Zhihu (ZH) Gross Margin % : 53.66% (As of Sep. 2023)

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What is Zhihu Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Zhihu's Gross Profit for the three months ended in Sep. 2023 was $75.2 Mil. Zhihu's Revenue for the three months ended in Sep. 2023 was $140.1 Mil. Therefore, Zhihu's Gross Margin % for the quarter that ended in Sep. 2023 was 53.66%.

The historical rank and industry rank for Zhihu's Gross Margin % or its related term are showing as below:

ZH' s Gross Margin % Range Over the Past 10 Years
Min: 46.57 Med: 51.34 Max: 56.04
Current: 53.93

During the past 4 years, the highest Gross Margin % of Zhihu was 56.04%. The lowest was 46.57%. And the median was 51.34%.

ZH's Gross Margin % is ranked worse than
57.47% of 522 companies
in the Interactive Media industry
Industry Median: 60.98 vs ZH: 53.93

Zhihu had a gross margin of 53.66% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Zhihu was 0.00% per year.

Zhihu Gross Margin % Historical Data

The historical data trend for Zhihu's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Zhihu Gross Margin % Chart

Zhihu Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Gross Margin %

46.57

56.04

52.51

50.16

Zhihu Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Gross Margin %	Get a 7-Day Free Trial											48.74	56.42	51.52	53.83	53.66

Competitive Comparison of Zhihu's Gross Margin %

For the Internet Content & Information subindustry, Zhihu's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Zhihu's Gross Margin % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Zhihu's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Zhihu's Gross Margin % falls into.

Zhihu Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Zhihu's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	259.3	/	517.079
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(517.079 - 257.737)	/	517.079
	=	50.16 %

Zhihu's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	75.2	/	140.063
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(140.063 - 64.911)	/	140.063
	=	53.66 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Zhihu (NYSE:ZH) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Zhihu had a gross margin of 53.66% for the quarter that ended in Sep. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Zhihu Gross Margin % Related Terms

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Zhihu (ZH) Business Description

Industry

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Traded in Other Exchanges

02390:Hong Kong

Address

A5 Xueyuan Road, Haidian District, Beijing, CHN, 100083

Website

https://www.zhihu.com

Zhihu Inc is primarily engaged in the operation of one online content community and monetizes through paid membership services, advertising services, content-commerce solutions services and vocational training in China. It generates revenues from Advertising services, Paid membership services, Content-commerce solutions, and Others. It derives all its revenues within China.