36Kr Holdings(US:KRKR)2021-06-01 18:40Financial Data and Key Metrics Changes - In Q1 2021, total revenues were RMB 43.5 million, a decrease from RMB 65.2 million in the same period last year, primarily due to changes in revenue recognition for enterprise value-added services [27][30] - Advertising revenue increased by 58% year-over-year to RMB 33.2 million, driven by strong market demand recovery [24][25] - Gross profit was RMB 23.4 million, representing a 329% increase year-over-year, with a gross profit margin of 53.7% compared to 8.4% in the same period last year [28][30] Business Line Data and Key Metrics Changes - Online advertising services revenue increased significantly, while enterprise value-added services revenue decreased to RMB 6.9 million from RMB 42.8 million due to a strategic shift towards higher-margin businesses [25][30] - Subscription services revenue surged by 154% year-over-year to RMB 3.4 million, attributed to growth in institutional investor and enterprise subscriptions [27] Market Data and Key Metrics Changes - Average monthly page views (PV) reached 829.3 million, a 75% year-over-year increase and a 32% sequential increase, indicating strong user engagement [8] - The advertising business saw substantial growth in sectors such as healthcare and artificial intelligence, with over 100% growth in advertising services for these verticals [35] Company Strategy and Development Direction - The company is focusing on digital transformation opportunities and enhancing its content production and technology capabilities to capture growth in the new economy [6][20] - A new equity marketing product was launched to serve public equity market participants, indicating a strategic expansion into this area [16][43] Management's Comments on Operating Environment and Future Outlook - Management noted a solid economic recovery post-pandemic, with expectations for increased advertising demand from multinational brands in 2021 [35] - The company anticipates continuous improvement in gross profit margins throughout the year due to a focus on higher-margin businesses and cost control measures [40] Other Important Information - The company has expanded its enterprise service review portal, showcasing over 3,000 enterprise applications, and aims to leverage its content and data insights to attract more enterprise service providers [17][41] - The company hosted significant industry events, including the China Fund Partner Future Summit, to discuss investment trends and opportunities in the new economy [21][47] Q&A Session Summary Question: Can you share comments on overall market recovery in Q1 2021 and expectations for the rest of the year? - Management observed solid economic recovery with strong momentum in advertising services, particularly in new economy sectors like healthcare and artificial intelligence, expecting continued growth in advertising demand [35] Question: Can you comment on client spending with 36Kr and the return of international clients? - Management noted that advertising services for new economy customers grew significantly, with a rebound in spending from multinational clients expected as the economy recovers [35] Question: Can you elaborate on the gross profit margin and outlook for 2021? - Management confirmed a substantial increase in gross profit margin due to a shift towards higher-margin businesses and cost control, with expectations for continued improvement throughout the year [39][40] Question: What is the strategy behind the new enterprise service review portal? - The portal aims to address enterprise transformation demands by showcasing enterprise service applications and leveraging high-quality content and data insights to attract service providers [41] Question: How is the monetization progress of new infrastructure and its combination with advertising and enterprise services? - Management highlighted the growth in followers and views for short-form video content, indicating successful monetization efforts through advertising and plans to expand service offerings [46]