BEIJING, Aug. 16, 2021 /PRNewswire/ -- Zhihu Inc. ("Zhihu"
or the "Company") (NYSE: ZH), the operator of Zhihu, a leading
online content community in China,
today announced its unaudited financial results for the second
quarter ended June 30, 2021.
Second Quarter 2021 Highlights
- Average monthly active users (MAUs)[1]
reached 94.3 million in the second quarter of 2021, representing a
growth of 46.2% over the second quarter of 2020.
- Average monthly paying
members[2] reached 4.7 million in the second
quarter of 2021, representing a growth of 121.1% over the second
quarter of 2020.
- Total revenues were RMB638.4
million (US$98.9 million) in
the second quarter of 2021, representing a growth of 144.2% over
the second quarter of 2020.
- Gross profit was RMB376.6
million (US$58.3 million) in
the second quarter of 2021, representing a growth of 197.9% over
the second quarter of 2020.
- Gross margin increased to 59.0% in the second quarter of
2021 from 48.4% in the same period of last year.
"We are delighted to report another strong quarter, with solid
growth in both operating and financial performance. We believe our
founding belief, establishing a content-centric ecosystem and
sustainable commercialization model, is the fundamental driver
behind our achievements as a company. We continued to strive
towards this goal in the quarter, by optimizing our content
structure and refining our evaluation standards for quality
content, thereby enhancing a "sense of fulfilment" for our users.
We believe such quality content will broaden horizons, provide
resolutions and resonate with
minds. We further believe this "sense of fulfilment" will
not only strengthen trust amongst users, content creators and our
platform, but will also be a key element that will enhance our
unique position in the market and further solidify our leadership
position in the long-term." said Mr. Yuan Zhou, Chairman of the
Board and Chief Executive Officer of Zhihu.
Mr. Wei Sun, Chief Financial
Officer of Zhihu, added, "We have continued to deliver outstanding
operating and financial results in the second quarter of 2021. In
the quarter, our user base continued its rapid growth, with average
MAUs increasing by 46% year-over-year to 94.3 million. Our
content-centric monetization also enjoyed robust enhancement,
yielding a 144% year-over-year growth in revenue. Our revenue
structure diversified further in the quarter with a higher
percentage of revenue coming from content-commerce solutions and
paid memberships. At the same time, our gross margin remained
strong at 59% for the quarter, compared with 48% for the same
period last year, which significantly reinforces our strong
capability in upgrading our content infrastructure and allows us to
continue creating long-term value for our users, business partners
and shareholders."
Second Quarter 2021 Financial Results
Total revenues were RMB638.4
million (US$98.9 million) in
the second quarter of 2021, representing an increase of 144.2% from
RMB261.4 million in the same period
of 2020. The increase was driven by our expanding user scale and
continued growth of our average revenue per user.
Advertising revenue was RMB248.3
million (US$38.5 million) in
the second quarter of 2021, representing an increase of 48.4% from
RMB167.3 million in the same period
of 2020. The year-over-year increase was primarily attributable to
the continued expansion of our user base coupled with an increased
average advertising revenue generated per MAU.
Paid membership revenue was RMB154.9 million (US$24.0
million) in the second quarter of 2021, representing an
increase of 123.5% from RMB69.3
million in the same period of 2020. The year-over-year
increase was primarily attributable to an increase in our overall
user base coupled with an enhanced paying ratio for the period.
Content-commerce solutions revenue was RMB207.4
million (US$32.1 million) in the
second quarter of 2021, compared with RMB12.7 million in the second quarter of 2020.
The strong year-over-year growth was primarily driven by the rapid
increases of both our user base and average content-commerce
solutions revenue per MAU, which reflected our continued commitment
to our content-centric commercialization strategy.
Other revenues were RMB27.8
million (US$4.3 million) in
the second quarter of 2021, compared with RMB12.0 million in the same period of 2020. The
year-over-year increase was primarily attributable to the continued
growth of our e-commerce services and online education services
that provide vocational training and professional courses for
adults.
Cost of revenues increased to RMB261.8 million (US$40.5
million) in the second quarter of 2021 from RMB135.0 million in the same period of 2020. The
increase was primarily due to increased execution costs for our
advertising services and content-related costs. The rapid growth in
user traffic in the quarter also resulted in increases in our cloud
services and bandwidth costs.
