Gross margins have compressed from 65.0% in 2021Q4 to 55.7% in 2023Q4, reflecting rising service costs and a lack of consistent pricing power.
| Sales/Revenue | 340.19M | 231.07M | 340.19M | 322.5M | 316.78M | 386.76M | 655.61M | 299.09M | 120.51M |
| Revenue Growth % | 5.48% | -32.08% | 5.48% | 1.8% | -18.09% | -41.01% | 119.2% | 148.2% | - |
| Cost of Goods Sold | 158.17M | 118.73M | 158.17M | 137.85M | 128.84M | 261.37M | 380.29M | 140.32M | 60.75M |
| COGS % of Revenue | - | 51.38% | 46.49% | 42.74% | 40.67% | 67.58% | 58.01% | 46.91% | 50.41% |
| Gross Profit | 182.02M | 112.34M | 182.02M | 184.65M | 187.94M | 125.39M | 275.32M | 158.78M | 59.76M |
| Gross Margin % | 53.51% | 48.62% | 53.51% | 57.26% | 59.33% | 32.42% | 41.99% | 53.09% | 49.59% |
| Gross Profit Growth % | - | -38.28% | -1.43% | -1.75% | 49.88% | -54.46% | 73.4% | 165.7% | - |
| Operating Expenses | 275.21M | 190.1M | 276.23M | 229.19M | 278.74M | 391.31M | 298.18M | 113.18M | 48.74M |
| OpEx % of Revenue | - | 82.27% | 81.2% | 71.07% | 87.99% | 101.18% | 45.48% | 37.84% | 40.45% |
| Selling, General & Admin | 234.55M | 175.7M | 234.55M | 174.14M | 234.52M | 353.08M | 262.38M | 91.11M | 42.31M |
| SG&A % of Revenue | - | 76.04% | 68.95% | 54% | 74.03% | 91.29% | 40.02% | 30.46% | 35.11% |
| Research & Development | 41.68M | 14.4M | 41.68M | 55.05M | 47.52M | 38.23M | 35.81M | 22.07M | 6.43M |
| R&D % of Revenue | - | 6.23% | 12.25% | 17.07% | 15% | 9.89% | 5.46% | 7.38% | 5.33% |
| Other Operating Expenses | -79K | 0 | 0 | 0 | -3.3M | 0 | 0 | 0 | 0 |
| Operating Income | -94.22M | -77.76M | -94.22M | -44.54M | -94.11M | -257.94M | -22.87M | 45.59M | 11.01M |
| Operating Margin % | -27.7% | -33.65% | -27.7% | -13.81% | -29.71% | -66.69% | -3.49% | 15.24% | 9.14% |
| Operating Income Growth % | - | 17.46% | -111.55% | 52.67% | 63.52% | -1027.98% | -150.16% | 313.95% | - |
| EBITDA | -92.42M | -67.61M | -80.98M | -29.01M | -75.97M | -252.34M | -18.64M | 47.2M | 11.5M |
| EBITDA Margin % | -27.17% | -29.26% | -23.8% | -9% | -23.98% | -65.24% | -2.84% | 15.78% | 9.54% |
| EBITDA Growth % | -138.75% | 16.5% | -179.15% | 61.81% | 69.9% | -1254.04% | -139.49% | 310.36% | - |
| D&A (Non-Cash Add-back) | 1.8M | 10.15M | 13.24M | 15.53M | 18.14M | 5.6M | 4.23M | 1.6M | 487K |
| EBIT | -93.07M | -77.27M | -93.07M | -41.09M | -94.11M | -255.82M | -22.37M | 48.91M | 11.01M |
| Net Interest Income | 450K | 0 | 0 | 0 | 2.48M | 1.86M | 4.12M | -75K | -173K |
| Interest Income | 450K | 0 | 0 | 0 | 2.48M | 1.86M | 4.12M | 22K | 12K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 97K | 185K |
| Other Income/Expense | 4.93M | -62.96M | 4.93M | 67.53M | 3.6M | -17.64M | 16.85M | 9.75M | 818K |
| Pretax Income | -89.29M | -140.72M | -89.29M | 23M | -90.51M | -275.58M | -6.02M | 55.34M | 11.83M |
| Pretax Margin % | -26.25% | -60.9% | -26.25% | 7.13% | -28.57% | -71.25% | -0.92% | 18.5% | 9.82% |
| Income Tax | -42K | 64K | -42K | 361K | 102K | 3.76M | 19.89M | 14.83M | 3.91M |
| Effective Tax Rate % | 0.05% | -0.05% | 0.05% | 1.57% | -0.11% | -1.37% | -330.56% | 26.79% | 33.04% |
| Net Income | -90.64M | -136.63M | -89.98M | 21.94M | -89.57M | -279.34M | -25.91M | 39.49M | 7.92M |
| Net Margin % | -26.64% | -59.13% | -26.45% | 6.8% | -28.28% | -72.23% | -3.95% | 13.2% | 6.57% |
| Net Income Growth % | -512.04% | -51.84% | -510.06% | 124.5% | 67.94% | -978.08% | -165.61% | 398.46% | - |
| Net Income (Continuing) | -89.25M | -140.79M | -89.25M | 22.64M | -90.61M | -279.34M | -25.91M | 40.52M | 7.92M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 9.88M | 236K | 9.88M | 7.28M | 7.86M | 8.15M | 6.74M | 7.73M | 0 |
| EPS (Diluted) | -54.13 | -81.75 | -54.00 | 13.25 | -54.50 | -171.25 | -16.00 | 26.25 | 17.00 |
