Third Quarter 2020 Operational and Financial Highlights
- Average monthly page views (“PV”) for the twelve-month period ended
September 30, 2020 increased by 45.4% to 566.3 million, from 389.5 million for the twelve-month period endedSeptember 30, 2019 .
- Net loss attributable to
36Kr Holdings Inc.'s ordinary shareholders wasRMB14.0 million (US$2.1 million ), compared toRMB635.6 million in the same period of 2019.
First Nine Months 2020 Financial Highlights
- Net loss attributable to
36Kr Holdings Inc.'s ordinary shareholders wasRMB188.9 million (US$27.8 million ), compared toRMB949.1 million in the same period of 2019.
Selected Operating Data
For the Nine Months Ended | |||||
2019 | 2020 | ||||
Online advertising services | |||||
Number of online advertising services end customers | 329 | 354 | |||
Average revenue per online advertising services end customer (RMB’000)1 | 406.0 | 292.3 | |||
Enterprise value-added services | |||||
Number of enterprise value-added services end customers | 241 | 172 | |||
Average revenue per enterprise value-added services end customer (RMB’000)2 | 684.8 | 882.8 | |||
Subscription services | |||||
Number of individual subscribers | 14,052 | 5,777 | |||
Average revenue per individual subscriber (RMB)3 | 1,377.1 | 484.1 | |||
Number of institutional investor subscribers | 127 | 102 | |||
Average revenue per institutional investor subscriber (RMB’000)4 | 101.3 | 67.0 | |||
Number of enterprise subscribers | 262 | 392 | |||
Average revenue per enterprise subscriber (RMB’000)5 | 7.5 | 0.9 |
1 Equals revenues generated from online advertising services for a period divided by the number of online advertising services end customers in the same period.
2 Equals revenues generated from enterprise value-added services for a period divided by the number of enterprise value-added services end customers in the same period.
3 Equals revenues generated from individual subscription services for a period divided by the number of individual subscribers in the same period.
4 Equals revenues generated from institutional investor subscription services for a period divided by the number of institutional investor subscribers in the same period.
5 Equals revenues generated from enterprise subscription services for a period divided by the number of enterprise subscribers in the same period.
Mr.
“Our fundamentals remain solid and as COVID-19 containment measures are gradually relaxed in
Ms.
Third Quarter 2020 Financial Results
Total revenues were
- Online advertising services revenues decreased by 5.5% to
RMB51.1 million (US$7.5 million ) in the third quarter of 2020, fromRMB54 .1 million in the same period of 2019. The decrease was primarily attributable to the relatively weak demand from certain advertisers in the wake of COVID-19.
- Enterprise value-added services revenues increased by 3.8% to
RMB66.4 million (US$9.8 million ) in the third quarter of 2020, fromRMB64 .0 million in the same period of 2019. The increase was primarily attributable to the recovering demands from certain enterprise value-added services customers.
- Subscription services revenues were
RMB6.0 million (US$0.9 million ) in the third quarter of 2020, compared toRMB12 .9 million in the same period of 2019. The decrease was primarily attributable to the decrease of individual subscription revenues associated with relatively weak demand.
Cost of revenues was
Gross profit was
Operating expenses were
- Sales and marketing expenses were
RMB31.6 million (US$4.7 million ) in the third quarter of 2020, compared toRMB31.8 million in the same period of 2019. The decrease was primarily attributable to the decrease of payroll-related expenses, partially offset by the increase of share-based compensation expenses.
- General and administrative expenses decreased by 45.3% to
RMB20.5 million (US$3.0 million ) in the third quarter of 2020, compared toRMB37 .4 million in the same period of 2019. The decrease was primarily attributable to the decrease of share-based compensation expenses, partially offset by the increase of professional fees.
- Research and development expenses increased by 28.6% to
RMB11.2 million (US$1.6 million ) in the third quarter of 2020, compared toRMB8 .7 million in the same period of 2019. The increase was primarily attributable to the increase in technology expenses related to technology procurement, device maintenance and testing.
