses decreased by 34.4% to RMB 503.7 million (US$ 69.4 million) from RMB 768.2 million in Q1 2024, with selling and marketing expenses down by 32.9% [9]. Shareholder Value Initiatives - As of March 31, 2025, the company had cash and cash equivalents totaling RMB 4,766.5 million (US$ 656.8 million) [13]. - The company repurchased 31.1 million Class A ordinary shares for a total of US$ 66.5 million under its existing share repurchase program [13][14].