• Total Revenue (H2 2024): RMB128.7 million, down from RMB200.3 million in H2 2023.
• Total Revenue (Full Year 2024): RMB231.1 million, down from RMB340.2 million in 2023.
• Online Advertising Services Revenue (H2 2024): RMB100.2 million, down from RMB139.8 million in H2 2023.
• Online Advertising Services Revenue (Full Year 2024): RMB180.6 million, down from RMB238.7 million in 2023.
• Enterprise Value-Added Services Revenue (H2 2024): RMB19.4 million, down from RMB40.5 million in H2 2023.
• Enterprise Value-Added Services Revenue (Full Year 2024): RMB32.8 million, down from RMB67.3 million in 2023.
• Subscription Services Revenue (H2 2024): RMB9 million, down from RMB20 million in H2 2023.
• Subscription Services Revenue (Full Year 2024): RMB17.6 million, down from RMB34.2 million in 2023.
• Cost of Revenue (H2 2024): RMB61.8 million, down from RMB88.1 million in H2 2023.
• Gross Profit (H2 2024): RMB66.9 million, down from RMB112.2 million in H2 2023.
• Gross Margin (H2 2024): 52%, down from 56% in H2 2023.
• Gross Profit (Full Year 2024): RMB112.3 million, down from RMB182 million in 2023.
• Gross Margin (Full Year 2024): 48.6%, down from 53.5% in 2023.
• Operating Expenses (H2 2024): RMB73.1 million, down 50% from RMB147.5 million in H2 2023.
• Operating Expenses (Full Year 2024): RMB190.1 million, down 31.2% from RMB276.2 million in 2023.
• Net Loss (H2 2024): RMB44.9 million, compared to RMB36.6 million in H2 2023.
• Net Loss (Full Year 2024): RMB140.8 million, compared to RMB89.2 million in 2023.
• Cash, Cash Equivalents, and Short-term Investments (End of 2024): RMB92.5 million.

• Warning! GuruFocus has detected 3 Warning Signs with KRKR.

Release Date: March 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Operating expenses in the second half of 2024 decreased by 50% compared to the same period of 2023, indicating improved cost management.
• Gross profit margin remained above 50% for the second half of 2024, showcasing strong profitability.
• The company successfully expanded its content ecosystem, launching new content-specific accounts and engaging younger audiences.
• 36KR Holdings Inc (NASDAQ:KRKR) made significant progress in global expansion, establishing a presence in Japan and Southeast Asia, and launching the 36Kr European Central Station.
• The company integrated AI technology into its operations, launching AI-powered tools to enhance content production and commercialization efficiency.

Negative Points

• Total revenue for the full year of 2024 decreased to RMB231.1 million from RMB340.2 million in the previous year, reflecting a decline in overall business performance.
• Online advertising services revenue declined due to reduced advertising spending by certain industries and the elimination of underperforming customers.
• Enterprise value-added services revenue decreased significantly, attributed to strategic refocusing and optimization of underperforming regional operations.
• Subscription services revenue also saw a decline, primarily due to a strategic transition in the business model for training services.
• Net loss for the full year 2024 increased to RMB140.8 million compared to RMB89.2 million in the previous year, indicating financial challenges.

Q & A Highlights

Q: The company's overall advertising revenue declined this year. What's the company's outlook for its advertising business moving forward? A: (Dagang Feng, CEO) In 2024, we optimized our advertising products and customer base, reducing low-margin and high-risk businesses. Despite a slight decline in overall advertising revenue, key accounts like Alibaba and JD.com remained stable. We are optimistic about 2025, focusing on key content verticals such as AI and global expansion to strengthen our advertising business resilience.

Q: Throughout 2024, what progress has the company made in reducing costs and improving efficiency? A: (Dagang Feng, CEO) We implemented cost control measures, including relocating to lower-cost offices and streamlining teams. These efforts, along with integrating AI technology, reduced nonoperating expenses by over 50% in the second half of 2024 compared to 2023. Our operating expense ratio also declined by 17% year-over-year, significantly narrowing our operating losses.

Q: What led to the decline in full-year revenue from enterprise value-added services, and what is the outlook for this year's revenue? A: (Dagang Feng, CEO) The decline was due to macroeconomic uncertainties affecting small and medium enterprises and government institutions, leading to reduced spending. We also restructured our regional outlets, scaling down low-margin projects. In 2025, we plan to expand our global expansion initiatives and continue legacy IP events to drive revenue growth in enterprise value-added services.

Q: How does the company position itself in generative AI across content and product offerings? A: (Dagang Feng, CEO) We have been proactive in covering AI developments and launched AI-powered products like AI Text to Image and AI Media Coverage. In 2025, we will continue to develop our AI content ecosystem and integrate AIGC technology with content production to maintain our edge in AI trends and deliver premium content.

Q: What are the company's strategic priorities for 2025? A: (Dagang Feng, CEO) Our priorities include enhancing content creation, expanding product and service offerings, and leveraging AI technology to support high-quality development among new economy stakeholders. We aim to refine our products, customer base, and organizational structure to further enhance overall profitability.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.