FAST NEWS: Zhihu shares sink to new low even as losses narrow

The latest: Online Q&A site Zhihu Inc. (ZH.US; 2390.HK) on Wednesday reported a net loss of 279 million yuan ($39 million) in the third quarter, narrowing from 300 million yuan in the same period last year.
Looking up: The company’s paid membership revenue jumped 39.2% to 467 million yuan as its subscriber base grew, leading overall revenue to grow 12.1% to 1.02 billion yuan.
Take Note: Increases in R&D, selling and administrative expenses caused the company’s total operating expenses to grow by 24.3% to 899 million yuan, resulting in a similar 25.6% increase in its operating loss to 350 million yuan.
Digging Deeper: Zhihu listed in New York in 2021 and in Hong Kong a year later, and is often dubbed the “Quora of China.” The company previously relied on advertising as its primary revenue source, but has more recently tried to find other revenue streams, such as its paid membership business, which provides quality content and subscription services. Following its acquisition of a vocational education businesses and provision of its own online courses, the company has also built up a newer vocational training segment, whose revenue surged 142% to 396 million yuan in the first three quarters of this year.
Market Reaction: Zhihu’s Hong Kong shares fell in early Wednesday trade, closing down 8.1% at HK$13.98 by the midday break, touching a new 52-week low.
Translation by A. Au
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