Gross profit was RMB376.6
million (US$58.3 million) in
the second quarter of 2021, compared with a gross profit of
RMB126.4 million in the same period
of 2020.
Gross margin in the second quarter of 2021 was 59.0%,
compared to 48.4% in the same period of 2020.
Total operating expenses were RMB727.1 million (US$112.6
million) in the second quarter of 2021, compared with
RMB284.0 million in the same period
of 2020.
Selling and marketing expenses were RMB443.2 million (US$68.6
million) in the second quarter of 2021, compared with
RMB146.7 million in the second
quarter of 2020. The increase was primarily due to the increased
expenses in promotion and advertising activities to attract new
users, as well as to strengthen our brand recognition.
Research and development expenses were RMB120.6 million (US$18.7
million) in the second quarter of 2021, compared with
RMB83.6 million in the same period of
2020. The increase was primarily due to the increased headcount in
our research and development personnel as we continued to invest in
technical infrastructure, research and development.
General and administrative expenses were RMB163.2 million (US$25.3
million) in the second quarter of 2021, compared with
RMB53.7 million in the same period of
2020. The increase was primarily due to the increased share-based
compensation expenses.
Loss from operations was RMB350.5
million (US$54.3 million) in
the second quarter of 2021, compared with RMB157.7 million in the same period of
2020.
Net loss was RMB321.1
million (US$49.7 million) in
the second quarter of 2021, compared with RMB116.1 million in the same period of 2020.
Adjusted net loss (non-GAAP)[3] was
RMB200.3 million (US$31.0 million) in the second quarter of 2021,
compared with RMB70.2 million in the
same period of 2020.
Basic and diluted net loss per ADS was RMB0.55 (US$0.08)
in the second quarter of 2021, compared with RMB2.22 in the same period of 2020.
Cash and cash equivalents, term deposits, restricted cash and
short-term investments
As of June 30, 2021, the Company
had cash and cash equivalents, term deposits, restricted cash and
short-term investments of RMB7,703.1
million (US$1,193.1 million),
compared with RMB3,096.7 million as
of December 31, 2020.
Outlook
For the third quarter of 2021, the Company currently expects its
total revenues to be between RMB815
million (US$126.2 million) and
RMB820 million (US$127.0 million). The above outlook is based on
the current market condition and reflects the Company's preliminary
estimates, which are all subject to change.
[1] MAUs
refers to the sum of the number of mobile devices that launch our
mobile app at least once in a given month, or mobile MAUs, and the
number of logged-in users who visit our PC or mobile website at
least once in a given month, after eliminating
duplicates.
|
[2]
Average monthly paying members for a period is calculated by
dividing the sum of monthly paying members for each month during
the specified period by the number of months in such
period.
|
[3]
Adjusted net loss is a non-GAAP financial measure. For more
information on the non-GAAP financial measure, please see the
section of "Use of Non-GAAP Financial Measure" and the table
captioned "Unaudited Reconciliations of GAAP and Non-GAAP Results"
set forth at the end of this press release.
|
Conference Call
The Company's management will host an earnings conference call
at 8:00 a.m. U.S. Eastern Time on
August 16, 2021 (8:00 p.m. Beijing/Hong
Kong time on August 16,
2021).
Dial-in details for the earnings conference call are as
follows:
United
States:
|
+1-888-317-6003
|
International:
|
+1-412-317-6061
|
Hong Kong,
China:
|
800-963-976
|
Mainland
China:
|
400-120-6115
|
Participant
code:
|
5296870
|
Additionally, a live and archived webcast of the conference call
will be available on the Company's investor relations website
at https://ir.zhihu.com.
A replay of the conference call will be accessible approximately
one hour after the conclusion of the live call until August
23, 2021, by dialing the following telephone numbers:
United
States:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Replay Access
Code:
|
10159155
|
About Zhihu Inc.
Zhihu Inc. (NYSE: ZH) is the operator of Zhihu, a leading online
content community in China,
dedicated to empowering people to share knowledge, experience, and
insights, and to find their own answers. Zhihu fosters a vibrant
online community where users contribute and engage while respecting
diversity and valuing constructiveness by promoting a culture of
sincerity, expertise, and respect developed through years of
cultivation. Zhihu is China's
largest Q&A-inspired online community and one of the top five
Chinese comprehensive online content communities, both in terms of
average mobile monthly average users and revenue in 2020. Zhihu is
also recognized as the most trustworthy online content community
and widely regarded as offering the highest quality content in
China, according to a survey
conducted by CIC. For more information, please visit
https://ir.zhihu.com.
