KRKR 36Kr Holdings Inc

BEIJING, Sept. 1, 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 on August 31 announced its unaudited financial results for the second quarter ended June 30, 2023.

Second Quarter 2023 Highlights

• Number of followers^[1] as of June 30, 2023 reached 30.5 million, an increase of 21.5% from 25.1 million as of June 30, 2022.
  
  
• Total revenues increased by 3.2% to RMB84.4 million (US$11.6 million) in the second quarter of 2023, from RMB81.7 million in the same period of 2022.
  
  
• Revenues from online advertising services were RMB57.0 million (US$7.9 million) in the second quarter of 2023, compared to RMB57.8 million in the same period of 2022.
  
  
• Revenues from enterprise value-added services increased by 16.8% to RMB16.8 million (US$2.3 million) in the second quarter of 2023, from RMB14.3 million in the same period of 2022.
   
• Revenues from subscription services increased by 11.4% to RMB10.6 million (US$1.5 million) in the second quarter of 2023, compared to RMB9.5 million in the same period of 2022.

Mr. Dagang Feng, Co-chairman and CEO of 36Kr, commented, "In the second quarter of 2023, we maintained a solid growth trajectory as our total revenues continued to increase year-over-year amidst the nascent recovery of the macro economy. Our relentless efforts to optimize our diverse content offerings and omni-channel distribution drove the number of our followers to over 30 million as of the end of the second quarter, representing an increase of 21% year-over-year. Moreover, we accelerated the application of AI and other cutting-edge technologies across our business, effectively enhancing our operational efficiency and optimizing costs. Specifically, our application-level product, 36Kr Enterprise Service Review Platform, provided users with more interactive, user-friendly intelligent customer service through AI applications and empowerment. Looking ahead, we will remain committed to stepping up our content creation capabilities, further expanding the depth and breadth of our service offerings, and actively exploring AI-empowered product innovation to gear up to seize tremendous future growth opportunities."

Ms. Lin Wei, Chief Financial Officer of 36Kr, added, "Our solid financial performance in the second quarter is a testament to our businesses' resilience and vitality given the uncertain and evolving external environment. Our total revenues increased by 3% year-over-year while our gross margin rebounded back to above 50% level. Notably, our enterprise value-added services and subscription services both recorded a substantial increase year-over-year, growing 17% and 11% respectively, as we made great strides in diversifying our service offerings. While our advertising revenues remained largely stable compared to the same period of last year, our non-advertising revenues is contributing an increasing portion of total revenues year-over-year, enhancing our business' overall balance and structure. Moving forward, we will continue to apply innovative technologies including generative AI and large language model to drive our revenue growth and enhance our profitability, thereby generating long-term sustainable value for shareholders, customers and society as a whole."

Second Quarter 2023 Financial Results

Total revenues increased by 3.2% to RMB84.4 million (US$11.6 million) in the second quarter of 2023, from RMB81.7 million in the same period of 2022.

• Online advertising services revenues decreased by 1.4% to RMB57.0 million (US$7.9 million) in the second quarter of 2023, from RMB57.8 million in the same period of 2022. The decrease was primarily attributable to the uncertainty of macro economy as it is still in the initial stage of recovery.
  
  
• Enterprise value-added services revenues increased by 16.8% to RMB16.8 million (US$2.3 million) in the second quarter of 2023, from RMB14.3 million in the same period of 2022, as we continuously developed various proactive enterprise-level services for our customers.
  
  
• Subscription services revenues increased by 11.4% to RMB10.6 million (US$1.5 million) in the second quarter of 2023, compared to RMB9.5 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 RMB37.6 million (US$5.2 million) in the second quarter of 2023, compared to RMB30.8 million in the same period of 2022. The increase was primarily attributable to higher fulfillment costs and content costs.

Gross profit was RMB46.7 million (US$6.4 million) in the second quarter of 2023, compared to RMB50.9 million in the same period of 2022. Gross profit margin was 55.4% in the second quarter of 2023, compared to 62.3% in the same period of 2022.

Operating expenses were RMB66.2 million (US$9.1 million) in the second quarter of 2023, compared to RMB64.6 million in the same period of 2022.

• Sales and marketing expenses were RMB33.9 million (US$4.7 million) in the second quarter of 2023, an increase of 23.5% from RMB27.4 million in the same period of 2022. The increase was primarily attributable to the increase in payroll-related expenses, business travel related expenses and share-based compensation expenses.
  
  
• General and administrative expenses were RMB18.7 million (US$2.6 million) in the second quarter of 2023, compared to RMB23.8 million in the same period of 2022. The decrease was primarily attributable to the decrease in payroll-related expenses, professional fees and allowance for credit losses.
  
  
• Research and development expenses were RMB13.6 million (US$1.9 million) in the second quarter of 2023, an increase of 1.7% from RMB13.4 million in the same period of 2022. The increase was primarily attributable to the increase in payroll-related expenses as well as bandwidth and server expenses, partially offset by the decrease in share-based compensation 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 RMB2.8 million (US$0.4 million) in the second quarter of 2023, compared to RMB2.6 million in the same period of 2022. 

Other income was RMB4.8 million (US$0.7 million) in the second quarter of 2023, compared to RMB22.7 million in the same period of 2022. The decrease was primarily attributable to the Company recognized approximately RMB 18.5 million of investment income arising from fair value change of long-term investments in the second quarter of 2022.

Income tax credit was RMB0.05 million (US$0.01 million) in the second quarter of 2023, compared to RMB0.01 million in the same period of 2022.

Net loss was RMB14.7 million (US$2.0 million) in the second quarter of 2023, compared to net income of RMB9.0 million in the same period of 2022. Non-GAAP adjusted net loss^[6] was RMB11.9 million (US$1.6 million) in the second quarter of 2023, compared to non-GAAP adjusted net income of RMB11.6 million in the same period of 2022.

Net loss attributable to 36Kr Holdings Inc.'s ordinary shareholders was RMB15.3 million (US$2.1 million) in the second quarter of 2023, compared to net income attributable to 36Kr Holdings Inc.'s ordinary shareholders of RMB8.0 million in the same period of 2022.

Basic and diluted net loss per ADS were both RMB0.367 (US$0.051) in the second quarter of 2023, compared to basic and diluted net income per ADS of RMB0.195 in the same period of 2022.

Certain Balance Sheet Items

As of June 30, 2023, the Company had cash, cash equivalents, restricted cash and short-term investments of RMB136.5 million (US$18.8 million), compared to RMB169.8 million as of March 31, 2023. The decrease was mainly attributable to net cash outflow from operating activities.

View original content:https://www.prnewswire.com/news-releases/36kr-holdings-inc-reports-second-quarter-2023-unaudited-financial-results-301915835.html

SOURCE 36Kr