KUAISHOU(01024)2023-05-22 08:31Financial Performance - Kuaishou Technology reported a revenue of RMB 25,217 million for the three months ended March 31, 2023, representing a 19.7% increase from RMB 21,067 million in the same period of 2022[2]. - Gross profit for the same period was RMB 11,712 million, with a gross margin of 46.4%, compared to RMB 8,782 million and a margin of 41.7% in the previous year, indicating a 33.4% increase in gross profit[2]. - The company achieved an adjusted net profit of RMB 42 million, a significant turnaround from an adjusted net loss of RMB 3,722 million in the same quarter of 2022[2][3]. - Operating loss narrowed to RMB 698 million from RMB 5,643 million in the same quarter of 2022, reflecting an 87.6% improvement[2][6]. - The company recorded a net loss of RMB 876 million in Q1 2023, compared to a net loss of RMB 6.3 billion in Q1 2022[32]. - The basic loss per share for Q1 2023 was RMB 0.20, improving from RMB 1.48 in Q1 2022[55]. - The company reported a total of RMB 16,232 million in total assets as of March 31, 2023, down from RMB 18,109 million as of December 31, 2022[68]. User Engagement and Growth - Average daily active users (DAUs) reached 374.3 million, up 8.3% year-over-year, while average monthly active users (MAUs) increased to 654.4 million, a 9.4% growth[5][7]. - The average revenue per daily active user (ARPU) increased to RMB 34.9, up from RMB 32.9 in the previous year[5]. - The number of monthly average users for Kuaishou's search function exceeded 420 million in Q1 2023, with peak daily search counts surpassing 650 million[8]. - Daily active users (DAUs) reached 50 million, a 10% increase compared to the previous quarter, indicating robust platform growth[75]. - Monthly active users (MAUs) grew to 200 million, representing a 12% year-over-year increase, showcasing the platform's expanding reach[76]. E-commerce Performance - The total gross merchandise value (GMV) for e-commerce transactions on the platform was RMB 224,766.5 million, compared to RMB 175,075.6 million in the same period last year[5]. - The total e-commerce transaction volume increased by 28.4% year-over-year, reaching RMB 224.8 billion in Q1 2023[10]. - The brand self-broadcasting transaction volume increased by approximately 70% year-over-year in Q1 2023, supported by promotional activities[10]. - E-commerce transactions through influencer distribution channels grew by over 50% year-over-year in Q1 2023, indicating a strong performance in influencer marketing[10]. - E-commerce monthly active buyers and average order value continued to grow year-over-year, contributing to an increase in e-commerce transaction volume[20]. Marketing and Revenue Segments - Kuaishou's online marketing services revenue grew by 15.1% year-over-year to approximately RMB 13.1 billion, accounting for 51.8% of total revenue in Q1 2023[9]. - Online marketing services revenue rose by 15.1% year-over-year to RMB 13.06 billion, attributed to improved data infrastructure and optimized product capabilities[18]. - Live streaming revenue grew by 18.8% year-over-year to RMB 9.3 billion, supported by a 6.4% increase in average monthly paying users and enhanced content supply[19]. - The company successfully integrated its commercialization and traffic ecosystem, enhancing operational efficiency and monetization capabilities[6]. Cost Management and Operational Efficiency - The cost of sales increased by 9.9% from RMB 12.3 billion in Q1 2022 to RMB 13.5 billion in Q1 2023, primarily due to an increase in revenue-sharing costs and related taxes[22]. - Sales and marketing expenses decreased by 8.1% from RMB 9.5 billion in Q1 2022 to RMB 8.7 billion in Q1 2023, representing a reduction in total revenue percentage from 45.0% to 34.6%[23]. - Research and development expenses decreased by 17.1% from RMB 3.5 billion in Q1 2022 to RMB 2.9 billion in Q1 2023[25]. - The company's operating loss narrowed by 45.1% quarter-over-quarter in overseas markets due to improved operational efficiency[13]. Future Outlook and Strategic Initiatives - The company plans to launch three new products in the next quarter, aiming to enhance user experience and drive further growth[76]. - Future guidance estimates revenue growth of 25% for the upcoming fiscal year, driven by user acquisition and retention strategies[76]. - The company is exploring potential acquisitions to expand its market presence and diversify its service offerings[76]. - Investment in new technologies is expected to increase by 30% in the next fiscal year, focusing on enhancing platform capabilities[76].