2390.HK ZH.US

Online Q&A platform Zhihu Inc. (2390.HK; ZH.US) announced on Tuesday its revenue fell 17.3% year-on-year to 845 million yuan ($120.4 million) in the third quarter. But the company’s gross margin improved to 63.9% from 53.7% over the same period, helping the company to sharply narrow its net loss by 96.8% to 9 million yuan.

In the third quarter, Zhihu’s average monthly active users (MAUs) reached 81.1 million, up from 80.6 million in the second quarter, but down 26.6% year-on-year. Its monthly subscribers totaled 16.5 million in the latest period, up 11% year-on-year.

Zhihu said its total costs and operating expenses decreased by 35.6% and 30.5%, respectively, in the latest quarter, driven by enhanced operational efficiency and disciplined cost management. Its AI search product, Zhihu Zhida, continued to maintain strong growth in the quarter.

Zhihu’s stock fell 2.17% to $3.60 in New York on Tuesday after the release of the report.

By Lee Shih Ta

To subscribe to Bamboo Works weekly free newsletter, click here

Recent Articles

Agora makes real time engagement technology

AI powers Agora back to revenue growth

The maker of real-time engagement technology is benefitting from new demand for products like real-time online virtual tutors and talking toys Key Takeaways: Agora reported a slight revenue increase in…