BEIJING, June 6, 2023
/PRNewswire/ -- 36Kr Holdings Inc. ("36Kr" or the
"Company" or "We") (NASDAQ: KRKR), a prominent brand and a
pioneering platform dedicated to serving New Economy participants
in China, today announced its
unaudited financial results for the first quarter ended
March 31, 2023.
First Quarter 2023 Highlights
- Number of followers[1] as of
March 31, 2023 reached 29.3 million,
an increase of 21.6% from 24.1 million as of March 31, 2022.
- Total revenues increased by 11.9% to RMB55.5 million (US$8.1
million) in the first quarter of 2023, from RMB49.6 million in the same period of 2022.
- Revenues from online advertising services increased
by 11.4% to RMB41.9 million
(US$6.1 million) in the first quarter
of 2023, from RMB37.6 million in the same period of 2022.
- Revenues from enterprise value-added
services increased by 7.3% to RMB10.0 million (US$1.5
million) in the first quarter of 2023, from RMB9.3 million in the same period of
2022.
- Revenues from subscription services increased by
35.7% to RMB3.6 million (US$0.5 million) in the first quarter of 2023,
compared to RMB2.7 million in the
same period of 2022.
[1] "Number of followers" refers to the
aggregate number of followers across the official accounts we own
and/or operate on various social media and online platforms,
including but not limited to Weixin, Weibo, Zhihu, Toutiao, Xinhua
Net, Douyin and Bilibili.
|
Selected Operating Data
|
|
For the Three Months
Ended
March
31,
|
|
|
2022
|
|
2023
|
Online advertising
services
|
|
|
|
|
Number of online
advertising services end customers
|
|
135
|
|
147
|
Average revenue per
online advertising services end
customer (RMB'000)[2]
|
|
278.5
|
|
284.9
|
|
|
|
|
|
Enterprise
value-added services
|
|
|
|
|
Number of enterprise
value-added services end customers
|
|
35
|
|
38
|
Average revenue per
enterprise value-added services end
customer (RMB'000)[3]
|
|
266.8
|
|
263.6
|
|
|
|
|
|
Subscription
services
|
|
|
|
|
Number of individual
subscribers
|
|
220
|
|
39
|
Average revenue per
individual subscriber (RMB)[4]
|
|
92.5
|
|
14,864.4
|
|
|
|
|
|
Number of institutional
investors
|
|
88
|
|
98
|
Average revenue per
institutional investor (RMB'000)[5]
|
|
30.1
|
|
31.1
|
|
|
|
|
|
Mr. Dagang Feng, Co-chairman and
CEO of 36Kr, commented, "We kicked off the year with stellar first
quarter results as we returned to robust growth trajectory,
delivering double-digit top-line growth year-over-year. The strong
financial results speak to our high-quality content, compelling
product offerings, and immense technological capabilities. Our user
engagement metrics also continued to improve, with the number of
our followers exceeding 29 million as of the end of first quarter
of 2023, up 22% year-over-year. In addition, we continued to adopt
cutting-edge technologies including generative AI across our
content ecosystem and product matrix, facilitating higher
efficiency in our operations. Particularly, our new
application-level product, 36Kr Enterprise Service Review platform,
achieved rapid growth across multiple operating metrics as we
upgraded its various functionalities. Looking ahead, we will focus
on core business development, amplifying our content advantages and
driving product innovation as we seek to create greater growth
potential and enterprise value."
Ms. Lin Wei, Chief Financial
Officer of 36Kr, added, "We achieved upbeat financial results in
the first quarter of 2023, with total revenues reaching
RMB55.5 million, an increase of 12%
from a year ago and all three major business segments realizing
year-over-year growth. Notably, our advertising revenue grew
strongly by 11% year-over-year to RMB41.9
million, underscoring the increasing customer recognition of
our content strength and proactive marketing solutions. As the
pandemic receded, our enterprise value-added services and
subscription services also recorded solid revenue growth of 7% and
36% year-over-year, respectively, as we continued to optimize our
product and service offerings. Moving forward through 2023, we will
continue to cultivate our unique New Economy service platform,
capturing new opportunities arising from AI technology development
and applications, to drive sustainable long-term growth."
[2] Equals revenues generated from online advertising services
for a period divided by the number of online advertising services
end customers in the same period.
|
[3] Equals
revenues generated from enterprise value-added services for a
period divided by the number of enterprise value-added services end
customers in the same period.
|
[4] Equals
revenues generated from individual subscription services for a
period divided by the number of individual subscribers in the same
period.
|
[5] Equals
revenues generated from institutional investor subscription
services for a period divided by the number of institutional
investors in the same period.
|
First Quarter 2023 Financial Results
Total revenues increased by 11.9% to RMB55.5 million (US$8.1
million) in the first quarter of 2023, from RMB49.6 million in the same period of 2022.
