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Zhihu Inc. Reports Unaudited Fourth Quarter and Fiscal Year 2024 Financial Results

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Zhihu (NYSE: ZH) reported its Q4 and FY 2024 financial results, marking a significant turnaround with its first profitable quarter. In Q4 2024, the company achieved:

- Total revenues of RMB859.2M (US$117.7M), down from RMB1,138.3M in Q4 2023
- Gross margin expansion to 62.9% from 59.1% YoY
- Net income of RMB86.4M (US$11.8M) vs net loss of RMB103.1M in Q4 2023
- 81.4M monthly active users and 14.1M monthly subscribing members

For FY 2024:
- Total revenues were RMB3,598.9M (US$493.0M), compared to RMB4,198.9M in 2023
- Gross margin improved to 60.6% from 54.7%
- Net loss narrowed by 79.9% to RMB169.0M

The company has been actively repurchasing shares, with 31.1M Class A ordinary shares bought back for US$66.5M under its existing program, and completed an additional tender offer of approximately HK$300M.

Zhihu (NYSE: ZH) ha riportato i risultati finanziari del Q4 e dell'anno fiscale 2024, segnando un importante cambiamento con il suo primo trimestre redditizio. Nel Q4 2024, l'azienda ha raggiunto:

- Ricavi totali di RMB859,2M (US$117,7M), in calo rispetto a RMB1.138,3M nel Q4 2023
- Espansione del margine lordo al 62,9% rispetto al 59,1% su base annua
- Utile netto di RMB86,4M (US$11,8M) rispetto a una perdita netta di RMB103,1M nel Q4 2023
- 81,4M di utenti attivi mensili e 14,1M di membri abbonati mensili

Per l'anno fiscale 2024:
- I ricavi totali sono stati di RMB3.598,9M (US$493,0M), rispetto a RMB4.198,9M nel 2023
- Il margine lordo è migliorato al 60,6% rispetto al 54,7%
- La perdita netta si è ridotta del 79,9% a RMB169,0M

L'azienda ha attivamente riacquistato azioni, con 31,1M di azioni ordinarie di Classe A riacquistate per US$66,5M nell'ambito del suo programma esistente, e ha completato un'offerta di acquisto aggiuntiva di circa HK$300M.

Zhihu (NYSE: ZH) informó sus resultados financieros del cuarto trimestre y del año fiscal 2024, marcando un cambio significativo con su primer trimestre rentable. En el Q4 2024, la compañía logró:

- Ingresos totales de RMB859,2M (US$117,7M), en comparación con RMB1.138,3M en el Q4 2023
- Expansión del margen bruto al 62,9% desde el 59,1% interanual
- Ingreso neto de RMB86,4M (US$11,8M) frente a una pérdida neta de RMB103,1M en el Q4 2023
- 81,4M de usuarios activos mensuales y 14,1M de miembros suscritos mensualmente

Para el año fiscal 2024:
- Los ingresos totales fueron RMB3.598,9M (US$493,0M), en comparación con RMB4.198,9M en 2023
- El margen bruto mejoró al 60,6% desde el 54,7%
- La pérdida neta se redujo en un 79,9% a RMB169,0M

La empresa ha estado recomprando acciones activamente, con 31,1M de acciones ordinarias de Clase A recompradas por US$66,5M bajo su programa existente, y completó una oferta de compra adicional de aproximadamente HK$300M.

Zhihu (NYSE: ZH)는 2024년 4분기 및 연간 재무 결과를 보고하며 첫 분기 흑자를 기록한 중요한 전환점을 맞이했습니다. 2024년 4분기 동안 회사는 다음과 같은 성과를 달성했습니다:

- 총 수익 RMB859.2M (미화 1억 1,770만 달러), 2023년 4분기 RMB1,138.3M에서 감소
- 총 마진이 전년 대비 59.1%에서 62.9%로 확대
- 순이익 RMB86.4M (미화 1,180만 달러)로, 2023년 4분기 순손실 RMB103.1M에 비해 개선
- 월간 활성 사용자 8140만 명 및 월간 구독 회원 1410만 명

2024년 회계연도:
- 총 수익은 RMB3,598.9M (미화 4억 9,300만 달러)로, 2023년의 RMB4,198.9M와 비교
- 총 마진이 54.7%에서 60.6%로 개선
- 순손실이 79.9% 감소하여 RMB169.0M

회사는 기존 프로그램에 따라 3,110만 주의 A 클래스 보통주를 6,650만 달러에 재매입했으며, 약 HK$3억의 추가 매수 제안을 완료했습니다.

