知乎2023年第三季度财务报告ZhihuInc.ReportsUnauditedThirdQuart.docx

ZhihuInc.ReportsUnauditedThirdQuarter2023FinancialResultsBEIJING,China,November29,2023ZhihuInC.("ZhihU''orthe"Company")(NYSE:ZH;HKEX:2390),aleadingonlinecontentcommunityinChina,todayannounceditsunauditedfinancialresultsforthequarterendedSeptember30,2023.ThirdQuarter2023Highlights TotalrevenueswereRMB1,022.2million(US$140.1million)inthethirdquarterof2023,representinga12.1%increasefromthesameperiodof2022. NetlosswasRMB278.4million(US$38.2million)inthethirdquarterof2023,narrowedby6.5%fromthesameperiodof2022. Adjustednetloss(non-GAAP)lljwasRMB225.3million(US$30.9million)inthethirdquarterof2023,narrowedby10.1%fromthesameperiodof2022. Averagemonthlyactiveusers(MAUs)121reached110.5millioninthethirdquarterof2023. Averagemonthlysubscribingmembers131reached14.8millioninthethirdquarterof2023,representinga35.9%increasefromthesameperiodof2022.40ursignificantstridesincommercializationandthevibrantdynamismacrosstheZhihucommunityonceagaindrovesustainablebusinessgrowthduringthethirdquarterof2023.Ourtotalrevenuesforthequartercontinuedtheiryear-over-yeargrowthmomentum,fueledbyaccelerateddevelopmentinpaidmembershipsandourvocationaltrainingbusiness/'saidMr.YuanZhou,chairmanandCEOofZhihu.Wewilldevotemoreresourcestoourmulti-enginemonetizationstrategyonamid-tolongtermbasis.Thisstrategyenabledustodeliverresilientrevenuegrowththisyeardespitethemacrouncertainties.Iamcommittedtonarrowinglossesbyimprovingstrategyexecution.Zhihuwillcontinuetointegratecutting-edgeAItechnologyintoitsproductsandbusinessoperationstoenhancecontentqualityanduserexperience.Mr.HenrySha,CFOofZhihu,added,“Weachievedanotherstrongquarterwithtotalrevenuesincreasingby12.1%yearoveryear.Amongourvariousrevenuestreams,ourpaidmembershiprevenuegrewby39.2%whileourvocationaltrainingbusinesssoared85.6%,bothyearoveryear.Wefurtherenhancedourgrossmarginthroughongoingcostefficiencyrefinements.Despitethechallengingeconomicclimate,wearewell-positionedtoexecuteourgrowthstrategyandachieveourfinancialtargets.mThirdQuarter2023FinancialResultsTotalrevenueswereRMB1,022.2million(US$140.1million)inthethirdquarterof2023,representinga12.1%increasefromRMB911.7millioninthesameperiodof2022.Marketingservicesrevenue141wasRMB383.0million(US$52.5million),comparedwithRMB461.9millioninthesameperiodof2022.PaidmembershiprevenuewasRMB466.8million(US$64.0million),representinga39.2%increasefromRMB335.4millioninthesameperiodof2022.Theincreasewasprimarilydrivenbythecontinuedgrowthofoursubscribingmembers.VocationaltrainingrevenuewasRMB144.8million(US$19.8million),representingan85.6%increasefromRMB78.0millioninthesameperiodof2022.Thesignificantincreasewasprimarilyattributabletoourfurtherenrichedonlinecourseofferingsandtherevenuecontributionsfromourrecentlyacquiredbusinessesintheperiod.OtherrevenueswereRMB27.6million(US$3.8million),comparedwithRMB36.3millioninthesameperiodof2022.Costofrevenuesincreasedby1.4%toRMB473.7million(US$64.9million)fromRMB467.3millioninthesameperiodof2022.Theincreasewasprimarilyduetothegrowthofcontentandoperatingcostsaswecontinuedtoenhanceourcontentattractiveness,andanincreaseinstaffcosts,partiallyoffsetbythedecreaseincloudservicesandbandwidthcosts.Grossprofitincreasedby23.4%toRMB548.5million(US$75.2million)fromRMB444.4millioninthesameperiodof2022.Grossmarginexpandedto53.7%from48.7%inthesameperiodof2022,primarilyattributabletoourenhancedmonetizationeffortsandtheimprovementofcloudservicesandbandwidthutilizationefficiency.TotaloperatingexpenseswereRMB898.6million(US$123.2million),comparedwithRMB723.0