36Kr Holdings Inc. Reports Third Quarter 2021 Unaudited Financial Results
Third Quarter 2021 Operational and Financial Highlights
- Average monthly page views ("PV") for the twelve-month period ended
September 30, 2021 increased by 49.9% to 848.7 million, from 566.3 million for the twelve-month period endedSeptember 30, 2020 . - Total revenues were
RMB84.9 million (US$13.2 million ) in the third quarter of 2021, compared toRMB123.5 million in the same period of 2020. - Revenues from online advertising services increased by 4.4% to RMB53.4 million (
US$8.3 million ) in the third quarter of 2021, fromRMB51.1 million in the same period of 2020. - Revenues from enterprise value-added services were
RMB22.5 million (US$3.5 million ) in the third quarter of 2021, compared toRMB66.4 million in the same period of 2020. Gross transaction value[1] wasRMB66.3 million in the third quarter of 2021, compared toRMB66.4 million in the same period of 2020. - Revenues from subscription services increased by 51.6% to
RMB9.0 million (US$1.4 million ) in the third quarter of 2021, fromRMB6.0 million in the same period of 2020. - Gross profit was
RMB47.6 million (US$7.4 million ) in the third quarter of 2021, compared toRMB46.8 million in the same period of 2020. Gross profit margin was 56.1% in the third quarter of 2021, compared to 37.9% in the same period of 2020. - Net loss attributable to
36Kr Holdings Inc.'s ordinary shareholders wasRMB30.5million (US$4.7 million ) in the third quarter of 2021, compared toRMB14.0 million in the same period of 2020. - As of
September 30, 2021 , the Company had cash, cash equivalents and short-term investments ofRMB178.0 million (US$27.6 million ), compared toRMB149.6 million as ofJune 30, 2021 .
[1]Starting from |
Selected Operating Data |
||||
For the Three Months Ended |
||||
2020 |
2021 |
|||
Online advertising services |
||||
Number of online advertising services end customers |
186 |
192 |
||
Average revenue per online advertising services end |
274.7 |
277.9 |
||
Enterprise value-added services |
||||
Number of enterprise value-added services end customers |
80 |
74 |
||
Average revenue per enterprise value-added services end |
830.1 |
304.0 |
||
Subscription services |
||||
Number of individual subscribers |
2,064 |
974 |
||
Average revenue per individual subscriber (RMB)[4] |
619.4 |
1,138.9 |
||
Number of institutional investors |
76 |
87 |
||
Average revenue per institutional investor (RMB'000)[5] |
61.6 |
91.0 |
||
[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. |
Mr.
Ms.
Third Quarter 2021 Financial Results
Total revenues were
- Online advertising services revenues increased by 4.4% to
RMB53.4 million (US$8.3 million ) in the third quarter of 2021, fromRMB51.1 million in the same period of 2020. The increase was primarily attributable to more innovative marketing solutions we provided to our customers. The number of advertising customers and the average revenue per advertising customer both increased in the third quarter of 2021. - Enterprise value-added services revenues were
RMB22.5 million (US$3.5 million ) in the third quarter of 2021, compared toRMB66.4 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 wasRMB66.3 million in the third quarter of 2021, compared toRMB66.4 million in the same period of 2020. - Subscription services revenues were
RMB9.0 million (US$1.4 million ) in the third quarter of 2021, representing an increase of 51.6% compared toRMB6.0 million in the same period of 2020. The increase was primarily attributable to our continuous efforts to offer high-quality subscription products to our subscribers.