Zhihu (NYSE: ZH) a annoncé ses résultats financiers du quatrième trimestre et de l'exercice 2024, marquant un tournant significatif avec son premier trimestre bénéficiaire. Au quatrième trimestre 2024, l'entreprise a réalisé :

- Des revenus totaux de RMB859,2M (US$117,7M), en baisse par rapport à RMB1.138,3M au Q4 2023
- Une expansion de la marge brute à 62,9% contre 59,1% d'une année sur l'autre
- Un bénéfice net de RMB86,4M (US$11,8M) contre une perte nette de RMB103,1M au Q4 2023
- 81,4M d'utilisateurs actifs mensuels et 14,1M de membres abonnés mensuellement

Pour l'exercice 2024 :
- Les revenus totaux étaient de RMB3.598,9M (US$493,0M), contre RMB4.198,9M en 2023
- La marge brute s'est améliorée à 60,6% contre 54,7%
- La perte nette a été réduite de 79,9% à RMB169,0M

L'entreprise a activement racheté des actions, avec 31,1M d'actions ordinaires de Classe A rachetées pour US$66,5M dans le cadre de son programme existant, et a complété une offre d'achat supplémentaire d'environ HK$300M.

Zhihu (NYSE: ZH) hat seine finanziellen Ergebnisse für das 4. Quartal und das Geschäftsjahr 2024 veröffentlicht und damit eine bedeutende Wende mit seinem ersten profitablen Quartal markiert. Im Q4 2024 erzielte das Unternehmen:

- Gesamteinnahmen von RMB859,2M (US$117,7M), ein Rückgang von RMB1.138,3M im Q4 2023
- Erweiterung der Bruttomarge auf 62,9% von 59,1% im Jahresvergleich
- Nettogewinn von RMB86,4M (US$11,8M) im Vergleich zu einem Nettoverlust von RMB103,1M im Q4 2023
- 81,4M monatlich aktive Nutzer und 14,1M monatlich abonnierte Mitglieder

Für das Geschäftsjahr 2024:
- Die Gesamteinnahmen betrugen RMB3.598,9M (US$493,0M), im Vergleich zu RMB4.198,9M im Jahr 2023
- Die Bruttomarge verbesserte sich auf 60,6% von 54,7%
- Der Nettoverlust verringerte sich um 79,9% auf RMB169,0M

Das Unternehmen hat aktiv Aktien zurückgekauft, wobei 31,1M Class-A-Stammaktien für US$66,5M im Rahmen seines bestehenden Programms zurückgekauft wurden, und hat ein zusätzliches Übernahmeangebot von etwa HK$300M abgeschlossen.

Positive
  • First-time achievement of positive operating profit and net income in Q4 2024
  • Significant gross margin expansion to 62.9% in Q4 2024 from 59.1% YoY
  • Operating expenses decreased by 37.9% in Q4 2024
  • Net loss narrowed by 79.9% in FY 2024
  • Active share repurchase program execution showing confidence in company value
Negative
  • Total revenues declined 24.5% YoY in Q4 2024
  • Annual revenue decreased 14.3% to RMB3,598.9M in FY 2024
  • Decline in marketing services revenue due to service offering refinement
  • Decrease in paid membership revenue due to lower average revenue per subscriber
  • Continued net loss of RMB169.0M for full year 2024

Insights

Zhihu's Q4 2024 results represent a significant inflection point as the company achieved its first-ever quarterly profit on both GAAP and non-GAAP basis. While total revenues declined 24.5% year-over-year to RMB859.2 million, the company successfully transformed its financial profile through strategic cost optimization and operational efficiency.