- Online advertising services revenues increased by 11.4%
to RMB41.9 million (US$6.1 million) in the first quarter of 2023,
from RMB37.6 million in the same period of 2022. The increase
was primarily attributable to more innovative marketing solutions
as well as the gradual recovery of market demand in the first
quarter of 2023.
- Enterprise value-added services revenues increased by
7.3% to RMB10.0 million (US$1.5 million) in the first quarter of 2023, as
we continuously developed various proactive enterprise-level
services for our customers.
- Subscription services revenues increased by 35.7% to
RMB3.6 million (US$0.5 million) in the first quarter of 2023,
compared to RMB2.7 million in the
same period of 2022. The increase was primarily attributable to our
continuous efforts to offer high-quality subscription products to
our subscribers.
Cost of revenues was RMB32.4
million (US$4.7 million) in
the first quarter of 2023, compared to RMB23.9 million in the same period of 2022. The
increase was primarily attributable to higher fulfillment costs and
content costs.
Gross profit was RMB23.1
million (US$3.4 million) in
the first quarter of 2023, compared to RMB25.7 million in the same period of 2022.
Gross profit margin was 41.6% in the first quarter of 2023,
compared to 51.8% in the same period of 2022.
Operating expenses were RMB63.6 million (US$9.3 million) in the first quarter of
2023, compared to RMB33.4 million in the same period of
2022.
- Sales and marketing expenses were RMB31.0 million
(US$4.5 million) in the first quarter
of 2023, an increase of 4.4% from RMB29.7
million in the same period of 2022. The increase was
primarily attributable to the increase in payroll-related
expenses, partially offset by the decrease in marketing related
expenses.
- General and administrative expenses were RMB17.2 million (US$2.5
million) in the first quarter of 2023, compared to RMB
(10.0) million in the same period of 2022. The fluctuation was
primarily attributable to the release of the allowance for credit
losses of RMB32.9 million in the same
period of 2022 which was mainly due to the cash collection from
account receivables fully impaired in previous year, partially
offset by the decrease in payroll-related expenses and share-based
compensation expenses.
- Research and development expenses were RMB15.5 million (US$2.3
million) in the first quarter of 2023, an increase of 12.3%
from RMB13.8 million in the same
period of 2022. The increase was primarily attributable to the
increase in payroll-related expenses.
Share-based compensation expenses recognized in cost of
revenues, sales and marketing expenses, research and development
expenses, as well as general and administrative expenses totaled
RMB1.9 million (US$0.3 million) in the first quarter of 2023,
compared to RMB4.1 million in the
same period of 2022.
Other income was RMB1.2
million (US$0.2 million) in
the first quarter of 2023, compared to RMB40.3 million in the same period of 2022. The
decrease was primarily attributable to the Company recognized
approximately RMB 38.0 million of
gain arising from a disposal of a subsidiary in the first quarter
of 2022.
Income tax credit was RMB0.24 million (US$0.03 million) in the first quarter of 2023,
compared to RMB0.01 million in the
same period of 2022.
Net loss was RMB39.0
million (US$5.7 million)
in the first quarter of 2023, compared to net income of
RMB32.6 million in the same period of
2022. Non-GAAP adjusted net loss[6] was
RMB37.1 million (US$5.4 million) in the first quarter of 2023,
compared to non-GAAP adjusted net income of RMB36.7 million in the same period of 2022.
Net loss attributable to 36Kr Holdings Inc.'s ordinary
shareholders was RMB38.4 million (US$5.6 million) in the first quarter of
2023, compared to net income attributable to 36Kr Holdings Inc.'s
ordinary shareholders of RMB33.0 million in the same period of
2022.
Basic and diluted net loss per ADS was both RMB0.923 (US$0.134)
in the first quarter of 2023, compared to basic and diluted net
income per ADS of RMB0.802 in the
same period of 2022.
Certain Balance Sheet Items
As of March 31, 2023, the Company
had cash, cash equivalents, restricted cash and short-term
investments of RMB169.8 million
(US$24.7 million), compared to
RMB184.9 million as of December 31, 2022. The decrease was mainly
attributable to payment of year-end employee bonus and benefits, as
well as small-sized long-term investment in a New-Economy start-up
company in the first quarter of 2023.
