Core Insights - Zhihu reported a total revenue of 3.599 billion yuan for 2024, a year-on-year decrease of 14.3%, while net loss narrowed to 169 million yuan, a reduction of 79.9% compared to the previous year [1] - The fourth quarter of 2024 marked a significant milestone for Zhihu, achieving a net profit of 97.1 million yuan, the first time the company has reached profitability since its IPO [2][3] - The CEO emphasized the importance of 2024 as a turning point for Zhihu, highlighting the successful execution of strategic plans and the integration of AI into community interactions [1][4] Financial Performance - In Q4 2024, Zhihu's revenue was 860 million yuan, with an adjusted net profit of 97.1 million yuan and an adjusted operating profit of 23.1 million yuan, marking the first quarter of comprehensive profitability [2] - The revenue structure for Q4 included 420 million yuan from paid memberships (48.9% of total revenue), 320 million yuan from marketing services (36.8%), and 84 million yuan from vocational education [2] - For the full year 2024, paid membership and marketing services were the main revenue contributors, generating 1.762 billion yuan and 1.247 billion yuan respectively, with a decline in revenue across major business segments compared to 2023 [3] Operational Efficiency - Zhihu improved operational efficiency and cost management, resulting in a gross margin increase of 3.8 percentage points to 62.9% and a 37.9% reduction in operating expenses year-on-year [2][3] - As of the end of Q4 2024, Zhihu had cash and cash equivalents totaling 4.86 billion yuan, providing a solid foundation for continued profitability enhancement [3] AI Investment and Strategy - Zhihu has increased investments in AI, enhancing its self-developed large model "Zhihai Map AI" and improving various model capabilities [4] - The integration of AI into Zhihu's operations has significantly boosted business efficiency, with the AI search product "Zhihu Direct Answer" undergoing multiple iterations to enhance community and creator value [4] - The CEO stated that AI will greatly promote Zhihu's development, as the platform's expert network is essential in addressing trust issues in the AI era [5] User Engagement - By the end of Q4 2024, Zhihu's content creation volume reached 870 million, a year-on-year increase of 12.9%, with over 77 million creators actively participating [5] - The average monthly active users (MAUs) reached 81.4 million, showing continued quarter-on-quarter growth, while the average monthly subscription members reached 14.1 million [5]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported an adjusted net income of RMB97.1 million, a significant turnaround from an adjusted net loss of RMB91.3 million in the same period last year [8] - The adjusted operating profit improved from a loss of RMB165.3 million in Q4 2023 to a profit of RMB23.1 million in Q4 2024 [8] - Total revenues for Q4 2024 were RMB859.2 million, down from RMB1,138.3 million in Q4 2023, reflecting a strategic shift away from lower-quality revenue [39][41] - The gross margin expanded to 62.9%, driven by improved operational efficiency and disciplined cost management [44] Business Line Data and Key Metrics Changes - Paid membership revenue was RMB420.2 million, a decrease from RMB455.9 million in Q4 2023, with average monthly paid members slightly declining by 0.8% year-over-year [41][25] - Vocational training revenue decreased by 50.4% year-over-year to RMB84 million, primarily due to strategic refinements in the acquired business [32][42] - Marketing services revenue reached RMB315.9 million, down from RMB465.2 million in Q4 2023, but showed a sequential growth of 23.1% [28][41] Market Data and Key Metrics Changes - The average monthly active users (MAUs) were 81.4 million, reflecting a 0.3% sequential increase despite a significant reduction in promotional expenses [13] - The community of content creators grew to 77.7 million, an increase of 8.9% year-over-year, with income-generating creators rising by over 22% year-over-year [18][19] Company Strategy and Development Direction - The company is focusing on enhancing community trust and user experience while forgoing some peripheral users to drive profitability [9][23] - AI is viewed as a historic opportunity, with plans to deepen integration between AI and the community to improve content quality and user engagement [10][36] - The company aims to strengthen its position as a trusted content platform by expanding into specialized verticals and introducing new original IPs [58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic roadmap and execution capabilities, highlighting a transformative turnaround in 2024 [7] - The CEO emphasized the importance of trustworthiness in the AI era, stating that the expert network is essential for combating AI-generated content issues [52] - The company plans to maintain a focus on profitability while exploring new opportunities arising from AI integration [74] Other Important Information - The company repurchased a total of 75.3 million Class A ordinary shares for an aggregate value of US$1.2 billion since its Hong Kong IPO [46] - The company achieved a double-digit non-GAAP net profit margin of 11% in Q4 2024, marking a significant milestone in its financial performance [72] Q&A Session Summary Question: Insights on Zhihu Zhida user size data and its benefits to the community - The CEO reported that Zhida's MAUs grew from about 1 million to 10 million, driven by high repeat visits and positive word-of-mouth [51] - The expert network is crucial in the AI era, as it provides trustworthy content amidst the rise of AI-generated content [52] Question: Expected changes and innovations on the product side this year - The CEO mentioned a focus on strengthening social interactions and enhancing the brand as a trusted content platform, with developments in social circles and new content formats [58][61] Question: How AI and large language models can benefit Zhihu's online marketing product - The CFO noted that AI is changing the monetization model of advertising, with a shift towards content marketing and brand reputation management on the platform [66][69] Question: Long-term margin profile and cash utilization outlook - The CFO indicated that the company achieved a double-digit net profit margin and sees AI as a historical opportunity for growth, with plans for share repurchases due to undervaluation [72][74]

