36Kr (KRKR) H1 2024 earnings summary

Executive summary

• Delivered solid operational performance despite persistent market challenges in H1 2024, with notable ARPU growth in online advertising (up 22% YoY) and institutional subscription services (up 8% YoY).

• Total followers reached 33.3 million by Q2, up 9.2% YoY, reflecting sustained user growth.

• Strategic focus on premium content, customer base expansion, and AI-driven collaboration propelled diversified development.

• Net loss widened to RMB 95.9 million from RMB 52.7 million YoY.

Financial highlights

• Total revenue was RMB 102.4 million in H1 2024, down from RMB 139.9 million YoY.

• Online advertising revenue was RMB 80.4 million, down from RMB 98.9 million YoY.

• Enterprise value-added service revenue was RMB 13.4 million, down from RMB 26.8 million YoY.

• Subscription service revenue was RMB 8.6 million, down from RMB 14.2 million YoY.

• Gross profit was RMB 45.5 million (margin 44.4%), down from RMB 69.8 million (margin 49.9%) YoY.

• Operating expenses decreased to RMB 117 million from RMB 128.7 million, with sales and marketing expenses down 29.9% and R&D expenses down 69.7% YoY.

• G&A expenses rose 79.9% YoY, mainly due to increased allowance for doubtful accounts.

• Net loss per ADS was 2.245, compared to 1.258 YoY.

• Cash, cash equivalents, and short-term investments were RMB 96.9 million as of June 30, 2024.

Outlook and guidance

• Management remains cautiously optimistic about future advertising growth, focusing on optimizing products and services for core clients and expanding ARPU.

• Plans to deepen AI applications, expand into new customer segments, and explore broader commercialization scenarios.

• Continued investment in video content expected to increase its revenue contribution.

• Strategic overseas expansion planned, including new media operations in Europe.