36Kr Holdings Inc. Q2 FY2024 earnings call

Content Creation and User Growth - Enhanced content creation promise, strengthening text and graphic content ecosystem. Nearly 400 articles had over 100,000 page views in the first half. Female content solidified industry leadership. Extended appeal to younger audiences with sub-vertical media channels. Short video business performed well with over 9.2 million followers, 2.3 million on Bilibili alone. Launched AI Car and AI Map. - Three-Step Strategy - Positioning: Deepened focus on premium original content, enhanced content creation, expanded user demographic via sub-verticals. - Expansion: Broaden customer base in sectors like food and beverage, sports and outdoor, etc. Onboarded premium global brands. Refined service architecture for governmental and public services. - Collaboration: Deepened partnership with SenseTime, launched AI-driven offerings like AI medium spotlight seekers, etc. - Event IP: Achieved success with Advanced Productivity AI Partner Summit and 36Kr’s signature event, attracting millions of views.

Total revenues in the first half of 2024 were RMB102.4 million. Online advertising services revenue was RMB80.4 million, enterprise value-added services revenue was RMB13.4 million, and subscription services revenue was RMB8.6 million. Cost of revenues was RMB57 million, gross profit was RMB45.5 million with a gross profit margin of 44.4%. Online advertising services’ ARPU rose by 22% year over year, while subscription services’ ARPU among institutional customers increased by 8% year over year. Online advertising services revenue contributed approximately 78.5% to total revenues, enterprise value-added services contributed about 13.1%, and subscription services contributed around 8.4%.

Forward-Looking Statements - Cautiously optimistic about advertising growth, proactively optimizing products/services for core customers. Expect to enrich content ecosystem, integrate AIGC technology, and expand to new customer segments. - Plan to launch [indiscernible] in October and expand overseas, establishing meeting operations in Europe in September and global expansion service centers.

Risks - Forward-looking statements involve inherent risks and uncertainties. Company's results may differ materially from views expressed. Further information on risks and uncertainties is in the Company's prospectus and public filings with the U.S. SEC.

Q: Could management outline the expected growth trajectory for the advertising business? How will the Company strategize moving forward?

A: Remain cautiously optimistic about future advertising growth. Proactively optimize products/services for core customers, enrich content ecosystem, integrate AIGC technology, expand to new customer segments. Broaden premium customer segment in sectors like food and beverage, etc., and onboarded premium global brands.

Q: What are the latest developments in short and long video segments? How about the Company plan to expand their growth potential?

A: Short video contents cover broad CUC, followers over 9.2 million. Launched AI Car and AI Map to elevate user engagement. Long video collaborated with Douyin to launch Elite Talk Show series, debut episode had over 84 million views. - Q: What key strategies will the Company implement to drive growth in enterprise value added services and subscription services in the second half of the year?

A: Focus on reaching product metrics and service scenarios. Launch [indiscernible] in October. Enhance value-added consulting services. Refine service architecture for governmental and public services. Channel strategic resources to overseas ventures, establish meeting operations in Europe in September and global expansion service centers.