Kingsoft Cloud Announces Unaudited Second Quarter 2024 Financial Results
Kingsoft Cloud (NASDAQ: KC, HKEX: 3896) reported its unaudited Q2 2024 financial results, showcasing substantial growth and improvements. Total revenues hit RMB1,891.8 million, up 3.1% YoY and 6.5% QoQ, driven by AI-related revenues doubling to RMB326 million. Adjusted gross profit soared 56.4% YoY to RMB323.4 million with a margin of 17.1%, up from 11.3%.
Adjusted EBITDA turned profitable, reaching RMB60.6 million from a negative RMB61.4 million YoY. Costs of revenues decreased by 3.4%, notably due to a 15.4% reduction in IDC costs. Operating expenses rose 4.6% YoY to RMB595.9 million. The net loss narrowed to RMB353.7 million from RMB498.3 million YoY. Cash and equivalents stood at RMB1,837.8 million.
Kingsoft Cloud (NASDAQ: KC, HKEX: 3896) ha riportato i risultati finanziari non verificati del secondo trimestre 2024, evidenziando una crescita e miglioramenti significativi. I ricavi totali hanno raggiunto 1.891,8 milioni di RMB, con un incremento del 3,1% rispetto all'anno precedente e del 6,5% rispetto al trimestre precedente, sostenuti dal raddoppio dei ricavi legati all'IA, che hanno toccato i 326 milioni di RMB. Il profitto lordo rettificato è aumentato del 56,4% su base annua, arrivando a 323,4 milioni di RMB, con un margine del 17,1%, in crescita rispetto all'11,3%.
L'EBITDA rettificato è diventato profittevole, raggiungendo i 60,6 milioni di RMB rispetto a una perdita di 61,4 milioni di RMB nello stesso periodo dell'anno precedente. I costi dei ricavi sono diminuiti del 3,4%, principalmente a causa di una riduzione del 15,4% dei costi IDC. Le spese operative sono aumentate del 4,6% su base annua, arrivando a 595,9 milioni di RMB. La perdita netta si è ridotta a 353,7 milioni di RMB, rispetto a 498,3 milioni di RMB dello stesso periodo dell'anno scorso. Liquidità e equivalenti ammontano a 1.837,8 milioni di RMB.
Kingsoft Cloud (NASDAQ: KC, HKEX: 3896) informó sus resultados financieros no auditados para el segundo trimestre de 2024, mostrando un crecimiento y mejoras significativas. Los ingresos totales alcanzaron 1,891.8 millones de RMB, un aumento del 3.1% interanual y del 6.5% intertrimestral, impulsados por el aumento de ingresos relacionados con la IA que se duplicaron a 326 millones de RMB. La utilidad bruta ajustada se disparó un 56.4% interanual a 323.4 millones de RMB, con un margen del 17.1%, en comparación con el 11.3% del año pasado.
El EBITDA ajustado se volvió rentable, alcanzando 60.6 millones de RMB frente a una pérdida de 61.4 millones de RMB interanual. Los costos de ingresos disminuyeron un 3.4%, notablemente debido a una reducción del 15.4% en los costos de IDC. Los gastos operativos aumentaron un 4.6% interanual a 595.9 millones de RMB. La pérdida neta se redujo a 353.7 millones de RMB desde 498.3 millones de RMB en el año anterior. El efectivo y equivalentes sumaron 1,837.8 millones de RMB.
Kingsoft Cloud (NASDAQ: KC, HKEX: 3896)는 2024년 2분기 감사 전 재무 결과를 발표하며 상당한 성장과 개선을 보여주었습니다. 총 수익은 1,891.8백만 RMB에 달하여 전년 대비 3.1% 및 전분기 대비 6.5% 증가했으며, AI 관련 수익이 두 배로 증가하여 326백만 RMB에 도달했습니다. 조정된 총 이익은 전년 대비 56.4% 증가한 323.4백만 RMB에 이르렀고, 마진은 17.1%로, 이전의 11.3%에서 상승했습니다.
