36Kr Holdings Inc. Reports Second Quarter 2021 Unaudited Financial Results
Second Quarter 2021 Operational and Financial Highlights
- Average monthly page views ("PV") for the twelve-month period ended
June 30, 2021 increased by 69.5% to 846.3 million, from 499.2 million for the twelve-month period endedJune 30, 2020 . - Total revenues were
RMB72.1 million (US$11.2 million ) in the second quarter of 2021, compared toRMB76.7 million in the same period of 2020. - Revenues from online advertising services increased by 65.1% to
RMB51.7 million (US$8.0 million ) in the second quarter of 2021, fromRMB31.3 million in the same period of 2020. - Revenues from enterprise value-added services were
RMB14.3 million (US$2.2 million ) in the second quarter of 2021, compared toRMB42.6 million in the same period of 2020. Gross transaction value[1] increased by 35.9% toRMB57.9 million in the second quarter of 2021, fromRMB42.6 million in the same period of 2020. - Subscription services revenues increased by 124.1% to
RMB6.0 million (US$0.9 million ) in the second quarter of 2021, fromRMB2.7 million in the same period of 2020. - Gross profit increased by 86.1% to
RMB41.4 million (US$6.4 million ) in the second quarter of 2021, fromRMB22.2 million in the same period of 2020. Gross profit margin was 57.4% in the second quarter of 2021, compared to 29.0% in the same period of 2020. - Net loss attributable to
36Kr Holdings Inc.'s ordinary shareholders wasRMB34.1 million (US$5.3 million ) in the second quarter of 2021, compared toRMB79.5 million in the same period of 2020.
[1] Starting from |
Selected Operating Data
For the Three Months Ended |
||||
2020 |
2021 |
|||
Online advertising services |
||||
Number of online advertising services end customers |
161 |
188 |
||
Average revenue per online advertising services end |
194.7 |
275.2 |
||
Enterprise value-added services |
||||
Number of enterprise value-added services end customers |
80 |
50 |
||
Average revenue per enterprise value-added services end |
533.0 |
286.1 |
||
Subscription services |
||||
Number of individual subscribers |
982 |
581 |
||
Average revenue per individual subscriber (RMB)[4] |
521.0 |
1,420.0 |
||
Number of institutional investors |
33 |
87 |
||
Average revenue per institutional investor (RMB'000)[5] |
62.7 |
59.7 |
||
[2] Equals revenues generated from online advertising services for a period divided by the number |
||||
[3] Equals revenues generated from enterprise value-added services for a period divided by the |
||||
[4] Equals revenues generated from individual subscription services for a period divided by the |
||||
[5] Equals revenues generated from institutional investor subscription services for a period |
Mr.
Mr.
Second Quarter 2021 Financial Results
Total revenues were
- Online advertising services revenues increased by 65.1% to
RMB51.7 million (US$8.0 million ) in the second quarter of 2021, fromRMB31.3 million in the same period of 2020. The increase was primarily attributable to the strong recovery of market demand as well as more innovative marketing solutions we provided to our customers. The number of advertising customers and the average revenue per advertising customer both achieved strong growth in the second quarter of 2021. - Enterprise value-added services revenues were
RMB14.3 million (US$2.2 million ) in the second quarter of 2021, compared toRMB42.6 million in the same period of 2020. The decrease was primarily because we continuously shifted our focus towards higher margin businesses and starting from the first quarter of 2021, we ceased to act as a principal in certain low gross margin businesses and only acted as an agent. As a result, revenues of such businesses were recognized on a net basis from the first quarter of 2021 onward. To increase comparability of operating results and help investors better understand our business performance and operating trends, we introduced the gross transaction value as a supplemental metric to describe our business. Gross transaction value of enterprise value-added services wasRMB57.9 million in the second quarter of 2021, compared toRMB42.6 million in the same period of 2020. - Subscription services revenues increased by 124.1% to
RMB6.0 million (US$0.9 million ) in the second quarter of 2021, fromRMB2.7 million in the same period of 2020. The increase was primarily attributable to high-quality subscription products we offered to our institutional and individual subscribers.
