Phoenix New Media (FENG) Q3 2024 earnings summary

Executive summary

• Total revenues for Q3 2024 rose 7% year-over-year to CNY 164.3 million, driven by a 10.5% increase in net advertising revenues and a focus on high-quality original content and rapid news coverage.

• Gross profit increased 18.9% year-over-year to CNY 62.3 million, with gross margin improving to 37.9% from 34.1%.

• Net loss attributable to shareholders narrowed to CNY 18.5 million from CNY 21.5 million a year ago; net margin improved to -11.3% from -14.0%.

• Operating expenses decreased 3% year-over-year due to strict cost controls, reducing loss from operations to CNY 25.9 million.

• Expanded into cultural tourism and culinary content, enhancing client marketing strategies and local brand vitality.

Financial highlights

• Net advertising revenues reached CNY 148.4 million, up 10.5% year-over-year.

• Paid services revenues declined 17.6% year-over-year to CNY 15.9 million, mainly due to lower content spending and scaled-down e-commerce.

• Cost of revenues rose slightly by 0.8% to CNY 102.0 million.

• Gross margin improved to 37.9% from 34.1% year-over-year.

• Non-GAAP net loss attributable to shareholders was CNY 18.0 million, with non-GAAP net margin at -11.0%.

Outlook and guidance

• Q4 2024 total revenues forecasted between CNY 197.9 million and CNY 212.9 million.

• Net advertising revenues expected between CNY 180.2 million and CNY 190.2 million; paid service revenues between CNY 17.7 million and CNY 22.7 million.

• Guidance reflects current views and is subject to substantial uncertainties, including macroeconomic conditions.