Kingsoft Cloud's Q3 Earnings Reveal Strong AI-Driven Growth and Improved Profitability

Kingsoft Cloud Q3 Earnings: Revenue Surges 16%, AI Growth Fuels Profits, CEO Shares Optimistic Outlook - Kingsoft Cloud Hldgs (NASDAQ:KC)

Kingsoft Cloud Q3 revenue rose 16% Y/Y to $268.7M, beating expectations.Public cloud revenue grew 15.6%, driven by AI demand growth. Kingsoft Cloud Holdings KC reported a fiscal third-quarter 2024 revenue of 1.89 billion Chinese yuan ($268.7 million), up by 16.0% year-on-year, beating the analyst consensus estimate of $247.46 million. The accelerated growth of high-quality businesses, such as AI, has offset the decline in the low-margin CDN business due to strategic proactive adjustments. Kingsoft clocked an adjusted loss per ADS of 14 cents, which aligns with the analyst estimate. The stock price climbed after the print. Also Read: Twitter's Chinese Peer Weibo Q3 Earnings: Beats Expectations, Advertising Stabilizes, VAS Growth Shines & More Revenues from public cloud services increased by 15.6% year over year to $167.5 million, mainly due to the growth of AI demands. Revenues from enterprise cloud services were $101.2 million, an increase of 16.7% Y/Y. The adjusted gross profit was 307.6 million Chinese yuan ($43.8 million) versus 196.3 million Chinese yuan Y/Y. The margin expanded by 420 bps to 16.3% due to strategic revenue mix adjustment, optimized enterprise cloud project selection, and efficient cost control measures. Kingsoft held $230.6 million in cash and equivalents as of September end. Kingsoft Cloud's CEO, Tao Zou, emphasized the company's commitment to its "High-quality and Sustainable Development Strategy," which drove 16% topline growth in third-quarter of 2024. The AI business expanded to 362 million Chinese yuan, representing 31% of public cloud revenue. Revenues from the Xiaomi and Kingsoft Ecosystem surged by 36% year-over-year, capitalizing on opportunities in sectors like EVs, LLM, and WPS AI, reinforcing confidence in the company's strategic direction. CFO Henry He highlighted the company's strong quarterly performance, marked by double-digit revenue growth to 1.89 billion Chinese yuan and significant profitability improvements. Gross profit and EBITDA profit growth outpaced industry averages. The adjusted EBITDA margin saw a remarkable turnaround, reflecting the success of the company's revenue structure adjustment and AI-focused transformation. Outlook: The company anticipates robust growth in the fourth quarter of 2024, driven by stable performance in public and enterprise cloud segments. It expects an accelerated revenue growth rate during the quarter and continued improvements in profitability. Operating profit and adjusted operating profit will likely show significant progress. Kingsoft Cloud Holdings stock surged over 21% year-to-date. Price Action: KC stock is up 3.48% at $4.49 at the last check on Tuesday. Also Read: XPeng Q3 Earnings: Revenue Beat, 16% Deliveries Growth, CEO Eyes AI Leadership And More Market News and Data brought to you by Benzinga APIs

Kingsoft Cloud GAAP EPS of -$0.04, revenue of $268.7M misses by $4.87M (KC:NASDAQ)

Kingsoft Cloud press release (NASDAQ:KC): Q3 GAAP EPS of -$0.04. Revenue of $268.7M (+16% Y/Y) misses by $4.87M. Total Revenues reached RMB1,885.6 million (US$268.7 million), increased by 16.0% year-over-year from RMB1,625.2 million in the same quarter of 2023. The accelerated growth of high-quality business, such as AI, has offset the decline in the low-margin CDN business due to strategic proactive adjustments. More on Kingsoft Cloud Kingsoft Cloud: Positive AI Revenue Growth Momentum Kingsoft Cloud Q3 2024 Earnings Preview Seeking Alpha's Quant Rating on Kingsoft Cloud Historical earnings data for Kingsoft Cloud Financial information for Kingsoft Cloud