millioninthesameperiodof2022.SellingandmarketingexpensesincreasedtoRMB534.3million(US$73.2million)fromRMB478.3millioninthesameperiodof2022.Theincreasereflectsourcontinuedeffortsinpromotingourproductandserviceofferings.ResearchanddevelopmentexpensesincreasedtoRMB249.7million(US$34.2million)fromRMB160.8millioninthesameperiodof2022.Theincreasewasprimarilyattributabletoourincreasedspendingontechnologyinnovation.GeneralandadministrativeexpensesincreasedtoRMBl14.6million(US$15.7million)fromRMB83.9millioninthesameperiodof2022.Theincreasewasprimarilyduetohigherrentalexpensesandtheincreasedshare-basedcompensationexpensesfromourbusinessacquisition.1.ossfromoperationsincreasedtoRMB350.1million(US$48.0million)fromRMB278.6millioninthesameperiodof2022.Adjustedlossfromoperations(non-GAAP),ljincreasedtoRMB295.9million(US$40.6million)fromRMB231.0millioninthesameperiodof2022.Netlosswasnarrowedby6.5%toRMB278.4million(US$38.2million)fromRMB297.6millioninthesameperiodof2022.Adjustednetloss(non-GAAP)111wasnarrowedby10.1%toRMB225.3million(US$30.9million)fromRMB250.6millioninthesameperiodof2022.DilutednetlossperAmericanDepositaryShare(wADSw)wasRMB0.47(US$0.06),comparedwithRMB0.49inthesameperiodof2022.Cashandcashequivalents,termdepositsandshort-terminvestmentsAsofSeptember30,2023,theCompanyhadcashandcashequivalents,termdepositsandshort-terminvestmentsofRMB5,654.2million(US$775.0million),comparedwithRMB6,261.5millionasofDecember31,2022.ShareRepurchaseProgramAsofSeptember30,2023,18.3millionClassAordinaryshares(includingClassAordinarysharesunderlyingtheADSs)hadbeenrepurchasedforatotalpriceofUS$42.6milliononboththeNewYorkStockExchangeandTheStockExchangeofHongKongLimitedundertheCompany'sexistingUS$100millionsharerepurchaseprogramestablishedinMay2022andextendedinMay2023(the44RepurchaseProgram"),whichiseffectiveuntilJune10,2024.TherepurchasesmadeundertheRepurchaseProgramwerecoveredbythegeneralunconditionalmandatetopurchasetheCompany,sownsharesapprovedbyshareholdersattheCompany,sannualgeneralmeetingsheldonJune10,2022andJune30,2023,respectively.,11Adjustedlossfromoperationsandadjustednetlossarenon-GAAPfinancialmeasures.Formoreinformationonthenon-GAAPfinancialmeasures,pleaseseethesectionof“UseofNon-GAAPFinancialMeasures"andthetablecaptioned"UnauditedReconciliationsofGAAPandNon-GAAPResults“setforthattheendofthispressrelease.MAUsreferstothesumofthenumberofmobiledevicesthatlaunchourmobileappsatleastonceinagivenmonth,ormobileMAUs,andthenumberoflogged-inuserswhovisitourPCormobilewebsiteatleastonceinagivenmonth,aftereliminatingduplicates.MonthlysubscribingmembersreferstothenumberofourYanSelectionmembersinaspecifiedmonth.Averagemonthlysubscribingmembersforaperiodiscalculatedbydividingthesumofmonthlysubscribingmembersforeachmonthduringthespecifiedperiodbythenumberofmonthsinsuchperiod.Startingwiththefirstquarterof2023,wereportrevenuesgeneratedfromadvertisingandcontentcommercesolutionscollectivelyast4marketingservicesrevenue“tobetterpresentourbusinessandresultsofoperationinlinewithouroverallstrategies.Revenuesfortheapplicablecomparisonperiodsof2022havebeenretrospectivelyre-classified.ConferenceCallTheCompany,smanagementwillhostanearningsconferencecallat6:00a.m.U.S.EasternTimeonNovember29,2023(7:00p.m.Beijing/HongKongtimeonNovember29,2023).Allparticipantswishingtojointheconferencecallmustpre-registeronlineusingthelinkprovidedbelow.Oncethepre-regiStrationhasbeencompleted,eachparticipantwillreceiveasetofdial-innumbers,apasscode,andauniqueregistrantIDwhichcanbeusedtojointheconferencecall.Participantsmaypre-registeratanytime,includinguptoandafterthecallstarttime.ParticipantOnlineRegistration:Additionally,aliveandarchivedwebcastoftheconferencecallwillbeavailableontheCompany,sinvestorrelationswebsiteatAreplayoftheconferencecallwillbeaccessibleapproximatelyonehouraftertheconclusionofthelivecall,untilDecember6,2023,bydialingthefollowingtelephonenumbers:UnitedStates(tollfree):+1-Intemationak+1-ReplayAccessCode:4452699AboutZhihuInc.ZhihuInc.