Ge Long Hui·2025-05-27 08:59Core Insights - Zhihu-W (02390.HK) reported its first quarter unaudited financial performance for 2025, showing total revenue of RMB 729.7 million, a decrease from RMB 960.9 million in the same period of 2024 [1] - The gross margin improved from 56.6% in 2024 to 61.8% in 2025 [1] - The net loss for the first quarter of 2025 was RMB 10.1 million, a significant reduction of 93.9% compared to the net loss in the same quarter of 2024 [1] - Adjusted net profit (non-GAAP) for the first quarter of 2025 was RMB 6.9 million, compared to an adjusted net loss of RMB 135.7 million in the same quarter of 2024 [1] - The average monthly subscription members reached 14.2 million in the first quarter of 2025 [1] Management Commentary - The Chairman and CEO of Zhihu, Zhou Yuan, highlighted that the first quarter of 2025 marked the first time the company recorded non-GAAP net profit in the first quarter since its listing, continuing the profitability momentum from the fourth quarter [2] - Zhou emphasized the effectiveness of the refined operational strategy and the deep integration of artificial intelligence within the Zhihu ecosystem, noting improvements in core user retention, daily active user engagement, and creator activity [2] - CFO Wang Han noted that the company achieved non-GAAP net profit of RMB 6.9 million in the first quarter while maintaining a gross margin increase of 5.2 percentage points year-on-year, reflecting improved execution and operational efficiency [2] - Looking ahead, the company aims to enhance its commercialization capabilities and unlock the community's significant value, focusing on sustainable growth and profitability to create long-term value for shareholders [2]