ZH Earnings Prediction
The chart below shows how ZH performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ZH sees a +16.61% change in stock price 10 days leading up to the earnings, and a +10.64% change 10 days following the report. On the earnings day itself, the stock moves by -3.28%. This data can give you a slight idea of what to expect for the next quarter's release.
ZH Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
859.21M
-24.52%
1.68%
Gross Margin
62.93%
6.43%
-1.55%
Operating Margin
1.38%
108.82%
-113.83%
Net Margin
10.06%
211.04%
-1049.06%
EPS
0.33
191.67%
-925.00%
No Data Available
ZH Earnings Analysis
Zhihu Inc Corporation (ZH.N) Earnings Conference Call
Positive
Profitable Turnaround Achieved: 2024 marked a transformative turnaround for Zhihu, with a strong finish to the year and robust profitability, reporting adjusted net income of RMB97.1 million compared to an adjusted net loss of RMB91.3 million in the same period last year.
Operating Profit Turnaround: The company swung from an adjusted net operating loss of RMB165.3 million in the fourth quarter last year to an adjusted operating profit of RMB23.1 million this quarter, showcasing effective strategic execution.
User Acquisition Cost Reduction: Community user acquisition related expenses were reduced by 88% year-over-year, contributing significantly to profitability while maintaining a stable overall user base.
User Growth Analysis: Average MAUs were 81.4 million, up 0.3% sequentially, despite a strategic decision to decrease community-related promotional expenses by over 45% from Q3 and nearly 90% year-over-year.
User Engagement Improvement: Time spent per DAU grew 23% year-over-year, and core user retention rates improved both sequentially and year-over-year, indicating enhanced user engagement.
Content Volume and Creator Growth: Cumulative content volume reached 874.6 million thesis, an increase of 12.9% year-over-year, with 77.7 million content creators, up 8.9% year-over-year, reflecting a vibrant creator community.
Creator Ecosystem Growth: Income-generating creators increased by over 22% year-over-year during the quarter, with high-tier creators accounting for the most significant gains, indicating a thriving creator ecosystem.
Membership Revenue and ARPU Growth: Paid membership revenue was RMB420.2 million, with ARPU increasing by 7% sequentially, demonstrating effective monetization strategies despite a slight decrease in average monthly paid members.
Marketing Services Resilience: Marketing services revenue reached RMB315.9 million during the quarter, with a narrowed decline compared to the previous quarter, indicating resilience in brand advertising.
Vocational Training Growth: The vocational training business achieved double-digit growth year-over-year in self-operated programs, showcasing strong demand for high-performing courses.
ROI Improvement through Efficiency: Operating efficiency initiatives drove ROI improvements, with over 80% of courses delivering returns exceeding 2x, laying a clear path towards profitability for the vocational training business.
Strong Profitability Potential: The company achieved a double-digit net margin in Q4 2024, demonstrating strong profitability potential and effective cost management strategies.
Negative
Revenue Decline Analysis: Total revenues for Q4 2024 were RMB859.2 million, down from RMB1,138.3 million in Q4 2023, reflecting a strategic shift away from lower-quality revenue streams.
Membership Revenue Decline: Paid membership revenue decreased to RMB420.2 million from RMB455.9 million in the same period last year, indicating a slight decline in average monthly subscribing members by 0.8% year-over-year.
Vocational Training Revenue Decline: Vocational training revenue plummeted by 50.4% year-over-year to RMB84 million, primarily due to the strategic refinement of acquired businesses.
Marketing Services Revenue Decline: Marketing services revenue also saw a decline, reaching RMB315.9 million compared to RMB465.2 million in Q4 2023, driven by the optimization of service offerings aimed at enhancing margins.
Revenue Decline Concerns: Despite achieving profitability, the overall revenue decline of 14.3% for the full year 2024 compared to the previous year raises concerns about long-term growth prospects.
Membership Retention Challenges: The average monthly paid members saw a slight decrease, which could indicate challenges in user retention and acquisition efficiency despite improved engagement metrics.
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ZH Earning Call Sentiment
Zhihu Inc. (ZH) Q4 2024 Earnings Call Transcript
ZH.N
-4.64%Positive
The earnings call summary indicates improved financial health with a significant turnaround in net income and operating profit, despite a decline in total revenues. The company’s strategic focus on operational efficiency and enhancing user experience is promising. Additionally, the share repurchase program reflects a commitment to shareholder value. The Q&A session reveals optimism about AI integration and long-term profitability, although some concerns about market demand for vocational training exist. Overall, the positive financial turnaround and strategic focus suggest a positive stock price movement over the next two weeks.
