- Zhihu Inc (NYSE:ZH) reported fourth-quarter FY21 revenue growth of 96.1% year-on-year to $159.9 million.
- Segments: Zhihu's Advertising revenue increased 18.4% Y/Y to $59.3 million.
- Paid membership revenue expanded 100% Y/Y to $32.8 million. Content-commerce solutions revenue rose 380.1% Y/Y to $57.6 million.
- Drivers: Average monthly active users (MAUs) grew 36.4% Y/Y to 103.3 million. Average monthly paying members rose 102% Y/Y to 6.1 million.
- Margin: The gross margin contracted by 1,700 bps to 47.1% as the costs surged 188.9% Y/Y.
- Loss per ADS of $(0.10) missed the consensus loss of $(0.08).
- Zhihu held $1.2 billion in cash and equivalents.
- Wei Sun, CFO, added, "During the fourth quarter of 2021, our content-commerce solutions and paid membership businesses continued to grow rapidly, expanding 380.2% and 100.0%, respectively, in terms of revenue on a year-over-year basis, and collectively contributed 56.5% of our total revenue in the quarter. At the same time, despite headwinds faced by the general advertising sector, our advertising business grew by 18.4% during the quarter on a year-over-year basis."
- Outlook: Zhihu sees Q1 FY22 total revenues of RMB720 million - RMB740 million.
- Price Action: ZH shares traded lower by 11.8% at $1.86 in the premarket session on the last check Monday.
Get all your news in one place.
100’s of premium titles.
One app.
Start reading
One app.
Get all your news in one place.
100’s of premium titles. One news app.
Zhihu Clocks 96% Revenue Growth In Q4 Backed By Content-Commerce Solutions, Paid Membership Businesses
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member?
Sign in here
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member?
Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member?
Sign in here
Our Picks