The gross margin expansion to 62.9% (up 3.8 percentage points) demonstrates management's successful pivot toward profitability over top-line growth. The 37.9% reduction in operating expenses, particularly the 40.1% cut in selling and marketing costs, directly contributed to the bottom-line improvement.

Most importantly, Zhihu posted net income of RMB86.4 million in Q4, a remarkable turnaround from the RMB103.1 million loss in the same period last year. This profitability milestone comes despite full-year revenue declining 14.3% to RMB3.6 billion.

The company's cash position remains solid at RMB4.86 billion (US$665.7 million), though down from RMB5.46 billion year-over-year, partially due to ongoing share repurchase programs that returned capital to shareholders. With full-year net losses narrowing by 79.9%, Zhihu appears well-positioned to potentially achieve sustained profitability in 2025 if it can stabilize revenue while maintaining its improved cost structure.

Zhihu's turnaround strategy shows how content platforms can effectively transition from growth-at-all-costs to sustainable business models. The company's strategic refinement of service offerings sacrificed short-term revenue for margin improvement—a difficult but necessary pivot in today's digital content market.

The platform maintained substantial user engagement with 81.4 million MAUs and 14.1 million paying subscribers in Q4, suggesting the core content ecosystem remains robust despite reduced marketing spend. The 37% reduction in R&D expenses indicates more disciplined innovation rather than abandoned technological development.

Particularly noteworthy is CEO Yuan Zhou's emphasis on AI integration within Zhihu's ecosystem. By leveraging their premium content and expert network as training data and verification sources, Zhihu is positioning itself at the intersection of human expertise and AI capabilities—a potential competitive moat in the knowledge market.

The substantial decrease in cloud services and bandwidth costs reflects improved technological efficiency, suggesting the company has optimized its infrastructure. This technological streamlining, combined with the platform's community-driven content model, creates a more sustainable operating structure that could enable Zhihu to weather market fluctuations better than competitors who rely heavily on continuous user acquisition spending.

BEIJING, March 26, 2025 /PRNewswire/ -- Zhihu Inc. ("Zhihu" or the "Company") (NYSE: ZH; HKEX: 2390), a leading online content community in China, today announced its unaudited financial results for the quarter and fiscal year ended December 31, 2024.

Fourth Quarter 2024 Highlights

  • Total revenues were RMB859.2 million (US$117.7 million) in the fourth quarter of 2024, compared with RMB1,138.3 million in the same period of 2023.
  • Gross margin expanded to 62.9% in the fourth quarter of 2024 from 59.1% in the same period of 2023.
  • Net income was RMB86.4 million (US$11.8 million) in the fourth quarter of 2024, compared with a net loss of RMB103.1 million in the same period of 2023.
  • Adjusted net income (non-GAAP)[1] was RMB97.1 million (US$13.3 million) in the fourth quarter of 2024, compared with an adjusted net loss of RMB91.3 million in the same period of 2023.
  • Average monthly active users (MAUs)[2] were 81.4 million in the fourth quarter of 2024.
  • Average monthly subscribing members[3] were 14.1 million in the fourth quarter of 2024.

Fiscal Year 2024 Highlights

  • Total revenues were RMB3,598.9 million (US$493.0 million) in 2024, compared with RMB4,198.9 million in 2023.
  • Gross margin expanded to 60.6% in 2024 from 54.7% in 2023.
  • Net loss was RMB169.0 million (US$23.1 million) in 2024, narrowed by 79.9% from 2023.
  • Adjusted net loss (non-GAAP)[1] was RMB96.3 million (US$13.2 million) in 2024, narrowed by 85.4% from 2023.

"The year of 2024 marked a significant turnaround for Zhihu, driven by the successful execution of the strategic roadmap we laid out at the beginning of the year and culminating in a profitable fourth quarter," said Mr. Yuan Zhou, chairman and chief executive officer of Zhihu. "We optimized our ecosystem to foster greater vibrancy and trust across our community, consistently improving user metrics and deepening creator engagement throughout the year. We have consistently invested in AI applications, leveraging our premium content and strong network of trusted experts. By further integrating AI into our diverse community scenarios, we are unlocking new possibilities to redefine user interactions in the AI era while sharpening our own competitive edge."

