Release Date: September 03, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Online advertising services ARPU rose by 22% year over year.
- Subscription services ARPU among institutional customers increased by 8% year over year.
- The company had over 33.28 million followers, a 9% increase year over year.
- Short video followers increased to over 9.2 million, with 2.3 million on Bilibili alone.
- Successful launch of major event IPs like the Advanced Productivity AI Partner Summit and WAVES Summit, attracting significant viewership.
Negative Points
- Total revenues decreased to RMB102.4 million from RMB139.9 million in the same period last year.
- Online advertising services revenues fell to RMB80.4 million from RMB98.9 million year over year.
- Enterprise value-added services revenues dropped to RMB13.4 million from RMB26.8 million year over year.
- Subscription services revenues decreased to RMB8.6 million from RMB14.2 million year over year.
- Net loss increased to RMB95.9 million from RMB52.7 million in the same period last year.
Q & A Highlights
Q: Could management outline the expected growth trajectory for the advertising business? How will the company strategize moving forward? Thank you.
A: We remain cautiously optimistic about future advertising growth. We have optimized our products and services to navigate ongoing macroeconomic challenges, providing deeper support to core customers, including leading internet giants and Fortune 500 companies. This approach has driven a 20% increase in ARPU in the first half of the year. We will continue to enrich our content ecosystem, expand our reach to new channels, and diversify our content-specific accounts to cover more sub-verticals. Additionally, we are deepening the integration of AIGC technology with content production to engage a broader range of companies and institutions.
Q: What are the latest developments in short and long video segments? How does the company plan to expand their growth potential?
A: In the first half of 2024, we delved deeper into the short and long video sectors, consistently providing diverse content offerings while expanding our range of to-C products. Our short video content lineup now covers a broad spectrum of fields, including technological innovation, business insights, and lifestyle. We established high-visibility commercialization collaborations with multiple leading brands, contributing significantly to advertising revenue growth. Our short video followers surpassed 9.2 million, with notable growth on platforms like Bilibili, Douyin, and Kuaishou. For long-form video, we launched a new season of our elite talk show series, Foreseeing 2034, which garnered over 84 million views across various platforms.
Q: What key strategies will the company implement to drive growth in enterprise value-added services and subscription services in the second half of the year? Thank you.
A: We launched a major event IP, Advanced Productivity AI Partner Summit, attracting over 100 million views and sparking extensive industry buzz. We also supported Lenovo in organizing the Lenovo New Business Innovation Ecosystem Series Roadshow. Moving forward, we will focus on enriching our product matrix and service scenarios to meet evolving customer needs. We will launch our [wine] summit in October and enhance our value-added consulting services. Additionally, we are channeling strategic resources to our overseas ventures, establishing media operations targeting Europe and working with Chinese government entities and businesses to establish 36Kr Global Expansion Service Centers.
Q: How is the company leveraging AI technology to enhance its content offerings and operational efficiency?
A: We have deepened our strategic partnership with SenseTime to explore advanced applications of AI technology. We’ve jointly launched AI-driven offerings, including AI Media Spotlight Seeker, AI Financial Report Interpretation, and AI One-Click Image Generation. These initiatives have delighted users with smarter, more efficient content service offerings and expanded 36Kr's audience reach. By integrating our content creation prowess with SenseTime’s advanced AI technologies, we aim to create and promote an AI Chief Content Officer concept, steering traditional media towards a more intelligent and interconnected future.
Q: What are the company's plans for expanding its customer base and service offerings in new sectors?
A: We have made remarkable progress in broadening our customer segments and enriching service offerings in sectors such as food and beverage, restaurant chains, sports and outdoor, beauty and personal care, and home appliances. Notably, the proportion of new customers in the sports and outdoor category topped 60%, while beauty and personal care's new customer ratio exceeded 40%. We also ventured into the energy storage sector, crafting a specialized documentary for Ampace and providing integrated marketing services for a major player in global mobile payments. Our tailored approach has effectively accelerated global expansion and enhanced brand influence.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
