36Kr Holdings (KRKR)·H2 2024 Earnings Summary
36Kr Holdings H2 2024 Earnings
Chinese tech media platform delivers dramatic cost cuts but faces persistent revenue headwinds
Executive Summary
36Kr Holdings (NASDAQ: KRKR) reported H2 2024 results on March 11, 2025, revealing a company in aggressive restructuring mode. While management successfully executed a 50% reduction in operating expenses, revenue declines accelerated to -36% YoY as advertising demand from Chinese tech companies remained weak.
The Bottom Line: A tale of two stories - operational efficiency improvements are real and impressive, but the revenue trajectory remains deeply concerning. The company is burning less cash but hasn't yet stabilized the top line.
Financial Results
H2 2024 Performance
Full Year 2024 Performance
Revenue by Segment
Operating Metrics
Customer Metrics (FY 2024)
Balance Sheet
Stock Performance
Note: KRKR effected a 1:20 ADS ratio change on October 3, 2024 (from 1 ADS = 25 shares to 1 ADS = 500 shares), significantly impacting per-ADS metrics.
Beat/Miss Analysis
No analyst estimates available. KRKR is a micro-cap ADR ($7.5M market cap) with limited institutional coverage. The company does not provide formal guidance.
What Went Right ✓
1. Operating Expense Reduction - Dramatic 50% Cut
"Our operating expenses in the second half of 2024 decreased by 50% compared to the same period of 2023."
The cost-cutting was comprehensive:
- S&M Expenses: -40% to RMB 37.2M
- G&A Expenses: -58% to RMB 30.3M
- R&D Expenses: -56% to RMB 5.6M
2. Gross Margin Held Above 50%
Despite revenue pressures, H2 gross margin remained at 52% - down only 4pp from 56% in H2 2023.
3. Platform Growth - 16 Consecutive Quarters
Followers grew 10% YoY to 35.9M, marking 16 consecutive quarters of growth. This is the company's most durable competitive moat.
4. AI Content Leadership
36Kr was the only global tech media to interview DeepSeek founder Liang Wenfeng twice before DeepSeek gained widespread attention. First to report on AI industry developments like "six AI tigers faced exit from pre-training."
5. Global Expansion Progress
- Launched 36Kr Europe website with AIGC-powered content
- Initiated Beijing International Chamber of Commerce Global Expansion Service Committee
- Signed partnership with Hangzhou Qian Tang New Area for Chinese Enterprise International Service Center
What Went Wrong ✗
1. Revenue Decline Accelerated
All three business segments declined significantly:
2. Net Loss Widened Significantly
Despite cost cuts, net loss increased to RMB 44.9M in H2 (vs RMB 36.6M in H2 2023) due to:
- RMB 37.2M investment impairment loss
- Share of losses from equity method investments of RMB 3.2M
3. Customer Base Erosion
Ad customers declined 16% to 411, and enterprise customers collapsed 48% to 158. The company is deliberately shedding low-margin and high-credit-risk customers, but the volume of departures is concerning.
4. Cash Position Declining
Cash and investments fell from RMB 116.9M to RMB 91.7M over the year - a 22% decline. At current burn rate, runway is a concern.
Management Commentary
CEO Dagang Feng on Efficiency Improvements:
"2024 marked a year of comprehensive operating efficiency improvements for 36Kr. Our total operating expenses as a percentage of total revenues decreased by 17% in the second half of 2024 compared to the second half of 2023, while our gross profit margin remained about 50%."
CFO Xiang Li on Cost Discipline:
"We significantly enhanced operational efficiency throughout 2024, cutting our total operating expenses by 50% year-over-year for the second half of 2024 and 31% for the full year. Heading into 2025, we will focus on amplifying our core competitive advantages and explore broader AI-powered commercialization strategies."
On Advertising Outlook:
"In 2024, we proactively optimized our advertising products and advertiser customer base, adjusting certain low-margin and high-risk advertising businesses... Despite macroeconomic headwinds, we continue to depend on our expertise in key content verticals that matter most to our clients, such as AI and global expansion."
On AI Strategy:
"We integrated DeepSeek in February 2025. AI meeting coverage has covered over 330 companies since its launch, highlighting their latest initiatives and fundraising ventures. 36Kr corporate omni-intelligence currently covers over 7,800 public companies listed in mainland China and Hong Kong."