Cost of revenues was
Gross profit increased by 86.1% to
Operating expenses were
- Sales and marketing expenses were
RMB33.4 million (US$5.2 million ) in the second quarter of 2021, compared toRMB39.0 million in the same period of 2020. The decrease was primarily attributable to the decrease in marketing expenses and share-based compensation expenses. - General and administrative expenses were
RMB29.9 million (US$4.6 million ) in the second quarter of 2021, compared toRMB50.9 million in the same period of 2020. The decrease was primarily attributable to the decrease in the allowance for credit losses and share-based compensation expenses. - Research and development expenses were
RMB12.0 million (US$1.9 million ) in the second quarter of 2021, compared toRMB9.6 million in the same period of 2020. The increase was primarily attributable to the increase in payroll-related expenses as we beefed up our research and development capabilities.
Share-based compensation expenses recognized in cost of revenues, sales and marketing expenses, research and development expenses, as well as general and administrative expenses totaled
Other expenses were
Income tax expense was
Net loss was
Net loss attributable to
Basic and diluted net loss per share were both
[6] Non-GAAP adjusted loss represents net loss excluding share-based compensation expenses. |
Certain Balance Sheet Items
As of
Share Repurchase Program
On
Conference Call
The Company's management will host an earnings conference call at
Event Title: |
|
Conference ID: |
5438658 |
Registration Link: |
All participants must use the link provided above to complete the online registration process at least 20 minutes in advance of the conference call. Upon registering, each participant will receive a participant dial-in number, Direct Event passcode, and unique registrant ID, which will be used to join the conference call.
Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.36kr.com.
A replay of the conference call will be accessible approximately two hours after the conclusion of the live call until
|
+1-855-452-5696 |
International: |
+61-2-8199-0299 |
|
800-963-117 |
Mainland |
400-632-2162 |
Replay Access Code: |
5438658 |
About
Use of Non-GAAP Financial Measures
In evaluating its business, the Company considers and uses two non-GAAP measures, adjusted net income/(loss) and adjusted EBITDA, as supplemental measures to review and assess its operating performance. The presentation of these two non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with
These non-GAAP financial measures are not defined under
The Company compensates for these limitations by reconciling these non-GAAP financial measures to the nearest
Adjusted net loss represents net loss excluding share-based compensation expenses.
Adjusted EBITDA represents adjusted net income/(loss) before interest income, interest expenses, income tax expense/(credit), depreciation of property and equipment and amortization of intangible assets.
For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and non-GAAP results" set forth at the end of this press release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
For investor and media inquiries, please contact:
In
Investor Relations
Tel: +86 (10) 5825-4188
E-mail: ir@36kr.com
Tel: +86 (10) 6508-0677
E-mail: 36Kr@tpg-ir.com
In
Tel: +1-212-481-2050
