Joho Inc reports significant improvement in profitability, achieving a non-GAAP net profit for the first time in Q1, attributed to enhanced operating strategy and AI integration. The company highlights increased user engagement, core user retention, and content quality. AI applications, particularly the new contributor attribution feature, are emphasized as a priority for growth and community enhancement.

In the first quarter of 2025, the cotton sector experienced growth in consumption and creation, alongside a strengthened sense of community. Key user metrics showed increased engagement, with average daily user time spanning nearly 38 minutes, up 17.6% year over year. The platform witnessed a 46% annual increase in professional content, deepening user trust and driving more interactive exchanges.

Zhihu experiences significant growth in high-quality content creation and AI integration, ranking highly in search engines and cited frequently by AI models. The platform sees a 20% increase in verified expert creators, discussing topics from AI foundational technologies to startup journeys. User engagement surges, with a 37% increase in monthly active users, particularly in technology, finance, workplace, and health sectors. Upcoming updates include a public knowledge base to enhance scalability and value delivery by professional content creators.

In Q1 2025, Zhihu reported a total revenue of RMB 729.7 million, with a sequential decline in revenue from marketing services attributed to the adoption of a trustworthy content model. Despite this, the company saw an increase in the average number of paying members to 14.2 million, driven by premium short-form paid content and new educational opportunities. Zhihu is leveraging its AI capabilities to upgrade marketing products and explore new AI application scenarios with brand partners, positioning itself as a key node in the AI search value chain.

Upon release, an original audio drama gains significant popularity, enhancing the platform's content diversity. Meanwhile, a strategic transformation in vocational training focuses on integrating high-quality content with social interactions, aiming to empower professional creators. This approach is expected to improve operational efficiency and profitability, positioning the platform for sustainable leadership in the next generation of intelligent content platforms by leveraging AI, trusted creator networks, and high-quality content.

The company reported non-GAAP profitability and an expansion in gross margin in Q1 2025, with total revenue at RMB 729.7 million. Marketing services revenue decreased due to optimized service offerings, while payment machine branding revenue and vocal training revenue also saw declines amid strategic refinements. Gross profit increased to RMB 445.1 million with a significant expansion in gross margin. Operating expenses declined by 34.4% year-over-year, driven by improved cost management and technological innovation. The company remained profitable on a non-GAAP basis and announced share repurchase programs, focusing on sustainable growth and profitability.

Management discusses the strategic AI plans, emphasizing the rise of intelligent selling of AI models over the next two years. The focus centers on trustworthy content and an expert network, summarized in a formula that leads to scalable growth.

In a community utilizing Juda as an AI interface, the focus lies on leveraging user feedback for continuous improvement rather than rushing cookie-cutter features. Recognizing the rapid advancement in foundation models' intelligence, the strategy avoids unnecessary customization, emphasizing lasting value for users over mere model capability showcases. As of May 29, 2025, the approach is yielding insights into effective engagement and feature relevance.

The focus is on integrating more experts into the system through an expert network, emphasizing contributor attribution and traceability. Additionally, plans include aggregating high-quality content, launching public knowledge bases, and providing reliable support particularly for students during the College entrance examination season in China. The evolution aims to extend beyond content to new stages with the development of agent-based technologies.

A question is posed regarding the involvement and dynamics of users within a specific community, seeking insights on user interaction and utilization.

The focus has shifted to enhancing the ecosystem's quality, marked by stable community user scale and improved user health metrics. The 11th Zhu Youth Knowledge Conference received positive feedback, highlighting incremental changes leading to significant breakthroughs. Professional creators under various programs saw substantial growth, expanding their influence with increased interactions. New features like upgraded columns and ideas support long and short-form content, driving rapid growth in content creation and user engagement.

The focus for 2025 is on business model optimization, aligning the community ecosystem with commercial operations, and enhancing brand value and pricing power for sustainable growth. Despite a year-over-year revenue decline in Q1, each business segment is entering a new phase of growth involving evolved monetization models.

Facing low-quality service and declining content consumption, the company is optimizing its marketing strategies and product updates, leveraging AI for new opportunities. It's diversifying premium content, enhancing competitive edge, and shifting vocational training to a more engaging, knowledge-sharing model, while maintaining disciplined investments in AI-driven initiatives.

Amid ecosystem upgrades and AI advancements, the focus is on operational refinement and granular measurement execution to surpass initial financial expectations for the year.

On May 29, 2025, participants are guided on how to ask questions during an event: they must press star 11 on their phones and wait to be called upon.

Management discusses improved quarterly performance and announces a 2025 buyback plan, authorized to repurchase up to 10% of issued and outstanding shares, expressing confidence in the company's long-term success.