조정된 EBITDA는 60.6백만 RMB로 수익성을 달성하였으며, 이는 전년의 -61.4백만 RMB에서 개선된 수치입니다. 수익 비용은 3.4% 감소했으며, 이는 주로 IDC 비용이 15.4% 감소한 덕분입니다. 운영 비용은 전년 대비 4.6% 증가하여 595.9백만 RMB에 달했습니다. 순손실은 전년의 498.3백만 RMB에서 353.7백만 RMB로 축소되었습니다. 현금 및 현금성 자산은 1,837.8백만 RMB로 집계되었습니다.
Kingsoft Cloud (NASDAQ: KC, HKEX: 3896) a publié ses résultats financiers non audités pour le deuxième trimestre 2024, mettant en évidence une croissance et des améliorations considérables. Les revenus totaux ont atteint 1 891,8 millions de RMB, en hausse de 3,1 % par rapport à l'année précédente et de 6,5 % par rapport au trimestre précédent, soutenus par le doublement des revenus liés à l'IA qui ont atteint 326 millions de RMB. Le bénéfice brut ajusté a grimpé de 56,4 % d'une année sur l'autre à 323,4 millions de RMB, avec une marge de 17,1 %, contre 11,3 % l'année dernière.
Le bénéfice avant intérêts, impôts, dépréciation et amortissement (EBITDA) ajusté est redevenu rentable, atteignant 60,6 millions de RMB après une perte de 61,4 millions de RMB en glissement annuel. Les coûts des revenus ont diminué de 3,4 %, notamment en raison d'une réduction de 15,4 % des coûts IDC. Les dépenses d'exploitation ont augmenté de 4,6 % d'une année sur l'autre, atteignant 595,9 millions de RMB. La perte nette s'est réduite à 353,7 millions de RMB, contre 498,3 millions de RMB l'année précédente. La trésorerie et les équivalents se sont élevés à 1 837,8 millions de RMB.
Kingsoft Cloud (NASDAQ: KC, HKEX: 3896) hat seine ungeprüften Finanzzahlen für das zweite Quartal 2024 veröffentlicht, die ein erhebliches Wachstum und Verbesserungen zeigen. Die Gesamterlöse erreichten 1.891,8 Millionen RMB, was einem Anstieg von 3,1% im Jahresvergleich und 6,5% im Quartalsvergleich entspricht, angetrieben durch die Verdopplung der KI-bezogenen Erlöse auf 326 Millionen RMB. Der bereinigte Bruttogewinn stieg im Jahresvergleich um 56,4% auf 323,4 Millionen RMB, mit einer Marge von 17,1%, verglichen mit 11,3% zuvor.
Das bereinigte EBITDA wurde profitabel und erreichte 60,6 Millionen RMB, nach einem Verlust von 61,4 Millionen RMB im Vorjahr. Die Erlöskosten sanken um 3,4%, was insbesondere auf eine Reduzierung der IDC-Kosten um 15,4% zurückzuführen ist. Die Betriebskosten stiegen im Jahresvergleich um 4,6% auf 595,9 Millionen RMB. Der Nettoverlust verringerte sich auf 353,7 Millionen RMB, nach 498,3 Millionen RMB im Vorjahr. Bargeld und Äquivalente beliefen sich auf 1.837,8 Millionen RMB.
- Total revenues increased by 3.1% YoY and 6.5% QoQ to RMB1,891.8 million.
- AI-related revenues doubled QoQ to RMB326 million, now 26% of public cloud services revenues.
- Adjusted gross profit rose 56.4% YoY to RMB323.4 million.
- Adjusted EBITDA turned profitable at RMB60.6 million, up from negative RMB61.4 million YoY.
- Net loss significantly decreased to RMB353.7 million from RMB498.3 million YoY.
- IDC costs decreased by 15.4% YoY.
- None.
Insights
Kingsoft Cloud's Q2 2024 results show notable improvements, but challenges remain. Revenue grew 3.1% YoY to
Importantly, adjusted EBITDA turned positive at
While the AI pivot shows promise, investors should monitor the sustainability of this growth and the company's ability to further improve margins and achieve consistent profitability in a competitive cloud market.
Kingsoft Cloud's strategic pivot towards AI is yielding positive results. The doubling of AI revenue contribution to
The company's focus on high-performance computing infrastructure, evidenced by increased depreciation costs for new AI-dedicated servers, indicates a commitment to building a robust AI ecosystem. This investment is important for competing in the evolving cloud market where AI capabilities are becoming a key differentiator.