Share-based compensation expenses recognized in cost of revenues, sales and marketing expenses, research and development expenses, and general and administrative expenses in total were
Other income was
Income tax expenses were
Net loss was
Net loss attributable to
Basic and diluted net loss per share were both
____________________________
6 Non-GAAP adjusted income/(loss) represents net income/(loss) excluding share-based compensation expenses.
Certain Balance Sheet Items
As of
First Nine Months 2020 Financial Results
Total revenues were
- Online advertising services revenues decreased by 22.5% to
RMB103.5 million (US$15.2 million ) in the first nine months of 2020, fromRMB133 .6 million in the same period of 2019.
- Enterprise value-added services revenues decreased by 8.0% to
RMB151.9 million (US$22.4 million ) in the first nine months of 2020, fromRMB165 .0 million in the same period of 2019.
- Subscription services revenues were
RMB10.0 million (US$1.5 million ) in the first nine months of 2020, compared toRMB34 .2 million in the same period of 2019.
Cost of revenues was
Gross profit was
Operating expenses were
- Sales and marketing expenses increased by 29.3% to
RMB105.5 million (US$15.5 million ) in the first nine months of 2020, compared toRMB81.6 million in the same period of 2019. The increase was primarily attributable to an increase in share-based compensation expenses and marketing expenses.
- General and administrative expenses were
RMB130.6 million (US$19.2 million ) in the first nine months of 2020, compared toRMB84 .3 million in the same period of 2019. The increase was primarily attributable to an increase in the allowance for doubtful accounts and professional fees, partially offset by the decrease of share-based compensation expenses.
- Research and development expenses increased by 14.3% to
RMB29.3 million (US$4.3 million ) in the first nine months of 2020, compared toRMB25.6 million in the same period of 2019. The increase was primarily attributable to the increase of technology expenses related to technology procurement device maintenance and testing and share-based compensation expenses, partially offset by the decrease of payroll-related expenses.
Share-based compensation expenses recognized in cost of revenues, sales and marketing expenses, research and development expenses, and general and administrative expenses in total were
Other income was
Income tax expenses were
Net loss was
Net loss attributable to
Basic and diluted net loss per share were both
____________________________
7 Non-GAAP adjusted income/(loss) represents net income/(loss) excluding share-based compensation expenses.
Share Repurchase Program
On
Conference Call
The Company’s management will host an earnings conference call at
Event Title: | |
Conference ID: | 8996858 |
Registration Link: | http://apac.directeventreg.com/registration/event/8996858 |
All participants must use the link provided above to complete the online registration process at least 20 minutes in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in number, Direct Event passcode, and a unique registrant ID, which will be used to join the conference call.
Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.36kr.com.
A replay of the conference call will be accessible approximately two hours after the conclusion of the live call until
+1-855-452-5696 | |
International: | +61-2-8199-0299 |
800-963-117 | |
Mainland | 400-632-2162 |
Replay Access Code: | 8996858 |
About
Use of Non-GAAP Financial Measures
In evaluating its business, the Company considers and uses two non-GAAP measures, adjusted net income/(loss) and adjusted EBITDA, as supplemental measures to review and assess its operating performance. The presentation of these two non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with
These non-GAAP financial measures are not defined under
The Company compensates for these limitations by reconciling these non-GAAP financial measures to the nearest
Adjusted net income/(loss) represents net income/(loss) excluding share-based compensation expenses.
Adjusted EBITDA represents adjusted net income/(loss) before interest income, interest expenses, income tax expense/(credit), depreciation of property and equipment and amortization of intangible assets.
