BEIJING - Kingsoft Cloud Holdings Limited (NASDAQ:KC) reported second quarter revenue growth and improved profitability, though shares slipped 1.9% following the results.
The Chinese cloud services provider posted revenue of RMB1.89 billion ($260.3 million) for Q2, up 3.1% year-over-year and 6.5% sequentially. This was in line with analyst estimates of RMB1.83 billion.
Adjusted net loss narrowed to RMB301.1 million ($41.4 million), compared to a loss of RMB315.0 million in the same quarter last year. Adjusted EBITDA turned positive at RMB60.6 million ($8.3 million), improving from negative RMB61.4 million a year ago.
"We are pleased to record another strong quarter with advances in revenue expansion, margin improvements and operating cash net inflow," said CEO Tao Zou. He noted AI-related revenue doubled to 26% of public cloud services revenue.
Gross margin expanded significantly to 16.8% from 11.3% last year, driven by strategic adjustments to the revenue mix and cost control measures.
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