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Kingsoft Cloud Announces Unaudited Fourth Quarter and Fiscal Year 2024 Financial Results; First Time Operating Margin Profitable with Accelerated Growing Revenue of AI Cloud

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Kingsoft Cloud (KC) reported strong Q4 2024 financial results, marking its first-ever operating profit milestone. Total revenues reached RMB2,232.1 million (US$305.8 million), up 29.6% year-over-year. The company achieved significant growth in AI cloud business, with gross billing increasing 500% YoY to RMB474 million.

Key highlights include:

  • Gross profit increased 68.3% YoY to RMB426.0 million
  • Non-GAAP EBITDA reached RMB359.7 million with 16.1% margin
  • First-time positive Non-GAAP Operating profit of RMB24.4 million
  • Revenue from Xiaomi and Kingsoft Group increased 76% YoY

The company's public cloud services revenue grew 34.0% YoY to RMB1,409.8 million, while enterprise cloud services revenue increased 22.7% YoY to RMB822.3 million. The improved performance reflects successful execution of their 'High-quality, Sustainable Development Strategy' and growing AI cloud adoption.

Kingsoft Cloud (KC) ha riportato risultati finanziari solidi per il quarto trimestre del 2024, segnando il suo primo traguardo di profitto operativo. I ricavi totali hanno raggiunto RMB2.232,1 milioni (US$305,8 milioni), con un aumento del 29,6% rispetto all'anno precedente. L'azienda ha registrato una crescita significativa nel business del cloud AI, con una fatturazione lorda che è aumentata del 500% su base annua, arrivando a RMB474 milioni.

I punti salienti includono:

  • Il profitto lordo è aumentato del 68,3% su base annua, raggiungendo RMB426,0 milioni
  • Il EBITDA non-GAAP ha raggiunto RMB359,7 milioni con un margine del 16,1%
  • Primo profitto operativo positivo non-GAAP di RMB24,4 milioni
  • I ricavi provenienti da Xiaomi e Kingsoft Group sono aumentati del 76% su base annua

I ricavi dei servizi cloud pubblici dell'azienda sono cresciuti del 34,0% su base annua, raggiungendo RMB1.409,8 milioni, mentre i ricavi dei servizi cloud per le imprese sono aumentati del 22,7% su base annua, arrivando a RMB822,3 milioni. Le prestazioni migliorate riflettono l'esecuzione di successo della loro 'Strategia di Sviluppo Sostenibile e di Alta Qualità' e l'aumento dell'adozione del cloud AI.

Kingsoft Cloud (KC) reportó resultados financieros sólidos para el cuarto trimestre de 2024, marcando su primer hito de beneficio operativo. Los ingresos totales alcanzaron RMB2,232.1 millones (US$305.8 millones), un aumento del 29.6% interanual. La compañía logró un crecimiento significativo en el negocio de la nube de IA, con una facturación bruta que aumentó un 500% interanual, alcanzando RMB474 millones.

Los aspectos destacados incluyen:

  • El beneficio bruto aumentó un 68.3% interanual, alcanzando RMB426.0 millones
  • El EBITDA no-GAAP alcanzó RMB359.7 millones con un margen del 16.1%
  • Primer beneficio operativo positivo no-GAAP de RMB24.4 millones
  • Los ingresos de Xiaomi y Kingsoft Group aumentaron un 76% interanual

Los ingresos de los servicios de nube pública de la compañía crecieron un 34.0% interanual, alcanzando RMB1,409.8 millones, mientras que los ingresos de los servicios de nube empresarial aumentaron un 22.7% interanual, llegando a RMB822.3 millones. El rendimiento mejorado refleja la exitosa ejecución de su 'Estrategia de Desarrollo Sostenible y de Alta Calidad' y el creciente uso de la nube de IA.

Kingsoft Cloud (KC)는 2024년 4분기 재무 결과를 발표하며 첫 운영 이익을 기록했습니다. 총 수익은 RMB2,232.1백만 (US$305.8백만)에 도달하여 전년 대비 29.6% 증가했습니다. 이 회사는 AI 클라우드 비즈니스에서 500%의 연간 성장률을 기록하며 총 청구액이 RMB474백만으로 증가했습니다.

주요 하이라이트는 다음과 같습니다:

  • 총 이익은 전년 대비 68.3% 증가하여 RMB426.0백만에 도달했습니다.
  • 비 GAAP EBITDA는 RMB359.7백만으로 16.1%의 마진을 기록했습니다.
  • 비 GAAP 운영 이익이 처음으로 RMB24.4백만을 기록했습니다.
  • Xiaomi 및 Kingsoft Group으로부터의 수익이 전년 대비 76% 증가했습니다.

회사의 퍼블릭 클라우드 서비스 수익은 전년 대비 34.0% 증가하여 RMB1,409.8백만에 도달했으며, 기업 클라우드 서비스 수익은 전년 대비 22.7% 증가하여 RMB822.3백만에 도달했습니다. 향상된 성과는 '고품질, 지속 가능한 개발 전략'의 성공적인 실행과 AI 클라우드 채택의 증가를 반영합니다.

Kingsoft Cloud (KC) a annoncé des résultats financiers solides pour le quatrième trimestre de 2024, atteignant ainsi son premier jalon de bénéfice opérationnel. Les revenus totaux ont atteint RMB2,232.1 millions (US$305.8 millions), en hausse de 29.6% par rapport à l'année précédente. L'entreprise a connu une croissance significative dans le secteur du cloud AI, avec une facturation brute augmentant de 500% d'une année sur l'autre, atteignant RMB474 millions.

