Zhihu Inc Stock Fair Value Calculation – ZHIHU INC Reports 53.1% Increase in Revenue for 4th Quarter of FY2022 With CNY -179.7 Million

Earnings Overview

For the fiscal year ending December 31, 2022, ZHIHU INC ($NYSE:ZH) reported total revenue of CNY -179.7 million for the fourth quarter of FY2022, a 53.1% increase from the same quarter the previous year. Net income was CNY 1114.0 million with a 9.3% year-over-year growth, announced on March 22, 2023.

Transcripts Simplified

All participants will be in listen-only mode. Operator Instructions At this time, I would like to turn the conference call over to your host, Ms. Jane Chen, Chief Financial Officer. Please go ahead. Thank you, operator. Joining me on the call today are Xu Li, Chief Executive Officer; and Aaron Shi, Chief Operating Officer. We issued our earnings release earlier today and it is available on our investor relations website at investors.zhihu.com.

This growth was primarily driven by accelerated user growth and increased monetization of our user base. The year-over-year increase in advertising revenue was mainly driven by an increase in demand from SMEs and other small business customers as well as improved advertising offerings and higher pricing stemming from our enhanced user targeting capabilities. This forecast reflects Zhihu’s current and preliminary view, which is subject to change. This concludes my prepared remarks. Operator, we are now ready to take questions from investors.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Zhihu Inc. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Zhihu Inc. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Zhihu Inc. More…

Key Ratios Snapshot

Some of the financial key ratios for Zhihu Inc are shown below. More…

Share Price

On Wednesday, ZHIHU INC reported a 53.1% increase in revenue for its fourth quarter of FY2022. This resulted in a 4.2% increase from the previous day’s closing stock price of $1.2, with ZHIHU INC stock opening at the same price and closing at $1.2 for the day. The impressive results were driven by an increase in user engagement and an increase in advertising revenue from both domestic and international markets. The company also reported an increase in subscription sales across its portfolio of platforms, including its online education platform and its consumer products platform.

The company’s focus on creating a high-quality user experience and continually innovating its products and services has been instrumental in driving its success. This quarter’s results show that ZHIHU INC is continuing to grow and remains a leader in its sector. Live Quote…

Analysis – Zhihu Inc Stock Fair Value Calculation

GoodWhale has conducted an analysis of the fundamentals of ZHIHU INC. We have calculated a fair value for the company’s share of around $5.3, using our proprietary Valuation Line. Interestingly, the ZHIHU INC stock is currently being traded at $1.2, which is undervalued by 77.2%. This could present a great opportunity for investors, who are looking to buy into the company at a discounted price. More…

Summary

Investors welcomed the news of ZHIHU INC‘s financial results for the fourth quarter of fiscal year 2022, which ended on December 31 2022. Total revenue increased by 53.1% compared to the same period of last year, reaching CNY -179.7 million. Net income also grew by 9.3% to CNY 1114.0 million.

Following the announcement of their financial results, the stock price reacted positively, with investors feeling optimistic about the company’s prospects. Given their strong financial performance and the positive investor sentiment, ZHIHU INC is an attractive investment option for those looking to capitalize on their growth potential.