36Kr Holdings Inc. Reports Third Quarter 2022 Unaudited Financial Results
Third Quarter 2022 Highlights
- Number of followers[1] as of
September 30, 2022 reached 26.8 million, an increase of 18.6% from 22.6 million as ofSeptember 30, 2021 . - Total revenues increased by 11.5% to
RMB94.6 million (US$13.3 million ) in the third quarter of 2022, fromRMB84.9 million in the same period of 2021. - Revenues from online advertising services increased by 19.8% to
RMB63.9 million (US$9.0 million ) in the third quarter of 2022, fromRMB53.4 million in the same period of 2021. - Enterprise value-added services revenues increased by 4.7% to
RMB23.6 million (US$3.3 million ) in the third quarter of 2022, fromRMB22.5 million in the same period of 2021. - Gross profit increased by 24.0% to
RMB59.1 million (US$8.3 million ) in the third quarter of 2022, fromRMB47.6 million in the same period of 2021. Gross profit margin further improved to 62.4% in the third quarter of 2022, from 56.1% in the same period of 2021. - Net income was
RMB2.5 million (US$0.4 million ) in the third quarter of 2022, compared to net loss ofRMB31.3 million in the same period of 2021.
[1] "Number of followers" refers to the aggregate number of followers across the official accounts we own and/or operate on various social media and online platforms, including but not limited to Weixin, Weibo, Zhihu, Toutiao, |
Selected Operating Data
For the Three Months Ended |
||||
2021 |
2022 |
|||
Online advertising services |
||||
Number of online advertising services end customers |
192 |
231 |
||
Average revenue per online advertising services end |
277.9 |
276.8 |
||
Enterprise value-added services |
||||
Number of enterprise value-added services end customers |
74 |
93 |
||
Average revenue per enterprise value-added services end |
304.0 |
253.4 |
||
Subscription services |
||||
Number of individual subscribers |
974 |
99 |
||
Average revenue per individual subscriber (RMB)[4] |
1,138.9 |
5,186.8 |
||
Number of institutional investors |
87 |
149 |
||
Average revenue per institutional investor (RMB'000)[5] |
91.0 |
44.3 |
||
[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. |
||||
[3] Equals revenues generated from enterprise value-added services for a period divided by the number of enterprise value-added services end customers in the same period. |
||||
[4] Equals revenues generated from individual subscription services for a period divided by the number of individual subscribers in the same period. |
||||
[5] Equals revenues generated from institutional investor subscription services for a period divided by the number of institutional investors in the same period |
Mr.
Ms.
Third Quarter 2022 Financial Results
Total revenues increased by 11.5% to
- Online advertising services revenues increased by 19.8% to
RMB63.9 million (US$9.0 million ) in the third quarter of 2022, fromRMB53.4 million in the same period of 2021. The increase was primarily attributable to more innovative marketing solutions we provided to our customers as well as proactive sales strategies we adopted to navigate the challenging environment during the quarter. - Enterprise value-added services revenues increased by 4.7% year-over-year to RMB23.6 million (
US$3.3 million) in the third quarter of 2022, as we continuously developed various proactive enterprise-level services for our customers. - Subscription services revenues were
RMB7.1 million (US$1.0 million ) in the third quarter of 2022, compared toRMB9.0 million in the same period of 2021. The decrease was primarily because some of our offline training programs were cancelled or delayed due to the resurgence of COVID-19.
Cost of revenues was
Gross profit increased by 24.0% to
Operating expenses were
- Sales and marketing expenses were
RMB32.2 million (US$4.5 million ) in the third quarter of 2022, a decrease of 9.3% fromRMB35.5 million in the same period of 2021. The decrease was primarily attributable to the decrease in share-based compensation expenses and marketing expenses. - General and administrative expenses were
RMB16.6 million (US$2.3 million ) in the third quarter of 2022, compared toRMB30.9 million in the same period of 2021. The decrease was primarily attributable to the decrease in allowance for credit losses. - Research and development expenses were
RMB13.4 million (US$1.9 million ) in the third quarter of 2022, compared toRMB13.9 million in the same period of 2021.
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 were
Net income was
[6] Non-GAAP adjusted income/(loss) represents net income/(loss) excluding share-based compensation expenses |
Net income attributable to
Basic and diluted net income per ADS were both
Certain Balance Sheet Items
As of
Conference Call
The Company's management will host an earnings conference call at
For participants who wish to join the call by phone, please access the link provided below to complete the pre-registration and dial in 5 minutes prior to the scheduled call start time. Upon registration, each participant will receive dial-in details to join the conference call.
Event Title: |
|
Pre-registration link: |
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 available for one week from the date of the conference, by dialing the following telephone numbers:
|
+1-855-883-1031 |
International: |
+61-7-3107-6325 |
|
800-930-639 |
Mainland |
400-120-9216 |
Replay PIN: |
10027223 |
About
For more information, please visit: http://ir.36kr.com.