Les points forts incluent :

  • Le bénéfice brut a augmenté de 68.3% d'une année sur l'autre, atteignant RMB426.0 millions
  • Le EBITDA non-GAAP a atteint RMB359.7 millions avec une marge de 16.1%
  • Premier bénéfice opérationnel positif non-GAAP de RMB24.4 millions
  • Les revenus de Xiaomi et du groupe Kingsoft ont augmenté de 76% d'une année sur l'autre

Les revenus des services cloud publics de l'entreprise ont augmenté de 34.0% d'une année sur l'autre, atteignant RMB1,409.8 millions, tandis que les revenus des services cloud pour entreprises ont augmenté de 22.7% d'une année sur l'autre, atteignant RMB822.3 millions. La performance améliorée reflète l'exécution réussie de leur 'Stratégie de Développement Durable et de Haute Qualité' et l'adoption croissante du cloud AI.

Kingsoft Cloud (KC) hat starke finanzielle Ergebnisse für das vierte Quartal 2024 gemeldet und damit den ersten operativen Gewinn in seiner Geschichte erzielt. Die Gesamterlöse erreichten RMB2.232,1 Millionen (US$305,8 Millionen), was einem Anstieg von 29,6% im Vergleich zum Vorjahr entspricht. Das Unternehmen verzeichnete ein signifikantes Wachstum im KI-Cloud-Geschäft, wobei die Bruttoabrechnung im Jahresvergleich um 500% auf RMB474 Millionen anstieg.

Wichtige Höhepunkte sind:

  • Der Bruttogewinn stieg im Jahresvergleich um 68,3% auf RMB426,0 Millionen
  • Das Non-GAAP EBITDA erreichte RMB359,7 Millionen mit einer Marge von 16,1%
  • Erster positiver Non-GAAP-Betriebsgewinn von RMB24,4 Millionen
  • Die Einnahmen von Xiaomi und Kingsoft Group stiegen im Jahresvergleich um 76%

Die Erlöse aus den öffentlichen Cloud-Diensten des Unternehmens wuchsen im Jahresvergleich um 34,0% auf RMB1.409,8 Millionen, während die Erlöse aus den Unternehmens-Cloud-Diensten im Jahresvergleich um 22,7% auf RMB822,3 Millionen stiegen. Die verbesserte Leistung spiegelt die erfolgreiche Umsetzung ihrer 'Strategie für qualitatives und nachhaltiges Wachstum' sowie die zunehmende Akzeptanz von KI-Cloud wider.

Positive
  • First-time achievement of Non-GAAP Operating profit at RMB24.4 million
  • Total revenue growth accelerated to 29.6% YoY
  • AI cloud billing surged 500% YoY to RMB474 million
  • Gross profit increased 68.3% YoY with margin expansion to 19.1%
  • Secured RMB11.3 billion three-year revenue commitment from Xiaomi and Kingsoft Group
  • Non-GAAP EBITDA improved to RMB359.7 million with 16.1% margin
Negative
  • Net loss of RMB200.6 million in Q4 2024
  • Operating loss of RMB43.5 million
  • Recorded RMB919.7 million impairment of long-lived assets in FY2024

Insights

Kingsoft Cloud's Q4 results mark a significant inflection point in the company's financial trajectory, achieving non-GAAP operating profitability for the first time since its founding in 2012. With total revenues of RMB2,232.1 million ($305.8 million), representing 29.6% year-over-year growth, the company has demonstrated accelerating momentum for three consecutive quarters.

The financial transformation is most evident in profitability metrics. Gross profit surged 68.3% year-over-year to $58.4 million, while the gross margin expanded from 14.7% to 19.1%. More impressively, non-GAAP EBITDA reached $49.3 million with a 16.1% margin, a dramatic reversal from the negative 1.6% margin in Q4 2023.

The AI cloud business has emerged as the primary growth catalyst, with triple-digit billing growth reaching RMB474 million and now representing 34% of public cloud revenue. The deepening ecosystem relationships are also bearing fruit, with revenue from Xiaomi and Kingsoft Group increasing 76% year-over-year.

The operating expense discipline is noteworthy, with total operating expenses decreasing 21.2% year-over-year. While the company still posted a net loss of $27.5 million for Q4, this represents substantial improvement and suggests a path to comprehensive profitability if current trends continue.

For the full year, total revenues increased 10.5% to $1.07 billion, with gross profit surging 57.7%. Non-GAAP EBITDA for 2024 reached $87.5 million with an 8.2% margin, compared to negative 3.8% in 2023. The financial improvements reflect Kingsoft Cloud's successful pivot toward higher-margin AI services while restraining costs.

Kingsoft Cloud's transition to an AI-focused cloud provider is yielding impressive results. The triple-digit growth in AI cloud gross billings signals strong market traction and effective productization of AI infrastructure services. The company has successfully positioned itself at the convergence of two high-growth markets: cloud computing and artificial intelligence.

The strategic importance of Kingsoft's ecosystem partnerships cannot be overstated. The 76% revenue growth from Xiaomi and Kingsoft Group validates the company's ecosystem-first approach, with shareholders approving connected-party revenue targets of RMB11.3 billion over the next three years—a tenfold increase over 2023 levels.

From a technical infrastructure perspective, the increased depreciation and amortization costs (RMB343.1 million, up from RMB146.9 million year-over-year) reflect substantial investments in AI-capable hardware. This capital deployment demonstrates management's conviction in the AI cloud opportunity and provides the computational foundation needed to capture market share in this rapidly growing segment.

The company has successfully rebalanced its service portfolio, strategically scaling down lower-margin CDN services while accelerating AI cloud and enterprise solutions. This technological pivot has directly contributed to the gross margin expansion to 19.1% in Q4 2024.

