Zhihu's revenue fell 22% year-on-year in Q3 2023. The company slid back into losses after achieving profitability earlier this year. Paid membership revenue dropped 16%, and user engagement significantly declined. AI advancements threaten Zhihu's business model and traditional content platforms. Zhihu's shares fell over 8% post-earnings report, indicating market distrust.
Zhihu reported its first profit at 86.4 million yuan despite a 25% revenue drop. New AI platform Zhida.ai could drive future growth and user engagement. Average users fell 18% to 81.4 million as Zhihu focuses on quality users. CFO mentioned temporary losses may continue to pursue AI opportunities. Analysts generally rate Zhihu as a 'buy' despite expected future losses.