Mr. Han Wang, chief financial officer of Zhihu, added, "The fourth quarter of 2024 marked a milestone for Zhihu as we achieved a major inflection point with positive operating profit and net income on both GAAP and non-GAAP basis for the first time—a testament to our strategic focus and successful execution. Improved operating efficiency and disciplined cost management drove significant margin expansion during the quarter, with gross profit margin expanding by 3.8 percentage points year-over-year to 62.9% while operating expenses decreased by 37.9%. Going forward, we will build on this robust momentum to lay a solid foundation for sustainable long-term growth, unlocking greater value for our shareholders and users."

Fourth Quarter 2024 Financial Results

Total revenues were RMB859.2 million (US$117.7 million), compared with RMB1,138.3 million in the same period of 2023.

Marketing services revenue was RMB315.9 million (US$43.3 million), compared with RMB465.2 million in the same period of 2023. The decrease was primarily due to our proactive and ongoing refinement of service offerings to strategically focus on margin improvement.

Paid membership revenue was RMB420.2 million (US$57.6 million), compared with RMB455.9 million in the same period of 2023. The slight decrease was primarily attributable to a marginal decline in our average revenue per subscribing member.

Vocational training revenue was RMB84.0 million (US$11.5 million), compared with RMB169.3 million in the same period of 2023. The decrease was primarily driven by lower revenue contribution from our acquired businesses.

Other revenues were RMB39.1 million (US$5.4 million), compared with RMB48.0 million in the same period of 2023.

Cost of revenues decreased by 31.5% to RMB318.5 million (US$43.6 million) from RMB465.2 million in the same period of 2023. The decrease was primarily due to reduced content and operating costs associated with the decline in our revenues and a decrease in cloud services and bandwidth costs resulting from our improved technological efficiency.

Gross profit was RMB540.7 million (US$74.1 million), compared with RMB673.1 million in the same period of 2023.  Gross margin expanded to 62.9% from 59.1% in the same period of 2023, primarily attributable to our monetization enhancements and improvements in our operating efficiency. 

Total operating expenses decreased by 37.9% to RMB528.8 million (US$72.4 million) from RMB851.3 million in the same period of 2023.

Selling and marketing expenses decreased by 40.1% to RMB316.2 million (US$43.3 million) from RMB527.6 million in the same period of 2023. The decrease was primarily due to more disciplined promotional spending and a decrease in personnel-related expenses.

Research and development expenses decreased by 37.0% to RMB146.6 million (US$20.1 million) from RMB232.6 million in the same period of 2023. The decrease was primarily attributable to more efficient spending on technological innovation and a decrease in personnel-related expenses.

General and administrative expenses decreased by 27.5% to RMB66.0 million (US$9.0 million) from RMB91.1 million in the same period of 2023. The decrease was primarily attributable to a decline in the allowance for expected credit losses on trade receivables.

Income from operations was RMB11.9 million (US$1.6 million), compared with a loss from operations of RMB178.2 million in the same period of 2023. 

Adjusted income from operations (non-GAAP)[1] was RMB23.1 million (US$3.2 million), compared with an adjusted loss from operations of RMB165.3 million in the same period of 2023. 

Net income was RMB86.4 million (US$11.8 million), compared with a net loss of RMB103.1 million in the same period of 2023.

Adjusted net income (non-GAAP)[1] was RMB97.1 million (US$13.3 million), compared with an adjusted net loss of RMB91.3 million in the same period of 2023.

Diluted net income per American depositary share ("ADS") [4] was RMB1.00 (US$0.14), compared with a diluted net loss per ADS of RMB1.07 in the same period of 2023.

Cash and cash equivalents, term deposits, restricted cash and short-term investments

As of December 31, 2024, the Company had cash and cash equivalents, term deposits, restricted cash and short-term investments of RMB4,859.0 million (US$665.7 million), compared with RMB5,462.9 million as of December 31, 2023.

Fiscal Year 2024 Financial Results

Total revenues were RMB3,598.9 million (US$493.0 million), compared with RMB4,198.9 million in 2023.