For enterprise clients, Kingsoft is enhancing its vertical-specific solutions with AI capabilities, focusing on public services, healthcare, financial services, and state-owned assets. This targeted approach, combined with stricter project selection criteria prioritizing profitability, represents a mature evolution of the company's go-to-market strategy. The confluence of improving economics, accelerating AI adoption, and ecosystem leverage positions Kingsoft Cloud for sustained technological leadership in China's cloud market.

BEIJING, March 19, 2025 (GLOBE NEWSWIRE) -- Kingsoft Cloud Holdings Limited (“Kingsoft Cloud” or the “Company”) (NASDAQ: KC and HKEX: 3896), a leading cloud service provider in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024.

Fourth Quarter Financial Highlights

  • Total Revenues reached RMB2,232.1 million (US$305.8 million)1, increased by 29.6% year-over-year from RMB1,722.5 million in the same quarter of 2023. Our business has experienced accelerated and high-quality growth and our revenue structure is well-balanced.
  • Gross profit was RMB426.0 million (US$58.4 million), representing a significant increase of 68.3% from RMB253.1 million in the same quarter of 2023. Our profitability has been fundamentally improved.
  • Non-GAAP EBITDA2 was RMB359.7 million (US$49.3 million), compared with RMB-27.7 million in the same quarter of 2023. Non-GAAP EBITDA margin was 16. 1%, compared with -1.6% in the same quarter of 2023.
  • Operating loss was RMB43.5 million (US$6.0 million), compared with operating loss of RMB342.7 million in the same quarter of 2023.
  • Non-GAAP Operating profit (loss) turned profit for the first time, achieving RMB24.4 million (US$3.3 million), compared with RMB-187.6 million in the same quarter of 2023. Non-GAAP Operating profit (loss) margin was 1. 1%, compare with -10.9% in the same quarter of 2023.

Mr. Tao Zou, Chief Executive Officer of Kingsoft Cloud, commented, “We are very pleased to close Fiscal Year 2024 with historically strong financial performance. This quarter, we recorded positive non-GAAP operating profit (loss)for the first time, demonstrating our unwavering execution of the ‘High- quality, Sustainable Development Strategy’. Driven by the growing popularity of AI applications, we firmly believe that AI will continue to penetrate into various verticals, improving the efficiency of daily life. This quarter the gross billing of AI business increased by triple-digit year-over-year to RMB474 million. Both our public cloud and enterprise cloud businesses are harnessing the vast potential of AI cloud computing. Meanwhile, we have seen strong growth in demand from our ecosystem. Revenue from Xiaomi and Kingsoft Group increased by 76% year-over-year. We are well on track to build cutting- edge cloud infrastructure and technology to support our ecosystem and expand into the broader AI industry.”

Mr. Henry He, Chief Financial Officer of Kingsoft Cloud, added, “We are very pleased to highlight several significant achievements. First, we achieved profitability in non-GAAP operating profit for the first time since our inception in 2012, demonstrating our strong execution of our high-quality and sustainable development strategy in the past two years. Second, our revenue has been growing for three consecutive quarters year-over-year, and this quarter we achieved a high-speed growth rate of 30% in total revenue, reaching RMB2,232.1 million. Third, gross billing of our Al cloud business increased by around 500% year-over-year to RMB474 million, accounting for as high as 34% of our public cloud revenue. This marks a three-digit year-on-year growth or six consecutive quarters. Fourth, last December, our shareholders approved revenue from connected-party of Xiaomi and Kingsoft Group for next three years of RMB11.3 billion, around 10 times over the revenue of 2023, providing solid support for Company’s revenue and profit growth. We believe we are well on track to meet the ecosystem’s fast-growing demands and build a solid cloud infrastructure to support its AI development. Notably, in this quarter, we are thrilled to report that revenue from Xiaomi and Kingsoft Group increased by 76% year-over-year, validating the effectiveness of our ecosystem strategy.”

Fourth Quarter 2024 Financial Results

Total Revenues reached RMB2,232.1 million (US$305.8 million), increased by 29.6% year-over-year from RMB1,722.5 million in the same quarter of 2023 and increased by 18.4% quarter-over-quarter from RMB1,885.6 million in the third quarter of 2024. The year-over-year increase was mainly due to the expanded revenue from Xiaomi and Kingsoft Ecosystem and AI related customers, incremental demands and more projects delivered from enterprise cloud approaching year-end.

  • Revenues from public cloud services were RMB1,409.8 million (US$193.1 million), increased by 34.0% from RMB1,052.0 million in the same quarter of 2023 and increased by 19.9% from RMB1, 175.5 million last quarter. The year-over-year increase was mainly due to the growth of AI demands.

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1 This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB7.2993 to US$1.00, the noon buying rate in effect on December 31, 2024 as certified for customs purposes by the Federal Reserve Bank of New York.

2 Non-GAAP EBITDA is defined as non-GAAP net loss excluding interest income, interest expense, income tax expense (benefit) and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. See “Use of Non-GAAP Financial Measures” set forth at the end of this press release.

  • Revenues from enterprise cloud services were RMB822.3 million (US$112.7 million), representing an increase of 22.7% from RMB670.3 million in the same quarter of 2023 and an increase of 15.8% from RMB710.0 million last quarter. We keep focusing in selected verticals such as public services cloud, state-owned assets cloud, healthcare, financial services and private enterprise services, enhance our solutions with AI capabilities and take profitability and sustainability of the enterprise cloud projects as our priorities.
  • Other revenues were nil this quarter.

