36Kr Holdings Inc. Q2 FY2025 earnings call

Content

• Fortified content ecosystem with diversified channels like Weibo, Xiaohongshu, Toutiao, etc. Over 36.57 million followers for 17 consecutive quarters. Expanded content formats including text, video, live streaming. Launched various subvertical media channels and industry-specific accounts.

Commercialization

• Optimized client structure with AI and FMCG segments driving revenue growth. Subvertical media channels for younger audiences saw 30% year-over-year revenue increase. Live streaming and video commercialization expanded with tailored offerings. Industrial service commercialization included strategic partnerships and hosting global expansion events, focusing on key sectors like low altitude economy and advanced manufacturing.

Technology Application

• Integrated AI in content production and commercialization. Launched AI meeting corporate product and 36Kr corporate Omni intelligence, leveraging large language models. Partnered with Doubao as exclusive technology and finance media partner, and planned AI tool review platform.

Total revenue in the first half of 2025 was RMB 93.2 million. Online advertising services revenue was RMB 74.5 million, accounting for approximately 79.9% of total revenue. Enterprise value-added services revenue was RMB 12.2 million, making up about 13.1% of total revenue. Subscription services revenue was RMB 6.4 million, representing around 6.9% of total revenue. Cost of revenue decreased by 25% to RMB 42.5 million from RMB 56.9 million in the same period of 2024. Gross profit increased to RMB 50.7 million from RMB 45.5 million, with gross profit margin rising to 54.4% from 44.4% due to strategic workforce optimization leading to savings in payroll-related costs.

• The company will continue to improve content creation capabilities and optimize product metrics in the second half of 2025, focusing on achieving profitability and predicts to be profitable by the end of 2025.

Today's discussion contains forward-looking statements involving inherent risks and uncertainties. The company's results may differ materially from views expressed. Further information regarding risks and uncertainties is in the company's SEC filings, and the company is not obligated to update forward-looking statements except as required by law.

Q: How did the company achieve financial turnaround and what's the full year financial outlook?

A: Through sustained operational efforts like cost reduction, efficiency boosting, workforce optimization. Operating expenses decreased over RMB 60 million year-over-year, net loss narrowed by over RMB 90 million. Predicts to be profitable by the end of 2025.

Q: Future plan for industrial service business and company's positioning in generative AI across content and product offerings?

A: Will host more IP events in the second half, restructure content layout and organizational structure for industrial service business. In generative AI, expanded AI content ecosystem, launched various AI products like AI meeting and Doubao AI agent, plans to roll out AI tool review platform, and will continue integrating AIGC technology with content production.