China's Zhihu Q1 sales fall on lower marketing services revenue
China's Zhihu Q1 sales fall on lower marketing services revenue
Overview
China online content platform's Q1 revenue declined yr/yr
Adjusted net income for Q1 rose 147% yr/yr
Company repurchased 3.7 mln shares for US$4.2 mln in Q1
Outlook
Zhihu did not provide specific financial guidance for the current or future periods
Result Drivers
SERVICE REFINEMENT - Co said lower marketing services revenue was due to ongoing refinement of service offerings
SUBSCRIBER DECLINE - Co said paid content and IP operations revenue fell mainly due to a decline in average monthly subscribing members, partly offset by growth in IP operations
COST CONTROLS - Co reduced total operating expenses by 10.4% yr/yr, citing more disciplined marketing spending, lower personnel-related expenses, and improved R&D efficiency
Company press release: ID:nGNX8MJ2pm
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue |
| RMB 651.6 mln |
|
Q1 Income Per ADS |
| -RMB 0.11 |
|
Q1 Adjusted Net Income |
| RMB 17.2 mln |
|
Q1 Operating Expenses |
| RMB 451.2 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for Zhihu Inc is HK$11.50, about 50.5% above its June 3 closing price of HK$7.64
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 64 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)