36Kr Holdings Inc. Q1 2024 Earnings Summary

In the first half of 2024, 36Kr Holdings Inc. (NASDAQ: KRKR) faced a challenging market, reporting a revenue decline from RMB139.9 million to RMB102.4 million year-on-year.

Despite a revenue drop, the company experienced a 22% increase in average revenue per user (ARPU) for online advertising and an 8% increase for institutional customer subscriptions.

Key Financial Metrics:
– Total Revenues: RMB102.4 million (down from RMB139.9 million)
– Online Advertising Revenue: RMB80.4 million (down from RMB98.9 million)
– Gross Profit: RMB45.5 million (down from RMB69.8 million)
– Gross Profit Margin: 44.4%
– Operating Expenses: Decreased by 9%

Operational Focus:
36Kr is enhancing its content ecosystem and leveraging AI technology to foster growth, particularly in short and long video segments. The company aims to optimize services, expand its content portfolio, and cautiously pursue advertising growth amid current challenges.

Bearish and Bullish Insights:
1. Bearish: Total revenue decline linked to reduced advertising spending in some sectors.
2. Bullish: Short video advertising has significantly contributed to revenue growth, with successful collaborations with platforms like Bilibili and Douyin.

Q&A Highlights:
36Kr’s leadership highlighted user engagement strides with over 9.2 million short video followers and discussed expanding global operations and partnerships to enhance services and reach.

InvestingPro Insights:
An overview of 36Kr’s financial health reveals potential undervaluation and strong cash positions, indicating cautious optimism despite recent losses. Analysts expect a turnaround in profitability this year.

Conclusion

36Kr’s first half of 2024 was characterized by challenges and strategic advancements. The company is well-positioned to address evolving market conditions with its focus on high-quality content and technological integration, particularly in the lucrative short video market.