Use of Non-GAAP Financial Measure
In evaluating the business, the Company considers and uses
adjusted net loss, a non-GAAP financial measure, to supplement the
review and assessment of its operating performance. The Company
defines adjusted net loss as net loss adjusted for the impact of
share-based compensation expenses, which are non-cash expenses and
are partially discretionary in nature. The Company believes that
the non-GAAP measure facilitates comparisons of operating
performance from period to period and company to company by
adjusting for potential impacts of items, which the Company's
management considers to be indicative of its operating performance.
The Company believes that the non-GAAP financial measure provides
useful information to investors and others in understanding and
evaluating the Company's consolidated results of operations in the
same manner as it helps the Company's management.
The non-GAAP financial measure is not defined under U.S. GAAP
and is not presented in accordance with U.S. GAAP. The presentation
of the non-GAAP financial measure may not be comparable to
similarly titled measure presented by other companies. The use of
the non-GAAP measure has limitations as an analytical tool, and
investors should not consider it in isolation from, or as a
substitute for analysis of, our results of operations or financial
condition as reported under U.S. GAAP. For more information on the
non-GAAP financial measure, please see the tables captioned
"Unaudited 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 RMB
to U.S. dollars were made at a rate of RMB6.4566 to US$1.00, the exchange rate in effect as of
June 30, 2021 as set forth in the
H.10 statistical release of the Federal Reserve Board.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. Statements that
are not historical facts, including statements about the Company's
beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties, and a number of factors could cause actual results
to differ materially from those contained in any forward-looking
statement. In some cases, forward-looking statements can be
identified by words or phrases such as "may," "will," "expect,"
"anticipate," "target," "aim," "estimate," "intend," "plan,"
"believe," "potential," "continue," "is/are likely to," or other
similar expressions. Further information regarding these and other
risks, uncertainties or factors is included in the Company's
filings with the SEC. All information provided in this press
release is as of the date of this press release, and the Company
does not undertake any duty to update such information, except as
required under applicable law.
For investor and media inquiries, please contact:
In China:
Zhihu Inc.
Email: ir@zhihu.com
The Piacente Group, Inc.
Helen Wu
Tel: +86-10-6508-0677
Email: zhihu@tpg-ir.com
In the United States:
The Piacente Group, Inc.
Brandi Piacente
Phone: +1-212-481-2050
Email: zhihu@tpg-ir.com
ZHIHU
INC.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(All amounts in
thousands, except share, ADS, per share data and per ADS
data)
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
June
30,
2020
|
|
March
31,
2021
|
|
June
30,
2021
|
|
June
30,
2020
|
|
June
30,
2021
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
167,342
|
|
213,730
|
|
248,272
|
|
38,452
|
|
292,971
|
|
462,002
|
|
71,555
|
Paid
membership
|
69,284
|
|
126,572
|
|
154,872
|
|
23,987
|
|
125,043
|
|
281,444
|
|
43,590
|
Content-commerce
solutions
|
12,731
|
|
120,845
|
|
207,431
|
|
32,127
|
|
13,798
|
|
328,276
|
|
50,843
|
Others
