2024-03-26 20:20Financial Data and Key Metrics Changes - The total revenue for the full year 2023 increased by 16.5% year-over-year to RMB4,199 million, with a fourth-quarter revenue of RMB1.1 billion, reflecting a 2.2% year-over-year increase [7][34] - The overall gross margin improved by more than 4 percentage points year-over-year to 54.7% for the full year and reached 59.1% in the fourth quarter, marking the highest level since the U.S. IPO [7][35] - The adjusted net loss for the full year decreased by 44.9% year-over-year, while the quarterly adjusted net loss narrowed by 31.9% year-over-year to RMB91.3 million [7][37] Business Line Data and Key Metrics Changes - The paid membership revenue for the fourth quarter increased by 13.3% year-over-year to RMB555.9 million, driven by a 9.2% year-over-year increase in average monthly subscribers to 14.2 million [21][34] - The vocational training business revenue surged by 100.1% year-over-year to RMB169.3 million in the fourth quarter, attributed to expanded course offerings [34][25] - Marketing services revenue decreased by 18.7% year-over-year but increased by 21.5% quarter-over-quarter, indicating a recovery in this segment [28][35] Market Data and Key Metrics Changes - The cumulative content creators on the platform increased by 13% year-over-year to 71.3 million, with cumulative pieces of content growing to 774.7 million, a 19.3% year-over-year increase [6][13] - The average monthly active users (MAUs) for the full year increased by 4% year-over-year, while the average MAUs in the fourth quarter were 99 million, a slight decrease of 1.6% year-over-year [6][11] - Revenue from vocational training and paid membership contributed over 50% to total revenue for both the fourth quarter and full year 2023 [18] Company Strategy and Development Direction - The company aims to achieve profitability as soon as possible by optimizing cost and expense structures, focusing on efficiency across all business units [39][40] - There is a strong emphasis on enhancing the trustworthiness of the community and improving the user experience through AI applications and high-quality content [10][39] - The company plans to expand its vocational training offerings and leverage AI technology to revolutionize user experiences and operational efficiency [26][56] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by a dynamic macro environment and competitive industry landscape but highlighted substantial progress in commercialization and efficiency [5][10] - The focus for 2024 includes narrowing losses for emerging businesses and achieving quarterly breakeven on a non-GAAP net profit level by the fourth quarter [42][44] - The company believes that the unique value proposition of authentic, high-quality content will become increasingly important in the age of AI-generated content [63] Other Important Information - The cumulative discussion volume related to generative AI and large language models surpassed 1.2 billion in 2023, indicating strong community engagement in trending topics [13] - The company has repurchased RMB26.3 million worth of shares, reflecting confidence in its long-term value [38] Q&A Session Summary Question: What is the key strategic focus of Zhihu for 2024? - The CEO emphasized achieving profitability, optimizing cost structures, and enhancing user experience through AI applications [39] Question: What is the timetable for breakeven? - The CFO stated the aim is to achieve quarterly breakeven on a non-GAAP net profit level by the fourth quarter of 2024 [42] Question: How does management view the growth rate of paid users? - The CFO explained that Zhihu's premium content attracts users beyond the community, driving overall content consumption growth [46] Question: Can management elaborate on Zhihu's education development? - The CEO highlighted the rapid growth of the vocational training business and the integration of AI to enhance efficiency and user experience [52][56] Question: What is the outlook for the advertising business in 2024? - The CFO noted that while there are external challenges, the company is enhancing commercial content governance to foster trustworthiness [58]