36Kr Holdings Inc. (KRKR) Reports Q2 Loss of $0.11

36Kr Holdings Inc. (NASDAQ: KRKR) reported Q2 EPS of ($0.11). Revenue for the quarter came in at $10.85 million, versus $0 reported last year.

Mr. Dagang Feng, co-chairman and chief executive officer of 36Kr, commented, “In the second quarter, in light of the enduring adverse impact of the COVID-19 to the macro-economy, we have been actively adjusting our business operations to adapt to the new normal and seeking new opportunities. Content production and distribution capabilities remain as our key strengths and continue to generate strong traffic on our platform, with an average monthly PV of 499.2 million for the twelve-month period ended June 30, 2020, up 43.6% year-over-year. Notably, although the traffic of our livestreaming and newly offered short-video content was not included in the PV metric, these new content categories have drawn considerable attention. As short-form video and livestreaming attract surging popularity, we are pivoting our efforts toward these new media forms in our content production to accommodate the audience’s evolving preference. With massive and diverse high-quality content from both inhouse and third-party providers, we are consolidating our leadership as an influential New Economy-focused content platform.

“We have taken creative approaches such as livestreaming marketing events to enhance commercial opportunities for New Economy participants, helping them get more exposures, realize efficient client acquisition, and establish collaborative business connections under current market conditions. It is worth mentioning that our service solutions, such as online marketing and virtual roadshows, have also been well accepted by local governments. We will continue to expand and deepen our collaboration with clients across all types of New Economy participants in a broader range of industries. Facing the new normal brought by the COVID-19, we will leverage our brand influence, network resources, service experience, and content capabilities, to actively explore and identify clients’ evolving demands, and address their needs with our efficient solutions. We remain dedicated to serving New Economy participants, helping them recover and thrive in the new market environment, while delivering long-term value to our shareholders,” Mr. Feng concluded.

Ms. Jihong Liang, director, and chief financial officer of 36Kr, stated, “Compared with the same period of last year, our soft topline performance in the second quarter of 2020 reflects the lingering and profound impact from the COVID-19 pandemic, as clients delayed their marketing programs and promotional activities due to market uncertainties. Under the challenging macroeconomic conditions, we deployed a more stringent cash management policy such as requiring prepayment for certain projects and a strict selection of high-quality clients to maintain healthy cash flows. On the other hand, we have made prudent investments in technologies to further optimize user experience and prepare for the changing market environment, which is crucial to our future growth. Despite the difficulties, it is encouraging that in the second quarter of 2020, we achieved positive operating cash flow for the first time, demonstrating our solid operation and sustainable business. We remain optimistic for a brighter prospect of the New Economy and are determined to grow along with this promising community.”

For earnings history and earnings-related data on (KRKR) click here.

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