Before the US stock market on November 22, the domestic question-and-answer online community Zhihu (NYSE:ZH) announced its unaudited financial report for the third quarter ending September 30, 2021.
The financial report shows that Zhihu’s third-quarter revenue reached 823.5 million yuan (RMB, the same below), an increase of 115.1% year-on-year. This increase is mainly due to Zhihu’s expanding user scale and the increase in average revenue per user. Gross profit was 424.8 million yuan, a year-on-year increase of 93%.
In the third quarter, Zhihu’s average monthly active users (MAU) was 101.2 million, an increase of 40.1% year-on-year; the average number of monthly paid members was 5.5 million, an increase of 109.9% year-on-year.
In the third quarter of 2021, Zhihu’s online advertising business revenue was 321.1 million yuan, compared with 231.1 million yuan in the same period in 2020. Under the overall downturn of the advertising industry, Zhihu’s online advertising business still maintained a year-on-year 38.9% increase;In the quarter, business content solutions revenue was 278.4 million yuan, an increase of 511.9% year-on-year.
Thanks to the increase in the number of Zhihu’s overall user base and the proportion of users paid, the revenue of paid membership business in the quarter was 178.3 million yuan, a year-on-year increase of 95.8% compared to 91.1 million yuan in the same period last year.
Committed to providing online education services for vocational training and professional courses, as well as other businesses focused on e-commerce business, revenue in the third quarter was 45.7 million yuan, a year-on-year increase of 202.6%.
In the third quarter of 2021, Zhihu’s main business costs increased from 162.8 million yuan in the same period in 2020 to 398.6 million yuan in the third quarter of 2021, mainly due to the increase in advertising services, content-related costs, and the rapid growth of users. The resulting increase in cloud service and bandwidth costs.
The gross profit of Zhihu in the third quarter was 424.8 million yuan, an increase of 93% from the 220.1 million yuan in the same period in 2020, and the gross profit margin was 51.6%. The adjusted net loss narrowed to 112.4 million yuan from 200 million yuan in the second quarter.
Zhou Yuan, the founder and CEO of Zhihu, stated that “content-centric growth and sustainable business models have driven Zhihu’s business performance to once again achieve higher-than-expected growth.” Zhou Yuan stated that Zhihu will continue to focus on stimulating and promoting diversified high-quality content creation, and strengthen the efficiency of commercialization. Zhihu’s content-centric, multi-engine-driven business model mainly includes online advertising, commercial content solutions, paid memberships and other businesses (including online education, e-commerce).
As of September 30, 2021, Zhihu holds cash and cash equivalents, time deposits, restricted funds and short-term investments totaling 7.6 billion yuan.
Edited | Zhang XinyuReturn to Sohu to see more
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