• Total Revenues: RMB164.3 million, a 7% increase from RMB153.6 million in the same period last year.
• Net Advertising Revenues: RMB148.4 million, a 10.5% increase from RMB134.3 million in the same period last year.
• Paid Services Revenues: RMB15.9 million, down from RMB19.3 million in the same period last year.
• Cost of Revenues: RMB102 million, compared to RMB101.2 million in the same period last year.
• Gross Margin: Increased to 37.9% from 34.1% in the same period last year.
• Loss from Operations: RMB25.9 million, improved from a loss of RMB38.5 million in the same period last year.
• Net Loss Attributable to ifeng: RMB18.5 million, compared to a net loss of RMB21.5 million in the same period last year.
• Cash and Cash Equivalents: RMB971.8 million as of September 30, 2024.
• Q4 2024 Revenue Forecast: Between RMB197.9 million and RMB212.9 million.
• Q4 2024 Net Advertising Revenue Forecast: Between RMB180.2 million and RMB190.2 million.
• Q4 2024 Paid Service Revenue Forecast: Between RMB17.7 million and RMB22.7 million.

• Warning! GuruFocus has detected 5 Warning Signs with FENG.

Release Date: November 13, 2024

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

Positive Points

• Phoenix New Media Ltd (NYSE:FENG) achieved a 7% increase in total revenues year-over-year, reaching RMB164.3 million.
• Net advertising revenues grew by 10.5% compared to the same period last year, indicating strong performance in this segment.
• The company's gross margin improved to 37.9% from 34.1% in the previous year, reflecting better cost management.
• Phoenix New Media Ltd (NYSE:FENG) successfully executed marketing campaigns for over 10 clients during the Paris Olympics, achieving both recognition and profitability.
• The company hosted a successful finance forum with nearly 1 billion views, enhancing its brand influence in the finance sector.

Negative Points

• Paid services revenues decreased from RMB19.3 million to RMB15.9 million year-over-year, indicating a decline in this revenue stream.
• Despite improvements, the company still reported a net loss of RMB18.5 million for the quarter.
• There is a trend of declining advertising spend per customer, which could impact future revenue growth.
• The increasing complexity and cost of project execution pose challenges to maintaining efficient operations.
• The company faces substantial uncertainties in its business outlook, reflecting potential volatility in future performance.

Q & A Highlights

Q: In the third quarter, the company achieved year-over-year growth in advertising revenue. Could the management discuss the challenges in advertising and the outlook for the future? A: Xiaojing Lu, Chief Financial Officer, explained that the company's advertising revenue outperformed the overall internet media advertising market due to an improved content monetization strategy and tactical adjustments. These included restructuring the sales team, content team incentives, and measures to encourage innovation. The public values content quality, human-centered narratives, and emotional connections, which have been core attributes of the company. Despite challenges like declining advertising spend per customer and increasing project execution costs, the company remains confident in market opportunities.

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