Cost of revenues was RMB1,806.2 million (US$247.4 million), representing an increase of 22.9% from RMB1,469.3 million in the same quarter of 2023, which was in-line with our revenue expansion. IDC costs decreased by 2.6% year-over-year from RMB740.4 million to RMB721.5 million (US$98.8 million) this quarter. The decrease was in line with the scale down of our CDN services and our strict control over procurement costs. Depreciation and amortization costs increased from RMB146.9 million in the same quarter of 2023 to RMB343.1 million (US$47.0 million) this quarter. The increase was mainly due to the depreciation of newly acquired servers which were related to AI business. Solution development and services costs increased by 10.8% year-over-year from RMB502.9 million in the same quarter of 2023 to RMB557.0 million (US$76.3 million) this quarter. The increase was mainly due to the solution personnel expansion of Camelot. Fulfillment costs and other costs were RMB102.4 million (US$14.0 million) and RMB82.2 million (US$11.3 million) this quarter.

Gross profit was RMB426.0 million (US$58.4 million), representing a significant increase of 68.3% from RMB253.1 million in the same quarter of 2023, demonstrating our improvements in revenue quality and structure, as well as strict cost control. Gross margin was 19. 1%, compared with 14.7% in the same period in 2023. Non-GAAP gross profit3 was RMB427.7 million (US$58.6 million), compared with RMB262.5 million in the same period in 2023. Non-GAAP gross margin3 was 19.2%, compared with 15.2% in the same period in 2023. The significant improvement of our gross profit and margin was mainly due to our strategic adjustment of revenue mix, expansion of AI revenues, optimized enterprise cloud project selection and efficient cost control measures.

Total operating expenses were RMB469.5 million (US$64.3 million), decreased by 21.2% from RMB595.9 million in the same quarter last year and decreased by 67.6% from RBM1,447.1 million last quarter. Among which:

Selling and marketing expenses were RMB115.8 million (US$15.9 million), decreased by 8.4% from RMB126.5 million in the same period in 2023 and decreased by 4.4% from RMB121.1 million last quarter, the decrease was due to the decrease of share-based compensation.

General and administrative expenses were RMB179.5 million (US$24.6 million), decreased by 39.0% from RMB294.2 million in the same period in 2023 and slightly increased by 5.4% from RMB170.4 million last quarter. The year-over-year decrease was mainly due to the decrease of credit loss expense.

Research and development expenses were RMB174.2 million (US$23.9 million), decreased by 0.6% from RMB175.2 million in the same period in 2023 and 26.2% from RMB235.9 million last quarter. The decrease was mainly due to the decrease of share-based compensation.

Operating loss was RMB43.5 million (US$6.0 million), compared with operating loss of RMB342.7 million in the same quarter of 2023 and RMB1,143.8 million last quarter. The improvement was mainly due to the increase of gross profit and our strict expenses control. Non-GAAP operating profit (loss)4 was RMB24.4 million (US$3.3 million), compared with operating loss of RMB187.6 million in the same quarter last year and RMB140.2 million last quarter. Our non-GAAP operating profit (loss) turned breakeven for the first time and verified our high quality and sustainable development strategy.

Net loss was RMB200.6 million (US$27.5 million), compared with net loss of RMB286.8 million in the same quarter of 2023 and RMB1,061.1 million last quarter. Non-GAAP net loss5 was RMB70.3 million (US$9.6 million), narrowed down compared with RMB250.4 million in the same quarter of 2023 and RMB236.7 million last quarter. The improvement was mainly due to the revenue quality increase, revenue mix adjustment, strict costs control and expenses control.
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3 Non-GAAP gross profit is defined as gross profit excluding share-based compensation allocated in the cost of revenues and we define Non-GAAP gross margin as Non-GAAP gross profit as a percentage of revenues. See “Use of Non-GAAP Financial Measures” set forth at the end of this press release.

4 Non-GAAP operating loss is defined as operating loss excluding share-based compensation, impairment of long-lived assets and amortization of intangible assets and we define Non-GAAP operating loss margin as Non-GAAP operating loss as a percentage of revenues. See “Use of Non-GAAP Financial Measures” set forth at the end of this press release.

5 Non-GAAP net loss is defined as net loss excluding share-based compensation, impairment of long-lived assets and foreign exchange (gain) loss, and we define Non-GAAP net loss margin as Non-GAAP net loss as a percentage of revenues. See “Use of Non-GAAP Financial Measures” set forth at the end of this press release.

Non-GAAP EBITDA6 was RMB359.7 million (US$49.3 million), compared with RMB-27.7 million in the same quarter of 2023 and RMB185.4 million last quarter. Non-GAAP EBITDA margin was 16. 1%, compared with -1.6% in the same quarter of 2023 and 9.8% last quarter. The increase was mainly due to the expansion in gross profit and our strict control over costs and expenses.

Basic and diluted net loss per share was RMB0.05 (US$0.01), compared with RMB0.08 in the same quarter of 2023 and RMB0.29 last quarter.

Cash and cash equivalents were RMB2,648.8 million (US$362.9 million) as of December 31, 2024, compared with RMB1,617.9 million as of September 30, 2024. The increase was mainly due to the increased cash receipts from operating activities and the increase in bank loan drawdowns.

Fiscal Year 2024 Financial Results

Total Revenues reached RMB7,785.2 million (US$1,066.6 million), representing an increase of 10.5% from RMB7,047.5 million in 2023. The increase was due to the strong demands from AI business and enterprise cloud projects increase, while partially offset by our proactive scale-down of CDN services within public cloud services.

  • Revenues from public cloud services were RMB5,007.3 million (US$686.0 million), representing an increase of 14.3% from RMB4,381.7 million in 2023.
  • Revenues from enterprise cloud services were RMB2,777.8 million (US$380.6 million), representing an increase of 4.3% from RMB2,664.0 million in 2023.
  • Other revenues were RMB0.1 million (US$0.02 million).