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 |
|||||
|
|
|
|||
2022 |
2022 |
2022 |
|||
RMB'000 |
RMB'000 |
US$'000 |
|||
Assets |
|||||
Current assets: |
|||||
Cash and cash equivalents |
135,512 |
101,717 |
14,299 |
||
Short–term investments |
58,796 |
62,272 |
8,754 |
||
Accounts receivable, net |
163,719 |
211,014 |
29,664 |
||
Receivables due from related parties |
464 |
246 |
35 |
||
Prepayments and other current assets |
40,331 |
17,747 |
2,495 |
||
Total current assets |
398,822 |
392,996 |
55,247 |
||
Non–current assets: |
|||||
Property and equipment, net |
2,641 |
2,702 |
380 |
||
Intangible assets, net |
1,057 |
1,288 |
181 |
||
Long-term investments |
119,747 |
135,303 |
19,021 |
||
Operating lease right-of-use assets, net |
7,843 |
4,507 |
634 |
||
Total non–current assets |
131,288 |
143,800 |
20,216 |
||
Total assets |
530,110 |
536,796 |
75,463 |
||
Liabilities |
|||||
Current liabilities: |
|||||
Accounts payable |
46,664 |
45,549 |
6,403 |
||
Salary and welfare payables |
42,892 |
45,699 |
6,424 |
||
Taxes payable |
9,838 |
10,070 |
1,416 |
||
Deferred revenue |
32,353 |
28,894 |
4,062 |
||
Amounts due to related parties |
54 |
54 |
8 |
||
Accrued liabilities and other payables |
18,449 |
21,292 |
2,993 |
||
Short-term loan |
5,000 |
5,000 |
703 |
||
Operating lease liabilities |
16,533 |
16,441 |
2,311 |
||
Total current liabilities |
171,783 |
172,999 |
24,320 |
||
Non-current liabilities: |
|||||
Operating lease liabilities |
588 |
236 |
33 |
||
Other non-current liabilities |
2,000 |
701 |
99 |
||
Total non-current liabilities |
2,588 |
937 |
132 |
||
Total liabilities |
174,371 |
173,936 |
24,452 |
||
Shareholders' equity |
|||||
Ordinary shares |
695 |
694 |
98 |
||
|
(12,967) |
(12,402) |
(1,743) |
||
Additional paid-in capital |
2,056,897 |
2,058,775 |
289,418 |
||
Accumulated deficit |
(1,687,137) |
(1,685,394) |
(236,929) |
||
Accumulated other comprehensive loss |
(7,155) |
(5,239) |
(736) |
||
Total |
350,333 |
356,434 |
50,108 |
||
Non-controlling interests |
5,406 |
6,426 |
903 |
||
Total shareholders' equity |
355,739 |
362,860 |
51,011 |
||
Total liabilities and shareholders' equity |
530,110 |
536,796 |
75,463 |
||
|
|||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) |
|||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||
|
|
|
|
|
|
||||||
2021 |
2022 |
2022 |
2021 |
2022 |
2022 |
||||||
RMB'000 |
RMB'000 |
US$'000 |
RMB'000 |
RMB'000 |
US$'000 |
||||||
Revenues: |
|||||||||||
Online advertising services |
53,357 |
63,934 |
8,988 |
138,329 |
159,374 |
22,404 |
|||||
Enterprise value-added services |
22,499 |
23,565 |
3,313 |
43,699 |
47,244 |
6,641 |
|||||
Subscription services |
9,030 |
7,109 |
999 |
18,464 |
19,304 |
2,714 |
|||||
Total revenues |
84,886 |
94,608 |
13,300 |
200,492 |
225,922 |
31,759 |
|||||
Cost of revenues |
(37,261) |
(35,541) |
(4,996) |
(88,109) |
(90,222) |
(12,683) |
|||||
Gross profit |
47,625 |
59,067 |
8,304 |
112,383 |
135,700 |
19,076 |
|||||
Operating expenses: |
|||||||||||
Sales and marketing expenses |
(35,453) |
(32,168) |
(4,522) |
(104,584) |
(89,267) |
(12,549) |
|||||
General and administrative expenses |
(30,941) |
(16,559) |
(2,328) |
(81,014) |
(30,373) |
(4,270) |
|||||
Research and development expenses |
(13,940) |
(13,385) |
(1,882) |
(34,883) |
(40,507) |
(5,694) |
|||||
Total operating expenses |
(80,334) |
(62,112) |
(8,732) |
(220,481) |
(160,147) |
(22,513) |
|||||
