KUAISHOU(01024)2023-03-29 08:30User Growth and Engagement - Monthly active buyers increased year-on-year and quarter-on-quarter in Q4 2022, with penetration reaching double digits, and monthly purchase frequency and average order value also increased year-on-year and quarter-on-quarter[14] - Overseas daily active users' average daily usage time increased to over 65 minutes, and the loss amount narrowed further[16] - The daily resume submission volume for the KuaiZhao (快聘) business more than doubled in Q4 2022 compared to Q1 2022[15] - Daily Active Users (DAU) refers to the number of unique user accounts that access the application at least once a day, excluding fraudulent accounts[127] - Monthly Active Users (MAU) refers to the number of unique user accounts that access the application at least once a calendar month, excluding fraudulent accounts[129] - Monthly Paying Users refers to the number of user accounts that purchase specific services at least once a month[129] - Paying Users refers to user accounts that purchase specific services at least once during a specific period[129] - Repeat Purchase Rate refers to the percentage of users who make a purchase in a specific month and make another purchase in the following month[129] Live Streaming Performance - Live streaming revenue reached RMB 10 billion in Q4 2022, a record high, with a year-on-year increase of 13.7%, and the average monthly paying users for live streaming increased by 20.4% to 58.4 million[15] - Public domain live streaming revenue increased by over 150% year-on-year in Q4 2022[15] - Live streaming revenue grew by 14.2% from RMB 31.0 billion in 2021 to RMB 35.4 billion in 2022, with average monthly paying users increasing by 19.4%[24] - Live streaming revenue increased by 12.2% from RMB 8.9 billion in Q3 2022 to RMB 10.0 billion in Q4 2022, due to enriched content supply and optimized algorithms[61] Overseas Market Performance - Overseas market revenue scale is rapidly climbing, with live streaming penetration gradually increasing and revenue continuing to grow through refined operations and rich operational activities[17] - Overseas operating loss decreased from RMB 2.4 billion in Q4 2021 to RMB 1.5 billion in Q4 2022, driven by rapid overseas revenue growth and improved marketing efficiency[54] - Overseas operating loss decreased from RMB 1.7 billion in Q3 2022 to RMB 1.5 billion in Q4 2022, due to rapid overseas revenue growth and improved marketing efficiency[70] Revenue and Profitability - Revenue increased by 16.2% from RMB 81.1 billion in 2021 to RMB 94.2 billion in 2022, mainly due to the growth of online marketing services, live streaming, and e-commerce businesses[22] - Gross profit margin improved from 42.0% in 2021 to 44.7% in 2022, with sales and marketing expenses decreasing from 54.5% to 39.4% of total revenue[21] - Adjusted EBITDA improved from a loss of RMB 12.95 billion in 2021 to a profit of RMB 1.81 billion in 2022[21] - Revenue increased by 22.3% from RMB 23.1 billion in Q3 2022 to RMB 28.3 billion in Q4 2022, driven by growth in online marketing services, live streaming, and e-commerce[58] - Gross profit increased by 20.3% from RMB 10.7 billion in Q3 2022 to RMB 12.9 billion in Q4 2022, with gross margin decreasing slightly from 46.3% to 45.5%[66] - Domestic operations turned a profit of RMB 192.1 million in 2022, compared to a loss of RMB 8.7 billion in 2021, driven by a 15.5% increase in domestic revenue[33] - Net loss for the year decreased significantly from RMB 78.1 billion in 2021 to RMB 13.7 billion in 2022[37] - Loss before tax in Q4 2022 was RMB 1.2 billion, a significant improvement from RMB 5.9 billion in Q4 2021[56] - Net loss for Q4 2022 was RMB 1.5 billion, compared to RMB 6.2 billion in Q4 2021[57] - Adjusted EBITDA for Q4 2022 was RMB 1.935 billion, compared to RMB 1.023 billion in Q3 2022 and a loss of RMB 1.290 billion in Q4 2021[74] Online Marketing Services - Online marketing service revenue increased by 14.9% from RMB 42.7 billion in 2021 to RMB 49.0 billion in 2022, driven by platform traffic growth, diversified product portfolio, and refined operations[23] - Online marketing service revenue grew by 30.2% from RMB 11.6 billion in Q3 2022 to RMB 15.1 billion in Q4 2022, driven by increased advertiser numbers and spending[60] E-commerce and Other Services - The coverage rate of e-commerce trust rights orders increased by 460% compared to 2021[14] - Other service revenue rose by 31.4% from RMB 7.4 billion in 2021 to RMB 9.8 billion in 2022, primarily due to growth in e-commerce business[25] - Other service revenue rose by 22.1% from RMB 2.6 billion in Q3 2022 to RMB 3.2 billion in Q4 2022, driven by growth in e-commerce GMV[62] Financial Metrics and Cash Flow - Total revenue increased from RMB 81.1 billion in 2021 to RMB 94.2 billion in 2022, with online marketing services contributing 52.1%, live streaming 37.6%, and other services 10.3%[23] - Gross profit increased by 23.8% from RMB 34.0 billion in 2021 to RMB 42.1 billion in 2022, with gross margin improving from 42.0% to 44.7%[28] - Sales and marketing expenses decreased by 16.0% from RMB 44.2 billion in 2021 to RMB 37.1 billion in 2022, reflecting more efficient user acquisition and retention spending[29] - R&D expenses decreased by 7.8% from RMB 15.0 billion in 2021 to RMB 13.8 billion in 2022, mainly due to reduced employee benefits and share-based compensation[30] - Operating loss narrowed from RMB 27.7 billion in 2021 to RMB 12.6 billion in 2022, with the operating loss margin improving from -34.2% to -13.3%[32] - Net financial income in Q4 2022 was RMB 106.8 million, compared to a net financial expense of RMB 56.7 million in Q4 2021, mainly due to increased bank deposit interest income and reduced lease liability interest expenses[55] - Sales and marketing expenses increased by 6.7% from RMB 9.1 billion in Q3 2022 to RMB 9.7 billion in Q4 2022, primarily due to e-commerce promotions and Spring Festival marketing activities[67] - Net other losses for Q4 2022 were RMB 350.2 million, compared to RMB 279.6 million in Q3 2022[68] - Operating loss for Q4 2022 was RMB 1.2 billion, with an operating margin of -4.4%, compared to an operating loss of RMB 2.6 billion and a margin of -11.3% in Q3 2022[68] - Domestic operating profit increased from RMB 375.1 million in Q3 2022 to RMB 1.3 billion in Q4 2022, driven by domestic revenue growth[70] - Net financial income for Q4 2022 was RMB 106.8 million, up from RMB 68.3 million in Q3 2022, primarily due to increased bank deposit interest income[71] - Loss before tax for Q4 2022 was RMB 1.2 billion, compared to RMB 2.6 billion in Q3 2022[72] - Income tax expense for Q4 2022 was RMB 383.9 million, compared to RMB 137.1 million in Q3 2022[72] - Net loss for Q4 2022 was RMB 1.5 billion, compared to RMB 2.7 billion in Q3 2022[73] - Operating cash flow for the year ended December 31, 2022, was RMB 2,198,028 thousand, compared to a negative RMB 5,519,291 thousand in 2021[86] - Net cash used in investing activities for 2022 was RMB 17,547,929 thousand, slightly lower than RMB 18,361,335 thousand in 2021[86] - Net cash used in financing activities for 2022 was RMB 4,482,383 thousand, compared to a net cash inflow of RMB 36,500,187 thousand in 2021[86] - Total revenue for 2022 was RMB 94,182,522 thousand, a 16.2% increase from RMB 81,081,513 thousand in 2021[94] - Domestic revenue for 2022 was RMB 93,557,462 thousand, accounting for 99.3% of total revenue, while overseas revenue was RMB 625,060 thousand[94] - Online marketing services revenue grew to RMB 49,041,552 thousand in 2022, up 14.9% from RMB 42,665,483 thousand in 2021[95] - Live streaming revenue increased to RMB 35,387,952 thousand in 2022, a 14.2% rise from RMB 30,995,152 thousand in 2021[95] - Other services revenue reached RMB 9,753,018 thousand in 2022, a 31.4% increase from