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6
Non-GAAP EBITDA is defined as Non-GAAP net loss excluding interest income, interest expense, income tax expense (benefit) and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. See “Use of Non-GAAP Financial Measures” set forth at the end of this press release.

Cost of revenues was RMB6,444.3 million (US$882.9 million), representing a slight increase of 4.0% from RMB6, 197.3 million in 2023. Among which:

IDC costs decreased by 9.9% to RMB2,892.1 million (US$396.2 million) from RMB3,211.2 million in 2023. The decrease was in line with our cost control measures adjustment of CDN services. Depreciation and amortization costs were RMB1,090.1 million (US$149.3 million), compared with RMB774.0 million in 2023, mainly due to the depreciation of new acquired servers related to AI business. Fulfillment costs were RMB235.7 million (US$32.3 million), representing an increase of 2.7% from RMB229.5 million in 2023. The increase was in line with enterprise cloud projects increase. Solution development and services costs were RMB1,993.1 million (US$273.1 million) in 2024, compared with RMB1,804.8 million in 2023. The increase was mainly due to the revenue expansion of Camelot business.

Gross profit increased by 57.7% to RMB1,340.9 million (US$183.7 million) in 2024, from RMB850.2 million in 2023. Gross margin increased to 17.2%, from 12. 1% in 2023. Non-GAAP gross profit increased to RMB1,357.8 million (US$186.0 million) in 2024, from RMB859.9 million in 2023. Non-GAAP gross margin increased to 17.4% in 2024 from 12.2% in 2023. Such increases were primarily because of the optimization of revenue mix and our effective cost controls.

Selling and marketing expenses were RMB479.4 million (US$65.7 million), compared with RMB460.2 million in 2023. The increase was mainly due to the increase of share-based compensation.

General and administrative expenses were RMB834.9 million (US$114.4 million), compared with RMB1,060.0 million in 2023. The decrease was mainly due to the decrease of credit loss expense.

Research and development expenses were RMB846.0 million (US$115.9 million), compared with RMB784.8 million in 2023. The increase was mainly due to the rise in personnel-related expenses.

Impairment of long-lived assets was RMB919.7 million (US$126.0 million), mainly attributable to impairment of long-lived assets dedicated to assets of low-margin services.

Operating loss was RMB1,739.0 million (US$238.2 million), compared with RMB2, 108.6 million in 2023. Non-GAAP operating loss was RMB431.3 million (US$59.1 million), significantly narrowed compared with RMB1,092.8 million in 2023. Non-GAAP operating loss margin was 5.5%, significantly improved from 15.5% in 2023.

Net loss was RMB1,979.0 million (US$271.1 million), significantly narrowed from net loss of RMB2, 183.6 million in 2023.

Non-GAAP net loss was RMB825.3 million (US$113.1 million), compared with Non-GAAP net loss of RMB1,291.1 million in 2023.

Non-GAAP EBITDA was RMB638.9 million (US$87.5 million), compared with RMB-265.1 million in 2023. Non-GAAP EBITDA margin was 8.2%, compared with -3.8% in 2023.

Basic and diluted net loss per share was RMB0.54 (US$0.07), compared with RMB0.61 in 2023.

Outstanding ordinary shares were 3,687,690,772 as of December 31, 2024, equivalent to about 245,846,051 ADSs.

Conference Call Information

Kingsoft Cloud’s management will host an earnings conference call on Wednesday, March 19, 2025 at 8:15 am, U.S. Eastern Time (8:15 pm, Beijing/Hong Kong Time on the same day).

Participants can register for the conference call by navigating to https://register-conf.media-server.com/register/BIc315136cafe94825b98dca6b37795790. Once preregistration has been completed, participants will receive dial-in numbers, direct event passcode, and a unique access PIN.

To join the conference, simply dial the number in the calendar invite you receive after preregistering, enter the passcode followed by your PIN, and you will join the conference instantly.

Additionally, a live and archived webcast of the conference call will also be available on the Company’s investor relations website at http://ir.ksyun.com.

Use of Non-GAAP Financial Measures

The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In evaluating our business, we consider and use certain non-GAAP measures, Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP operating loss, Non-GAAP operating loss margin, Non-GAAP EBITDA, Non-GAAP EBITDA margin, Non-GAAP net loss and Non-GAAP net loss margin, as supplemental measures to review and assess our operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define Non- GAAP gross profit as gross profit excluding share-based compensation allocated in the cost of revenues, and we define Non-GAAP gross margin as Non-
GAAP gross profit as a percentage of revenues. We define Non-GAAP operating loss as operating loss excluding share-based compensation, impairment of long-lived assets and amortization of intangible assets, and we define Non-GAAP operating loss margin as Non-GAAP operating loss as a percentage of revenues. We define Non-GAAP net loss as net loss excluding share-based compensation, foreign exchange (gain) loss and impairment of long-lived assets, and we define Non-GAAP net loss margin as Non-GAAP net loss as a percentage of revenues. We define Non-GAAP EBITDA as Non-GAAP net loss excluding interest income, interest expense, income tax expense (benefit) and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We also believe that the use of these non-GAAP measures facilitates investors’ assessment of our operating performance.

These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using these non-GAAP financial measures is that they do not reflect all items of income and expense that affect our operations. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

We compensate for these limitations by reconciling these non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.