However, the scale-down of CDN services and selective approach to enterprise cloud projects suggest a strategic realignment. While this may optimize profitability, it could potentially limit growth opportunities in traditional cloud segments. The success of this strategy will depend on Kingsoft's ability to maintain a balanced portfolio while capitalizing on the AI boom.
Kingsoft Cloud's Q2 results reflect broader trends in the Chinese cloud market. The company's AI-driven growth aligns with increasing demand for intelligent cloud solutions across industries. However, the modest 3.1% YoY revenue growth suggests a maturing market with intensifying competition.
The strategic focus on public services, state-owned assets, healthcare and financial services indicates a targeted approach to high-value, stable sectors. This could provide a solid foundation for sustainable growth, especially as these industries increasingly adopt AI technologies.
The company's improved profitability metrics, despite slower topline growth, suggest a market shift towards quality over quantity. This trend may continue as cloud providers prioritize sustainable operations over aggressive expansion. Investors should watch for further industry consolidation and the impact of regulatory changes on cloud and AI services in China, as these factors could significantly influence Kingsoft Cloud's future performance and market position.
BEIJING, Aug. 20, 2024 (GLOBE NEWSWIRE) -- Kingsoft Cloud Holdings Limited (“Kingsoft Cloud” or the “Company”) (NASDAQ: KC and HKEX: 3896), a leading independent cloud service provider in China, today announced its unaudited financial results for the second quarter ended June 30, 2024.
Mr. Tao Zou, Chief Executive Officer of Kingsoft Cloud, commented, “We are pleased to record another strong quarter with advances in revenue expansion, margin improvements and operating cash net inflow. Our high-quality and sustainable development strategy continued to bear fruits. During the past quarter, embracing AI opportunities, we have recorded AI revenue of RMB326 million, approximately
Mr. Henry He, Chief Financial Officer of Kingsoft Cloud, added, “We are pleased to achieve growth in both revenue and profits. This quarter our total revenues returned to year-over-year growth track, arriving at RMB1,891.8 million, increased by
Second Quarter 2024 Financial Results
Total revenues reached RMB1,891.8 million (US
Revenues from public cloud services were RMB1,234.5 million (US
Revenues from enterprise cloud services were RMB657.2 million (US
Other revenues were nil this quarter.
Cost of revenues was RMB1,573.4 million (US
______________________
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 RMB7.2672 to US
Gross profit was RMB318.3 million (US
Total operating expenses were RMB595.9 million (US
Selling and marketing expenses were RMB125.7 million (US
General and administrative expenses were RMB266.2 million (US
Research and development expenses were RMB204.0 million (US
Operating loss was RMB277.6 million (US
Net loss was RMB353.7 million (US
______________________
2 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.
Non-GAAP net loss3 was RMB301.1 million (US
Non-GAAP EBITDA4 was RMB60.6 million (US
Basic and diluted net loss per share was RMB0.10 (US
Cash and cash equivalents were RMB1,837.8 million (US
Outstanding ordinary shares were 3,596,874,352 as of June 30, 2024, equivalent to about 239,791,623 ADSs.
Conference Call Information
Kingsoft Cloud’s management will host an earnings conference call on Tuesday, August 20, 2024 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.vevent.com/ register/BI2ed9e3a7930e4c958cfbd29da2a97c19. 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.
______________________
3 Non-GAAP net loss is defined as net loss excluding share-based compensation, impairment of long-lived assets and foreign exchange loss, and we define Non-GAAP net loss margin as adjusted net loss as a percentage of revenues. See “Use of Non-GAAP Financial Measures” set forth at the end of this press release.
4 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.