|
12,031
|
|
17,139
|
|
27,777
|
|
4,302
|
|
17,737
|
|
44,916
|
|
6,957
|
Total
revenues
|
261,388
|
|
478,286
|
|
638,352
|
|
98,868
|
|
449,549
|
|
1,116,638
|
|
172,945
|
Cost of
revenues
|
(134,994)
|
|
(205,616)
|
|
(261,798)
|
|
(40,547)
|
|
(244,905)
|
|
(467,414)
|
|
(72,393)
|
Gross
profit
|
126,394
|
|
272,670
|
|
376,554
|
|
58,321
|
|
204,644
|
|
649,224
|
|
100,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
(146,746)
|
|
(346,633)
|
|
(443,229)
|
|
(68,647)
|
|
(272,169)
|
|
(789,862)
|
|
(122,334)
|
Research and
development expenses
|
(83,553)
|
|
(106,302)
|
|
(120,620)
|
|
(18,682)
|
|
(170,171)
|
|
(226,922)
|
|
(35,146)
|
General and
administrative expenses
|
(53,746)
|
|
(162,196)
|
|
(163,243)
|
|
(25,283)
|
|
(130,880)
|
|
(325,439)
|
|
(50,404)
|
Total operating
expenses
|
(284,045)
|
|
(615,131)
|
|
(727,092)
|
|
(112,612)
|
|
(573,220)
|
|
(1,342,223)
|
|
(207,884)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(157,651)
|
|
(342,461)
|
|
(350,538)
|
|
(54,291)
|
|
(368,576)
|
|
(692,999)
|
|
(107,332)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income/(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
income
|
13,817
|
|
9,662
|
|
11,791
|
|
1,826
|
|
29,199
|
|
21,453
|
|
3,323
|
Interest
income
|
7,410
|
|
3,327
|
|
8,251
|
|
1,278
|
|
17,280
|
|
11,578
|
|
1,793
|
Fair value change of
financial
instrument
|
19,619
|
|
-
|
|
10,610
|
|
1,643
|
|
19,238
|
|
10,610
|
|
1,643
|
Exchange
(losses)/gains
|
(689)
|
|
(693)
|
|
5,458
|
|
845
|
|
(15,970)
|
|
4,765
|
|
738
|
Others,
net
|
930
|
|
6,009
|
|
(5,076)
|
|
(786)
|
|
1,631
|
|
933
|
|
145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
tax
|
(116,564)
|
|
(324,156)
|
|
(319,504)
|
|
(49,485)
|
|
(317,198)
|
|
(643,660)
|
|
(99,690)
|
Income tax
benefit/(expense)
|
449
|
|
(537)
|
|
(1,580)
|
|
(245)
|
|
(254)
|
|
(2,117)
|
|
(328)
|
Net
loss
|
(116,115)
|
|
(324,693)
|
|
(321,084)
|
|
(49,730)
|
|
(317,452)
|
|
(645,777)
|
|
(100,018)
|
Accretions of
convertible
redeemable preferred shares to
redemption value
|
(172,534)
|
|
(170,585)
|
|
-
|
|
-
|
|
(338,045)
|
|
(170,585)
|
|
(26,420)
|
Net loss
attributable to Zhihu
Inc.'s shareholders
|
(288,649)
|
|
(495,278)
|
|
(321,084)
|
|
(49,730)
|
|
(655,497)
|
|
(816,362)
|
|
(126,438)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
(4.45)
|
|
(6.93)
|
|
(1.09)
|
|
(0.17)
|
|
(10.17)
|
|
(4.45)
|
|
(0.69)
|
Diluted
|
(4.45)
|
|
(6.93)
|
|
(1.09)
|
|
(0.17)
|
|
(10.17)
|
|
(4.45)
|
|
(0.69)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per ADS
(Two ADSs
represent one Class A
ordinary share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
(2.22)
|
|
(3.46)
|
|
(0.55)
|
|
(0.08)
|
|
(5.09)
|
|
(2.22)
|
|
(0.34)
|
Diluted
|
(2.22)
|
|
(3.46)
|
|
(0.55)
|
|
(0.08)
|
|
(5.09)
|
|
(2.22)
|
|
(0.34)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of
ordinary shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
64,894,737
|
|
71,493,738
|
|
293,735,095
|
|
293,735,095
|
|
64,439,452
|
|
183,518,197
|
|
183,518,197
|
Diluted
|
64,894,737
|
|
71,493,738
|
|
293,735,095
|
|
293,735,095
|
|
64,439,452
|
|
183,518,197
|
|
183,518,197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ZHIHU
INC.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(CONTINUED)
|
(All amounts in
thousands, except share, ADS, per share data and per ADS
data)
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
June
30,
2020
|
|
March
31,
2021
|
|
June
30,
2021
|
|
June
30,
2020
|
|
June
30,
2021
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Share-based
