Summary by Moomoo AI
Zhihu Inc., a leading online content community in China, reported a 16.5% increase in revenue from RMB 3.6 billion in 2022 to RMB 4.2 billion (US$591.4 million) in 2023. The growth was driven by a 48.4% rise in paid membership revenue and a 127.8% surge in vocational training revenue, offsetting a 15.5% decline in marketing services revenue. The company's average monthly subscribing members grew significantly from 9.8 million in 2022 to 14.5 million in 2023. Gross profit increased by 27% to RMB 2.3 billion (US$323.4 million), with a gross profit margin improvement from 50.2% to 54.7%. Operating expenses saw a slight decrease of 1.3%, with a notable 32.7% reduction in general and administrative expenses. Net loss decreased by 46.8% to RMB 839.5 million (US$118.2 million). Cash used in operating activities was RMB 415.5 million (US$58.5 million), while cash used in investing activities was RMB 1.7 billion (US$236.8 million), primarily for short-term investments and term deposits. Financing activities used RMB 365.1 million (US$51.4 million) mainly for share repurchase. As of December 31, 2023, Zhihu held cash and cash equivalents, term deposits, and short-term investments totaling RMB 5.5 billion (US$769.4 million).