Exchange Rate Information

This press release contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from RMB to U.S. dollars, in this press release, were made at a rate ofRMB7.2993 to US$1.00, the noon buying rate in effect on December 31, 2024 as certified for customs purposes by the Federal Reserve Bank of New York.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the Business Outlook, and quotations from management in this announcement, as well as Kingsoft Cloud’s strategic and operational plans, contain forward-looking statements. Kingsoft Cloud may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Kingsoft Cloud’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Kingsoft Cloud’s goals and strategies; Kingsoft Cloud’s future business development, results of operations and financial condition; relevant government policies and regulations relating to Kingsoft Cloud’s business and industry; the expected growth of the cloud service market in China; the expectation regarding the rate at which to gain customers, especially Premium Customers; Kingsoft Cloud’s ability to monetize the customer base; fluctuations in general economic and business conditions in China; and the economy in China and elsewhere generally; China’s political or social conditions and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Kingsoft Cloud’s filings with the SEC. All information provided in this press release and in the attachments is as ofthe date of this press release, and Kingsoft Cloud does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

About Kingsoft Cloud Holdings Limited

Kingsoft Cloud Holdings Limited (NASDAQ: KC and HKEX:3896) is a leading cloud service provider in China. With extensive cloud infrastructure, cutting-edge cloud-native products based on vigorous cloud technology research and development capabilities, well-architected industry-specific solutions and end-to-end fulfillment and deployment, Kingsoft Cloud offers comprehensive, reliable and trusted cloud service to customers in strategically selected verticals.

For more information, please visit: http://ir.ksyun.com.

For investor and media inquiries, please contact:
Kingsoft Cloud Holdings Limited
Nicole Shan
Tel: +86 (10) 6292-7777 Ext. 6300
Email: ksc-ir@kingsoft.com


KINGSOFT CLOUD HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands)
 Dec 31,
2023
Dec 31,
2024
Dec 31,
2024
 RMBRMBUS$
ASSETS   
Current assets:   
Cash and cash equivalents2,255,287 2,648,764 362,879 
Restricted cash234,194 81,337 11,143 
Accounts receivable, net1,529,915 1,468,663 201,206 
Short-term investments 90,422 12,388 
Prepayments and other assets1,812,692 2,233,074 305,930 
Amounts due from related parties266,036 318,526 43,638 
Total current assets6,098,124 6,840,786 937,184 
Non-current assets:   
Property and equipment, net2,186,145 4,630,052 634,315 
Intangible assets, net834,478 694,880 95,198 
Goodwill4,605,724 4,605,724 630,982 
Prepayments and other assets870,781 449,983 61,647 
Equity investments259,930 234,182 32,083 
Amounts due from related parties56,264   
Operating lease right-of-use assets158,832 137,047 18,775 
Total non-current assets8,972,154 10,751,868 1,473,000 
Total assets15,070,278 17,592,654 2,410,184 
    
LIABILITIES, NON-CONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY   
Current liabilities:   
Accounts payable1,805,083 1,877,004 257,149 
Accrued expenses and other current liabilities2,838,085 3,341,990 457,851 
Short-term borrowings1,110,896 2,225,765 304,928 
Income tax payable63,961 69,219 9,483 
Amounts due to related parties931,906 1,584,199 217,034 
Current operating lease liabilities78,659 61,258 8,392 
Total current liabilities6,828,590 9,159,435 1,254,837 
Non-current liabilities:   
Long-term borrowings100,000 1,660,584 227,499 
Amounts due to related parties40,069 309,612 42,417 
Deferred tax liabilities142,565 101,677 13,930 
Other liabilities634,803 790,271 108,267 
Non-current operating lease liabilities78,347 65,755 9,008 
Total non-current liabilities995,784 2,927,899 401,121 
Total liabilities7,824,374 12,087,334 1,655,958 
Shareholders’ equity:   
Ordinary shares25,443 25,689 3,519 
Treasury stock(208,385)(105,478)(14,450)
Additional paid-in capital18,811,028 18,940,885 2,594,891 
Statutory reserves funds21,765 32,001 4,384 
Accumulated deficit(12,315,041)(14,291,957)(1,957,990)
Accumulated other comprehensive income555,342 566,900 77,665 
Total Kingsoft Cloud Holdings Limited shareholders’ equity6,890,152 5,168,040 708,019 
Non-controlling interests355,752 337,280 46,207 
Total equity7,245,904 5,505,320 754,226 
Total liabilities, non-controlling interests and shareholders’ equity15,070,278 17,592,654 2,410,184 
    



