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Dec 31, 2024

Zhihu Q4 2024 Earnings Report

Zhihu reported its Q4 2024 results, achieving profitability with strong cost management and margin expansion.

Key Takeaways

Zhihu achieved total revenue of $117,712,000 in Q4 2024, with net income of $11,838,000 and non-GAAP adjusted net income of $13,300,000. The company posted its first profitable quarter, driven by margin improvements and disciplined expense management.

Total revenue was $117.7 million, down from $161.2 million year-over-year.

Gross margin expanded to 62.9%, reflecting better monetization and efficiency.

Net income reached $11.8 million, turning around from a $14.1 million loss in the same period last year.

Adjusted net income (non-GAAP) was $13.3 million, compared to an adjusted net loss in the prior year.

Total Revenue
$118M
Previous year: $160M
-26.6%
EPS
$0.14
Previous year: -$0.12
-216.7%
Avg MAUs
81.4M
Avg subscribers
14.1M
Gross margin
62.9%
Previous year: 59.1%
+6.4%
Gross Profit
$74.1M
Previous year: $673M
-89.0%
Cash and Equivalents
$548M
Previous year: $770M
-28.9%

Zhihu

Zhihu

Zhihu Revenue by Segment

Forward Guidance

Zhihu will continue to focus on operational efficiency, enhancing AI integrations, and expanding premium content offerings for long-term sustainable growth.

Positive Outlook

  • Focus on monetization enhancements.
  • Growing engagement from content creators.
  • Cost discipline leading to operating efficiency.
  • Expansion of AI-driven features for better user experience.
  • Optimized revenue mix and premium services.

Challenges Ahead

  • Decline in vocational training revenue from acquired businesses.
  • Pressure on average revenue per subscribing member.
  • Lower marketing services revenue year-over-year.
  • Challenges in maintaining user growth momentum.
  • Potential market fluctuations impacting advertising demand.

Revenue & Expenses

Visualization of income flow from segment revenue to net income