Cost of revenues was
Gross profit was
Operating expenses were
- Sales and marketing expenses were
RMB35.5 million (US$5.5 million ) in the third quarter of 2021, compared toRMB31.6 million in the same period of 2020. The increase was primarily attributable to an increase in payroll-related expenses. - General and administrative expenses were
RMB30.9 million (US$4.8 million ) in the third quarter of 2021, compared toRMB20.5 million in the same period of 2020. The increase was primarily attributable to an increase in the allowance for credit losses and payroll-related expenses, partially offset by the decrease in share-based compensation expenses. - Research and development expenses were
RMB13.9 million (US$2.2 million ) in the third quarter of 2021, compared toRMB11.2 million in the same period of 2020. The increase was primarily attributable to the increase in payroll-related expenses as we bolstered 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 income was
Income tax expenses 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: |
7074133 |
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 set of participant dial-in number, Direct Event passcode, and a 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: |
7074133 |
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 |
|||||
|
September 30, |
September 30, |
|||
RMB'000 |
RMB'000 |
US$'000 |
|||
Assets |
|||||
Current assets: |
|||||
Cash and cash equivalents |
60,846 |
83,941 |
13,027 |
||
Short–term investments |
148,344 |
94,037 |
14,594 |
||
Accounts receivable, net |
304,845 |
203,507 |
31,584 |
||
Receivables due from related parties |
98 |
3,622 |
562 |
||
Prepayments and other current assets |
16,319 |
25,938 |
4,026 |
||
Total current assets |
530,452 |
411,045 |
63,793 |
||
Non–current assets: |
|||||
Property and equipment, net |
3,941 |
3,458 |
537 |
||
Intangible assets, net |
471 |
839 |
130 |
||
Long-term investments |
16,300 |
43,059 |
6,683 |
||
Operating lease right-of-use assets, net |
27,365 |
17,642 |
2,738 |
||
Total non–current assets |
48,077 |
64,998 |
10,088 |
||
Total assets |
578,529 |
476,043 |
73,881 |
||
Liabilities |
|||||
Current liabilities: |
|||||
Accounts payable |
64,641 |
48,353 |
7,504 |
||
Salary and welfare payables |
45,580 |
50,196 |
7,790 |
||
Taxes payable |
18,824 |
11,155 |
1,731 |
||
Deferred revenue |
18,849 |
39,084 |
6,066 |
||
Amounts due to related parties |
548 |
1,154 |
179 |
||
Accrued liabilities and other payables |
13,560 |
20,225 |
3,139 |
||
Operating lease liabilities |
15,132 |
13,933 |
2,162 |
||
Total current liabilities |
177,134 |
184,100 |
28,571 |
||
Non-current liabilities: |
|||||
Operating lease liabilities |
12,426 |
3,516 |
546 |
||
Total non-current liabilities |
12,426 |
3,516 |
546 |
||
Total liabilities |
189,560 |
187,616 |
29,117 |
||
Shareholders' equity |
|||||
Ordinary shares |
687 |
694 |
108 |
||
|
(14,081) |
(15,838) |
(2,458) |
||
Additional paid-in capital |
2,040,693 |
2,047,550 |
317,775 |
||
Accumulated deficit |
(1,638,581) |
(1,742,713) |
(270,465) |
||
Accumulated other comprehensive loss |
(7,897) |
(8,268) |
(1,283) |
||
Total |
380,821 |
281,425 |
43,677 |
||
Non-controlling interests |
8,148 |
7,002 |
1,087 |
||
Total shareholders' equity |
388,969 |
288,427 |
44,764 |
||
Total liabilities and shareholders' equity |
578,529 |
476,043 |
73,881 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS |
|||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||
|
|
|
|
|
|
||||||
2020 |
2021 |
2021 |
2020 |
2021 |
2021 |
||||||
RMB'000 |
RMB'000 |
US$'000 |
RMB'000 |
RMB'000 |
US$'000 |
||||||
Revenues: |
|||||||||||
Online advertising services |
51,095 |
53,357 |
8,281 |
103,477 |
138,329 |
21,468 |
|||||
Enterprise value-added services |
66,404 |
22,499 |
3,492 |
151,850 |
43,699 |
6,782 |
|||||
Subscription services |
5,957 |
9,030 |
1,401 |
9,990 |
18,464 |
2,866 |
|||||
Total revenues |
123,456 |
84,886 |
13,174 |
265,317 |
200,492 |
31,116 |
|||||
Cost of revenues |