[6]
Non-GAAP
adjusted income/(loss) represents
net income/(loss) excluding share-based compensation
expenses.
|
Conference Call
The Company's management will host an earnings conference call
at 7:30 AM U.S. Eastern Time on
June 6, 2023 (7:30 PM
Beijing/Hong Kong Time on June 6, 2023).
For participants who wish to join the call by phone, please
access the link provided below to complete the pre-registration and
dial in 5 minutes prior to the scheduled call start time. Upon
registration, each participant will receive dial-in details to join
the conference call.
Event Title:
|
36Kr Holdings Inc.
First Quarter 2023 Earnings Conference Call
|
Pre-registration
link:
|
https://s1.c-conf.com/diamondpass/10031067-qw63hn.html
|
Additionally, a live and archived webcast of the conference call
will be available on the Company's investor relations website at
http://ir.36kr.com.
A replay of the conference call will be available for one week
from the date of the conference, by dialing the following telephone
numbers:
United
States:
|
+1-855-883-1031
|
International:
|
+61-7-3107-6325
|
Hong Kong,
China:
|
800-930-639
|
Mainland
China:
|
400-120-9216
|
Replay PIN:
|
10031067
|
About 36Kr Holdings Inc.
36Kr Holdings Inc. is a prominent brand and a pioneering
platform dedicated to serving New Economy participants in
China with the mission of
empowering New Economy participants to achieve more. The Company
started its business with high-quality New Economy-focused content
offerings, covering a variety of industries in China's New Economy with diverse distribution
channels. Leveraging traffic brought by high-quality content, the
Company has expanded its offerings to business services, including
online advertising services, enterprise value-added services and
subscription services to address the evolving needs of New Economy
companies and upgrading needs of traditional companies. The Company
is supported by comprehensive database and strong data analytics
capabilities. Through diverse service offerings and the significant
brand influence, the Company is well-positioned to continuously
capture the high growth potentials of China's New Economy.
For more information, please visit: http://ir.36kr.com.
Use of Non-GAAP Financial Measures
In evaluating its business, the Company considers and uses two
non-GAAP measures, adjusted net income/(loss) and adjusted EBITDA,
as supplemental measures to review and assess its operating
performance. The presentation of these two non-GAAP financial
measures is not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in
accordance with U.S. GAAP. The Company presents these non-GAAP
financial measures because they are used by the Company's
management to evaluate its operating performance and formulate
business plans. The Company also believes that the use of these
non-GAAP measures facilitates investors' assessment of its
operating performance.
These non-GAAP financial measures are not defined under U.S.
GAAP and are not presented in accordance with U.S. GAAP. These
non-GAAP financial measures have limitations as analytical tools.
One of the key limitations of using these non-GAAP financial
measures is that they do not reflect all items of income and
expense that affect our operations. Further, these non-GAAP
measures may differ from the non-GAAP information used by other
companies, including peer companies, and therefore their
comparability may be limited.
The Company compensates for these limitations by reconciling
these non-GAAP financial measures to the nearest U.S. GAAP
performance measure, all of which should be considered when
evaluating the Company performance. The Company encourages
investors to review its financial information in its entirety and
not rely on a single financial measure.
Adjusted net loss represents net loss excluding share-based
compensation expenses.
Adjusted EBITDA represents adjusted net income/(loss) before
interest income, interest expenses, income tax expense/(credit),
depreciation of property and equipment and amortization of
intangible assets.
For more information on these non-GAAP financial measures,
please see the table captioned "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 RMB 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 and from U.S. dollars to Renminbi are made
at a rate of RMB6.8676 to
US$1.00, the exchange rate set forth
in the H.10 statistical release of the Federal Reserve Board on of
March 31, 2023.
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. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements.
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. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: the
Company's goal and strategies; the Company's future business
development, results of operations and financial condition;
relevant government policies and regulations relating to our
business and industry; the Company's expectations regarding the use
of proceeds from this offering; the Company's expectations
regarding demand for, and market acceptance of, its services; the
Company's ability to maintain and enhance its brand; the Company's
ability to provide high-quality content in a timely manner to
attract and retain users; the Company's ability to retain and hire
quality in-house writers and editors; the Company's ability to
maintain cooperation with third-party professional content
providers; the Company's ability to maintain relationship with
third-party platforms; general economic and business condition in
China; possible disruptions in
commercial activities caused by natural or human-induced disasters;
and assumptions underlying or related to any of the foregoing.