compensation
expenses included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
2,239
|
|
2,232
|
|
2,349
|
|
364
|
|
4,420
|
|
4,581
|
|
709
|
Selling and
marketing
expenses
|
5,094
|
|
4,803
|
|
4,614
|
|
715
|
|
10,746
|
|
9,417
|
|
1,459
|
Research and
development
expenses
|
5,814
|
|
7,608
|
|
2,709
|
|
419
|
|
13,263
|
|
10,317
|
|
1,598
|
General and
administrative
expenses
|
32,720
|
|
116,484
|
|
111,073
|
|
17,203
|
|
57,025
|
|
227,557
|
|
35,244
|
ZHIHU
INC.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(All amounts in
thousands, except share, ADS, per share data and per ADS
data)
|
|
|
As of December
31,
2020
|
|
As of June
30,
2021
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
957,820
|
|
884,544
|
|
136,998
|
Term
deposits
|
1,092,921
|
|
3,546,595
|
|
549,298
|
Short-term
investments
|
1,046,000
|
|
1,314,536
|
|
203,596
|
Restricted
cash
|
-
|
|
1,214,499
|
|
188,102
|
Trade
receivables
|
486,046
|
|
567,542
|
|
87,901
|
Amounts due from
related parties
|
13,843
|
|
35,393
|
|
5,482
|
Prepayments and other
current assets
|
123,536
|
|
151,182
|
|
23,415
|
Total current
assets
|
3,720,166
|
|
7,714,291
|
|
1,194,792
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
8,105
|
|
7,329
|
|
1,135
|
Intangible assets,
net
|
23,478
|
|
17,833
|
|
2,762
|
Long-term
investments
|
-
|
|
19,380
|
|
3,002
|
Term
deposits
|
-
|
|
742,911
|
|
115,062
|
Right-of-use assets
|
3,241
|
|
83,145
|
|
12,877
|
Other non-current
assets
|
6,451
|
|
5,679
|
|
880
|
Total non-current
assets
|
41,275
|
|
876,277
|
|
135,718
|
Total
assets
|
3,761,441
|
|
8,590,568
|
|
1,330,510
|
LIABILITIES,
MEZZANINE EQUITY AND
SHAREHOLDERS' (DEFICIT)/EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payables and
accrued liabilities
|
501,848
|
|
754,420
|
|
116,845
|
Salary and welfare
payables
|
231,847
|
|
248,614
|
|
38,505
|
Taxes
payables
|
7,066
|
|
29,529
|
|
4,573
|
Contract
liabilities
|
159,995
|
|
201,652
|
|
31,232
|
Amounts due to related
parties
|
45,983
|
|
54,324
|
|
8,414
|
Short term lease
liabilities
|
2,893
|
|
24,357
|
|
3,772
|
Other current
liabilities
|
64,936
|
|
110,334
|
|
17,089
|
Total current
liabilities
|
1,014,568
|
|
1,423,230
|
|
220,430
|
Non-current
liabilities
|
|
|
|
|
|
Long term lease
liabilities
|
-
|
|
52,675
|
|
8,159
|
Total non-current
liabilities
|
-
|
|
52,675
|
|
8,159
|
Total
liabilities
|
1,014,568
|
|
1,475,905
|
|
228,589
|
|
|
|
|
|
|
Total mezzanine
equity
|
7,891,348
|
|
-
|
|
-
|
|
|
|
|
|
|
Total
shareholders' (deficit)/equity
|
(5,144,475)
|
|
7,114,663
|
|
1,101,921
|
|
|
|
|
|
|
Total liabilities,
mezzanine equity and shareholders'
(deficit)/equity
|
3,761,441
|
|
8,590,568
|
|
1,330,510
|
ZHIHU
INC.
|
UNAUDITED
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
|
(All amounts in
thousands, except share, ADS, per share data and per ADS
data)
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
June
30,
2020
|
|
March
31,
2021
|
|
June
30,
2021
|
|
June
30,
2020
|
|
June
30,
2021
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
(116,115)
|
|
(324,693)
|
|
(321,084)
|
|
(49,730)
|
|
(317,452)
|
|
(645,777)
|
|
(100,018)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
expenses
|
45,867
|
|
131,127
|
|
120,745
|
|
18,701
|
|
85,454
|
|
251,872
|
|
39,010
|
Adjusted net
loss
|
(70,248)
|
|
(193,566)
|
|
(200,339)
|
|
(31,029)
|
|
(231,998)
|
|
(393,905)
|
|
(61,008)
|
View original
content:https://www.prnewswire.com/news-releases/zhihu-inc-reports-second-quarter-2021-unaudited-financial-results-301355650.html
SOURCE Zhihu Inc.