Q3 2025 Kingsoft Cloud Holdings Ltd Earnings Call Transcript
Key Points
- Kingsoft Cloud Holdings Ltd (KC) reported a significant year-over-year revenue growth of 31% in Q3 2025, reaching RMB2.48 billion.
- Public cloud revenue increased by 49% year-over-year, reaching RMB1.75 billion, indicating strong demand in this segment.
- The intelligent computing cloud business saw a remarkable year-over-year growth of 120% in gross billings, accounting for 45% of public cloud revenue.
- Revenue from the Xiaomi and Kingsoft ecosystem increased by 84% year-over-year, contributing significantly to the total revenue.
- The company achieved a historical positive adjusted net profit of RMB28.73 million for the first time, demonstrating improved profitability.
- Total cost of revenues increased by 33% year-over-year, driven by investments in infrastructure to support intelligent cloud business growth.
- Depreciation and amortization costs rose significantly due to newly acquired and leased servers and network equipment.
- Despite revenue growth, the adjusted operating profit margin was only 0.6%, indicating room for improvement in operational efficiency.
- Cash and cash equivalents decreased from RMB5,464.1 million to RMB3,954.5 million, primarily due to infrastructure investments.
- The significant quarter-on-quarter improvement in EBITDA margin was partly driven by a one-time other income, which may not be sustainable.
Good day, and thank you for standing by. Welcome to Kingsoft Cloud's third quarter 2025 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Nicole Shan, IR Director of Kingsoft Cloud. Please go ahead.
Thank you, operator. Hello, everyone, and thank you for joining us today. Kingsoft Cloud's third quarter 2025 earnings release was distributed earlier today and is available on our IR website at ir.ksyun.com as well as on the PRNewswire Services.
On the call today from Kingsoft Cloud, we have our Vice Chairman and CEO, Mr. Zou Tao; and CFO, Ms. Li Yi. Mr. Zou will review our business strategies, operations and other company highlights followed by Ms. Li, who will discuss the financial performance. They will be available to answer your questions during the Q&A session that follows. There will be consecutive interpretation. Our interpretations are for your
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