36Kr Holdings’ Earnings Call: Mixed Results with Positive Outlook

The recent earnings call for 36Kr Holdings Inc Adr Class A painted a mixed picture, highlighting both significant achievements and areas of concern. The overall sentiment was positive, driven by improvements in operational efficiency, content ecosystem expansion, and breakthroughs in commercialization. However, declines in overall revenue and subscription services were noted as challenges that need addressing. The advancements in AI and content production efficiency added a positive note to the call. Improved Financial Performance The company reported a notable improvement in its financial performance, with a 10% year-over-year increase in gross profit and a significant reduction in operating expenses by more than CNY 60 million, marking a 52% decrease. Additionally, the net loss was narrowed by over CNY 90 million, representing a 95% improvement from the previous year. Content Ecosystem Expansion 36Kr Holdings has successfully expanded its content ecosystem, achieving 17 consecutive quarters of growth in followers, now totaling over 36.57 million. This growth was driven by the introduction of diverse content formats, including text, video, audio, and live streaming, which have resonated well with audiences. Commercialization Breakthroughs The company made significant strides in commercialization, with revenue from Internet clients increasing by 52% year-over-year and a 27% growth in the FMCG segment. Additionally, subvertical media channels targeting younger audiences saw a 30% increase in revenue year-over-year. AI and Technological Advancements AI-powered content production has enhanced efficiency, covering 993 companies. The introduction of AI meeting products and corporate Omni Intelligence has expanded the company’s reach and engagement, boasting a user base of 25,000. Revenue Decline Despite the positive developments, the company experienced a decline in total revenue, which fell to CNY 93.2 million from CNY 102.4 million in the same period last year. Revenue from online advertising services and enterprise value-added services also saw a decline. Subscription Services Revenue Drop The earnings call highlighted a drop in subscription services revenue, which decreased to CNY 6.4 million from CNY 8.6 million. This decline was primarily attributed to changes in the training services business model. Forward-Looking Guidance Looking ahead, 36Kr Holdings Inc. provided optimistic guidance, emphasizing its strategic focus on content innovation, commercialization breakthroughs, and technological applications. The company aims to optimize its organizational structure and improve workforce efficiency, with the potential for profitability by the end of 2025. The gross margin is expected to improve further, building on the 10% increase from the same period in 2024. In conclusion, the earnings call for 36Kr Holdings Inc Adr Class A reflected a positive sentiment overall, with significant improvements in financial performance and strategic advancements. However, challenges remain in reversing the decline in revenue and subscription services. The company’s focus on innovation and efficiency positions it well for future growth and potential profitability.