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 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 net loss as net loss excluding share-based compensation, foreign exchange 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 of RMB7.2672 to US
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 of the 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 independent 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 | Jun 30, 2024 | Jun 30, 2024 | ||||
RMB | RMB | US$ | ||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | 2,255,287 | 1,837,757 | 252,884 | |||
Restricted cash | 234,194 | 258,647 | 35,591 | |||
Accounts receivable, net | 1,529,915 | 1,680,965 | 231,308 | |||
Prepayments and other assets | 1,812,692 | 2,150,626 | 295,935 | |||
Amounts due from related parties | 266,036 | 373,059 | 51,335 | |||
Total current assets | 6,098,124 | 6,301,054 | 867,053 | |||
Non-current assets: | ||||||
Property and equipment, net | 2,186,145 | 3,882,522 | 534,253 | |||
Intangible assets, net | 834,478 | 748,537 | 103,002 | |||
Goodwill | 4,605,724 | 4,605,724 | 633,769 | |||
Prepayments and other assets | 870,781 | 518,929 | 71,407 | |||
Equity investments | 259,930 | 247,176 | 34,013 | |||
Amounts due from related parties | 56,264 | 12,264 | 1,688 | |||
Operating lease right-of-use assets | 158,832 | 144,754 | 19,919 | |||
Total non-current assets | 8,972,154 | 10,159,906 | 1,398,051 | |||
Total assets | 15,070,278 | 16,460,960 | 2,265,104 | |||
LIABILITIES, NON-CONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | 1,805,083 | 1,980,088 | 272,469 | |||
Accrued expenses and other current liabilities | 2,838,085 | 2,938,720 | 404,381 | |||
Short-term bank loans | 1,110,896 | 1,385,769 | 190,688 | |||
Income tax payable | 63,961 | 59,185 | 8,144 | |||
Amounts due to related parties | 931,906 | 1,070,842 | 147,353 | |||
Current operating lease liabilities | 78,659 | 47,827 | 6,581 | |||
Total current liabilities | 6,828,590 | 7,482,431 | 1,029,616 | |||
Non-current liabilities: | ||||||
Long-term bank loans | 100,000 | 197,352 | 27,157 | |||
Amounts due to related parties | 40,069 | 1,052,160 | 144,782 | |||
Deferred tax liabilities | 142,565 | 108,503 | 14,931 | |||
Other liabilities | 634,803 | 848,825 | 116,802 | |||
Non-current operating lease liabilities | 78,347 | 69,903 | 9,619 | |||
Total non-current liabilities | 995,784 | 2,276,743 | 313,291 | |||
Total liabilities | 7,824,374 | 9,759,174 | 1,342,907 | |||
Shareholders’ equity: | ||||||
Ordinary shares | 25,443 | 25,688 | 3,535 | |||
Treasury stock | (208,385 | ) | (208,385 | ) | (28,675 | ) |
Additional paid-in capital | 18,811,028 | 18,969,913 | 2,610,347 | |||
Statutory reserves funds | 21,765 | 21,765 | 2,995 | |||
Accumulated deficit | (12,315,041 | ) | (13,027,627 | ) | (1,792,661 | ) |
Accumulated other comprehensive income | 555,342 | 575,585 | 79,203 | |||
Total Kingsoft Cloud Holdings Limited shareholders’ equity | 6,890,152 | 6,356,939 | 874,744 | |||
Non-controlling interests | 355,752 | 344,847 | 47,453 | |||
Total equity | 7,245,904 | 6,701,786 | 922,197 | |||
Total liabilities, non-controlling interests and shareholders’ equity | 15,070,278 | 16,460,960 | 2,265,104 | |||
KINGSOFT CLOUD HOLDINGS LIMITED | ||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||||||||||
(All amounts in thousands, except for share and per share data) | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
Jun 30, 2023 | Mar 31, 2024 | Jun 30, 2024 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2024 | Jun 30, 2024 | ||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||
