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InvestorRoom Zhihu Inc. Reports First Quarter 2021 Unaudited Financial Results BEIJING , May 17 , 2021 / PRNewswire / -- Zhihu Inc. ( " Zhihu " or the " Company " ) ( NYSE : ZH ) , the operator of Zhihu , a leading online content community in China , today announced its unaudited financial results for the first quarter ended March 31 , 2021 . First Quarter 2021 Highlights [ 1 ] • Average monthly active users ( MAUS ) reached 85.0 million in the first quarter of 2021 , representing a growth of 37.7 % over the first quarter of 2020 . [ 2 ] • Average monthly paying members reached 4.0 million in the first quarter of 2021 , representing a growth of 137.8 % over the first quarter of 2020 . • Total revenues were RMB478.3 million ( US $ 73.0 million ) in the first quarter of 2021 , representing a growth of 154.2 % over the first quarter of 2020 . • Gross Profit was RMB272.7 million ( US $ 41.6 million ) in the first quarter of 2021 , representing a growth of 248.5 % over the first quarter of 2020 . • Gross margin increased to 57.0 % for the first quarter from 41.6 % for the same period of last year . " We started Zhihu ten years ago with the belief that everyone has a wealth of knowledge , experience , and insights , irrespective of background or education . We successfully completed our initial public offering and became a public company listed on the New York Stock exchange during the first quarter of 2021 , which we believe is both a milestone and the starting point of a new journey for Zhihu . " said Mr. Yuan Zhou , Chairman of the Board and Chief Executive Officer of Zhihu . " We booked strong growth and delivered a set of solid results in the first quarter of 2021 , reflecting our firm commitment to executing our content - centric growth strategy and monetization approach . We also celebrated Zhihu's 10th anniversary as we continued to solidify and strengthen Zhihu's brand image . We also continued to execute our video - lization strategy , and expect that our community will further benefit from an enriching content portfolio coupled with enhanced content creation and user engagement . We are confident in our prospects and our strong capability to honor our commitment to our users , content creators , and business partners . " Mr. Wei Sun , Chief Financial Officer of Zhihu , added , " In the first quarter of 2021 , we recorded a total revenue of RMB478.3 million , reflecting a 154.2 % growth over the same period 2020. Our average MAUS reached 85.0 million , representing an increase of 37.7 % over the same period of 2020 , as our user base continued to rapidly grow . Our gross margin increased to 57.0 % from 41.6 % in the first quarter of 2020. We are very pleased with our achievements for the first quarter of 2021 and we expect to continue to successfully implement our content centric growth and monetization strategy with our further enhanced financial strengths after the completion of our IPO . " First Quarter 2021 Financial Results Total revenues were RMB478.3 million ( US $ 73.0 million ) for the first quarter of 2021 , representing an increase of 154.2 % from RMB188.2 million for the same period of 2020. The increase was due to increases from all of our business lines . Advertising revenue was RMB213.7 million ( US $ 32.6 million ) for the first quarter of 2021 , representing an increase of 70.1 % from RMB125.6 million for the same period of 2020. The year - over - year increase was primarily attributable to the continued expansion of our user base coupled with an increase in average advertising revenue generated per MAU . Paid membership revenue was RMB126.6 million ( US $ 19.3 million ) for the first quarter of 2021 , representing an increase of 127.0 % from RMB55.8 million for the same period of 2020. The year - over - year increase was primarily attributable to an increase in our overall user base coupled with an enhanced paying ratio . Content - commerce solutions revenue was RMB120.8 million ( US $ 18.4 million ) for the first quarter of 2021 , which increased from RMB1.1 million in the first quarter of 2020 , demonstrating strong growth momentum in the business line . We formally launched our pioneering content - commerce solutions in early 2020. The year - over - year growth was primarily driven by the rapid increases of both our user base and average content - commerce solutions revenue per MAU . Other revenues were RMB17.1 million ( US $ 2.6 million ) for the first quarter of 2021 , compared with RMB5.7 million for the same period of 2020. The year - over - year increase was primarily attributable to the continued growth of our online education and e - commerce services . Cost of revenues increased to RMB205.6 million ( US $ 31.4 million ) for the first quarter of 2021 from RMB109.9