E-mail: 36Kr@tpg-ir.com
|
|||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
|
|
|
|||
RMB'000 |
RMB'000 |
US$'000 |
|||
Assets |
|||||
Current assets: |
|||||
Cash and cash equivalents |
60,846 |
90,180 |
13,967 |
||
Short–term investments |
148,344 |
59,391 |
9,198 |
||
Accounts receivable, net |
304,845 |
225,335 |
34,900 |
||
Receivables due from related parties |
98 |
1,643 |
254 |
||
Prepayments and other current assets |
16,319 |
37,077 |
5,742 |
||
Total current assets |
530,452 |
413,626 |
64,061 |
||
Non–current assets: |
|||||
Property and equipment, net |
3,941 |
3,627 |
562 |
||
Intangible assets, net |
471 |
692 |
107 |
||
Long-term investments |
16,300 |
43,143 |
6,682 |
||
Operating lease right-of-use assets, net |
27,365 |
19,801 |
3,067 |
||
Total non–current assets |
48,077 |
67,263 |
10,418 |
||
Total assets |
578,529 |
480,889 |
74,479 |
||
Liabilities |
|||||
Current liabilities: |
|||||
Accounts payable |
64,641 |
46,569 |
7,213 |
||
Salary and welfare payables |
45,580 |
39,345 |
6,094 |
||
Taxes payable |
18,824 |
9,547 |
1,479 |
||
Deferred revenue |
18,849 |
34,885 |
5,403 |
||
Amounts due to related parties |
548 |
1,318 |
204 |
||
Accrued liabilities and other payables |
13,560 |
14,721 |
2,279 |
||
Operating lease liabilities |
15,132 |
13,874 |
2,149 |
||
Total current liabilities |
177,134 |
160,259 |
24,821 |
||
Non-current liabilities: |
|||||
Operating lease liabilities |
12,426 |
5,991 |
928 |
||
Total non-current liabilities |
12,426 |
5,991 |
928 |
||
Total liabilities |
189,560 |
166,250 |
25,749 |
||
Shareholders' equity |
|||||
Ordinary shares |
687 |
694 |
107 |
||
|
(14,081) |
(19,861) |
(3,076) |
||
Additional paid-in capital |
2,040,693 |
2,046,692 |
316,992 |
||
Accumulated deficit |
(1,638,581) |
(1,712,181) |
(265,183) |
||
Accumulated other comprehensive loss |
(7,897) |
(8,443) |
(1,308) |
||
Total |
380,821 |
306,901 |
47,532 |
||
Non-controlling interests |
8,148 |
7,738 |
1,198 |
||
Total shareholders' equity |
388,969 |
314,639 |
48,730 |
||
Total liabilities and shareholders' equity |
578,529 |
480,889 |
74,479 |
|
|||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS |
|||||||||||
Three Months Ended |
Six Months Ended |
||||||||||
|
|
|
|
|
|
||||||
2020 |
2021 |
2021 |
2020 |
2021 |
2021 |
||||||
RMB'000 |
RMB'000 |
US$'000 |
RMB'000 |
RMB'000 |
US$'000 |
||||||
Revenues: |
|||||||||||
Online advertising services |
31,340 |
51,742 |
8,014 |
52,382 |
84,972 |
13,160 |
|||||
Enterprise value-added services |
42,637 |
14,304 |
2,215 |
85,446 |
21,200 |
3,283 |
|||||
Subscription services |
2,686 |
6,019 |
932 |
4,033 |
9,434 |
1,461 |
|||||
Total revenues |
76,663 |
72,065 |
11,161 |
141,861 |
115,606 |
17,904 |
|||||
Cost of revenues |
(54,423) |
(30,683) |
(4,752) |
(114,172) |
(50,848) |
(7,875) |
|||||
Gross profit |
22,240 |
41,382 |
6,409 |
27,689 |
64,758 |
10,029 |
|||||
Operating expenses: |
|||||||||||
Sales and marketing expenses |
(38,989) |
(33,431) |
(5,178) |
(73,929) |
(69,131) |
(10,707) |
|||||
General and administrative expenses |
(50,870) |
(29,914) |
(4,633) |
(110,194) |
(50,073) |
(7,755) |
|||||
Research and development expenses |
(9,572) |
(11,969) |
(1,854) |
(18,120) |
(20,943) |
(3,244) |
|||||
Total operating expenses |
(99,431) |
(75,314) |
(11,665) |
(202,243) |
(140,147) |
(21,706) |
