Lizhi Stock Jumps 7% on Apple App Store Recommendation

The podcast app continues to gain listeners - paying users make up its main revenue driver.
Jennifer ChanMay 28,2021,19:37

Lizhi Inc. (Nasdaq: LIZI) sent its shares up 7% Friday, to $6.85 per share, as it announced that Apple’s App Store highlighted its podcast platform as a feature app.

“LIZHI Podcast is the first Chinese podcast app to be recommended by the App Store in the China market – a major milestone for the app since its launch in January this year,” Lizhi wrote in a statement today. The company also said its new app, Lizhi Podcast, been receiving a growing number of 5-star ratings.

Lizhi Podcast is an interactive podcast platform offering real-time communication between hosts and listeners. The platform offers an in-car option and Lizhi has partnered with several automakers including XPeng Inc. (NYSE: XPEV) and ECARX for built-in integration.

In the statement today, Jinnan (Marco) Lai, founder and CEO of Lizhi, said, "We are pleased to bring our pioneering technology to Apple users. Our inclusion on Apple's recommended list is another vote for the quality of our product and its trailblazing work in audio apps. We also anticipate the LIZHI Podcast app will continue to resonate with Chinese-speaking users around the world.”

Lizhi said it continues to attract exclusive content creators and collaborates with brands and enterprises to expand its content offerings. Hot topics are currently “aesthetics and art, technology, lifestyle, and entertainment,” Lizhi said.

The company generates the vast majority of its revenues from audio content; podcast and ads revenues made up a fraction – less than $1 million of revenues in the fourth quarter, which totaled $64.4 million. During the fourth quarter, Lizhi counted 422,400 average monthly paying users and 58.4 million average monthly users, according to a March report.

Lizhi prepares to release its first-quarter results on June 1.

Topics:Lizhi, LIZI