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Kingsoft Cloud Announces Unaudited First Quarter 2024 Financial Results
KCKINGSOFT CLOUD(KC) Newsfilter·2024-05-22 12:12

Core Viewpoint - Kingsoft Cloud Holdings Limited reported a significant improvement in its financial performance for Q1 2024, achieving profitability in adjusted EBITDA and a sequential increase in revenue, driven primarily by growth in AI-related services. Financial Performance - Total revenues for Q1 2024 reached RMB1,775.7 million (US245.91million),a3.1245.91 million), a 3.1% increase from RMB1,722.5 million in Q4 2023, but a 4.8% decrease from RMB1,864.4 million in Q1 2023 [4][10]. - Adjusted EBITDA turned profitable at RMB33.2 million, with an adjusted EBITDA margin of 1.9%, compared to a loss of RMB130.5 million in Q1 2023 [2][11]. - Adjusted gross profit was RMB299.1 million, a 53.8% increase from RMB194.4 million in Q1 2023, with an adjusted gross margin of 16.8%, up from 10.4% in the same quarter last year [2][8]. Revenue Breakdown - Revenues from public cloud services increased by 12.9% quarter-over-quarter to RMB1,187.4 million (US164.4 million) and by 2.9% year-over-year [5]. - Revenues from enterprise cloud services were RMB588.2 million (US81.5million),reflectingadecreaseof12.381.5 million), reflecting a decrease of 12.3% from the previous quarter and a 17.2% decline from Q1 2023 [5]. - AI-related revenue contributed approximately 13% of total revenues from public cloud services, up from 8% in the previous quarter [2]. Cost Management - Cost of revenues decreased significantly by 11.2% year-over-year to RMB1,482.4 million (US205.3 million), primarily due to the scaling down of CDN services [6]. - Total operating expenses were RMB567.4 million (US78.6million),downfromRMB595.9millioninthepreviousquarterandRMB792.1millioninQ12023[8].ProfitabilityMetrics−GrossprofitforQ12024wasRMB293.3million(US78.6 million), down from RMB595.9 million in the previous quarter and RMB792.1 million in Q1 2023 [8]. Profitability Metrics - Gross profit for Q1 2024 was RMB293.3 million (US40.6 million), a 51.0% increase from RMB194.2 million in Q1 2023, with a gross margin of 16.5% [8][10]. - Net loss narrowed to RMB363.6 million (US50.4million)fromRMB608.8millioninthesamequarterof2023[10][11].CashPosition−AsofMarch31,2024,cashandcashequivalentswereRMB1,811.7million(US50.4 million) from RMB608.8 million in the same quarter of 2023 [10][11]. Cash Position - As of March 31, 2024, cash and cash equivalents were RMB1,811.7 million (US250.9 million), down from RMB2,255.3 million at the end of 2023, primarily due to operational expenses and investments in computing power [11].