Core Viewpoint - Zhihu has achieved profitability for the first time since its listing, marking a significant milestone in its financial performance [2][3] Financial Performance - In Q4 2024, Zhihu reported revenue of 859 million yuan and a net profit of 86.4 million yuan, compared to a net loss of 103 million yuan in the same period of 2023 [1] - Zhihu's marketing service revenue decreased to 316 million yuan from 465 million yuan year-on-year, while paid membership revenue fell to 420 million yuan from 456 million yuan [4] - The overall cost of revenue decreased from 465 million yuan to 319 million yuan, leading to a gross profit of 540 million yuan and a gross margin increase from 59.1% to 62.9% [5] Operational Efficiency - Zhihu improved its operational efficiency, reducing total operating expenses from 851 million yuan to 529 million yuan, resulting in an operating profit of 11.9 million yuan [5] - As of the end of Q4, Zhihu had over 77 million creators and a total content creation volume of 870 million pieces, reflecting a year-on-year growth of 12.9% [5] AI Integration - AI has become a key focus for Zhihu's future development, with ongoing investments in AI applications to enhance user interaction and competitive advantage [2] - Zhihu has launched AI search products like "Zhihu Direct Answer," which have undergone multiple iterations to improve search result quality and user engagement [7] - The integration of AI technologies has not only transformed Zhihu's business but also enhanced the professional value of its content community [8]

知乎2024年第四季度营收同比下降24.5%，首次实现盈利，主要归功于其在成本控制方面的进步。毛利率扩大至62.9%，较去年同期的59.1%上升了3.8个 百分点。 26日，知乎发布2024年第四季度及全年业绩报告： 1）主要财务数据： | | | For the Three Months Ended | | | | For the Year Ended | | | --- | --- | --- | --- | --- | --- | --- | --- | | | December 31. | September 30. | December 31. | | December 31. | December 31. | | | | 2023 | 2024 | 2024 | | 2023 | 2024 | | | | RMB | RMB | RMB | US$ | RMB | RMB | US$ | | Revenues: | | | | | | | | | Marketing services | 465,153 | 256,631 | 315.940 | 43,284 | 1,652,992 | 1.24 ...