Further information regarding these and other risks is included in
the Company's filings with the SEC. All information provided in
this press release and in the attachments is as of the date of this
press release, and the Company undertakes no obligation to update
any forward-looking statement, except as required under applicable
law.
For investor and media inquiries, please contact:
In China:
36Kr Holdings Inc.
Investor Relations
Tel: +86 (10) 5825-4188
E-mail: ir@36kr.com
The Piacente Group, Inc.
Jenny Cai
Tel: +86 (10) 6508-0677
E-mail: 36Kr@tpg-ir.com
In the United States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: 36Kr@tpg-ir.com
36Kr Holdings
Inc.
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
December 31,
|
|
March 31,
|
|
March 31,
|
2022
|
2023
|
2023
|
|
RMB'000
|
|
RMB'000
|
|
US$'000
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
142,511
|
|
109,717
|
|
15,976
|
Restricted
cash
|
100
|
|
100
|
|
15
|
Short–term
investments
|
42,270
|
|
59,949
|
|
8,729
|
Accounts receivable,
net
|
197,528
|
|
138,588
|
|
20,180
|
Receivables due from
related parties
|
858
|
|
319
|
|
47
|
Prepayments and other
current assets
|
16,159
|
|
19,053
|
|
2,774
|
Total current
assets
|
399,426
|
|
327,726
|
|
47,721
|
Non–current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
2,428
|
|
2,300
|
|
335
|
Intangible assets,
net
|
1,249
|
|
1,210
|
|
176
|
Long-term
investments
|
137,357
|
|
139,943
|
|
20,377
|
Operating lease
right-of-use assets, net
|
30,911
|
|
26,600
|
|
3,873
|
Total non–current
assets
|
171,945
|
|
170,053
|
|
24,761
|
Total
assets
|
571,371
|
|
497,779
|
|
72,482
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
53,465
|
|
45,141
|
|
6,573
|
Salary and welfare
payables
|
52,204
|
|
28,969
|
|
4,218
|
Taxes
payable
|
10,874
|
|
6,993
|
|
1,018
|
Deferred
revenue
|
24,575
|
|
25,920
|
|
3,774
|
Amounts due to related
parties
|
312
|
|
1,077
|
|
157
|
Accrued liabilities
and other payables
|
27,606
|
|
25,636
|
|
3,733
|
Short-term bank
loan
|
9,950
|
|
9,950
|
|
1,449
|
Operating lease
liabilities
|
31,293
|
|
34,363
|
|
5,004
|
Total current
liabilities
|
210,279
|
|
178,049
|
|
25,926
|
Non-current
liabilities:
|
|
|
|
|
|
Operating lease
liabilities
|
15,093
|
|
11,326
|
|
1,649
|
Other non-current
liabilities
|
615
|
|
505
|
|
74
|
Total non-current
liabilities
|
15,708
|
|
11,831
|
|
1,723
|
Total
liabilities
|
225,987
|
|
189,880
|
|
27,649
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Ordinary
shares
|
694
|
|
694
|
|
101
|
Treasury
stock
|
(12,010)
|
|
(12,010)
|
|
(1,749)
|
Additional paid-in
capital
|
2,061,491
|
|
2,063,432
|
|
300,459
|
Accumulated
deficit
|
(1,706,209)
|
|
(1,744,580)
|
|
(254,031)
|
Accumulated other
comprehensive loss
|
(5,860)
|
|
(6,259)
|
|
(911)
|
Total 36Kr Holdings
Inc.'s shareholders' equity
|
338,106
|
|
301,277
|
|
43,869
|
Non-controlling
interests
|
7,278
|
|
6,622
|
|
964
|
Total shareholders'
equity
|
345,384
|
|
307,899
|
|
44,833
|
Total liabilities
and shareholders' equity
|
571,371
|
|
497,779
|
|
72,482
|
|
|
|
|
|
|
36Kr Holdings
Inc.
