2024-06-12 16:53Financial Data and Key Metrics Changes - The company recorded a GAAP net loss of RMB165.8 million for Q1 2024, narrowing by 7.4% year-over-year, while the non-GAAP net loss was RMB135.7 million [21] - Gross profit for Q1 increased by 6.1% year-over-year to RMB543.5 million, with a gross profit margin improvement of 5.1 percentage points year-over-year to 56.6% [20] - Total operating expenses for the quarter were RMB768.2 million, compared to RMB729.0 million in the same period last year [21] Business Line Data and Key Metrics Changes - Vocational training revenue increased by 35.9% year-over-year to RMB145.4 million, contributing over 15% to total revenue for the first time [12] - Paid membership revenue reached RMB449.7 million, with an average monthly subscribing member count of 14.8 million, showing a slight decrease of 0.8% year-over-year but an increase of 4.1% quarter-on-quarter [14] - Marketing services revenue decreased by 15.7% year-over-year to RMB330.5 million, although brand advertising revenue increased by 40% year-over-year [17][19] Market Data and Key Metrics Changes - The cumulative business of content on the platform reached 804.2 million, including 611 million Q&As, up 15.4% year-over-year [7] - The number of content creators earning income on Zhihu grew by over 25% year-over-year, with the number of creators benefiting from the monetization plan nearly quadrupling compared to the same period last year [8] - The number of AI creators certified by Blue Label increased by 130% year-over-year, indicating a surge in AI-related content and creator engagement [11] Company Strategy and Development Direction - The company is focusing on achieving profitability in the short term, with a strategic emphasis on high-quality content and user value in the AI era [5][6] - The company aims to enhance operational efficiency through AI-driven technology and has made significant investments in AI capabilities [10][11] - The strategy includes a proactive reduction in community-related user acquisition costs while maintaining a higher ROI in pay membership and vocational training businesses [9] Management's Comments on Operating Environment and Future Outlook - Management expects to achieve quarterly non-GAAP net profit by Q4 2024, with ongoing improvements in operational metrics [24] - The shift from the Internet era to the AI era is seen as a fundamental change, emphasizing the importance of high-quality content and top-tier users [25] - Management believes that the community's trustworthiness and the integration of AI search features will drive sustainable growth [18][34] Other Important Information - The company repurchased 4.8 million A ordinary shares for a total price of $8 million during the first quarter [22] - The company has cash and cash equivalents of RMB1.2 billion as of March 31, 2024, down from RMB5.5 billion at the end of 2023 [22] Q&A Session Summary Question: Update on timetable to achieve quarterly breakeven - Management expects to achieve quarterly non-GAAP net profit in Q4 2024, with notable improvements starting from Q2 2024 [24] Question: User trends post selling and marketing strategy adjustments - Core user retention rates have maintained growth momentum, and daily active user engagement has increased significantly [28] Question: Recent developments in AI publications and user activity - The beta version of the AI search feature has shown promising results, with users becoming notably more active [34] Question: Long-term growth outlook for vocational training business - The vocational training business is expected to continue outperforming the industry, driven by community-enabled self-operated offerings [38] Question: Membership business competition landscape - Zhihu remains a leader in the membership segment, with a significant number of content creators returning to the platform [41]