KINGSOFT CLOUD HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(All amounts in thousands, except for share and per share data)
 Three Months EndedTwelve Months Ended
 Dec 31,
2023
Mar 31,
2024
Jun 30,
2024
Sep 30,
2024
Dec 31,
2024
Dec 31,
2024
Dec 31,
2023
Dec 31,
2024
Dec 31,
2024
 RMBRMBRMBRMBRMBUS$RMBRMBUS$
Revenues:         
Public cloud services1,051,966 1,187,370 1,234,542 1,175,535 1,409,804 193,142 4,381,741 5,007,251 685,991 
Enterprise cloud services670,331 588,162 657,238 710,039 822,338 112,660 2,663,993 2,777,777 380,554 
Others153 152 - - - - 1,727 152 21 
Total revenues1,722,450 1,775,684 1,891,780 1,885,574 2,232,142 305,802 7,047,461 7,785,180 1,066,566 
Cost of revenues(1,469,312)(1,482,431)(1,573,433)(1,582,220)(1,806,170)(247,444)(6,197,292)(6,444,254)(882,859)
Gross profit 253,138 293,253 318,347 303,354 425,972 58,358 850,169 1,340,926 183,707 
Operating expenses:         
Selling and marketing expenses(126,477)(116,752)(125,708)(121,117)(115,792)(15,863)(460,221)(479,369)(65,673)
General and administrative expenses(294,240)(218,695)(266,249)(170,374)(179,536)(24,596)(1,060,022)(834,854)(114,375)
Research and development expenses(175,155)(231,963)(203,959)(235,912)(174,155)(23,859)(784,807)(845,989)(115,900)
Impairment of long-lived assets- - - (919,724)- - (653,670)(919,724)(126,002)
Total operating expenses(595,872)(567,410)(595,916)(1,447,127)(469,483)(64,318)(2,958,720)(3,079,936)(421,950)
Operating loss(342,734)(274,157)(277,569)(1,143,773)(43,511)(5,960)(2,108,551)(1,739,010)(238,243)
Interest income12,442 8,370 9,945 4,517 4,176 572 78,410 27,008 3,700 
Interest expense(46,992)(51,066)(59,414)(57,404)(61,821)(8,469)(146,026)(229,705)(31,469)
Foreign exchange gain (loss)74,011 (42,737)(6,999)135,777 (105,572)(14,463)(57,211)(19,531)(2,676)
Other (loss) gain, net(16,741)(8,207)(7,829)6,046 (2,956)(405)(32,673)(12,946)(1,774)
Other income (expense), net33,776 (11,190)(4,961)4,433 5,336 731 100,363 (6,382)(874)
Loss before income taxes(286,238)(378,987)(346,827)(1,050,404)(204,348)(27,994)(2,165,688)(1,980,566)(271,336)
Income tax (expense) benefit(598)15,371 (6,891)(10,662)3,706 508 (17,959)1,524 209 
Net loss(286,836)(363,616)(353,718)(1,061,066)(200,642)(27,486)(2,183,647)(1,979,042)(271,127)
Less: net loss attributable to non-controlling interests(2,688)(4,206)(542)(3,931)(3,683)(505)(7,307)(12,362)(1,694)
Net loss attributable to Kingsoft Cloud Holdings Limited(284,148)(359,410)(353,176)(1,057,135)(196,959)(26,981)(2,176,340)(1,966,680)(269,433)
          
Net loss per share:         
Basic and diluted(0.08)(0.10)(0.10)(0.29)(0.05)(0.01)(0.61)(0.54)(0.07)
Shares used in the net loss per share computation:         
Basic and diluted3,570,915,939 3,614,662,846 3,649,307,331 3,655,882,906 3,710,632,202 3,710,632,202 3,558,354,940 3,658,088,876 3,658,088,876 
Other comprehensive (loss) income, net of tax of nil:         
Foreign currency translation adjustments(67,636)20,704 (530)(112,296)103,658 14,201 102,241 11,536 1,580 
Comprehensive loss(354,472)(342,912)(354,248)(1,173,362)(96,984)(13,285)(2,081,406)(1,967,506)(269,547)
Less: Comprehensive loss attributable to non-controlling interests(2,662)(4,247)(570)(3,900)(3,667)(502)(7,334)(12,384)(1,697)
Comprehensive loss attributable to Kingsoft Cloud Holdings Limited shareholders(351,810)(338,665)(353,678)(1,169,462)(93,317)(12,783)(2,074,072)(1,955,122)(267,850)
          



KINGSOFT CLOUD HOLDINGS LIMITED
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except for percentage)
 Three Months EndedTwelve Months Ended
 Dec 31,
2023
Mar 31,
2024
Jun 30,
2024
Sep 30,
2024
Dec 31,
2024
Dec 31,
2024
Dec 31,
2023
Dec 31,
2024
Dec 31,
2024
 RMBRMBRMBRMBRMBUS$RMBRMBUS$
Gross profit253,138293,253318,347303,354425,97258,358850,1691,340,926183,707
Adjustments:         
– Share-based compensation expenses (allocated in cost of revenues)9,3305,8145,0764,2521,7262369,75716,8682,311
Adjusted gross profit (Non-GAAP Financial Measure)262,468299,067323,423307,606427,69858,594859,9261,357,794186,018
          



KINGSOFT CLOUD HOLDINGS LIMITED
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except for percentage)
 Three Months EndedTwelve Months Ended
 Dec 31,
2023
Mar 31,
2024
Jun 30,
2024
Sep 30,
2024
Dec 31,
2024
Dec 31,
2023
Dec 31,
2024
Gross margin14.7%16.5%16.8%16.1%19.1%12.1%17.2%
Adjusted gross margin (Non-GAAP Financial Measure)15.2%16.8%17.1%16.3%19.2%12.2%17.4%
        



KINGSOFT CLOUD HOLDINGS LIMITED
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except for percentage)
 Three Months EndedTwelve Months Ended
 Dec 31,
2023
Mar 31,
2024
Jun 30,
2024
Sep 30,
2024
Dec 31,
2024
Dec 31,
2024
Dec 31,
2023
Dec 31,
2024
Dec 31,
2024
 RMBRMBRMBRMBRMBUS$RMBRMBUS$
Net Loss(286,836)(363,616)(353,718)(1,061,066)(200,642)(27,486)(2,183,647)(1,979,042)(271,127)
Adjustments:         
– Share-based compensation expenses110,437 103,595 45,649 40,423 24,774 3,394 181,645 214,441 29,378 
– Foreign exchange (gain) loss(74,011)42,737 6,999 (135,777)105,572 14,463 57,211 19,531 2,676 
– Impairment of long-lived assets- - - 919,724 - - 653,670 919,724 126,002 
Adjusted net loss (Non-GAAP Financial Measure)(250,410)(217,284)(301,070)(236,696)(70,296)(9,629)(1,291,121)(825,346)(113,071)
Adjustments:         
– Interest income(12,442)(8,370)(9,945)(4,517)(4,176)(572)(78,410)(27,008)(3,700)
– Interest expense46,992 51,066 59,414 57,404 61,821 8,469 146,026 229,705 31,469 
– Income tax expense (benefit)598 (15,371)6,891 10,662 (3,706)(508)17,959 (1,524)(209)
– Depreciation and amortization187,542 223,146 305,304 358,540 376,100 51,525 940,482 1,263,090 173,043 
Adjusted EBITDA (Non-GAAP Financial Measure)(27,720)33,187 60,594 185,393 359,743 49,285 (265,064)638,917 87,532 
– (Gain) loss on disposal of property and equipment- (23,821)- (10,667)(10,137)(1,389)22,996 (44,625)(6,114)
Excluding loss or gain on disposal of property and equipment, normalized Adjusted EBITDA(27,720)9,366 60,594 174,726 349,606 47,896 (242,068)594,292 81,418 
          