For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and non-GAAP results” set forth at the end of this press release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the
For investor and media inquiries, please contact:
In
Investor Relations
Tel: +86 (10) 5825-4188
E-mail: ir@36kr.com
Tel: +86 (10) 6508-0677
E-mail: 36Kr@tpg-ir.com
In
Tel: +1-212-481-2050
E-mail: 36Kr@tpg-ir.com
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
| 2019 | 2020 | 2020 | |||||
RMB’000 | RMB’000 | US$’000 | ||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 177,372 | 105,585 | 15,551 | |||||
Restricted cash | 505 | 8 | 1 | |||||
Short‑term investments | 86,362 | 93,386 | 13,754 | |||||
Accounts receivable, net | 538,537 | 362,307 | 53,362 | |||||
Receivables due from related parties | 4,615 | 964 | 142 | |||||
Prepayments and other current assets | 41,852 | 19,915 | 2,933 | |||||
Total current assets | 849,243 | 582,165 | 85,743 | |||||
Non‑current assets: | ||||||||
Property and equipment, net | 15,964 | 12,815 | 1,887 | |||||
Intangible assets, net | 356 | 485 | 71 | |||||
Equity method investments | 41,861 | 33,308 | 4,906 | |||||
Deferred tax assets | 3,391 | 3,534 | 521 | |||||
Operating lease right-of-use assets, net* | - | 31,312 | 4,612 | |||||
- | 1,395 | 205 | ||||||
Other non-current assets | - | 1,965 | 289 | |||||
Total non‑current assets | 61,572 | 84,814 | 12,491 | |||||
Total assets | 910,815 | 666,979 | 98,234 | |||||
Liabilities | ||||||||
Current liabilities: | ||||||||
Accounts payable | 139,336 | 69,179 | 10,189 | |||||
Salary and welfare payables | 50,721 | 40,266 | 5,931 | |||||
Taxes payable | 35,341 | 16,283 | 2,398 | |||||
Deferred revenue | 8,161 | 20,067 | 2,956 | |||||
Amounts due to related parties | - | 1,211 | 178 | |||||
Accrued liabilities and other payables | 33,308 | 11,728 | 1,727 | |||||
Short-term lease liabilities* | - | 15,388 | 2,266 | |||||
Total current liabilities | 266,867 | 174,122 | 25,645 | |||||
Non-current liabilities: | ||||||||
Long-term lease liabilities* | - | 16,012 | 2,358 | |||||
Total non-current liabilities | - | 16,012 | 2,358 | |||||
Total liabilities | 266,867 | 190,134 | 28,003 | |||||
Shareholders’ equity | ||||||||
Ordinary shares | 679 | 689 | 101 | |||||
(2,333 | ) | (10,597 | ) | (1,561 | ) | |||
Additional paid-in capital | 2,000,267 | 2,031,631 | 299,227 | |||||
Accumulated deficit | (1,358,350 | ) | (1,547,221 | ) | (227,881 | ) | ||
Accumulated other comprehensive loss | (3,054 | ) | (4,576 | ) | (674 | ) | ||
Total | 637,209 | 469,926 | 69,212 | |||||
Non-controlling interests | 6,739 | 6,919 | 1,019 | |||||
Total shareholders’ equity | 643,948 | 476,845 | 70,231 | |||||
Total liabilities and shareholders’ equity | 910,815 | 666,979 | 98,234 |
*The Company has adopted Accounting Standards Update No. 2016-02, Leases, beginning
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
2019 | 2020 | 2020 | 2019 | 2020 | 2020 | |||||||||||||||||||||||||||
RMB’000 | RMB’000 | US$’000 | RMB’000 | RMB’000 | US$’000 | |||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Online advertising services | 54,082 | 51,095 | 7,525 | 133,559 | 103,477 | 15,241 | ||||||||||||||||||||||||||
Enterprise value-added services | 63,974 | 66,404 | 9,780 | 165,046 | 151,850 | 22,365 | ||||||||||||||||||||||||||
