Zhihu Inc. (NYSE:ZH) shares are trading higher on Tuesday in the premarket session.
The company reported fourth-quarter sales of $160.3 million, up 2.2% year over year.
Average monthly active users reached 99 million in the fourth quarter of 2023. The average number of monthly subscribing members reached 14.2 million in the fourth quarter of 2023, representing a 9.2% increase from the same period of 2022.
Gross profit increased by 7.1% to $94.8 million in the same period of 2022. Gross margin expanded to 59.1% from 56.4% in the same period of 2022, primarily attributable to the company's enhanced monetization efforts and the improvement of cloud services and bandwidth utilization efficiency.
Zhihu reported a quarterly adjusted loss per ADS of $(0.02). As of December 31, 2023, the company had cash and equivalents, term deposits, and short-term investments of $769.4 million.
As of December 31, 2023, about 26.3 million Class A ordinary shares had been repurchased for a total price of $58.5 million on both the New York Stock Exchange and The Stock Exchange of Hong Kong.
"Through prudent cost control and operating leverage, we were pleased to conclude the year with a further enhanced gross margin and significantly narrowed bottom-line loss," said Han Wang, chief financial officer of Zhihu.
According to Benzinga Pro, ZH stock has lost over 38% in the past year. Investors can gain exposure to the stock via Matthews Emerging Markets Discovery Active ETF (NASDAQ:MEMS).
Price Action: ZH shares are trading higher by 3.79% to $0.74 in the premarket session on Tuesday.
Photo: Lukas from Pixabay.