Revenues: | ||||||||||||||
Public cloud services | 1,159,509 | 1,187,370 | 1,234,542 | 169,879 | 2,313,183 | 2,421,912 | 333,266 | |||||||
Enterprise cloud services | 675,176 | 588,162 | 657,238 | 90,439 | 1,385,152 | 1,245,400 | 171,373 | |||||||
Others | 718 | 152 | - | - | 1,468 | 152 | 21 | |||||||
Total revenues | 1,835,403 | 1,775,684 | 1,891,780 | 260,318 | 3,699,803 | 3,667,464 | 504,660 | |||||||
Cost of revenues | (1,628,797 | ) | (1,482,431 | ) | (1,573,433 | ) | (216,512 | ) | (3,299,012 | ) | (3,055,864 | ) | (420,501 | ) |
Gross profit | 206,606 | 293,253 | 318,347 | 43,806 | 400,791 | 611,600 | 84,159 | |||||||
Operating expenses: | ||||||||||||||
Selling and marketing expenses | (129,253 | ) | (116,752 | ) | (125,708 | ) | (17,298 | ) | (217,306 | ) | (242,460 | ) | (33,364 | ) |
General and administrative expenses | (246,549 | ) | (218,695 | ) | (266,249 | ) | (36,637 | ) | (550,042 | ) | (484,944 | ) | (66,731 | ) |
Research and development expenses | (193,920 | ) | (231,963 | ) | (203,959 | ) | (28,066 | ) | (409,290 | ) | (435,922 | ) | (59,985 | ) |
Impairment of long-lived assets | - | - | - | - | (185,135 | ) | - | - | ||||||
Total operating expenses | (569,722 | ) | (567,410 | ) | (595,916 | ) | (82,001 | ) | (1,361,773 | ) | (1,163,326 | ) | (160,080 | ) |
Operating loss | (363,116 | ) | (274,157 | ) | (277,569 | ) | (38,195 | ) | (960,982 | ) | (551,726 | ) | (75,921 | ) |
Interest income | 25,568 | 8,370 | 9,945 | 1,368 | 39,636 | 18,315 | 2,520 | |||||||
Interest expense | (30,307 | ) | (51,066 | ) | (59,414 | ) | (8,176 | ) | (58,234 | ) | (110,480 | ) | (15,203 | ) |
Foreign exchange loss | (151,515 | ) | (42,737 | ) | (6,999 | ) | (963 | ) | (151,422 | ) | (49,736 | ) | (6,843 | ) |
Other loss, net | (11,841 | ) | (8,207 | ) | (7,829 | ) | (1,077 | ) | (19,787 | ) | (16,036 | ) | (2,207 | ) |
Other income (expense), net | 37,781 | (11,190 | ) | (4,961 | ) | (683 | ) | 50,067 | (16,151 | ) | (2,222 | ) | ||
Loss before income taxes | (493,430 | ) | (378,987 | ) | (346,827 | ) | (47,726 | ) | (1,100,722 | ) | (725,814 | ) | (99,876 | ) |
Income tax (expense) benefit | (4,842 | ) | 15,371 | (6,891 | ) | (948 | ) | (6,371 | ) | 8,480 | 1,167 | |||
Net loss | (498,272 | ) | (363,616 | ) | (353,718 | ) | (48,674 | ) | (1,107,093 | ) | (717,334 | ) | (98,709 | ) |
Less: net income (loss) attributable to non-controlling interests | 1,073 | (4,206 | ) | (542 | ) | (75 | ) | (760 | ) | (4,748 | ) | (653 | ) | |
Net loss attributable to Kingsoft Cloud Holdings Limited | (499,345 | ) | (359,410 | ) | (353,176 | ) | (48,599 | ) | (1,106,333 | ) | (712,586 | ) | (98,056 | ) |
Net loss per share: | ||||||||||||||
Basic and diluted | (0.14 | ) | (0.10 | ) | (0.10 | ) | (0.01 | ) | (0.31 | ) | (0.20 | ) | (0.03 | ) |
Shares used in the net loss per share computation: | ||||||||||||||
Basic and diluted | 3,554,529,097 | 3,614,662,846 | 3,649,307,331 | 3,649,307,331 | 3,547,111,168 | 3,632,583,338 | 3,632,583,338 | |||||||
Other comprehensive income (loss), net of tax of nil: | ||||||||||||||
Foreign currency translation adjustments | 238,614 | 20,704 | (530 | ) | (73 | ) | 208,781 | 20,174 | 2,776 | |||||
Comprehensive loss | (259,658 | ) | (342,912 | ) | (354,248 | ) | (48,747 | ) | (898,312 | ) | (697,160 | ) | (95,933 | ) |
Less: Comprehensive income (loss) attributable to non-controlling interests | 1,059 | (4,247 | ) | (570 | ) | (78 | ) | (775 | ) | (4,817 | ) | (663 | ) | |
Comprehensive loss attributable to Kingsoft Cloud Holdings Limited shareholders | (260,717 | ) | (338,665 | ) | (353,678 | ) | (48,669 | ) | (897,537 | ) | (692,343 | ) | (95,270 | ) |
