Kingsoft Cloud Holdings Ltd (KC, Financial), a leading cloud service provider in China, announced its unaudited financial results for the fourth quarter and fiscal year ending December 31, 2024. The company reported a 29.6% year-over-year increase in total revenues for Q4, reaching RMB2,232.1 million (US$305.8 million), and a significant improvement in gross profit by 68.3% to RMB426.0 million (US$58.4 million). Notably, Kingsoft Cloud achieved a non-GAAP operating profit for the first time since its inception, marking a pivotal moment in its financial trajectory. The press release was issued on March 19, 2025.
Positive Highlights
- Total revenues increased by 29.6% year-over-year in Q4 2024.
- Gross profit rose by 68.3% compared to the same quarter in 2023.
- Non-GAAP EBITDA reached RMB359.7 million, a significant turnaround from a loss in the previous year.
- Revenue from AI cloud business increased by around 500% year-over-year.
- Revenue from Xiaomi and Kingsoft Group increased by 76% year-over-year.
Negative Highlights
- Operating loss was RMB43.5 million, though significantly reduced from the previous year.
- Net loss for Q4 was RMB200.6 million, though narrowed from the previous year.
- Non-GAAP net loss was RMB70.3 million, indicating ongoing challenges in achieving profitability.
Financial Analyst Perspective
From a financial analyst's perspective, Kingsoft Cloud's Q4 and fiscal year 2024 results demonstrate a robust recovery and strategic growth, particularly in AI and cloud services. The company's ability to achieve a non-GAAP operating profit for the first time is a significant milestone, reflecting effective cost management and strategic revenue mix adjustments. The substantial growth in AI-related revenues and partnerships with Xiaomi and Kingsoft Group further solidify its market position. However, the ongoing net losses highlight the need for continued focus on cost efficiency and revenue diversification to achieve sustainable profitability.
Market Research Analyst Perspective
As a market research analyst, Kingsoft Cloud's performance underscores the growing demand for cloud services and AI applications in China. The company's strategic focus on AI and partnerships with major tech players like Xiaomi positions it well to capitalize on the expanding cloud market. The significant revenue growth from AI cloud services indicates a successful alignment with market trends. However, the competitive landscape in China's cloud industry necessitates continuous innovation and strategic partnerships to maintain growth momentum and market share.
Frequently Asked Questions (FAQ)
Q: What was Kingsoft Cloud's total revenue for Q4 2024?
A: The total revenue for Q4 2024 was RMB2,232.1 million (US$305.8 million).
Q: Did Kingsoft Cloud achieve profitability in Q4 2024?
A: Kingsoft Cloud achieved a non-GAAP operating profit for the first time, though it reported a net loss of RMB200.6 million for the quarter.
Q: How did the AI cloud business perform in Q4 2024?
A: The AI cloud business saw a gross billing increase of around 500% year-over-year, accounting for 34% of public cloud revenue.
Q: What is the outlook for Kingsoft Cloud's partnerships with Xiaomi and Kingsoft Group?
A: Revenue from Xiaomi and Kingsoft Group increased by 76% year-over-year, and the company expects continued growth from these partnerships.
Read the original press release here.
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