Kingsoft Cloud Holdings Reports Q3 2024 Financial Results
Intellectia.AI
Kingsoft Cloud Holdings Reports Q3 2024 Financial Results
Beijing, Nov. 19, 2024 — Kingsoft Cloud Holdings Limited (NASDAQ: KC), a leading cloud service provider in China, today announced its unaudited financial results for the third quarter ended September 30, 2024.
Consolidated Financial Metrics:
| Metric | Q3 2024 | Q3 2023 | Q2 2024 | YoY Change | QoQ Change |
|---|---|---|---|---|---|
| Total Revenue | $268.71 million | $231.61 million | $269.64 million | +16.0% | -0.3% |
| Earnings per Share (EPS) | -$0.04 | Not Provided | -$0.10 | Not applicable | Not applicable |
The Q3 performance demonstrated strong year-on-year growth in revenue, though the company fell short of market expectations. EPS details in comparison were not directly available.
Segment Revenue Breakdown:
| Segment | Q3 2024 (USD) | Q3 2023 (USD) | QoQ Revenue (Q2 2024 USD) | YoY Change | QoQ Change |
|---|---|---|---|---|---|
| Public Cloud Services | $167.5 million | $144.9 million | $175.9 million | +15.6% | -4.8% |
| Enterprise Cloud Services | $101.2 million | $86.7 million | $93.7 million | +16.7% | +8.0% |
Public cloud services showed notable year-over-year growth driven by AI-related demand, whereas enterprise cloud services reflected robust advancement and efficiency enhancements.
Key Developments: - Gross profit rose by 54.6% to $43.2 million. - AI-related business expanded significantly, accounting for approximately 31% of public cloud revenue. - Strategic reduction in low-margin CDN services impacted revenue mix positively.
Executive Commentary: CEO Tao Zou highlighted the success of the 'High-quality and Sustainable Development Strategy,' emphasizing accelerated topline growth and improved profitability metrics, notably in AI and ecosystem expansions. CFO Henry He commended the revenue and profit growth, with major improvements in adjusted EBITDA and gross profit margins.
Forward Guidance: For Q4 2024, Kingsoft Cloud expects continued healthy growth driven by both public and enterprise cloud segments, alongside ongoing improvement in profitability measures.
Stock Price Reaction: Following the earnings release, Kingsoft Cloud's stock declined by approximately 14.06%, indicating a market response to the earnings shortfall relative to expectations.
Kingsoft Cloud remains optimistic about future growth, underscored by strategic realignments and market expansions.
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