Subscription services | 12,867 | 5,957 | 877 | 34,192 | 9,990 | 1,471 | ||||||||||||||||||||||||||
Total revenues | 130,923 | 123,456 | 18,182 | 332,797 | 265,317 | 39,077 | ||||||||||||||||||||||||||
Cost of revenues | (75,837 | ) | (76,626 | ) | (11,286 | ) | (213,957 | ) | (190,798 | ) | (28,102 | ) | ||||||||||||||||||||
Gross profit | 55,086 | 46,830 | 6,896 | 118,840 | 74,519 | 10,975 | ||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Sales and marketing expenses | (31,756 | ) | (31,611 | ) | (4,656 | ) | (81,636 | ) | (105,540 | ) | (15,544 | ) | ||||||||||||||||||||
General and administrative expenses | (37,416 | ) | (20,450 | ) | (3,012 | ) | (84,265 | ) | (130,644 | ) | (19,242 | ) | ||||||||||||||||||||
Research and development expenses | (8,695 | ) | (11,181 | ) | (1,647 | ) | (25,643 | ) | (29,301 | ) | (4,316 | ) | ||||||||||||||||||||
Total operating expenses | (77,867 | ) | (63,242 | ) | (9,315 | ) | (191,544 | ) | (265,485 | ) | (39,102 | ) | ||||||||||||||||||||
Loss from operations | (22,781 | ) | (16,412 | ) | (2,419 | ) | (72,704 | ) | (190,966 | ) | (28,127 | ) | ||||||||||||||||||||
Other income/(expenses): | ||||||||||||||||||||||||||||||||
Share of loss from equity method investments | - | (2,021 | ) | (298 | ) | - | (7,728 | ) | (1,138 | ) | ||||||||||||||||||||||
Gain on disposal of a subsidiary | 11,454 | - | - | 11,454 | - | - | ||||||||||||||||||||||||||
Short-term investment income | 880 | 583 | 86 | 3,261 | 1,069 | 157 | ||||||||||||||||||||||||||
Others, net | 462 | 3,905 | 575 | 399 | 8,430 | 1,242 | ||||||||||||||||||||||||||
Loss before income tax | (9,985 | ) | (13,945 | ) | (2,056 | ) | (57,590 | ) | (189,195 | ) | (27,866 | ) | ||||||||||||||||||||
Income tax expenses | (2,383 | ) | (21 | ) | (3 | ) | (276 | ) | (16 | ) | (2 | ) | ||||||||||||||||||||
Net loss | (12,368 | ) | (13,966 | ) | (2,059 | ) | (57,866 | ) | (189,211 | ) | (27,868 | ) | ||||||||||||||||||||
Accretion on redeemable non-controlling interests to redemption value | (1,477 | ) | - | - | (1,808 | ) | - | - | ||||||||||||||||||||||||
Accretion of convertible redeemable preferred shares to redemption value | (276,012 | ) | - | - | (517,023 | ) | - | - | ||||||||||||||||||||||||
Re-designation of Series A-1 into Series B-3 convertible redeemable preferred shares | - | - | - | (26,787 | ) | - | - | |||||||||||||||||||||||||
Redesignate from ordinary shares to A-1, A-2, B-1, B-2, B-3, and issuance of A-1. A-2. B-1, B-2, B-3 preferred shares | (309,984 | ) | - | - | (309,984 | ) | - | - | ||||||||||||||||||||||||
Redesignate from ordinary shares to C-2 | (36,977 | ) | - | - | (36,977 | ) | - | - | ||||||||||||||||||||||||
Net loss/(income) attributable to non-controlling interests | 1,215 | (50 | ) | (7 | ) | 1,351 | 340 | 50 | ||||||||||||||||||||||||
Net loss attributable to 36Kr Holdings Inc.’s ordinary shareholders | (635,603 | ) | (14,016 | ) | (2,066 | ) | (949,094 | ) | (188,871 | ) | (27,818 | ) | ||||||||||||||||||||
Net loss | (12,368 | ) | (13,966 | ) | (2,059 | ) | (57,866 | ) | (189,211 | ) | (27,868 | ) | ||||||||||||||||||||
Other comprehensive loss | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (82 | ) | (3,667 | ) | (540 | ) | (85 | ) | (1,522 | ) | (224 | ) | ||||||||||||||||||||
Total other comprehensive loss | (82 | ) | (3,667 | ) | (540 | ) | (85 | ) | (1,522 | ) | (224 | ) | ||||||||||||||||||||
