In the first quarter, Enterprise North America invoiced amounts grew 7% year over year. Walker emphasized that excluding the government portion of the business—where comparisons are still affected by last year’s disruption tied to “DOGE”—invoiced amounts in the rest of Enterprise North America grew 13%. He said the growth was driven by increases in new logo subscription sales as well as subscription services sold to both new and existing All Access Pass clients.CEO Paul Walker said the company expects “stro ...

Core Insights - Keep reported a revenue of 822 million RMB for the first half of 2025, with an adjusted net profit of 10.35 million RMB and a gross profit of 429 million RMB, resulting in a gross margin increase from 46.0% to 52.2% compared to the same period last year [1] - The average monthly active users and average monthly subscription members for the first half of 2025 were 22.49 million and 2.8 million, respectively, with a membership penetration rate of 12.4%, up from 11.1% in 2024 [1] - The company is undergoing a strategic transformation from a content-driven platform to an AI-enabled, data-driven fitness intelligence service, with significant progress in deploying AI infrastructure and restructuring core tools into AI coaching services [1] Revenue and Strategic Changes - The revenue contraction is attributed to a strategic decision to optimize product categories and channels, focusing on high-potential categories like equipment, apparel, and wearables while reducing low-margin businesses [2] - The CEO emphasized that the introduction of AI Coach will lead to comprehensive user growth, as the company shifts back to reasonable growth budgets and investments [2] - The launch of multi-functional AI tools and the expansion of AIGC content will attract diverse user demands, further increasing the user base [2] AI Development and Future Projections - As of July, Keep's AI daily active users (DAU) ranged from 150,000 to 200,000, with expectations to exceed 1 million by the end of the year [3] - The AI revenue has already surpassed 1 million RMB, and projections indicate that AI annual recurring revenue (ARR) could exceed 200 million RMB by 2026 [3]

Core Insights - Keep reported a revenue of 822 million RMB for the first half of 2025, with an adjusted net profit of 10.35 million RMB and a gross profit of 429 million RMB, resulting in a gross margin increase from 46.0% to 52.2% compared to the same period last year [1] - The average monthly active users and average monthly subscription members for the first half of 2025 were 22.49 million and 2.8 million, respectively, with a membership penetration rate of 12.4%, up from 11.1% in 2024 [1] - The company is undergoing a strategic transformation from a content-driven platform to an AI-enabled, data-driven fitness intelligence service, with significant progress in deploying AI infrastructure and restructuring core tools into AI coaching services [1] Revenue Strategy - The CEO of Keep explained that the revenue contraction is largely due to a strategic decision to optimize product categories and channels, focusing on high-potential categories like equipment, apparel, and wearables while reducing low-margin businesses [2] - The introduction of AI Coach is expected to lead to comprehensive user growth, as the company shifts back to reasonable growth budgets and investments [2] - The launch of AI multifunctional tools and the expansion of AIGC content categories are anticipated to attract a diverse user base, including sports like tennis, golf, and swimming that were previously underserved [2] AI Growth Projections - As of July, Keep's AI daily active users (DAU) ranged from 150,000 to 200,000, with expectations to exceed 1 million by the end of the year [3] - Keep's AI revenue has already surpassed 1 million RMB, and projections suggest that AI annual recurring revenue (ARR) could exceed 200 million RMB by 2026 [3]

Core Viewpoint - Keep has experienced a significant stock price increase of over 22% this week, with a current price of 6.31 HKD and a trading volume of 6.34 million HKD, following the announcement of a profit increase for the first half of the year [1] Financial Performance - Keep reported an adjusted net profit of approximately 10 million RMB for the first half of the year, attributed to optimized business structure and improved revenue quality, leading to a higher gross margin [1] - The company has successfully reduced operating expenses while enhancing operational efficiency and organizational productivity through AI technology [1] Strategic Developments - The founder of Keep, Wang Ning, emphasized that the company's profitability is sustainable and reflects a significant transformation, eliminating unhealthy growth [1] - In February, Wang expressed a commitment to fully invest in AI, leading to the launch of a dedicated model, Kinetic.ai, in March, which supports the development of a general AI coach named Kaka [1] - The AI coach has been updated to provide personalized training plans, intelligent training guidance, and features for tracking exercise and diet [1] - Future plans include upgrading the AI coach from a personalized trainer to a professional coach, with a more comprehensive version of the first-generation AI coach set to be released soon [1]