(NYSE:ZH;HKEX:2390)isaleadingonlinecontentcommunityinChinawherepeoplecometofindsolutions,makedecisions,seekinspiration,andhavefun.Sincetheinitiallaunchin2010,wehavegrownfromaQ&AcommunityintooneofthetopcomprehensiveonlinecontentcommunitiesandthelargestQ&A-inspiredonlinecontentcommunityinChina.Formoreinformation,pleasevisitUseofNon-GAAPFinancialMeasuresInevaluatingthebusiness,theCompanyconsidersandusesnon-GAAPfinancialmeasures,suchasadjustedlossfromoperationsandadjustednetloss,tosupplementthereviewandassessmentofitsoperatingperformance.TheCompanydefinesnon-GAAPfinancialmeasuresbyexcludingtheimpactofshare-basedcompensationexpenses,amortizationofintangibleassetsresultingfrombusinessacquisitionsandthetaxeffectsofthenon-GAAPadjustments,whicharenon-cashexpenses.TheCompanybelievesthatthenon-GAAPmeasuresfacilitatecomparisonsofoperatingperformancefromperiodtoperiodandcompanytocompanybyadjustingforpotentialimpactsofitems,whichtheCompany,smanagementconsiderstobeindicativeofitsoperatingperformance.TheCompanybelievesthatthenon-GAAPfinancialmeasuresprovideusefulinformationtoinvestorsandothersinunderstandingandevaluatingtheCompany'sconsolidatedresultsofoperationsinthesamemannerasithelpstheCompany,smanagement.Thenon-GAAPfinancialmeasuresarenotdefinedunderU.S.GAAPandarenotpresentedinaccordancewithU.S.GAAP.Thepresentationofthenon-GAAPfinancialmeasuresmaynotbecomparabletosimilarlytitledmeasurespresentedbyothercompanies.Theuseofthenon-GAAPmeasureshaslimitationsasananalyticaltool,andinvestorsshouldnotconsideritinisolationfrom,orasasubstituteforanalysisof,ourresultsofoperationsorfinancialconditionasreportedunderU.S.GAAP.Formoreinformationonthenon-GAAPfinancialmeasures,pleaseseethetablescaptioned44UnauditedReconciliationsofGAAPandNon-GAAPResults“setforthattheendofthispressrelease.ExchangeRateInformationThisannouncementcontainstranslationsofcertainRenminbiamountsintoU.S.dollarsataspecifiedratesolelyfortheconvenienceofthereader.Unlessotherwisenoted,alltranslationsfromRenminbitoU.S.dollarsweremadeatarateofRMB7.2960toUS$1.00,theexchangerateineffectasofSeptember29,2023assetforthintheH.10statisticalreleaseoftheFederalReserveBoard.SafeHarborStatementThisannouncementcontainsforward-lookingstatements.Thesestatementsaremadeunderthet4safeharbor“provisionsoftheU.S.PrivateSecuritiesLitigationReformActof1995.Statementsthatarenothistoricalfacts,includingstatementsabouttheCompany'sbeliefsandexpectations,areforwardlookingstatements.Forward-lookingstatementsinvolveinherentrisksanduncertainties,andanumberoffactorscouldcauseactualresultstodiffermateriallyfromthosecontainedinanyforward-lookingstatement.Insomecases,forward-lookingstatementscanbeidentifiedbywordsorphrasessuchas“may,”"will,“"expect,“"anticipate,“target,”“aim,”“estimate,“"intend,“"plan,“"believe,”“potential,“"continue,“4isarelikelyto,“orothersimilarexpressions.Furtherinformationregardingtheseandotherrisks,uncertaintiesorfactorsisincludedintheCompany,sfilingswiththeSECandtheHongKongStockExchange.Allinformationprovidedinthispressreleaseisasofthedateofthispressrelease,andtheCompanydoesnotundertakeanydutytoupdatesuchinformation,exceptasrequiredunderapplicablelaw.Forinvestorandmediainquiries,pleasecontact:InChina:ZhihuInc.Email:irPiacenteFinancialCommunicationsHelenWuTel:+86-10-6508-0677Email:zhihutpg-IntheUnitedStates:PiacenteFinancialCommunicationsBrandiPiacentePhone:+1-Email:ZhihU(5)tpg-ZHIHUINC.UNAUDITEDCONDENSEDCONSOLIDATEDSTATEMENTSOFOPERATIONS(Allamountsinthousands,exceptshare,ADS,persharedataandperADSdata)FortheThreeMonthsEndedFortheNineMonthsEndedSeptember30,2022June30,2023September30,2023September30,2022September30,2023RMBRMBRMBUS$RMBRMBUS$Revenues:Marketingservices461,938412,740382,96252,4891,384,0931,187,839162,807Paidmembership335,435449,098466,78463,978828,2731,370,651187,863Vocationaltraining78,004144.520144.79519.846163,675396,31354,319Others36.33437.85127.6223.786】14.99105.78914500Totalrevenues911,7111,044,2091,022,163140,0992,490,9543,060,592419,489Costofrevenues(467.327)(482,131)(473.712)(64928)(L311.425)(1437,844)(197.073)Grossprofit444384562.078548,45175,171L179529L622,748222.416Sellingandmarketingexpenses(478,279)(540,593)(534,328)(73,236)(1,517,239)(1,520,486)(208,400)Researchanddevelopmentexpenses(16(),760)(236,245)(249,662)(34,219)(550,867)(668,867)(91,676)Generalandadministrativeexpenses(83.944)(112,460)(114564)(15702)(498,866)(32Z462)(44,882)Totaloperatingexpenses(722,983)(889298)(898,554)(123J57)(2,566,972)(2,516,815)(344.958)Lossfromoperations(278599)(327,220)(350,103)(47,986)(1387,443)(894,067)(122342)Otherincome(expenses):Investmentincome23,13811,79311,6171,59264,45829,4164,032Interestincome14,59839,98740,3635,53234,433119,84316,426Fairvaluechangeoffinancialinstruments(79,322)(9.016)(7,352)(1.008)(172,066)(19,950)(2,734)Exchangegains/(IOSSeS)28,3027,076(393)(54)73,2731,034142Others,net(3Q47)64427.2273.7326)34.2044,688Lossbeforeincometax(294,930)(276,736)(278,641)(38,192)(1387,461)(729,520)(99,988)Incometax(expense)benefit(2,655)(2,330)25635(11,428)(6,903)(946)Netloss(297.585)(279.066)(278,385)(38.157)(L398.889)(736.423)(1(N).934)Netincomeattributabletononcontrollinginterests(2.590)(775)(289)(40)(2.590)(347)(472)NetlossattributabletoZhihuInc/sshareholders(300,175)(279,841)(278,674)(38,197)(L40L449)(739.870)(101.406)NetlosspershareBasic(0.98)(0.92)(0.94)(0.13)(4.60)(2.45)(034)Diluted(0.98)(0.92)(0.94)(0.13)(4.60)(2.45)(0.34)NetlossperADS(TwoADSsrepresentoneClassAordinaryshare)Basic(0.49)(0.46)(0.47)(0.06)(2.30)(1.22)(0.17)Diluted(0.49)(0.46)(0.47)(0.06)(230)(1.22)(0.17)WeightedaveragenumberofordinarysharesoutstandingBasic306,621.507304,068.362297,742,064297,742,064304,837,976302,063.397302,063.397Diluted306,621,507304,068.362297,742,064297J42,064304,837,976302,063,397302,063,397ZHIHUINC.UNAUDITEDCONDENSEDCONSOLIDATEDSTATEMENTSOFOPERATIONS(CONTINUED)(Allamountsinthousands,exceptshare,ADS,persharedataandperADSdata)FortheThreeMonthsEndedFortheNineMonthsEndedSeptember30,2022June30,2023September30,2023September30,2022September30,2023RMBRMBRMBUS$RMBRMBUS$Share-basedcompensationexpensesincludedin:Costofrevenues(411)2,1461,6302238,1988,1761,121Sellingandmarketingexpenses6,6476,3845,74178719,31520,8832,862Researchanddevelopmentexpenses16,60814,94113,7581,88646,67249,9046,840Generalandadministrativeexpenses22,00228,97627,6623,791257,16578,19310,717ZHIHUINC.UNAUDITEDCONDENSEDCONSOLIDATEDBALANCESHEETS(Allamountsinthousands)AsofDecember31,2022AsofSeptember30,2023RMBRMBUS$ASSETSCurrentassets:Cashandcashequivalents4,525,8523,133,073429,423Termdeposits948,3901,147,648157,298Short-terminvestments782591,373,502188,254Tradereceivables834,251624,25185,561Amountsduefromrelatedparties24,79812,8341,759Prepaymentsan