36Kr Holdings(KRKR) - 2022 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company achieved total revenues of RMB81.7 million in Q2 2022, a 13% increase compared to RMB72.1 million in the same period last year [25] - Gross profit increased by 23% year-over-year to RMB50.9 million, with a gross profit margin of 62%, up 5 percentage points from 57% in the same period last year [29] - Net income was RMB9 million in Q2 2022, compared to a net loss of RMB34.3 million in the same period last year [31] Business Line Data and Key Metrics Changes - Advertising revenues grew by 12% year-over-year to RMB37.8 million, with the number of advertising customers increasing by 13% [27] - Enterprise value-added services revenue remained stable at RMB14.3 million, largely flat compared to the same period last year [28] - Subscription services revenues rose to RMB9.5 million, a 58% increase year-over-year [28] Market Data and Key Metrics Changes - The advertising business showed signs of recovery in Q3 2022, with expectations for continued growth due to expanded industry coverage and innovative marketing solutions [36] - The contribution from short-form video advertising increased from less than 10% at the end of last year to around 15% by the end of Q2 2022 [49] Company Strategy and Development Direction - The company is focused on optimizing its content ecosystem and expanding its reach to a wider user base through innovative media and content formats [6][8] - Plans for offline events are in place for the second half of the year, with a series of summits and forums scheduled to enhance brand visibility and engagement [36][38] - The company aims to enhance monetization capabilities through its subscription services and innovative course offerings targeting various customer segments [51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the advertising business and the ability to navigate macroeconomic challenges [36] - The company remains cautiously optimistic about revenue growth in the second half of the year, despite potential pandemic-related disruptions [36] - The focus will be on leveraging partnerships and enhancing operational efficiency to drive growth and customer acquisition [41] Other Important Information - The company generated positive operating cash flow in Q2 2022, with cash and short-term investments increasing by over RMB20 million quarter-over-quarter [26] - The company has been actively engaging with various industries, including technology and healthcare, to expand its service offerings and customer base [14][19] Q&A Session Summary Question: What is the recovery outlook for the company's various businesses in the third quarter? - Management noted improvements in the advertising business and plans to expand industry coverage to capture new opportunities [36] Question: What are the expectations for offline activities in the second half of the year? - Management confirmed that offline events are planned, with confidence in pandemic control measures allowing for successful execution [36][38] Question: Can you provide more details on the collaboration with ByteDance for the Enterprise Service Review Platform? - Management highlighted the focus on cloud computing and SaaS applications, with plans to enhance customer awareness through diverse content formats [41] Question: How does the company plan to grow and monetize short video platforms? - Management indicated that short-form video has become increasingly popular among advertisers, contributing significantly to advertising revenue growth [49]