Marketing services revenue was RMB1,247.1 million (US$170.9 million), compared with RMB1,653.0 million in 2023. The decrease was primarily due to our proactive and ongoing refinement of service offerings to strategically focus on margin improvement.

Paid membership revenue was RMB1,762.0 million (US$241.4 million), compared with RMB1,826.6 million in 2023. The slight decrease was primarily attributable to a marginal decline in our average revenue per subscribing member.

Vocational training revenue was RMB468.1 million (US$64.1 million), compared with RMB565.6 million in 2023. The decrease was primarily driven by lower revenue contribution from our acquired businesses, partially offset by the growth of our self-operated course offerings.

Other revenues were RMB121.7 million (US$16.7 million), compared with RMB153.8 million in 2023.

Cost of revenues decreased by 25.5% to RMB1,418.1 million (US$194.3 million) from RMB1,903.0 million in 2023. The decrease was primarily due to reduced content and operating costs associated with the decline in our revenues and a decrease in cloud services and bandwidth costs resulting from our improved technological efficiency.

Gross profit was RMB2,180.8 million (US$298.8 million), compared with RMB2,295.8 million in 2023. Gross margin expanded to 60.6% from 54.7% in 2023, primarily attributable to our monetization enhancements and improvements in our operating efficiency.

Total operating expenses decreased by 21.0% to RMB2,661.9 million (US$364.7 million) from RMB3,368.1 million in 2023.

Selling and marketing expenses decreased by 21.9% to RMB1,599.2 million (US$219.1 million) from RMB2,048.1 million in 2023. The decrease was primarily due to more disciplined promotional spending and a decrease in personnel-related expenses.

Research and development expenses decreased by 18.7% to RMB732.6 million (US$100.4 million) from RMB901.5 million in 2023. The decrease was primarily attributable to more efficient spending on technological innovation and a decrease in personnel-related expenses.

General and administrative expenses decreased by 21.1% to RMB330.2 million (US$45.2 million) from RMB418.5 million in 2023. The decrease was primarily attributable to lower share-based compensation expenses.

Loss from operations narrowed by 55.1% to RMB481.1 million (US$65.9 million) from RMB1,072.2 million in 2023. 

Adjusted loss from operations (non-GAAP)[1] narrowed by 54.4% to RMB405.4 million (US$55.5 million) from RMB888.0 million in 2023.

Net loss narrowed by 79.9% to RMB169.0 million (US$23.1 million) from RMB839.5 million in 2023.

Adjusted net loss (non-GAAP)[1] narrowed by 85.4% to RMB96.3 million (US$13.2 million) from RMB659.1 million in 2023.

Diluted net loss per ADS[4] was RMB1.88 (US$0.26), compared with RMB8.46 in 2023.

Share Repurchase Programs

As of December 31, 2024, the Company had repurchased 31.1 million Class A ordinary shares (including Class A ordinary shares underlying the ADSs) for a total price of US$66.5 million on both the New York Stock Exchange and The Stock Exchange of Hong Kong Limited under the Company's existing US$100 million share repurchase program (the "2022 Repurchase Program"), established in May 2022 and extended until June 26, 2025. In addition, a concurrent share repurchase program (the "2024 Repurchase Program") was established in June 2024 and will remain effective until June 26, 2025. The maximum number of shares (including shares underlying the ADSs) that can be repurchased under the 2024 Repurchase Program, together with the remaining number of shares (including shares underlying the ADSs) that can be repurchased under the 2022 Repurchase Program, will not exceed 10% of the total number of issued shares of the Company (excluding any treasury shares) as of June 26, 2024, the date of the resolution granting the general unconditional mandate to purchase the Company's own shares approved by shareholders.

In addition, as previously announced, the Company conducted an all cash tender offer and repurchased a total of 33,016,016 Class A ordinary shares tendered (including 19,877,118 Class A ordinary shares in the form of 6,625,706 ADSs) for a total consideration of approximately HK$300 million. These shares were repurchased and canceled on November 8, 2024.

[1] Adjusted income/(loss) from operations and adjusted net income/(loss) are non-GAAP financial measures. For more information on the non-GAAP financial measures, please see the section "Use of Non-GAAP Financial Measures" and the table captioned "Unaudited Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this press release.