(76,626) |
(37,261) |
(5,783) |
(190,798) |
(88,109) |
(13,674) |
|||||
Gross profit |
46,830 |
47,625 |
7,391 |
74,519 |
112,383 |
17,442 |
|||||
Operating expenses: |
|||||||||||
Sales and marketing expenses |
(31,611) |
(35,453) |
(5,502) |
(105,540) |
(104,584) |
(16,231) |
|||||
General and administrative expenses |
(20,450) |
(30,941) |
(4,802) |
(130,644) |
(81,014) |
(12,573) |
|||||
Research and development expenses |
(11,181) |
(13,940) |
(2,163) |
(29,301) |
(34,883) |
(5,414) |
|||||
Total operating expenses |
(63,242) |
(80,334) |
(12,467) |
(265,485) |
(220,481) |
(34,218) |
|||||
Loss from operations |
(16,412) |
(32,709) |
(5,076) |
(190,966) |
(108,098) |
(16,776) |
|||||
Other income/(expenses): |
|||||||||||
Share of loss from equity method investments |
(2,021) |
(132) |
(20) |
(7,728) |
(4,056) |
(629) |
|||||
Short-term investment income |
583 |
507 |
79 |
1,069 |
1,898 |
295 |
|||||
Government grant |
2,382 |
252 |
39 |
5,050 |
2,427 |
377 |
|||||
Others, net |
1,523 |
828 |
129 |
3,380 |
1,810 |
281 |
|||||
Loss before income tax |
(13,945) |
(31,254) |
(4,849) |
(189,195) |
(106,019) |
(16,452) |
|||||
Income tax expenses |
(21) |
(14) |
(2) |
(16) |
(9) |
(1) |
|||||
Net loss |
(13,966) |
(31,268) |
(4,851) |
(189,211) |
(106,028) |
(16,453) |
|||||
Net loss/(income) attributable to non-controlling interests |
(50) |
736 |
114 |
340 |
1,896 |
294 |
|||||
Net loss attributable to |
(14,016) |
(30,532) |
(4,737) |
(188,871) |
(104,132) |
(16,159) |
|||||
Net loss |
(13,966) |
(31,268) |
(4,851) |
(189,211) |
(106,028) |
(16,453) |
|||||
Other comprehensive (loss) /income |
|||||||||||
Foreign currency translation adjustments |
(3,667) |
175 |
27 |
(1,522) |
(371) |
(58) |
|||||
Total other comprehensive (loss) /income |
(3,667) |
175 |
27 |
(1,522) |
(371) |
(58) |
|||||
Total comprehensive loss |
(17,633) |
(31,093) |
(4,824) |
(190,733) |
(106,399) |
(16,511) |
|||||
Net loss/(income) attributable to non-controlling interests |
(50) |
736 |
114 |
340 |
1,896 |
294 |
|||||
Comprehensive loss attributable to |
(17,683) |
(30,357) |
(4,710) |
(190,393) |
(104,503) |
(16,217) |
|||||
Net loss per ordinary share (RMB) |
|||||||||||
Basic |
(0.014) |
(0.030) |
(0.005) |
(0.185) |
(0.102) |
(0.016) |
|||||
Diluted |
(0.014) |
(0.030) |
(0.005) |
(0.185) |
(0.102) |
(0.016) |
|||||
Net loss per ADS (RMB) |
|||||||||||
Basic |
(0.344) |
(0.746) |
(0.116) |
(4.625) |
(2.538) |
(0.394) |
|||||
Diluted |
(0.344) |
(0.746) |
(0.116) |
(4.625) |
(2.538) |
(0.394) |
|||||
Weighted average number of ordinary shares used in |
|||||||||||
Basic |
1,019,876,247 |
1,023,327,262 |
1,023,327,262 |
1,020,871,848 |
1,025,636,483 |
1,025,636,483 |
|||||
Diluted |
1,019,876,247 |
1,023,327,262 |
1,023,327,262 |
1,020,871,848 |
1,025,636,483 |
1,025,636,483 |
|||||
Weighted average number of ADS used in per ADS |
|||||||||||
Basic |
40,795,050 |
40,933,090 |
40,933,090 |
40,834,874 |
41,025,459 |
41,025,459 |
|||||
Diluted |
40,795,050 |
40,933,090 |
40,933,090 |
40,834,874 |
41,025,459 |
41,025,459 |
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS |
|||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||
September 30, 2020 |
September 30, |
September 30, 2021 |
September 30, 2020 |
September 30, 2021 |
September 30, 2021 |
||||||
RMB'000 |
RMB'000 |
US$'000 |
RMB'000 |
RMB'000 |
US$'000 |
||||||
Net loss |
(13,966) |
(31,268) |
(4,851) |
(189,211) |
(106,028) |
(16,453) |
|||||
Share-based compensation expenses |
4,618 |
4,881 |
758 |
30,215 |
10,880 |
1,689 |
|||||
Non-GAAP adjusted net loss |
(9,348) |
(26,387) |
(4,093) |
(158,996) |
(95,148) |
(14,764) |
|||||
Interest income, net |
(561) |
(166) |
(26) |
(1,343) |
(507) |
(79) |
|||||
Income tax expenses |
21 |
14 |
2 |
16 |
9 |
1 |
|||||
Depreciation and amortization expenses |
1,518 |
618 |
96 |
4,081 |
1,924 |
299 |
|||||
Non-GAAP adjusted EBITDA |
(8,370) |
(25,921) |
(4,021) |
(156,242) |
(93,722) |
(14,543) |
|||||
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