Zhihu Inc. (NYSE:ZH) Q2 2023 Earnings Call Transcript

Operator: The next question comes from Yiwen Zhang with Chinese Renaissance. Please proceed.

Yiwen Zhang: [Foreign Language] So my question regarding our margin. Is there any update on reaching breakeven timetable? And what are the drivers for us to reach in such breakeven point. Thank you.

Henry Sha: Thank you Yiwen. This is Henry. I think in the second half of this year, we will reaffirm and prioritize our loss reduction strategy for the rest of the year. And also, this is the main topic for the next year. I think the approach is two ways. First one, we will enhance our commercialization capability by booting our both marketing services business and to see the business by including the growth of the membership business as well as the vocational training business, which to see. We believe that there is some changing happening with our revenue structure. And we are confident that we will get a recovery in terms of the revenue growth for the second half of this year and the next year. The second way is to the more prudent investment as well as in the — like the marketing spending.

I think that we are doing a cost reduction program for the second half of this year. I think the loss reduction strategy is on track so far by looking to our Q2 business and the results. Does that answer your question?

Yiwen Zhang: Yes.

Henry Sha: Thank you, Yiwen.

Operator: That concludes today’s question-and-answer session. At this time, I would like to turn the conference back to Iris for any closing remarks.

Yolanda Lian Liu: Thank you once again for joining us today. If you have any further questions, please contact our IR team directly or Piacente Financial Communications. Thank you.

Operator: The conference has now concluded. Thank you for attending today’s presentation, and you may now disconnect.