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BEIJING - Kingsoft Cloud Holdings Limited (NASDAQ:KC) reported fourth quarter earnings that beat analyst expectations, with revenue rising 30% year-over-year, driven by strong growth in AI-related services. The company’s stock rose 1.6% following the release.
The Chinese cloud service provider posted a narrower adjusted loss per share of RMB0.05 ($0.01), compared to analyst estimates of a RMB0.73 loss. Revenue reached RMB2.23 billion ($305.8 million), exceeding the consensus forecast of RMB2.09 billion and marking a 29.6% increase from RMB1.72 billion in Q4 2023.
Kingsoft Cloud achieved non-GAAP operating profit for the first time since its 2012 inception, recording RMB24.4 million ($3.3 million) compared to a RMB187.6 million loss in the year-ago quarter. The company’s gross profit surged 68.3% YoY to RMB426.0 million ($58.4 million).
"We are very pleased to close Fiscal Year 2024 with historically strong financial performance," said Tao Zou, CEO of Kingsoft Cloud. "Driven by the growing popularity of AI applications, we firmly believe that AI will continue to penetrate into various verticals, improving the efficiency of daily life."
The company reported that gross billings from its AI business increased by triple digits YoY to RMB474 million. Revenue from key ecosystem partners Xiaomi (OTC:XIACF) and Kingsoft Group rose 76% compared to the same period last year.
Kingsoft Cloud’s public cloud services revenue grew 34% YoY to RMB1.41 billion ($193.1 million), while enterprise cloud services revenue increased 22.7% to RMB822.3 million ($112.7 million).
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