The following is a summary of the Zhihu Inc. (ZH) Q2 2024 Earnings Conference Call Transcript:
Financial Performance:
Zhihu Inc. reported a significant improvement in financial efficiency this quarter with a gross margin increase to 59.6%, up 5.8 percentage points year-over-year.
Adjusted net loss narrowed by 79.9% year-over-year to RMB 44.6 million.
Marketing services revenue decreased by 16.7% year-over-year, whereas brand and performance-based advertising grew by 17% and 28.4%, respectively.
Paid membership revenue increased slightly, contributing 46% to total revenue, while vocational training revenue slightly decreased due to strategic adjustments.
Business Progress:
Zhihu launched AI-powered products and services, including Zhihu Zhida, an AI search platform, which has shown promising user engagement.
Content creation within the Zhihu community has grown, with a 16.8% year-over-year increase in content pieces and a 12.5% increase in content creators.
Zhihu's user engagement metrics, such as daily active user timestamps and core user retention rates, have improved, reflecting positive trends.
Growth initiatives in vocational training and paid membership segments continue to expand, leveraging AI and optimizing operational efficiency.
Opportunities:
Zhihu Zhida offers new opportunities for market reputation enhancement and user engagement growth.
The company's AI and LLM capabilities are set to improve both user experience and operational efficiency, presenting commercial potential in high-value user base.
Strategic moves in vocational training and premium content offer substantial growth channels and diversification.
Risks:
Market fluctuations impact revenue streams, particularly as seen in the performance variability across different advertising and vocational training segments.
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