知乎 未經審計簡明合併經營狀況表 (所有金額以千元計,惟股份、美國存託股、每股數據及每股美國存託股數據除外) 知乎 2024 年第四季度的经调整净利润（非公认会计准则）为人民币 9710 万元，而 2023 年同期为经调整净亏损人民币 9130 万元。 知乎 2024 年第四季度的平均月活跃用户为 8140 万人，2024 年第四季度的平均月订阅会员为 1410 万人。 知乎董事长兼行政总裁周源表示："2024 年对知乎而言具有重要的转折意义，我们有序执行了年初制定的战略规划，并在第四季度 成功实现了盈利。我们的社区生态得到优化，更加蓬勃且可信赖，用户指标全年持续向好，创作者活跃度不断提升。此外，依托优 质的内容及强大的可信赖专家网络，我们持续投资于 AI 应用，将 AI 进一步融入多元化社区场景，积极探索 AI 时代全新的用户交 互方式，并快速提升自身的竞争优势。" 2024 年全年总收入为人民币 35.99 亿元，同比下降 14.5%； 毛利率由 2023 年的 54.7% 提高至 60.6%； 净亏损人民币 1.69 亿元，较 2023 年收窄 79.9%，去年同期净亏损人民币 8.39 亿元； 经调整 ...

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 sam ...

Core Viewpoint - Zhihu Inc. will report its unaudited financial results for the quarter and full year ended December 31, 2024, before the U.S. market opens on March 26, 2025 [1] Group 1: Financial Reporting - The financial results will be announced before the U.S. market opens on March 26, 2025 [1] - A conference call will be hosted by the company's management at 7:00 A.M. U.S. Eastern Time on the same day to discuss the results [2] - Participants must pre-register online to join the conference call and will receive dial-in numbers and a unique access PIN [2][3] Group 2: Company Overview - Zhihu Inc. is a leading online content community in China, evolving from a Q&A platform to a comprehensive online content community since its launch in 2010 [4] - It is recognized as the largest Q&A-inspired online content community in China [4]

Investment Rating - The report suggests to pay attention to the company due to its potential for commercial space enhancement following the integration of the DeepSeek-R1 model [3]. Core Viewpoints - The integration of the DeepSeek-R1 model into Zhihu's AI search products is expected to significantly improve the accuracy and quality of search results and answers, leveraging the community's extensive high-quality corpus and over 50 million pieces of bilingual literature [3]. - The combination of the model's reasoning capabilities with the community's professional content will enhance the structured output of information, particularly in specialized fields such as healthcare and law, ensuring authoritative and traceable content [3]. - The efficiency of producing high-quality answers is anticipated to increase substantially, which will positively impact the activity level of the content ecosystem and its commercialization potential, including advertising and paid consultation scenarios [3]. - The current valuation of the company corresponds to a dynamic price-to-book ratio of approximately 0.6 times for 2025, indicating that the company can achieve large model integration at a low cost, which will greatly benefit its ecosystem [3].

Investment Rating - The report gives a "Buy" rating for the company, with a target price of $5.33, representing a potential upside of 48.7% from the current price of $3.60 [8][24]. Core Insights - The company reported Q3 revenue of 845 million RMB, a year-on-year decrease of 17.32%, but net loss decreased by 96.8% to 9 million RMB, with a gross margin increase to 63.9%, the highest in its history [3][14]. - The company is focusing on profitability, with a strategy to enhance gross margins and reduce net loss rates, aiming for significant loss reduction or near profitability by 2025 [8][10]. - The integration of AI technology into the platform is expected to improve user experience and attract new users, thereby increasing engagement and revenue from advertisers [15][26]. Financial Performance - Q3 revenue breakdown shows a decline across all major business segments: advertising marketing services down 32.9% to 257 million RMB, paid membership down 1.71% to 459 million RMB, and vocational training down 27.59% to 105 million RMB [3][14]. - The company’s MAU reached 81.1 million, with average monthly subscribers at 16.5 million, and content creation volume increased by 14.9% year-on-year [6][8]. - The operating expenses for Q3 were 624 million RMB, a decrease of 30.5% year-on-year, with significant reductions in sales and marketing, R&D, and general administrative expenses [36]. Future Outlook - The company aims to leverage its unique knowledge ecosystem and AI capabilities to enhance search functionalities and user satisfaction, which is expected to drive user growth and retention [15][8]. - The financial projections indicate a gradual improvement in revenue and a path towards profitability, with net losses expected to decrease significantly by 2025 [4][18].

Core Insights - Zhihu Inc. (NYSE: ZH) has experienced a significant decline in stock performance since its IPO in 2021, reaching a multi-year low recently [1]. Company Performance - The stock has spent most of the past three years in decline, indicating ongoing challenges for the company [1].