36Kr Holdings Inc Adr Class A ((KRKR)) has held its Q4 earnings call. Read on for the main highlights of the call.
The recent earnings call for 36Kr Holdings Inc Adr Class A revealed a mixed sentiment among stakeholders. While the company has made commendable progress in reducing operating expenses and expanding its content ecosystem, it faces significant challenges with declining revenues and increased net losses. The company’s initiatives in AI and global expansion are promising, but their positive impact on financials will take time to materialize.
Operating Expenses Reduction
In a positive development, 36Kr Holdings successfully reduced its operating expenses by 50% in the second half of 2024 compared to the same period in 2023. This substantial reduction has helped narrow operating losses, showcasing the company’s commitment to improving operational efficiency.
Content Ecosystem Expansion
The company has significantly expanded its content ecosystem, publishing 8,090 articles through content-specific accounts. These articles have garnered over 220 million page views and 5.263 million shares, indicating strong engagement and influence among its audience.
AI and Global Expansion Initiatives
36Kr continues to focus on AGI innovation and global expansion. The launch of initiatives like 36Kr Europe and strategic partnerships for international services highlight the company’s ambition to broaden its reach and tap into new markets.
Revenue Decline
Despite these positive strides, the company reported a decline in total revenue for 2024, which stood at 231.1 million RMB, down from 340.2 million RMB in the previous year. This decline is primarily attributed to reduced advertising spending and strategic refocusing.
Enterprise Value Added Services Decline
Revenue from enterprise value added services also saw a decline, dropping to 32.8 million RMB from 67.3 million RMB in the previous year. This decrease is linked to reduced spending by SMEs and government institutions.
Net Loss Increase
The net loss for 2024 increased to 140.8 million RMB, compared to 89.2 million RMB in the previous year. This increase was driven by an impairment loss of long-term investments, posing a significant challenge for the company.
Forward-Looking Guidance
Looking ahead, 36Kr Holdings plans to leverage its strengths in content creation and AI technology to drive growth and expand its global presence. The company is targeting new markets in Japan, Southeast Asia, the Middle East, and Europe. Despite a decline in revenue, the company achieved significant cost savings, with sales and marketing expenses decreasing by 35.2% year-over-year.
In summary, the earnings call for 36Kr Holdings Inc Adr Class A reflected a mixed outlook. While the company is making strides in operational efficiency and content engagement, it faces challenges with declining revenues and increased net losses. The forward-looking guidance suggests a focus on leveraging content and AI for growth, with an eye on global expansion.