RMB 7,420,878 thousand in 2021[95] - The company reported a net decrease in cash and cash equivalents of RMB 19,832,284 thousand for 2022, compared to a net increase of RMB 12,619,561 thousand in 2021[86] - The company's cash and cash equivalents at the end of 2022 were RMB 13,274,269 thousand, down from RMB 32,612,419 thousand at the end of 2021[86] Assets and Liabilities - The company's right-of-use assets for internet data centers decreased to RMB 8,103,946 thousand in 2022 from RMB 10,101,628 thousand in 2021, a decline of 19.8%[104] - Total lease liabilities decreased to RMB 12,195,490 thousand in 2022 from RMB 13,608,685 thousand in 2021, a reduction of 10.4%[104] - The company added and modified right-of-use assets worth approximately RMB 10.1 billion in 2022, compared to RMB 2.3 billion in 2021[104] - Total cash outflows for leases in 2022 amounted to approximately RMB 3.4 billion, up from RMB 2.7 billion in 2021[105] - Trade receivables increased to RMB 6,333,247 thousand in 2022 from RMB 4,476,135 thousand in 2021, a rise of 41.5%[107] - Cash and cash equivalents decreased to RMB 13,274,269 thousand in 2022 from RMB 32,612,419 thousand in 2021, a significant drop of 59.3%[109][110] - The weighted average annual interest rate for initial term deposits within three months increased to 4.89% in 2022 from 0.57% in 2021[111] - Total investments in financial assets at fair value through profit or loss increased to RMB 16,713,187 thousand in 2022 from RMB 12,142,826 thousand in 2021, a growth of 37.6%[106] - Accounts payable increased to RMB 22,868,452 thousand in 2022 from RMB 20,021,082 thousand in 2021, a rise of 14.2%[115] - Customer prepayments decreased to RMB 3,240,402 thousand in 2022 from RMB 3,502,642 thousand in 2021, a decline of 7.5%[116] Corporate Governance and Proceeds Utilization - The company decided not to recommend the payment of a final dividend for the year ended December 31, 2022[117] - The net proceeds from the global offering amounted to approximately HKD 46,964.4 million[117] - 35% of the net proceeds (HKD 16,437.5 million) were allocated to enhancing the ecosystem, with HKD 15,315.3 million already utilized as of December 31, 2022[118] - 30% of the net proceeds (HKD 14,089.3 million) were allocated to strengthening R&D and technological capabilities, with HKD 12,554.9 million already utilized as of December 31, 2022[118] - 25% of the net proceeds (HKD 11,741.1 million) were allocated for selective acquisitions or investments, with only HKD 505.0 million utilized as of December 31, 2022[118] - 10% of the net proceeds (HKD 4,696.5 million) were allocated for working capital and general corporate purposes, with HKD 4,441.5 million already utilized as of December 31, 2022[118] - The remaining unused net proceeds as of December 31, 2022, totaled HKD 14,147.7 million[118] - The company expects to fully utilize the net proceeds by December 31, 2023[118] - The company has complied with all applicable provisions of the Corporate Governance Code for the year ended December 31, 2022[119] - The company’s 2023 Annual General Meeting is scheduled to be held on June 16, 2023[122] Definitions and Key Metrics - Average Revenue Per Paying User (ARPPU) is calculated by dividing the revenue for a specific period by the number of paying users during that period[127] - Gross Merchandise Value (GMV) refers to the total value of all products and services transacted on or through the company's platform, excluding transactions over RMB 100,000 or a series of transactions exceeding RMB 1,000,000 by a single buyer in a single day, unless settled[128] - GMV per 1,000 Views is calculated by dividing the GMV by the total number of page views and multiplying by 1,000[128] - The company's listing date on the Hong Kong Stock Exchange was February 5, 2021[128] - The company's organizational bylaws were adopted on January 18, 2021, and became effective on the listing date[127]