36Kr (KRKR) 3 Sep 24 2024 Q2 Earnings call transcript

36Kr Holdings Inc. unveiled its financial and operational results for the first half of 2024, showcasing a solid performance amidst persistent market challenges. The company's Co-chairman and CEO, Dagang Feng, led the earnings call, highlighting key achievements and future growth strategies.

Solid Operational Performance Amidst Challenges

Despite the challenging market conditions, 36Kr Holdings managed to deliver a robust operational performance. Online advertising services ARPU rose by 22% year-over-year, while subscription services ARPU among institutional customers increased by 8%. The company also boasted over 33.28 million followers, marking a 9% year-over-year increase. These achievements are a testament to the company's effective execution of its 3-step strategy, positioning, expansion, and collaboration.

Content Expansion and Diversification

In the first half of 2024, 36Kr Holdings significantly expanded its content offerings, particularly in the short video segment. The company's strategic partnerships with leading platforms like Bilibili, Douyin, and Kuaishou have bolstered its presence, driving a notable increase in short video followers. 36Kr's content creation promise, coupled with its substantial platform influence, has allowed it to cater to a broader range of companies and institutions, further strengthening its position as a top content IP creator.

Strategic Expansion and Partnerships

The company's strategic expansion efforts have been instrumental in broadening its customer base across various sectors. In 2024, 36Kr Holdings made remarkable progress in catering to the content marketing needs of companies in sectors such as food and beverage, restaurant chains, sports and outdoor, beauty and personal care, and home appliances. The company's ventures into the energy storage sector, coupled with its tailored marketing services for global players in the mobile payment sector, have further solidified its position as a leading content marketing platform.

Future Outlook and Strategies

Looking ahead, 36Kr Holdings remains cautiously optimistic about future growth prospects. The company plans to continue optimizing its products and services, providing deeper support to core customers, and expanding its reach to new channels. The integration of AI technology with content production is expected to enable the company to engage with a broader range of companies and institutions. 36Kr Holdings' ongoing content development efforts, coupled with its high-profile partnerships with leading brands, are poised to drive continued growth in the second half of the year.

Financial Highlights and Future Plans

The first half of 2024 saw a decrease in total revenue compared to the same period last year, mainly due to a reduction in advertising spending by certain industries and challenging external environment. However, the company remains focused on refining its service offerings and optimizing its cost structure. Looking ahead, 36Kr Holdings plans to launch its Waves Summit in October 2024, focusing on innovative services for its customers and audiences. The company is also channeling strategic resources to its overseas ventures, establishing leading operations in Europe and working with government entities and businesses to expand its global footprint.

Conclusion

36Kr Holdings Inc.'s solid first half performance, coupled with its strategic expansion efforts and innovative content offerings, position the company well for continued growth in the second half of 2024. The integration of AI technology and strategic partnerships with leading global brands are expected to drive further expansion and diversification. As 36Kr Holdings navigates the challenges of the evolving market landscape, its focus on customer-centric strategies and innovative content offerings will remain key to its long-term success.