Loss from operations |
(32,709) |
(3,045) |
(428) |
(108,098) |
(24,447) |
(3,437) |
|||||
Other income/(expenses): |
|||||||||||
Share of (loss)/income from equity method investments |
(132) |
(69) |
(10) |
(4,056) |
285 |
40 |
|||||
Gain on disposal of a subsidiary |
- |
- |
- |
- |
38,019 |
5,345 |
|||||
Long-term investment income |
- |
- |
- |
- |
18,464 |
2,596 |
|||||
Short-term investment income |
507 |
449 |
63 |
1,898 |
1,635 |
230 |
|||||
Government grant |
252 |
916 |
129 |
2,427 |
3,351 |
471 |
|||||
Others, net |
828 |
4,404 |
619 |
1,810 |
7,008 |
985 |
|||||
(Loss)/income before income tax |
(31,254) |
2,655 |
373 |
(106,019) |
44,315 |
6,230 |
|||||
Income tax (expenses)/credit |
(14) |
(166) |
(23) |
(9) |
(171) |
(24) |
|||||
Net (loss)/income |
(31,268) |
2,489 |
350 |
(106,028) |
44,144 |
6,206 |
|||||
Net loss/(income) attributable to non-controlling interests |
736 |
(746) |
(105) |
1,896 |
(1,386) |
(195) |
|||||
Net (loss)/income attributable to |
(30,532) |
1,743 |
245 |
(104,132) |
42,758 |
6,011 |
|||||
Net (loss)/income |
(31,268) |
2,489 |
350 |
(106,028) |
44,144 |
6,206 |
|||||
Other comprehensive (loss)/income |
|||||||||||
Foreign currency translation adjustments |
175 |
1,916 |
269 |
(371) |
3,748 |
527 |
|||||
Total other comprehensive (loss)/income |
175 |
1,916 |
269 |
(371) |
3,748 |
527 |
|||||
Total comprehensive (loss)/income |
(31,093) |
4,405 |
619 |
(106,399) |
47,892 |
6,733 |
|||||
Net loss/(income) attributable to non-controlling interests |
736 |
(746) |
(105) |
1,896 |
(1,386) |
(195) |
|||||
Comprehensive (loss)/income attributable to 36Kr |
(30,357) |
3,659 |
514 |
(104,503) |
46,506 |
6,538 |
|||||
Net (loss)/income per ordinary share (RMB) |
|||||||||||
Basic |
(0.030) |
0.002 |
0.000 |
(0.102) |
0.041 |
0.006 |
|||||
Diluted |
(0.030) |
0.002 |
0.000 |
(0.102) |
0.041 |
0.006 |
|||||
Net (loss)/income per ADS (RMB) |
|||||||||||
Basic |
(0.746) |
0.042 |
0.006 |
(2.538) |
1.037 |
0.146 |
|||||
Diluted |
(0.746) |
0.042 |
0.006 |
(2.538) |
1.037 |
0.146 |
|||||
Weighted average number of ordinary shares used in |
|||||||||||
Basic |
1,023,327,262 |
1,035,476,294 |
1,035,476,294 |
1,025,636,483 |
1,031,290,397 |
1,031,290,397 |
|||||
Diluted |
1,023,327,262 |
1,035,476,294 |
1,035,476,294 |
1,025,636,483 |
1,031,290,397 |
1,031,290,397 |
|||||
Weighted average number of ADS used in per ADS |
|||||||||||
Basic |
40,933,090 |
41,419,052 |
41,419,052 |
41,025,459 |
41,251,616 |
41,251,616 |
|||||
Diluted |
40,933,090 |
41,419,052 |
41,419,052 |
41,025,459 |
41,251,616 |
41,251,616 |
|
||||||||||||
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS |
||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||
2021 |
2022 |
2022 |
2021 |
2022 |
2022 |
|||||||
RMB'000 |
RMB'000 |
US$'000 |
RMB'000 |
RMB'000 |
US$'000 |
|||||||
Net (loss)/income |
(31,268) |
2,489 |
350 |
(106,028) |
44,144 |
6,206 |
||||||
Share-based compensation expenses |
4,881 |
2,575 |
362 |
10,880 |
9,268 |
1,303 |
||||||
Non-GAAP adjusted net (loss)/income |
(26,387) |
5,064 |
712 |
(95,148) |
53,412 |
7,509 |
||||||
Interest income, net |
(166) |
(323) |
(45) |
(507) |
(564) |
(79) |
||||||
Income tax expenses |
14 |
166 |
23 |
9 |
171 |
24 |
||||||
Depreciation and amortization expenses |
618 |
479 |
67 |
1,924 |
1,423 |
200 |
||||||
Non-GAAP adjusted EBITDA |
(25,921) |
5,386 |
757 |
(93,722) |
54,442 |
7,654 |
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