Zhihu, Inc. Q1 FY2025 earnings call

• Achieved non-GAAP net income of RMB6.9 million in Q1, compared to a loss of RMB135.7 million same period last year, marking first Q1 non-GAAP net profit since IPO. - AI integration: Launched contributor attribution feature, AI-related professional content grew 46% YOY; time spent per DAU, core user retention rate, and creator activities improved. - User metrics: Average daily user time span reached nearly 38 minutes, up 17.6% YOY; monthly active user base stable. - Commercialization: Marketing services optimizing client mix, expanding experts-facing client base; paid membership broadening content offerings with premium short and long form content; vocational training transitioning to social knowledge sharing model.

In the first quarter, revenue from marketing services business reached RMB197 million, a year-over-year decline of 40.4%. Paid membership revenue was RMB417.9 million, remaining stable quarter-over-quarter with average monthly paid members up 1.2% sequentially to 14.2 million. Vocational training revenue was RMB94.5 million, down 35% year-over-year. Marketing services revenue contribution: 197 million RMB, ~27% of total revenue (729.7 million RMB). Paid membership revenue contribution: 417.9 million RMB, ~57% of total revenue. Vocational training revenue contribution: 94.5 million RMB, ~13% of total revenue.

• Continue strengthening commercialization capabilities and capitalizing on community growth potential. - Board approved new 2025 share repurchase program, effective until June 25th, 2026, with max repurchase size of 10% of total issued shares subject to shareholder approval.

Forward-looking statements involve inherent risks and uncertainties; actual results may differ materially from views expressed. Further information on risks in public filings with SEC and HKEX.

Q: What other AI initiatives can we expect next, both within the Zhihu community and beyond?

A: Zhou Yuan mentioned integrating more experts, continuing with contributor attribution, and launching a public knowledge base, planning to introduce expert knowledge bases in different sectors during college entrance examination season.

Q: About the user and the community?

A: Zhou Yuan stated overall community user scale stable, key user health metrics improved; strong feedback from creators at Zhihu Youth Knowledge Conference; growth in professional creators under key programs and upgrades to column and idea features.

Q: Color on the revenue trends for each of these segments, in 2025 and the profitability outlook?

A: Wang Han said 2025 is a year of business model optimization; marketing services seeing accelerated momentum in client mix optimization and commercial product updates with AI unlocking new opportunities; paid membership broadening content offering; vocational training transitioning to social engaging model; confident financial performance will exceed initial expectations.

Q: Thoughts about the shareholder return program this year?

A: Wang Han mentioned Board approved 2025 buyback plan authorizing repurchase of up to 10% of issued and outstanding shares, executing buyback in open market, believing current share price doesn't fully reflect company value.