Loading...
01/10 22:44
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Despite strong growth in AI-related business and a solid cash position, the earnings miss and gross margin decline weigh negatively. The Q&A reveals seasonal impacts and regulatory risks, tempering optimism. The lack of a share buyback program and vague guidance on AI pricing further add uncertainty. However, improved profitability and strategic partnerships with Xiaomi offer positive prospects. Overall, mixed signals result in a neutral sentiment.
Total Revenue RMB 1.97 billion, up 11% year-over-year, driven by growth in both public and enterprise cloud services.
Public Cloud Revenue RMB 1.35 billion, up 14% year-over-year, primarily fueled by a surge in AI-related business.
AI Gross Billing RMB 525 million, up over 200% year-over-year, contributing 39% of public cloud revenue.
Enterprise Cloud Revenue RMB 616 million, up 5% year-over-year, but down 25% quarter-over-quarter due to seasonal impacts.
Adjusted Gross Profit RMB 327 million, up 9.6% year-over-year, but down 23.4% quarter-over-quarter due to seasonality and higher upfront investments.
Adjusted Gross Margin 16.6%, down from 16.8% year-over-year and 19.2% quarter-over-quarter, impacted by seasonality and investments in AI.
Adjusted Operating Loss RMB 55 million, improved by 56% from RMB 127 million in the same period last year, due to increased gross profit and decreased credit loss.
Non-GAAP EBITDA Margin 16.2%, up from 1.9% year-over-year, mainly due to strong commitment to AI cloud computing and cost control.
Cash and Cash Equivalents RMB 2.32 billion, indicating a strong liquidity position to support operations and AI investments.
AI Business Growth: AI gross billing reached RMB 525 million, representing a year-over-year increase of over 200% and a quarter-over-quarter growth of 11%.
Xinyu Platform: Enhanced product capabilities of the Xinyu training and inference platform, providing efficient, elastic, and cost-effective model training and inference services.
Public Cloud Revenue: Public cloud revenue reached RMB 1.35 billion, representing a year-over-year increase of 14%.
Ecosystem Revenue: Revenue from Xiaomi and Kingsoft ecosystem reached RMB 500 million, up 50% year-over-year.
Cost Control: IDC costs dropped by 6% year-over-year, reflecting better resource utilization.
Capital Expenditure: Capital expenditure reached RMB 605 million, primarily for expanding AI business.
AI Strategy: Continued focus on AI as a key growth driver, with significant investments in computing infrastructure and ecosystem cooperation.
Ecosystem Cooperation: Strengthened collaboration with Xiaomi and Kingsoft ecosystem to expand cloud infrastructure for AI.
Earnings Miss: Kingsoft Cloud Holdings Limited reported an EPS of $-0.1, missing expectations of $-0.09.
Profit Fluctuation: The company experienced fluctuations in profits, with a non-GAAP operating loss of RMB 55 million this quarter.
Gross Margin Decline: Non-GAAP gross margin declined by 2.6 percentage points quarter-over-quarter to 16.6%, attributed to lower enterprise cloud revenue and front-loaded investments.
Market Pressure: The company faced headwinds from market pressures and supply chain uncertainties.
Seasonality Impact: Enterprise cloud revenue saw a 25% sequential decrease, primarily due to seasonal slowdowns in project delivery.
Increased Costs: Depreciation and amortization costs increased significantly due to new high-performance servers for AI expansion.
Regulatory Risks: The company acknowledged risks related to regulatory issues and uncertainties that could impact future performance.
Revenue Growth: Year-over-year revenue growth of 11%, reaching RMB 1.97 billion.
AI Business Growth: AI gross billing reached RMB 525 million, representing a year-over-year increase of over 200%.
Ecosystem Cooperation: Revenue from Xiaomi and Kingsoft ecosystem reached RMB 500 million, up 50% year-over-year.
Computing Clusters: Accelerating construction of computing clusters expected to launch in Q2 2025.
AI Services Expansion: Building a one-stop AI service platform to optimize model performance for customers.
Future Revenue Expectations: Continued growth in AI cloud services expected to drive future revenue.
Capital Expenditure: Capital expenditure for Q1 2025 was RMB 605 million.
Profitability Outlook: Non-GAAP EBITDA margin achieved 16.2%, with expectations for improvement as AI business grows.
Cash Position: Cash and cash equivalents totaled RMB 2,322.7 million, indicating strong liquidity for future investments.
Share Buyback Program: None
The earnings call highlights strong financial performance with significant growth in AI and cloud revenue, turning to profitability, and improved margins. Despite some execution risks and unclear guidance, the company's strategic focus on AI and cloud, along with optimistic future demand, suggests a positive outlook. The Q&A reveals analysts' interest in growth drivers and margin trends, with management addressing these positively. The absence of negative catalysts and the presence of strong growth indicators point to a likely positive stock price movement.
The earnings call highlights strong revenue growth driven by AI and ecosystem partnerships, a significant increase in non-GAAP EBITDA, and a robust cash position. Although there are concerns about declining gross margins and vague guidance in some areas, the overall sentiment remains positive due to strong demand and strategic investments in AI cloud services. The Q&A section reinforces this with expectations of stronger revenue growth and strategic flexibility. Despite some uncertainties, the positive aspects outweigh the negatives, suggesting a likely positive stock price movement.
Despite strong growth in AI-related business and a solid cash position, the earnings miss and gross margin decline weigh negatively. The Q&A reveals seasonal impacts and regulatory risks, tempering optimism. The lack of a share buyback program and vague guidance on AI pricing further add uncertainty. However, improved profitability and strategic partnerships with Xiaomi offer positive prospects. Overall, mixed signals result in a neutral sentiment.
The earnings call presents mixed signals: strong growth in AI and public cloud, yet declines in enterprise cloud and gross margin. The absence of a share buyback program and lack of formal guidance further contribute to uncertainty. However, long-term demand from Xiaomi and a strong liquidity position are positives. Q&A insights reveal seasonality and construction cycle impacts, with potential improvements in operating margin. Overall, the balanced positives and negatives suggest a neutral stock price movement.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
