36Kr Holdings(US:KRKR)2021-12-10 18:09Financial Data and Key Metrics Changes - The total revenues for Q3 2021 were RMB 84.9 million, a decrease from RMB 123.5 million in the same period of the previous year, primarily due to changes in revenue recognition for enterprise value-added services [38] - Gross profit was RMB 47.6 million, with a gross profit margin of 56.1%, up from 37.9% in the same period last year, reflecting a shift towards higher margin businesses [35][39] - Net loss for Q3 2021 was RMB 31.3 million, compared to RMB 14 million in the same period of 2020, with a non-GAAP adjusted net loss of RMB 26.4 million [41] Business Line Data and Key Metrics Changes - Online advertising services revenues increased by 4% to RMB 53.4 million in Q3 2021, driven by innovative marketing solutions [36] - Enterprise value-added services revenues were RMB 22.5 million, a decrease from RMB 66.4 million in the same period of 2020, due to a shift in focus towards higher margin businesses [36] - Subscription services revenues grew by 52% year-over-year to RMB 9 million, attributed to high-quality subscription products [37] Market Data and Key Metrics Changes - Average monthly page views (PVs) reached 849 million, a 50% increase year-over-year, marking the 14th consecutive quarter of PV growth [8] - The advertising business achieved solid growth year-over-year and quarter-over-quarter in both the number of advertising clients and average revenue per customer, despite industry challenges [48] Company Strategy and Development Direction - The company is focusing on expanding its content matrix and enhancing its presence in new industries, including the metaverse and digital transformation [15][17] - The enterprise service review portal is expected to become a significant growth driver once fully commercialized, showcasing nearly 5,000 software applications [47] - The company aims to leverage its brand influence and innovative advertising formats, such as short videos and live streaming, to increase average revenue per user [60][62] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for Q4 2021, anticipating continued growth in advertising revenue if there are no large-scale COVID-19 resurgences [50] - The company is well-positioned to capitalize on trends in the new economy and unlock commercialization potential as it empowers more new economy enterprises [32] Other Important Information - The company ended Q3 2021 with cash, cash equivalents, and short-term investments of RMB 178 million, an increase from RMB 149.6 million as of June 30, 2021 [41] - The company has repurchased approximately 786,000 ADSs for approximately RMB 17.5 million under its share repurchase program [42] Q&A Session Summary Question: What are the main contributors to enterprise value-added services revenue and future growth points? - The main contributors are consulting services and offline events, accounting for around 60% and 30% of total enterprise VAS revenue respectively, with both growing rapidly [44][46] Question: How is the housing business expected to perform in Q4 under the current macro environment? - Management remains cautiously optimistic about Q4, expecting growth in advertising revenue despite industry pressures [48] Question: What are the key revenue contributors in terms of industries? - The top five industries contributing to total revenue are consumption, lifestyle, investment institutions, entertainment and media, and e-commerce, accounting for 57% of total revenue [53] Question: What is the trend for enterprise value-added service customers and ARPU? - The number of enterprise VAS customers has been improving sequentially, driven by a shift towards higher-margin consulting and offline events services [56] Question: Can management provide insights on the development of short video and live streaming? - Both short video and live streaming achieved year-over-year growth, with short video revenue setting a record for average revenue per customer [60][62]