In a recent earnings call, Kuaishou Technology revealed its second-quarter and interim financial results for 2024, showcasing a robust 11.6% year-over-year (YoY) increase in total revenue, amounting to RMB 31 billion. The company's gross margin hit a record
55%, while adjusted net profit soared to RMB 4.7 billion, reflecting a 15.1% margin.
Kuaishou attributed its success to advancements in AI technology, a thriving user and content ecosystem, and strategic initiatives to bolster its commercial ecosystem. The company's e-commerce and online marketing services witnessed over 20% growth YoY, with particular strength in live streaming and overseas expansion, where revenue surged by 141.4% YoY.
Key Takeaways
✓ Kuaishou Technology's Q2 revenue increased by 11.6% YoY to RMB 31 billion.
✓ Gross margin reached a record high of 55%, with adjusted net profit at RMB 4.7 billion.
✓ E-commerce and online marketing services saw over 20% YoY growth.
✓ Initiatives like the Set Sail and Uplift programs supported merchant growth.
✓ Live streaming revenue declined QoQ, but the company is focused on ecosystem health.
✓ Overseas revenue grew by 141.4% YoY, with a strong focus on Brazil and Indonesia.
✓ Group level net profit rose by 169% YoY to RMB 4 billion.
✓ AI technology, including large language models, is central to Kuaishou's strategy.
✓ The company reported positive adjusted net profit for six consecutive quarters.
Company Outlook
✓ Kuaishou aims to leverage AI to enhance business operations and drive sustainable profitability.
✓ The company plans to support mid- and small-sized merchants in the e-commerce sector.
✓ Kuaishou is focusing on optimizing online marketing products and algorithms.
Bearish Highlights
✓ Live streaming revenue showed a decline on a quarter-over-quarter basis.
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Bullish Highlights
✓ Strong growth in e-commerce GMV, particularly during the 618 Shopping Festival.
✓ Significant YoY increase in overseas revenue, with a focus on key markets.
Misses
✓ The company did not report any specific misses in the earnings call.
Q&A Highlights
✓ Kuaishou discussed strategies to improve user experience and merchant conversion rates.
✓ The company highlighted its successful strategic partnership with Meituan, aiming to enrich local services.
Kuaishou Technology, with its ticker symbol undisclosed, has showcased its financial strength and strategic foresight in its second-quarter earnings call. The company's focus on AI technology and its application in content creation, e-commerce, and marketing is expected to continue driving growth and profitability. Kuaishou's emphasis on supporting merchants, optimizing its marketing strategies, and expanding globally, particularly in Brazil and Indonesia, positions it well for future success. The company's robust balance sheet, with RMB 77.7 billion in cash and cash equivalents, provides a solid foundation for its ambitious goals. With a record high in adjusted net profit and a strong growth trajectory, Kuaishou is poised to maintain its momentum in the competitive tech landscape.
