Lizhi Inc.

Third-quarter 2023 net revenues were RMB425.1 million, down from RMB565.2 million in the same period last year, mainly because of declines in average paying users and user spending on audio entertainment products. Gross profit was RMB107.8 million versus RMB189.1 million a year ago, and gross margin was 25% compared with 33% last year. Operating loss was RMB60.1 million, net loss was RMB62 million, and basic/diluted net loss per ADS was RMB11.01. The company did not provide quantitative forward guidance on revenue, earnings, or margins; instead, it said it will further enhance organizational efficiency, globalization capability, and agility while continuing to streamline operations and integrate AIGC and voice AI technologies.

The CEO framed the quarter around LIZHI’s “online audio-centric globalization strategy,” saying the company is strengthening domestic business innovation while steadily advancing global businesses. He emphasized ongoing work to reduce costs, improve operating efficiency, and build out AI/voice technology capabilities, including ASR, TTS, AI voice changing, and RTC/IM infrastructure. His tone was resilient despite “macro-headwinds,” with a focus on long-term sustainable development rather than near-term recovery.

The CFO walked through the deterioration in year-over-year financial performance: revenue of RMB425.1 million versus RMB565.2 million, gross profit of RMB107.8 million versus RMB189.1 million, and gross margin of 25% versus 33%. She said cost of revenue fell to RMB317.3 million from RMB376.2 million, helped by lower revenue share fees, share-based compensation, and payment handling costs; operating expenses were RMB167.9 million versus RMB176.6 million, with sales and marketing down to RMB59.1 million and G&A down to RMB25.1 million. R&D rose 7% year over year to RMB83.8 million due to salary/welfare costs and severance pay tied to optimizing R&D efficiency. She also noted cash and cash equivalents plus restricted cash of RMB615.8 million as of September 13, 2023.

There was no substantive analyst Q&A in the provided transcript, so no additional investor concerns or management follow-up were captured. The call ended after prepared remarks, leaving the main open questions around when user monetization stabilizes and whether cost reductions can offset the revenue decline.