|||||
Loss from operations |
(77,191) |
(33,932) |
(5,256) |
(174,554) |
(75,389) |
(11,677) |
|||||
Other income/(expenses): |
|||||||||||
Share of loss from equity method investments |
(2,708) |
(1,943) |
(301) |
(5,707) |
(3,924) |
(608) |
|||||
Short-term investment income |
341 |
411 |
64 |
486 |
1,391 |
215 |
|||||
Government grant |
90 |
389 |
60 |
3,092 |
2,175 |
337 |
|||||
Others, net |
228 |
772 |
120 |
1,433 |
982 |
152 |
|||||
Loss before income tax |
(79,240) |
(34,303) |
(5,313) |
(175,250) |
(74,765) |
(11,581) |
|||||
Income tax (expenses)/credit |
(85) |
(1) |
- |
5 |
5 |
1 |
|||||
Net loss |
(79,325) |
(34,304) |
(5,313) |
(175,245) |
(74,760) |
(11,580) |
|||||
Net loss/(income) attributable to non-controlling interests |
(155) |
233 |
36 |
390 |
1,160 |
180 |
|||||
Net loss attributable to |
(79,480) |
(34,071) |
(5,277) |
(174,855) |
(73,600) |
(11,400) |
|||||
Net loss |
(79,325) |
(34,304) |
(5,313) |
(175,245) |
(74,760) |
(11,580) |
|||||
Other comprehensive (loss) /income |
|||||||||||
Foreign currency translation adjustments |
313 |
(884) |
(137) |
2,145 |
(546) |
(85) |
|||||
Total other comprehensive (loss) /income |
313 |
(884) |
(137) |
2,145 |
(546) |
(85) |
|||||
Total comprehensive loss |
(79,012) |
(35,188) |
(5,450) |
(173,100) |
(75,306) |
(11,665) |
|||||
Net loss/(income) attributable to non-controlling interests |
(155) |
233 |
36 |
390 |
1,160 |
180 |
|||||
Comprehensive loss attributable to |
(79,167) |
(34,955) |
(5,414) |
(172,710) |
(74,146) |
(11,485) |
|||||
Net loss per ordinary share (RMB) |
|||||||||||
Basic |
(0.078) |
(0.033) |
(0.005) |
(0.171) |
(0.072) |
(0.011) |
|||||
Diluted |
(0.078) |
(0.033) |
(0.005) |
(0.171) |
(0.072) |
(0.011) |
|||||
Net loss per ADS (RMB) |
|||||||||||
Basic |
(1.946) |
(0.834) |
(0.129) |
(4.280) |
(1.794) |
(0.278) |
|||||
Diluted |
(1.946) |
(0.834) |
(0.129) |
(4.280) |
(1.794) |
(0.278) |
|||||
Weighted average number of ordinary shares used in |
|||||||||||
Basic |
1,021,075,312 |
1,024,200,699 |
1,024,200,699 |
1,021,369,649 |
1,026,791,094 |
1,026,791,094 |
|||||
Diluted |
1,021,075,312 |
1,024,200,699 |
1,024,200,699 |
1,021,369,649 |
1,026,791,094 |
1,026,791,094 |
|||||
Weighted average number of ADS used in per ADS |
|||||||||||
Basic |
40,843,012 |
40,968,028 |
40,968,028 |
40,854,786 |
41,071,644 |
41,071,644 |
|||||
Diluted |
40,843,012 |
40,968,028 |
40,968,028 |
40,854,786 |
41,071,644 |
41,071,644 |
|
||||||||||||
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS |
||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||
2020 |
2021 |
2021 |
2020 |
2021 |
2021 |
|||||||
RMB'000 |
RMB'000 |
US$'000 |
RMB'000 |
RMB'000 |
US$'000 |
|||||||
Net loss |
(79,325) |
(34,304) |
(5,313) |
(175,245) |
(74,760) |
(11,580) |
||||||
Share-based compensation expenses |
12,588 |
3,332 |
516 |
25,597 |
5,999 |
929 |
||||||
Non-GAAP adjusted net loss |
(66,737) |
(30,972) |
(4,797) |
(149,648) |
(68,761) |
(10,651) |
||||||
Interest income, net |
(223) |
(236) |
(37) |
(782) |
(341) |
(53) |
||||||
Income tax expenses/(credit) |
85 |
1 |
- |
(5) |
(5) |
(1) |
||||||
Depreciation and amortization expenses |
1,334 |
652 |
101 |
2,564 |
1,306 |
202 |
||||||
Non-GAAP adjusted EBITDA |
(65,541) |
(30,555) |
(4,733) |
(147,871) |
(67,801) |
(10,503) |
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