[2] MAUs refers to the sum of the number of mobile devices that launch our mobile apps at least once in a given month, or mobile MAUs, and the number of logged-in users who visit our PC or mobile website at least once in a given month, after eliminating duplicates.

[3] Monthly subscribing members refers to the number of members who subscribed for our membership packages in a specified month. Average monthly subscribing members for a period is calculated by dividing the sum of monthly subscribing members for each month during the specified period by the number of months in such period.

[4] On May 10, 2024, we effected a change in the ratio of our ADSs to Class A ordinary shares from two ADSs representing one Class A ordinary share to a new ratio of one ADS representing three Class A ordinary shares. Basic and diluted net loss per ADS have been retrospectively adjusted to reflect this ADS ratio change for all periods presented.

Conference Call

The Company's management will host an earnings conference call at 7:00 a.m. U.S. Eastern Time on March 26, 2025 (7:00 p.m. Beijing/Hong Kong time on March 26, 2025).

All participants wishing to join the conference call must pre-register online using the link provided below. Once the pre-registration has been completed, each participant will receive a set of dial-in numbers and a unique access PIN which can be used to join the conference call.  

Registration Link: https://register-conf.media-server.com/register/BI822b4edc673942e382e2354f17702df3

Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at https://ir.zhihu.com.

About Zhihu Inc.

Zhihu Inc. (NYSE: ZH; HKEX: 2390) is a leading online content community in China where people come to find solutions, make decisions, seek inspiration, and have fun. Since the initial launch in 2010, we have grown from a Q&A community into one of the top comprehensive online content communities and the largest Q&A-inspired online content community in China. For more information, please visit https://ir.zhihu.com

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses non-GAAP financial measures, such as adjusted income/(loss) from operations and adjusted net income/(loss), to supplement the review and assessment of its operating performance. The Company defines non-GAAP financial measures by excluding the impact of share-based compensation expenses, amortization of intangible assets resulting from business acquisitions and the tax effects of the non-GAAP adjustments, which are non-cash expenses. The Company believes that the non-GAAP financial measures facilitate comparisons of operating performance from period to period and company to company by adjusting for potential impacts of items, which the Company's management considers to be indicative of its operating performance. The Company believes that the non-GAAP financial measures provide useful information to investors and others in understanding and evaluating the Company's consolidated results of operations in the same manner as they help the Company's management.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The presentation of the non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. The use of the non-GAAP financial measures has limitations as an analytical tool, and investors should not consider them in isolation from or as a substitute for analysis of our results of operations or financial condition as reported under U.S. GAAP. For more information on the non-GAAP financial measures, please see the tables captioned "Unaudited Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this press release.

Exchange Rate Information

This announcement contains translations of certain Renminbi amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from Renminbi to U.S. dollars were made at a rate of RMB7.2993 to US$1.00, the exchange rate in effect as of December 31, 2024 as set forth in the H.10 statistical release of the Federal Reserve Board.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

For investor and media inquiries, please contact:

Zhihu Inc.
Email: ir@zhihu.com 

Christensen Advisory
Roger Hu
Tel: +86-10-5900-1548
Email: zhihu@christensencomms.com 

 

 

ZHIHU INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(All amounts in thousands, except share, ADS, per share data and per ADS data)



For the Three Months Ended


For the Year Ended


December 31,

2023


September 30,

2024


December 31,

2024


December 31,

2023


December 31,

2024


RMB


RMB


RMB


US$


RMB


RMB


US$

Revenues: 














Marketing services

465,153


256,631


315,940


43,284


1,652,992


1,247,092


170,851

Paid membership

455,906


459,387


420,215


57,569


1,826,557


1,761,978


241,390

Vocational training

169,272


105,058


83,984


11,506


565,585


468,111


64,131

Others

47,966


23,944


39,073


5,353


153,755


121,724


16,676

Total revenues

1,138,297


845,020


859,212


117,712


4,198,889


3,598,905


493,048

Cost of revenues

(465,197)


(304,879)


(318,547)


(43,641)


(1,903,041)


(1,418,076)


(194,276)

