Zhihu Inc. (ZH) declined in the current market after announcing its unaudited fourth quarter and fiscal 2021 results. ZH values at $1.58, losing more than 25% compared to Friday’s closing price. The stock closed at $2.11 at the end of the last trading session. The stock volume traded in the previous trading session was around 2.12 million shares. The current market cap of the company is about $880.75 million.
ZH: Q4 and Fiscal 2021 Key Financials
- Zhihu Inc.’s revenue in Q4 2021 was RMB 1.01 billion. It is an increase of 96.1% compared to the revenue of RMB 519.8 million in Q4 2020.
- Fiscal 2021 revenue was RMB 2.95 billion, 118.9% more than the revenue of RMB 1.3 billion in fiscal 2020.
- The company’s net loss in Q4 2021 was around RMB 383.3 million, more than compared to the net loss of RMB 90.1 million in Q4 2020.
- ZH’s net loss in fiscal 2021 was around RMB 1.29 billion; almost double than compared to the net loss of RMB 517.6 million in fiscal 2020.
- The Q4 2021 basic and diluted loss per share was RMB 0.65, compared to a net loss of RMB 1.97 in Q4 2020.
- For fiscal 2021, basic and diluted loss per share was RMB 3.06, compared to RMB 9.18 in fiscal 2020.
ZH: Chairman and CEO’s Remarks
Chairman and Ceo Yuan Zhou noted that 2021 was a landmark year for Zhihu. Despite a challenging market climate, they accomplished their IPO in March and ended the year with strong financial progress. They promoted and distributed satisfying content throughout the year, which they define as stuff that broadens minds, solves problems, and engages minds. He further added that they would continue to improve operational efficiency and meet social duties as they continue to uncover the potential of our unique content-centric ecosystem.
ZH Q1 2022 Outlook
Zhihu Inc. (ZH) estimates its total sales to be between RMB720 million and RMB740 million in the first quarter of 2022. These predictions are based on current market conditions and preliminary estimations made by the company, but that could be revised.
Conclusion
The company intends to increase its market share as its revenue growth was incredible this year. Currently, they are focusing on revenue growth, and profitability is the later part of their strategy. Their revenue defines the effect of content its improvement strategy.