| EPS Growth % | -496.36% | -51.39% | -507.55% | 124.31% | 68.18% | -970.31% | -160.95% | 54.41% | - |
| EPS (Basic) | - | -81.75 | -54.00 | 13.25 | -54.50 | -171.25 | -16.00 | 26.25 | 17.00 |
| Diluted Shares Outstanding | 1.67M | 1.67M | 1.67M | 1.67M | 1.64M | 1.63M | 1.63M | 1.5M | 464.94K |
| Basic Shares Outstanding | 1.67M | 1.67M | 1.67M | 1.66M | 1.64M | 1.63M | 1.61M | 1.5M | 464.94K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Structural revenue model volatility
As evidenced by the quarterly data, KRKR's revenue trajectory remains highly inconsistent, with a notable 7.0% year-over-year growth in 2023Q4 following periods of significant contraction, suggesting that the company's top-line performance is heavily tethered to the cyclical and unpredictable nature of private market financing activity in China.
The fluctuation in quarterly revenue suggests that the firm's reliance on project-based enterprise value-added services creates inherent instability. Investors should monitor whether the recent modest growth indicates a stabilization of client marketing budgets or merely a temporary recovery from previous lows.
Based on the provided financial statements, KRKR's gross margin has experienced meaningful compression, falling from a peak of 65.0% in 2021Q4 to 55.7% in 2023Q4, which may indicate rising fulfillment costs associated with its offline event-driven service model and a potential loss of pricing power.
The inability to maintain historical gross margin levels suggests that the cost of delivering value-added services is scaling faster than the revenue they generate. This trend warrants further investigation into whether the company is sacrificing profitability to maintain its market position within the competitive Chinese tech media landscape.
According to the income statement, KRKR continues to struggle with operating leverage, as evidenced by the persistent negative operating margins that reached -12.0% in 2023Q4, indicating that the company's fixed cost base remains disproportionately high relative to its current revenue generation capacity.
The data suggests that the firm has not yet achieved the necessary scale to absorb its administrative and personnel-related overhead. Without a significant shift toward higher-margin digital products, the company appears to face a structural challenge in reaching consistent operating profitability.
As reported in the financial filings, KRKR's SG&A expenses have remained elevated, often exceeding $50 million per quarter, which highlights a lack of expense discipline that continues to weigh heavily on the company's bottom line and overall financial health in a period of revenue uncertainty.
The high level of SG&A relative to gross profit suggests that the company is maintaining a significant operational footprint that may not be justified by current demand. Investors should monitor whether management can implement more rigorous cost-control measures to align its expenditure with the realities of a shrinking or stagnant revenue environment.
Quick answers to the most common questions about buying KRKR stock.
For fiscal year 2024, 36Kr Holdings Inc. (KRKR) reported total revenue of $231.1M. This represents a 91.7% increase compared to $120.5M in 2017.
36Kr Holdings Inc. (KRKR) reported a net loss of $136.6M for the fiscal year ending 2024.
36Kr Holdings Inc. (KRKR) reported an operating income of $-77.8M, resulting in an operating profit margin of -33.7%. This margin reflects the operational efficiency of the business before interest and taxes.
36Kr Holdings Inc. (KRKR) generated $112.3M in gross profit for the year, representing a gross profit margin of 48.6%. This demonstrates the company's core pricing power and production efficiency.