Gross profit

673,100


540,141


540,665


74,071


2,295,848


2,180,829


298,772















Selling and marketing expenses

(527,604)


(388,049)


(316,198)


(43,319)


(2,048,090)


(1,599,186)


(219,088)

Research and development
   expenses

(232,585)


(179,261)


(146,613)


(20,086)


(901,452)


(732,553)


(100,359)

General and administrative
   expenses

(91,069)


(57,161)


(65,988)


(9,040)


(418,531)


(330,173)


(45,234)

Total operating expenses

(851,258)


(624,471)


(528,799)


(72,445)


(3,368,073)


(2,661,912)


(364,681)















(Loss)/Income from operations

(178,158)


(84,330)


11,866


1,626


(1,072,225)


(481,083)


(65,909)















Other income/(expenses):














Investment income

12,279


13,679


13,049


1,788


41,695


65,441


8,965

Interest income

38,828


31,136


26,311


3,605


158,671


114,964


15,750

Fair value change of financial
   instruments

14,780


6,887


30,698


4,206


(5,170)


78,405


10,741

Exchange (losses)/gains

(937)


(1,097)


1,701


233


97


1,013


139

Others, net

15,032


23,799


113


15


49,236


42,902


5,878















(Loss)/Income before income
   tax

(98,176)


(9,926)


83,738


11,473


(827,696)


(178,358)


(24,436)

Income tax (expenses)/benefits

(4,929)


949


2,663


365


(11,832)


9,391


1,287

Net (loss)/income

(103,105)


(8,977)


86,401


11,838


(839,528)


(168,967)


(23,149)

Net income attributable to
   noncontrolling interests

(666)


(1,514)


(127)


(17)


(4,113)


(2,835)


(388)

Net (loss)/income attributable
   to Zhihu Inc.'s shareholders

(103,771)


(10,491)


86,274


11,821


(843,641)


(171,802)


(23,537)















Net (loss)/income per share














Basic

(0.36)


(0.04)


0.34


0.05


(2.82)


(0.63)


(0.09)

Diluted

(0.36)


(0.04)


0.33


0.05


(2.82)


(0.63)


(0.09)















Net (loss)/income per ADS
   (One ADS represents three
   Class A ordinary shares)














Basic

(1.07)


(0.11)


1.01


0.14


(8.46)


(1.88)


(0.26)

Diluted

(1.07)


(0.11)


1.00


0.14


(8.46)


(1.88)


(0.26)















Weighted average number of
   ordinary shares outstanding














Basic

291,056,615


277,309,431


256,257,971


256,257,971


299,132,894


273,560,865


273,560,865

Diluted

291,056,615


277,309,431


259,990,323


259,990,323


299,132,894


273,560,865


273,560,865

 

 

ZHIHU INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)

(All amounts in thousands, except share, ADS, per share data and per ADS data)



For the Three Months Ended


For the Year Ended


December 31,

2023


September 30,

2024


December 31,

2024


December 31,

2023


December 31,

2024


RMB


RMB


RMB


US$


RMB


RMB


US$

Share-based compensation
  expenses included in:














 Cost of revenues

1,575


1,016


(314)


(43)


9,751


3,949


542

Selling and marketing
   expenses

(7,001)


547


269


37


13,882


(1,975)


(271)

Research and development
   expenses

(57)


6,233


(6,436)


(882)


49,847


7,916


1,084

General and administrative
   expenses

12,983


(14,767)


14,261


1,954


91,176


49,372


6,764

 

 

ZHIHU INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands)



As of December 31,

2023


As of December 31,

2024


RMB


RMB


US$

ASSETS






Current assets:






Cash and cash equivalents

2,106,639


3,999,160


547,883

Term deposits

1,586,469


320,088


43,852

Short-term investments

1,769,822


538,816


73,817

Restricted cash

-


900


123

Trade receivables

664,615


420,636


57,627

Amounts due from related parties

18,319


41,588


5,698

Prepayments and other current assets

232,016


163,446


22,392

Total current assets

6,377,880


5,484,634


751,392

Non-current assets:






