Press Release: 36Kr Holdings Inc. Reports Third Quarter of 2019 Unaudited Financial Results

36Kr Holdings Inc. Reports Third Quarter of 2019 Unaudited Financial Results

BEIJING, Dec. 10, 2019 (GLOBE NEWSWIRE) -- 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 third quarter ended September 30, 2019.

Third Quarter 2019 Operational and Financial Highlights

-- Average monthly page views ("PV") for the twelve-month period ended
September 30, 2019 was 389.5 million, compared to 145.6 million for the
twelve-month period ended September 30, 2018.

-- Total revenues increased by 59.1% to RMB130.9 million (US$18.3 million)
in the third quarter of 2019, from RMB82.3 million in the same period of
2018.

-- Online advertising services revenues increased by 4.6% to RMB54.1 million
(US$7.6 million) in the third quarter of 2019, from RMB51.7 million in
the same period of 2018.

-- Enterprise value-added services revenues increased by 202.8% to
RMB64.0 million (US$9.0 million) in the third quarter of 2019, from
RMB21.1 million in the same period of 2018.

-- Subscription services revenues increased by 36.2% to RMB12.9 million
(US$1.8 million) in the third quarter of 2019, from RMB9.4 million in the
same period of 2018.

-- Gross profit increased by 23.3% to RMB55.1 million (US$7.7 million) in
the third quarter of 2019, from RMB44.7 million in the same period of
2018.

-- Net loss was RMB12.4 million (US$1.7 million) in the third quarter of
2019, compared to net income of RMB9.8 million in the same period of
2018. Non-GAAP adjusted net income1 increased by 22.0% to RMB13.4 million
(US$1.9 million) in the third quarter of 2019, from RMB11.0 million in
the same period of 2018.

First Nine Months 2019 Operational and Financial Highlights

-- Total revenues increased by 115.1% to RMB332.8 million (US$46.6 million)
in the first nine months of 2019, from RMB154.7 million in the same
period of 2018.

-- Online advertising services revenues increased by 30.1% to
RMB133.6 million (US$18.7 million) in the first nine months of 2019, from
RMB102.7 million in the same period of 2018.

-- Enterprise value-added services revenues increased by 337.4% to
RMB165.0 million (US$23.1 million) in the first nine months of 2019, from
RMB37.7 million in the same period of 2018.

-- Subscription services revenues increased by 139.0% to RMB34.2 million
(US$4.8 million) in the first nine months of 2019, from RMB14.3 million
in the same period of 2018.

-- Gross profit increased by 72.1% to RMB118.8 million (US$16.6 million) in
the first nine months of 2019, from RMB69.1 million in the same period of
2018.

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(1) Non-GAAP adjusted net income represents net income excluding share-based compensation.

Selected Operating Data

For the Nine Months Ended September 30,
2018 2019
Online advertising services
Number of online advertising
services end customers 224 329
Average revenue per online
advertising services end
customer (RMB'000)(2) 458.3 406.0

Enterprise value-added
services
Number of enterprise
value-added services end
customers 119 241
Average revenue per enterprise
value-added services end
customer (RMB'000)(3) 317.1 684.8

Subscription services
Number of individual
subscribers 39,657 14,052
Average revenue per individual
subscriber (RMB)(4) 152.3 1,377.1

Number of institutional
investor subscribers 103 127
Average revenue per
institutional investor
subscriber (RMB'000)(5) 80.3 101.3

Number of enterprise
subscribers - 262
Average revenue per enterprise
subscriber (RMB'000)(6) - 7.5

______________________

(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 investor subscribers in the same period.

(6) Equals revenues generated from enterprise subscription services for a period divided by the number of enterprise subscribers in the same period.

Mr. Dagang Feng, co-chairman and chief executive officer of 36Kr, commented, "We delivered solid performance in the third quarter of 2019. Our average monthly PV for the twelve-month period ended September 30, 2019 was 389.5 million, representing a rapid year-over-year increase of 167.5%. This impressive PV growth was driven by our attractive and extensive New Economy-focused content distributed through a variety of channels, and reflected our expanding user base and ever-growing influence in the New Economy community.

"Along with significant traffic growth, our value proposition is resonating with customers as we achieved total revenues of RMB130.9 million for the third quarter of 2019, up 59.1% as compared to the same period in 2018. Of special note, our revenue from enterprise value-added services and subscription services grew 202.8% and 36.2%, respectively, as compared to the same period in 2018. The rapid growth of these two business segments and their greater contribution to our topline demonstrate the successful execution of our strategy to evolve ourselves into a service-focused enabler for New Economy participants. Going forward, we will remain focused on solidifying our advantages in high-quality content creation and distribution both domestically and globally, while proactively expanding our service offerings to strengthen our monetization capabilities. We believe, with the strong growth of the New Economy, there is great market potential for our comprehensive services to our customers and vibrant community. We are dedicated to being their partner of choice and empowering them to achieve more business success," Mr. Feng concluded.

Ms. Jihong Liang, director and chief financial officer of 36Kr, stated, "In the third quarter of 2019, we achieved robust topline results underpinned by our strong growth of enterprise value-added services as we provided tailored and diverse services to our customers. We are also pleased to yield positive Non-GAAP EBITDA and Non-GAAP net income for the quarter, showcasing our improving profitability coupled with encouraging business growth. To better position ourselves in driving key growth initiatives in the coming quarters, we made an upfront investment in additional headcount during the third quarter. As such, we expect headcount to remain stable for the remainder of 2019. Although the investment in headcount resulted in a relatively higher level of expenses, we believe it is necessary for us to be well prepared for grasping the market opportunities in the peak season ahead. Together with our unwavering efforts in technology enhancement, we are ready to embrace the growth of the New Economy with our customers."

Third Quarter 2019 Financial Results

Total revenues were RMB130.9 million (US$18.3 million) in the third quarter of 2019, compared to RMB82.3 million in the same period of 2018.

-- Online advertising services revenues increased by 4.6% to RMB54.1 million
(US$7.6 million) in the third quarter of 2019, from RMB51.7 million in
the same period of 2018. The increase was mainly attributable to an
increased number of end customers.

-- Enterprise value-added services revenues increased by 202.8% to
RMB64.0 million (US$9.0 million) in the third quarter of 2019, from
RMB21.1 million in the same period of 2018. The increase was primarily
attributable to the increase of integrated marketing service revenues and
business consulting services revenues.

-- Subscription services revenues increased by 36.2% to RMB12.9 million
(US$1.8 million) in the third quarter of 2019, from RMB9.4 million in the
same period of 2018. This increase was primarily attributable to the
increase of individual subscription services revenues in the third
quarter of 2019.

Cost of revenues increased by 101.7% to RMB75.8 million (US$10.6 million) in the third quarter of 2019, from RMB37.6 million in the same period of 2018. This increase was generally in line with the growth of the Company's business. Site fee and execution fee of enterprise value-added services and offline training were the main contributors to the increase in cost of revenues.

Gross profit increased by 23.3% to RMB55.1 million (US$7.7 million) from RMB44.7 million in the same period of 2018.

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December 10, 2019 06:00 ET (11:00 GMT)