Zhihu Shares Pop As MAU Drive 115% Revenue Growth In Q3

Zhihu Inc ZH reported third-quarter FY21 revenue growth of 115.1% year-on-year to $127.8 million (RMB823.5 million), missing the consensus of $128 million.
Segments: Zhihu's Advertising revenue increased 38.9% Y/Y to $49.8 million.
Paid membership revenue expanded 95.8% Y/Y to $27.7 million.
Content-commerce solutions revenue rose 511.9% Y/Y to $43.2 million.
Drivers: Average monthly active users (MAUs) grew 40.1% Y/Y to 101.2 million.
Average monthly paying members rose 109.9% Y/Y to 5.5 million.
Margin: The gross margin contracted by 590 bps to 51.6% as the costs surged 144.8% Y/Y.
Loss per ADS of $(0.07) missed the consensus loss of $(0.05).
Zhihu held $1.2 billion in cash and equivalents.
Outlook: Zhihu sees Q4 revenue of RMB1.01 billion - RMB1.03 billion.
Price Action: ZH shares traded higher by 7.46% at $8.5 in the premarket session on the last check Monday.

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