Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Phoenix New Media Ltd (FENG, Financial) achieved a 7% increase in total revenues year-over-year, reaching RMB164.3 million.
- Net advertising revenues grew by 10.5% compared to the same period last year, indicating strong performance in this segment.
- The company's gross margin improved to 37.9% from 34.1% in the previous year, reflecting better cost management.
- Phoenix New Media Ltd (FENG) successfully executed marketing campaigns for over 10 clients during the Paris Olympics, achieving both recognition and profitability.
- The company hosted a successful finance forum with nearly 1 billion views, enhancing its brand influence in the finance sector.
Negative Points
- Paid services revenues decreased from RMB19.3 million to RMB15.9 million year-over-year, indicating a decline in this revenue stream.
- Despite improvements, the company still reported a net loss of RMB18.5 million for the quarter.
- There is a trend of declining advertising spend per customer, which could impact future revenue growth.
- The increasing complexity and cost of project execution pose challenges to maintaining efficient operations.
- The company faces substantial uncertainties in its business outlook, reflecting potential volatility in future performance.
Q & A Highlights
Q: In the third quarter, the company achieved year-over-year growth in advertising revenue. Could the management discuss the challenges in advertising and the outlook for the future?
A: Xiaojing Lu, Chief Financial Officer, explained that the company's advertising revenue outperformed the overall internet media advertising market due to an improved content monetization strategy and tactical adjustments. These included restructuring the sales team, content team incentives, and measures to encourage innovation. The public values content quality, human-centered narratives, and emotional connections, which have been core attributes of the company. Despite challenges like declining advertising spend per customer and increasing project execution costs, the company remains confident in market opportunities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
