Financial Data and Key Metrics Changes - Total revenues for the first half of 2024 were RMB102.4 million, down from RMB139.9 million in the same period last year, indicating a decrease of approximately 26.7% [22] - Online advertising services revenue decreased to RMB80.4 million from RMB98.9 million, a decline of about 18.6% [22] - Gross profit was RMB45.5 million, down from RMB69.8 million, with a gross profit margin of 44.4% compared to 49.9% in the previous year [24] - Net loss increased to RMB95.9 million from RMB52.7 million, with a basic and diluted net loss per ADS of RMB2.245 compared to RMB1.258 in the same period last year [26] Business Line Data and Key Metrics Changes - Enterprise value-added services revenues fell to RMB13.4 million from RMB26.8 million, a decrease of approximately 50% [23] - Subscription services revenues decreased to RMB8.6 million from RMB14.2 million, reflecting a decline of about 39.4% [23] - The company reported a significant reduction in operating expenses by 9% to RMB117 million, with sales and marketing expenses decreasing by 29.9% [24] Market Data and Key Metrics Changes - The company had over 33.28 million followers, a 9% increase year over year, indicating sustained growth in user engagement [7] - Short video followers surpassed 9.2 million, with 2.3 million on Bilibili alone, showcasing strong performance in the short video segment [10] Company Strategy and Development Direction - The company is focusing on premium original content and enhancing its content supply capabilities, aiming to meet diverse customer needs and explore AI applications [8] - A three-step strategy of positioning, expansion, and collaboration is being implemented to drive operational efficiency and diversified development [9][20] - The company is expanding its customer segments, particularly in sectors like food and beverage, sports, and beauty, with notable new customer ratios exceeding 40% in beauty and personal care [16] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding future advertising growth, emphasizing the importance of optimizing products and services to navigate macroeconomic challenges [30] - The company plans to continue enriching its content ecosystem and expanding its reach to new channels while integrating AI technology into content production [30] Other Important Information - The company recognized an investment loss of approximately RMB25.5 million due to fair value changes of long-term investments [26] - Cash and cash equivalents decreased to RMB96.9 million from RMB116.9 million as of December 31, 2023, primarily due to net cash outflow from operating activities [27] Q&A Session Summary Question: Could management outline the expected growth trajectory for the advertising business? - Management remains cautiously optimistic about future advertising growth, focusing on optimizing products and services to support core customers, which has driven a 20% increase in ARPU [30] Question: What are the latest developments in short and long video segments? - The company has expanded its short video content offerings and established high visibility commercialization collaborations, with short video followers surpassing 9.2 million [34] Question: What key strategies will the company implement to drive growth in enterprise value-added services and subscription services? - The company launched a successful event IP and plans to enhance value-added consulting services while refining its service architecture for governmental and public service systems [39]
36Kr Holdings(KRKR) - 2024 Q2 - Earnings Call Transcript