Zhihu Inc. Releases Unaudited Q4 and Full-Year 2024 Financial Results

Zhihu Inc. ("Zhihu" or the "Company") (NYSE: ZH; HKEX: 2390), a major online content community in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Highlights

• Total revenues were RMB 859,200,000 (USD 117,700,000) compared to RMB 1,138,300,000 in Q4 2023.

• Gross margin was 62.9% compared to 59.1% in Q4 2023.

• Net income was RMB 86,400,000 (USD 11,800,000) compared to a net loss of RMB 103,100,000 in Q4 2023.

• Non-GAAP adjusted net income was RMB 97,100,000 (USD 13,300,000) compared to a non-GAAP adjusted net loss of RMB 91,300,000 in Q4 2023.

• MAUs (monthly active users) were 81.4 million.

• The average monthly subscribing members was 14.1 million.

Fiscal Year 2024 Highlights

• Total revenues were RMB 3,598.9 million (US$ 493.0 million) compared to RMB 4,198.9 million in 2023.

• Gross margin was 60.6% compared to 54.7% in 2023.

• Net loss was 79.9% less at RMB 169.0 million (USD 23.1 million) compared to 2023.

• Non-GAAP adjusted net loss was RMB 96.3 million (USD 13.2 million) compared to RMB 643.8 million in 2023.

“Our strategic plan paid off in 2024 as we achieved profitability in Q4 and turned around from the previous year,” said Yuan Zhou, Zhihu’s chairman and CEO. “By enhancing our ecosystem, we have increased trust and participation of the community, and our ongoing AI initiatives combined with premium content and expert networks are redefining user experiences and creating a sustainable competitive advantage.”

CFO Han Wang said, “The Q4 2024 was a turning point, the Company reported positive operating profit and net income for the first time in both GAAP and non-GAAP basis. The gross margin increased by 3.8% to 62.9% due to efficiency improvements and cost discipline, and the operating expenses declined by 37.9%. We are ready to capitalize on this for sustainable growth and value creation.”

Fourth Quarter 2024 Financial Results

• Total revenues: RMB 859,200,000 (USD 117,700,000), a decrease from RMB 1,138,300,000 in Q4 2023.

• Marketing services revenue: RMB 315.9 million (USD 43.3 million) down from RMB 465.2 million as we focused on higher margins.

• Paid membership revenue: RMB 420.2 million (USD 57.6 million) was slightly lower than RMB 455.9 million due to lower revenue per member.

• Vocational training revenue: RMB 84.0 million (USD 11.5 million), down from RMB 169.3 million, mainly due to lower contributions from acquired businesses.

• Other revenues: RMB 39.1 million (USD 5.4 million), from RMB 48.0 million in Q4 2023.

• Cost of revenues: Reduced by 31.5% to RMB 318.5 million (USD 43.6 million) from RMB 465.2 million due to decreased content, operating, cloud and bandwidth costs as a result of higher efficiency.