According to the unaudited financial performance of the quarter ending on March 31, 2024, Zhihu-W (02390) achieved a total revenue of 961 million yuan (RMB); gross margin increased from 51.5% in the same period in 2023 to 56.6%; average monthly active users (MAUs) reached 89 million; and average monthly subscribed members reached 14.8 million.
Zhihu Chairman and CEO Zhou Yuan said, "As we enter 2024, we are pleased to report solid financial performance and operational results. Through improving operating efficiency and accelerating loss reduction, we have made substantial progress in achieving our goal of breakeven. In addition, our efforts to enhance the trustworthiness of the Zhihu community continue to drive its prosperity, resulting in significant increases in the activity, retention, and visit duration of core users. We believe that the potential of our artificial intelligence search function and the constantly emerging value of our trustworthy community will provide new impetus for sustainable growth and provide a clear path for quarterly profitability after this year."
Zhihu CFO Wang Han added, "This quarter, we optimized our cost structure and improved our commercial efficiency. Our gross margin has increased year-on-year for six consecutive quarters. As for operating expenses, we significantly reduced the cost of acquiring new users related to the community, maintained high investment returns in multiple business lines, and made prudent investments in artificial intelligence. We firmly believe that with continued strong strategic execution, we will steadily progress towards achieving our profitability goal."
As of March 31, 2024, the company has repurchased 31.1 million Class A common shares (including US depositary shares related to Class A common shares) for a total price of $66.5 million on the New York Stock Exchange and the Hong Kong Stock Exchange in accordance with the existing $100 million share repurchase plan established in May 2022 and extended to June 10, 2024. The board of directors has approved an extension of the 2022 repurchase plan to June 26, 2025, subject to approval by shareholders at the company's upcoming annual shareholder meeting on June 26, 2024.
The announcement stated that in addition to extending the 2022 share repurchase plan, the company also proposes a share repurchase plan that will expire on June 26, 2025. The maximum number of shares that can be repurchased under the 2024 repurchase plan, including the remaining shares that can be repurchased under the 2022 repurchase plan (including US deposited shares related to such shares), will not exceed the authorized repurchase amount for 2024, subject to approval by the shareholders in 2024.