Property and equipment, net

10,849


8,490


1,163

Intangible assets, net

122,645


54,534


7,471

Goodwill

191,077


126,344


17,309

Long-term investments, net

44,621


51,176


7,011

Right-of-use assets         

40,211


7,151


980

Other non-current assets

7,989


623


85

Total non-current assets

417,392


248,318


34,019

Total assets

6,795,272


5,732,952


785,411

LIABILITIES AND SHAREHOLDERS' EQUITY






Current liabilities






Accounts payable and accrued liabilities

1,038,531


835,688


114,489

Salary and welfare payables

342,125


275,260


37,710

Taxes payables               

21,394


22,081


3,025

Contract liabilities

303,574


235,539


32,269

Amounts due to related parties

26,032


6,825


935

Short term lease liabilities             

42,089


17,308


2,371

Other current liabilities

171,743


131,955


18,078

Total current liabilities

1,945,488


1,524,656


208,877

Non-current liabilities






Long term lease liabilities

3,642


1,823


250

Deferred tax liabilities

22,574


6,830


936

Other non-current liabilities

121,958


3,957


541

Total non-current liabilities

148,174


12,610


1,727

Total liabilities

2,093,662


1,537,266


210,604







Total Zhihu Inc.'s shareholders' equity

4,599,810


4,136,123


566,647

Noncontrolling interests

101,800


59,563


8,160

Total shareholders' equity

4,701,610


4,195,686


574,807







Total liabilities and shareholders' equity

6,795,272


5,732,952


785,411

 

 

ZHIHU INC.

UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands)



For the Three Months Ended


For the Year Ended


December 31,

2023


September 30,

2024


December 31,

2024


December 31,

2023


December 31,

2024


RMB


RMB


RMB


US$


RMB


RMB


US$

(Loss)/Income from
  operations

(178,158)


(84,330)


11,866


1,626


(1,072,225)


(481,083)


(65,909)

Add:














Share-based compensation
   expenses

7,500


(6,971)


7,780


1,066


164,656


59,262


8,119

Amortization of intangible
   assets resulting from
   business acquisitions

5,365


3,490


3,490


478


19,585


16,460


2,255

Adjusted (loss)/income
   from operations

(165,293)


(87,811)


23,136


3,170


(887,984)


(405,361)


(55,535)





























Net (loss)/income

(103,105)


(8,977)


86,401


11,838


(839,528)


(168,967)


(23,149)

Add:














Share-based compensation
   expenses

7,500


(6,971)


7,780


1,066


164,656


59,262


8,119

Amortization of intangible
   assets resulting from
   business acquisitions

5,365


3,490


3,490


478


19,585


16,460


2,255

Tax effects on non-GAAP
    adjustments

(1,069)


(600)


(600)


(82)


(3,806)


(3,025)


(414)

Adjusted net (loss)/income

(91,309)


(13,058)


97,071


13,300


(659,093)


(96,270)


(13,189)

 

Cision View original content:https://www.prnewswire.com/news-releases/zhihu-inc-reports-unaudited-fourth-quarter-and-fiscal-year-2024-financial-results-302411790.html

SOURCE Zhihu Inc.

FAQ

What caused Zhihu (ZH) to achieve profitability in Q4 2024?

Zhihu achieved profitability through improved operating efficiency, disciplined cost management, and strategic focus on margin improvement, resulting in a 37.9% decrease in operating expenses and 3.8% gross margin expansion.

How much did Zhihu (ZH) revenue decline in Q4 2024 compared to Q4 2023?

Zhihu's revenue declined from RMB1,138.3M in Q4 2023 to RMB859.2M (US$117.7M) in Q4 2024, representing a 24.5% decrease.

What is Zhihu's (ZH) current share repurchase program status?

Zhihu has repurchased 31.1M Class A shares for US$66.5M under its US$100M program, and completed a tender offer of HK$300M. The 2022 and 2024 repurchase programs will remain effective until June 26, 2025.

How much did Zhihu (ZH) reduce its net loss in fiscal year 2024?

Zhihu reduced its net loss by 79.9% in FY 2024, from RMB839.5M in 2023 to RMB169.0M (US$23.1M) in 2024.
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