Total comprehensive loss | (12,450 | ) | (17,633 | ) | (2,599 | ) | (57,951 | ) | (190,733 | ) | (28,092 | ) | ||||||||||||||||||||
Accretion on redeemable non-controlling interests to redemption value | (1,477 | ) | - | - | (1,808 | ) | - | - | ||||||||||||||||||||||||
Accretion of convertible redeemable preferred shares to redemption value | (276,012 | ) | - | - | (517,023 | ) | - | - | ||||||||||||||||||||||||
Re-designation of Series A-1 into Series B-3 convertible redeemable preferred shares | - | - | - | (26,787 | ) | - | - | |||||||||||||||||||||||||
Redesignate from ordinary shares to A-1, A-2, B-1, B-2, B-3, and issuance of A-1. A-2. B-1, B-2, B-3 preferred shares | (309,984 | ) | - | - | (309,984 | ) | - | - | ||||||||||||||||||||||||
Redesignate from ordinary shares to C-2 | (36,977 | ) | - | - | (36,977 | ) | - | - | ||||||||||||||||||||||||
Net loss/(income) attributable to non-controlling interests | 1,215 | (50 | ) | (7 | ) | 1,351 | 340 | 50 | ||||||||||||||||||||||||
Comprehensive loss attributable to 36Kr Holdings Inc.’s ordinary shareholders | (635,685 | ) | (17,683 | ) | (2,606 | ) | (949,179 | ) | (190,393 | ) | (28,042 | ) | ||||||||||||||||||||
Net loss per ordinary share (RMB) | ||||||||||||||||||||||||||||||||
Basic | (2.535 | ) | (0.014 | ) | (0.002 | ) | (3.239 | ) | (0.185 | ) | (0.027 | ) | ||||||||||||||||||||
Diluted | (2.535 | ) | (0.014 | ) | (0.002 | ) | (3.239 | ) | (0.185 | ) | (0.027 | ) | ||||||||||||||||||||
Net loss per ADS (RMB) | ||||||||||||||||||||||||||||||||
Basic | - | (0.344 | ) | (0.051 | ) | - | (4.625 | ) | (0.681 | ) | ||||||||||||||||||||||
Diluted | - | (0.344 | ) | (0.051 | ) | - | (4.625 | ) | (0.681 | ) | ||||||||||||||||||||||
Weighted average number of ordinary shares used in per share calculation | ||||||||||||||||||||||||||||||||
Basic | 250,756,678 | 1,019,876,247 | 1,019,876,247 | 281,664,251 | 1,020,871,848 | 1,020,871,848 | ||||||||||||||||||||||||||
Diluted | 250,756,678 | 1,019,876,247 | 1,019,876,247 | 281,664,251 | 1,020,871,848 | 1,020,871,848 | ||||||||||||||||||||||||||
Weighted average number of ADS used in per ADS calculation | ||||||||||||||||||||||||||||||||
Basic | - | 40,795,050 | 40,795,050 | - | 40,834,874 | 40,834,874 | ||||||||||||||||||||||||||
Diluted | - | 40,795,050 | 40,795,050 | - | 40,834,874 | 40,834,874 | ||||||||||||||||||||||||||
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
| Three Months Ended | Nine Months Ended | |||||||||||||||
2019 | 2020 | 2020 | 2019 | 2020 | 2020 | ||||||||||||
RMB’000 | RMB’000 | US$’000 | RMB’000 | RMB’000 | US$’000 | ||||||||||||
Net loss | (12,368 | ) | (13,966 | ) | (2,059 | ) | (57,866 | ) | (189,211 | ) | (27,868 | ) | |||||
Share-based compensation expenses | 25,750 | 4,618 | 680 | 54,858 | 30,215 | 4,450 | |||||||||||
Non-GAAP adjusted net income/(loss) | 13,382 | (9,348 | ) | (1,379 | ) | (3,008 | ) | (158,996 | ) | (23,418 | ) | ||||||
Interest expenses/(income), net | 101 | (561 | ) | (83 | ) | 147 | (1,343 | ) | (198 | ) | |||||||
Income tax expenses | 2,383 | 21 | 3 | 276 | 16 | 2 | |||||||||||
Depreciation and amortization expenses | 900 | 1,518 | 224 | 2,815 | 4,081 | 601 | |||||||||||
Non-GAAP adjusted EBITDA | 16,766 | (8,370 | ) | (1,235 | ) | 230 | (156,242 | ) | (23,013 | ) |
Source:
2020 GlobeNewswire, Inc., source