KINGSOFT CLOUD HOLDINGS LIMITED
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except for percentage)
 Three Months EndedTwelve Months Ended
 Dec 31,
2023
Mar 31,
2024
Jun 30,
2024
Sep 30,
2024
Dec 31,
2024
Dec 31,
2024
Dec 31,
2023
Dec 31,
2024
Dec 31,
2024
 RMBRMBRMBRMBRMBUS$RMBRMBUS$
Operating loss(342,734)(274,157)(277,569)(1,143,773)(43,511)(5,960)(2,108,551)(1,739,010)(238,243)
Adjustments:         
– Share-based compensation expenses110,437 103,595 45,649 40,423 24,774 3,394 181,645 214,441 29,378 
– Impairment of long-lived assets- - - 919,724 - - 653,670 919,724 126,002 
– Amortization of intangible assets44,656 43,517 43,415 43,460 43,104 5,905 180,459 173,496 23,769 
Adjusted operating (loss) profit (Non-GAAP Financial Measure)(187,641)(127,045)(188,505)(140,166)24,367 3,339 (1,092,777)(431,349)(59,094)
– (Gain) loss on disposal of property and equipment- (23,821)- (10,667)(10,137)(1,389)22,996 (44,625)(6,114)
Excluding loss or gain on disposal of property and equipment, normalized Adjusted operating (loss) profit(187,641)(150,866)(188,505)(150,833)14,230 1,950 (1,069,781)(475,974)(65,208)
          



KINGSOFT CLOUD HOLDINGS LIMITED
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except for percentage)
 Three Months EndedTwelve Months Ended
 Dec 31,
2023
Mar 31,
2024
Jun 30,
2024
Sep 30,
2024
Dec 31,
2024
Dec 31,
2023
Dec 31,
2024
Net loss margin-16.7%-20.5%-18.7%-56.3%-9.0%-31.0%-25.4%
Adjusted net loss margin (Non-GAAP Financial Measure)-14.5%-12.2%-15.9%-12.6%-3.1%-18.3%-10.6%
Adjusted EBITDA margin (Non-GAAP Financial Measure)-1.6%1.9%3.2%9.8%16.1%-3.8%8.2%
Normalized Adjusted EBITDA margin-1.6%0.5%3.2%9.3%15.7%-3.4%7.6%
Adjusted operating (loss) profit margin (Non-GAAP Financial Measure)-10.9%-7.2%-10.0%-7.4%1.1%-15.5%-5.5%
Normalized Adjusted operating (loss) profit margin-10.9%-8.5%-10.0%-8.0%0.6%-15.2%-6.1%
        



KINGSOFT CLOUD HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(All amounts in thousands)
 Three Months EndedTwelve Months Ended
 Dec 31,
2023
Dec 31,
2024
Dec 31,
2024
Dec 31,
2023
Dec 31,
2024
Dec 31,
2024
 RMBRMBUS$RMBRMBUS$
Net cash generated from (used in) operating activities16,787 570,222 78,120 (169,070)628,419 86,093 
Net cash used in investing activities(1,414,761)(1,337,978)(183,302)(673,186)(3,620,445)(495,999)
Net cash generated from (used in) financing activities1,154,815 1,802,762 246,977 (227,852)3,255,418 445,990 
Effect of exchange rate changes on cash, cash equivalents and restricted cash1,013 (15,294)(2,095)25,863 (22,772)(3,119)
Net (decrease) increase in cash, cash equivalents and restricted cash(242,146)1,019,712 139,700 (1,044,245)240,620 32,965 
Cash, cash equivalents and restricted cash at beginning of period2,731,627 1,710,389 234,322 3,533,726 2,489,481 341,057 
Cash, cash equivalents and restricted cash at end of period2,489,481 2,730,101 374,022 2,489,481 2,730,101 374,022 
       




FAQ

What was Kingsoft Cloud's (KC) revenue growth in Q4 2024?

KC's total revenue grew 29.6% year-over-year to RMB2,232.1 million (US$305.8 million) in Q4 2024.

How much did Kingsoft Cloud's AI cloud business grow in Q4 2024?

KC's AI cloud gross billing increased by approximately 500% year-over-year to RMB474 million, representing 34% of public cloud revenue.

What was KC's first-time profitability achievement in Q4 2024?

KC achieved its first-ever positive Non-GAAP Operating profit of RMB24.4 million (US$3.3 million), compared to a loss of RMB187.6 million in Q4 2023.

How much did Kingsoft Cloud's gross profit improve in Q4 2024?

Gross profit increased 68.3% year-over-year to RMB426.0 million (US$58.4 million), with gross margin improving from 14.7% to 19.1%.

What was the growth in KC's ecosystem revenue from Xiaomi and Kingsoft Group?

Revenue from Xiaomi and Kingsoft Group increased by 76% year-over-year in Q4 2024.
Kingsoft Cloud Holdings Ltd

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