Phoenix New Media (FENG) Q3 2024 earnings summary

Executive summary

• Total revenues for Q3 2024 rose 7% year-over-year to CNY 164.3 million, driven by a 10.5% increase in net advertising revenues and a focus on high-quality original content and rapid coverage of major news events.

• Gross profit increased 18.9% year-over-year to CNY 62.3 million, with gross margin improving to 37.9% from 34.1%.

• Net loss attributable to shareholders narrowed to CNY 18.5 million from CNY 21.5 million, with net margin improving to -11.3% from -14.0%.

• Operating expenses decreased 3% year-over-year due to strict cost controls, reducing loss from operations to CNY 25.9 million.

• Enhanced commercialization efficiency by aligning content with client needs, especially in cultural tourism and culinary sectors.

Financial highlights

• Total revenues reached CNY 164.3 million, up 7% year-over-year from CNY 153.6 million.

• Net advertising revenues grew 10.5% year-over-year to CNY 148.4 million.

• Paid services revenues were CNY 15.9 million, down 17.6% year-over-year.

• Gross margin improved to 37.9% from 34.1% year-over-year.

• Cash, term deposits, short-term investments, and restricted cash totaled CNY 971.8 million as of September 30, 2024.

Outlook and guidance

• Q4 2024 total revenues forecasted between CNY 197.9 million and CNY 212.9 million.

• Net advertising revenues expected between CNY 180.2 million and CNY 190.2 million; paid service revenues between CNY 17.7 million and CNY 22.7 million.

• Guidance reflects current views and is subject to substantial uncertainties due to macroeconomic conditions.