Q&A Highlights
Q: How does management view the advertising business outlook?
A (CEO Feng): "We are cautiously optimistic about our advertising growth trajectory for 2025. Despite the macroeconomic headwinds, we continue to depend on our expertise in key content verticals that matter most to our clients, such as AI and global expansion. By empowering customers across diverse industries with premium content solutions and constantly optimizing our products and client structure, we are confident we can strengthen our advertising business resilience."
Q: What progress has the company made in cost reduction?
A (CEO Feng): "In 2024, we implemented an array of cost-cutting and efficiency enhancement initiatives, including relocating to an office building with lower rental costs, streamlining our tech and R&D teams, adjusting unprofitable businesses, improving workforce efficiency, and upgrading our organizational structure. Additionally, we are integrating AI technology and AI tools on all fronts, effectively saving costs and elevating efficiency."
Q: What is the outlook for enterprise value-added services?
A (CEO Feng): "Small and medium enterprises and government institutions made up the majority of our enterprise value-added services clients, and they are relatively more affected by macroeconomic dynamics. We strategically restructured our existing network of regional outlets and optimized our service architecture for governments... On the upside, this strategic adjustment has optimized our business and product portfolio, reinforcing both sustainability and profitability."
Q: How is the company positioned in generative AI?
A (CEO Feng): "We were the only tech media worldwide to have exclusively interviewed DeepSeek's founder Liang Wenfeng twice. We were also the first in the industry to report on key industry developments like 'six AI tigers faced exit from pre-training.' The company launched AI-powered products in 2024, including AI text-to-image, AI lab, AI financial report interpretation, AI meeting coverage, and 36Kr corporate omni-intelligence."
Management Tone Evolution
Trajectory: Management narrative has shifted from growth-focused (2023) to efficiency/survival-focused (2024). The optimism from Q4 2023 about "robust advertising growth" proved unfounded - advertising revenue fell 24% in FY2024.
Strategic Initiatives
AI Integration
- Launched AI text-to-image, AI financial report interpretation, AI meeting coverage
- Integrated DeepSeek model in February 2025
- 36Kr corporate omni-intelligence covers 7,800+ A-share and HK-listed companies
- Over 330 companies covered through AI meeting coverage
Global Expansion (Go-Global)
- Launched 36Kr Europe website with AIGC-powered content in English, German, Chinese
- Initiated Beijing International Chamber of Commerce Global Expansion Service Committee (26 members including LinkedIn China, KPMG, Ant Financial)
- Signed Hangzhou Qian Tang partnership for Chinese Enterprise International Service Center
Content & IP Events
- "WISE 2024 Business Kings Conference" - 850M+ total views
- "Foreseeing 2034" talk show featuring NIO founder Li Bin - 84M views
- First e-commerce livestream - 1.63M views, ranked #1 on Douyin's smart device category
- 8,090 articles published, 757 achieved 100K+ page views on WeChat
Key Takeaways
- Cost Cuts Are Real: Operating expenses down 50% YoY demonstrates serious commitment to survival
- Revenue Problem Unresolved: Top-line continues to deteriorate across all segments
- Platform Moat Intact: 35.9M followers with 16 quarters of consecutive growth
- AI Content Leadership: Exclusive DeepSeek coverage demonstrates content differentiation
- Cash Runway Concern: RMB 91.7M cash with quarterly burn suggests 6-8 quarter runway
- Micro-Cap Risk: $7.5M market cap, limited liquidity, no analyst coverage
Outlook for 2025
Management is targeting continued efficiency improvements and exploring AI-powered commercialization. Key developments to watch:
- Can advertising revenue stabilize?
- Will global expansion initiatives generate meaningful revenue?
- Cash runway sustainability
- Progress on AI monetization (corporate omni-intelligence subscriptions)
Based on H1 2025 results (released September 2025): Revenue declined 9% to RMB 93.2M but net loss narrowed 95% to RMB 4.8M, suggesting the efficiency improvements are working. Gross margin improved to 54.4%.
Links
- Company: /app/research/companies/KRKR
- Transcript: /app/research/companies/KRKR/documents/transcripts/H2-2024
- Prior Earnings: /app/research/companies/KRKR/earnings/H1-2024