The stock in 36Kr Holdings Inc. (Nasdaq: KRKR) rose 1% to $9.12 per American depositary share on Tuesday morning after the company posted its first financial report since becoming publicly traded in New York.
The Beijing-based enterprise services provider said in a statement today that in the three months through September its revenue was $18.3 million, up 59% year-over-year. 36Kr attributed the growth to its enterprise service revenue, which has tripled to $9 million from a year ago.
Net loss was $1.7 million, or 36 cents per share, in contrast to net income of $1.4 million a year ago, according to the report.
The company posted doubled costs of revenue, at $10.6 million, and operating expenses of $10.9 million, up 139% year-over-year. Expenses in its general and admin sector soared 474% from a year ago, which 36Kr attributed to payroll and team growth.
“To better position ourselves in driving key growth initiatives in the coming quarters, we made an upfront investment in additional headcount during the third quarter,” Jihong Liang, a director and chief financial officer of 36Kr, said in a statement today.
He added, “As such, we expect headcount to remain stable for the remainder of 2019. Although the investment in headcount resulted in a relatively higher level of expenses, we believe it is necessary for us to be well prepared for grasping the market opportunities in the peak season ahead.”
Established in 2010, 36Kr has developed a suite of business services for new economy participants in China. It provides tailored online advertising and subscription services, as well as other enterprise value-added services. Its database covers more than 800,000 enterprises and over 100,000 articles were published on its platform, according to a filing in November with the United Securities and Exchange Commission.
Citing a report from the CIC, 36Kr said in its prospectus that the gross domestic product (GDP) in China's new economy sector is expected to reach $5.7 trillion in 2023, at a compound annual growth rate (CAGR) of 23%.
(Source: 36Kr F-1/A)
Last month, the company raised $20.3 million in its initial public offering. Since the IPO, 36Kr has traded below its issue price of $14.50 per ADS, weighed by uncertainties in the market amid the ongoing trade war.
“We will remain focused on solidifying our advantages in high-quality content creation and distribution both domestically and globally, while proactively expanding our service offerings to strengthen our monetization capabilities,” Dagang Feng, co-chairman and chief executive officer of 36Kr, said in a statement today.
He concluded, “We believe, with the strong growth of the New Economy, there is great market potential for our comprehensive services to our customers and vibrant community.”
Noting its other recent achievements, 36Kr said it has made a deal with Lotus Walk Inc. to jointly expand its business overseas under 36Kr Global Holding (HK) Ltd. Lotus has subscribed to 51% equity in 36Kr Global for $6 million in October 2019 and will invest in digital resources to support the overseas business development.