Xiaohongshu reported US$1 billion in sales revenues for the first quarter of 2024, as the platform has attracted a dedicated user base among Gen Z women with its targeted advertising strategies.

The company also achieved a net profit of US$200 million during the same period, an increase from the US$40 million profit reported a year prior on revenues of approximately US$600 million.

The platform now claims 312 million monthly active users, marking a 20% increase from last year.

In July, venture capital firm DST Global increased Xiaohongshu’s fiscal strength through a share sale that valued the company at US$17 billion, following a notable recovery from a loss of US$200 million the previous year.

The platform is projected to reach US$3.7 billion for the fiscal year, along with anticipated net profits exceeding US$500 million.

However, Xiaohongshu navigates a challenging regulatory terrain from Beijing, as the platform’s consumer data practices face scrutiny under stringent cross-border data regulations.