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME/(LOSS)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
|
2022
|
|
2023
|
|
2023
|
|
|
RMB'000
|
|
RMB'000
|
|
US$'000
|
|
Revenues:
|
|
|
|
|
|
|
Online advertising
services
|
37,596
|
|
41,879
|
|
6,098
|
|
Enterprise value-added
services
|
9,337
|
|
10,018
|
|
1,459
|
|
Subscription
services
|
2,673
|
|
3,628
|
|
528
|
|
Total
revenues
|
49,606
|
|
55,525
|
|
8,085
|
|
Cost of
revenues
|
(23,889)
|
|
(32,401)
|
|
(4,718)
|
|
Gross
profit
|
25,717
|
|
23,124
|
|
3,367
|
|
Operating
expenses:
|
|
|
|
|
|
|
Sales and marketing
expenses
|
(29,684)
|
|
(30,984)
|
|
(4,512)
|
|
General and
administrative expenses
|
10,004
|
|
(17,193)
|
|
(2,503)
|
|
Research and
development expenses
|
(13,769)
|
|
(15,458)
|
|
(2,251)
|
|
Total operating
expenses
|
(33,449)
|
|
(63,635)
|
|
(9,266)
|
|
Loss from
operations
|
(7,732)
|
|
(40,511)
|
|
(5,899)
|
|
Other
income/(expenses):
|
|
|
|
|
|
|
Share of loss from
equity method investments
|
(686)
|
|
(269)
|
|
(39)
|
|
Gain on disposal of a
subsidiary
|
38,019
|
|
-
|
|
-
|
|
Short-term investment
income
|
628
|
|
326
|
|
47
|
|
Government
grant
|
791
|
|
480
|
|
70
|
|
Others, net
|
1,596
|
|
712
|
|
104
|
|
(Loss)/income before
income tax
|
32,616
|
|
(39,262)
|
|
(5,717)
|
|
Income tax
credit
|
5
|
|
235
|
|
34
|
|
Net
(loss)/income
|
32,621
|
|
(39,027)
|
|
(5,683)
|
|
Net loss attributable
to non-controlling interests
|
361
|
|
656
|
|
96
|
|
Net (loss)/income
attributable to 36Kr Holdings
Inc.'s ordinary shareholders
|
32,982
|
|
(38,371)
|
|
(5,587)
|
|
|
|
|
|
|
|
|
Net
(loss)/income
|
32,621
|
|
(39,027)
|
|
(5,683)
|
|
Other comprehensive
loss
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(167)
|
|
(399)
|
|
(58)
|
|
Total other
comprehensive loss
|
(167)
|
|
(399)
|
|
(58)
|
|
Total comprehensive
(loss)/income
|
32,454
|
|
(39,426)
|
|
(5,741)
|
|
Net loss attributable
to non-controlling interests
|
361
|
|
656
|
|
96
|
|
Comprehensive
(loss)/income attributable to 36Kr
Holdings Inc.'s ordinary
shareholders
|
32,815
|
|
(38,770)
|
|
(5,645)
|
|
|
|
|
|
|
|
|
Net (loss)/income
per ordinary share (RMB)
|
|
|
|
|
|
|
Basic
|
0.032
|
|
(0.037)
|
|
(0.005)
|
|
Diluted
|
0.032
|
|
(0.037)
|
|
(0.005)
|
|
Net (loss)/income
per ADS (RMB)
|
|
|
|
|
|
|
Basic
|
0.802
|
|
(0.923)
|
|
(0.134)
|
|
Diluted
|
0.802
|
|
(0.923)
|
|
(0.134)
|
|
Weighted average
number of ordinary shares used in
per share calculation
|
|
|
|
|
|
|
Basic
|
1,028,586,020
|
|
1,039,154,575
|
|
1,039,154,575
|
|
Diluted
|
1,028,586,020
|
|
1,039,154,575
|
|
1,039,154,575
|
|
Weighted average
number of ADS used in per ADS
calculation
|
|
|
|
|
|
|
Basic
|
41,143,441
|
|
41,566,183
|
|
41,566,183
|
|
Diluted
|
41,143,441
|
|
41,566,183
|
|
41,566,183
|
|
36Kr Holdings
Inc.
|
UNAUDITED
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
|
2022
|
2023
|
2023
|
|
RMB'000
|
|
RMB'000
|
|
US$'000
|
|
|
|
|
|
|
|
|
Net
(loss)/income
|
32,621
|
|
(39,027)
|
|
(5,683)
|
|
Share-based
compensation expenses
|
4,112
|
|
1,941
|
|
283
|
|
Non-GAAP adjusted
net (loss)/income
|
36,733
|
|
(37,086)
|
|
(5,400)
|
|
Interest income,
net
|
(133)
|
|
(364)
|
|
(53)
|
|
Income tax
credit
|
(5)
|
|
(235)
|
|
(34)
|
|
Depreciation and
amortization expenses
|
473
|
|
350
|
|
51
|
|
Non-GAAP adjusted
EBITDA
|
37,068
|
|
(37,335)
|
|
(5,436)
|
|
View original
content:https://www.prnewswire.com/news-releases/36kr-holdings-inc-reports-first-quarter-2023-unaudited-financial-results-301843394.html
SOURCE 36Kr Holdings Inc.