KINGSOFT CLOUD HOLDINGS LIMITED | ||||||||
RECONCILIATION OF GAAP AND NON-GAAP RESULTS | ||||||||
(All amounts in thousands, except for percentage) | ||||||||
Three Months Ended | Six Months Ended | |||||||
Jun 30, 2023 | Mar 31, 2024 | Jun 30, 2024 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2024 | Jun 30, 2024 | ||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||
Gross profit | 206,606 | 293,253 | 318,347 | 43,806 | 400,791 | 611,600 | 84,159 | |
Adjustments: | ||||||||
– Share-based compensation expenses (allocated in cost of revenues) | 169 | 5,814 | 5,076 | 698 | 393 | 10,890 | 1,499 | |
Adjusted gross profit (Non-GAAP Financial Measure) | 206,775 | 299,067 | 323,423 | 44,504 | 401,184 | 622,490 | 85,658 | |
KINGSOFT CLOUD HOLDINGS LIMITED | ||||||||||
RECONCILIATION OF GAAP AND NON-GAAP RESULTS | ||||||||||
(All amounts in thousands, except for percentage) | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
Jun 30, 2023 | Mar 31, 2024 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2024 | ||||||
Gross margin | 11.3 | % | 16.5 | % | 16.8 | % | 10.8 | % | 16.7 | % |
Adjusted gross margin (Non-GAAP Financial Measure) | 11.3 | % | 16.8 | % | 17.1 | % | 10.8 | % | 17.0 | % |
KINGSOFT CLOUD HOLDINGS LIMITED | |||||||||||||||
RECONCILIATION OF GAAP AND NON-GAAP RESULTS | |||||||||||||||
(All amounts in thousands, except for percentage) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
Jun 30, 2023 | Mar 31, 2024 | Jun 30, 2024 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2024 | Jun 30, 2024 | |||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||
Net Loss | (498,272 | ) | (363,616 | ) | (353,718 | ) | (48,674 | ) | (1,107,093 | ) | (717,334 | ) | (98,709 | ) | |
Adjustments: | |||||||||||||||
– Share-based compensation expenses | 31,797 | 103,595 | 45,649 | 6,282 | 43,106 | 149,244 | 20,537 | ||||||||
– Foreign exchange loss | 151,515 | 42,737 | 6,999 | 963 | 151,422 | 49,736 | 6,843 | ||||||||
– Impairment of long-lived assets | - | - | - | - | 185,135 | - | - | ||||||||
Adjusted net loss (Non-GAAP Financial Measure) | (314,960 | ) | (217,284 | ) | (301,070 | ) | (41,429 | ) | (727,430 | ) | (518,354 | ) | (71,329 | ) | |
Adjustments: | |||||||||||||||
– Interest income | (25,568 | ) | (8,370 | ) | (9,945 | ) | (1,368 | ) | (39,636 | ) | (18,315 | ) | (2,520 | ) | |
– Interest expense | 30,307 | 51,066 | 59,414 | 8,176 | 58,234 | 110,480 | 15,203 | ||||||||
– Income tax expense (benefit) | 4,842 | (15,371 | ) | 6,891 | 948 | 6,371 | (8,480 | ) | (1,167 | ) | |||||
– Depreciation and amortization | 243,984 | 223,146 | 305,304 | 42,011 | 510,519 | 528,450 | 72,717 | ||||||||
Adjusted EBITDA (Non-GAAP Financial Measure) | (61,395 | ) | 33,187 | 60,594 | 8,338 | (191,942 | ) | 93,781 | 12,904 | ||||||
– Loss (gain) on disposal of property and equipment | 1,456 | (23,821 | ) | - | - | 21,672 | (23,821 | ) | (3,278 | ) | |||||
Excluding loss or gain on disposal of property and equipment, normalized Adjusted EBITDA | (59,939 | ) | 9,366 | 60,594 | 8,338 | (170,270 | ) | 69,960 | 9,626 | ||||||
KINGSOFT CLOUD HOLDINGS LIMITED | ||||||||||
RECONCILIATION OF GAAP AND NON-GAAP RESULTS | ||||||||||
(All amounts in thousands, except for percentage) | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
Jun 30, 2023 | Mar 31, 2024 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2024 | ||||||
Net loss margin | -27.1 | % | -20.5 | % | -18.7 | % | -29.9 | % | -19.6 | % |
Adjusted net loss margin (Non-GAAP Financial Measure) | -17.2 | % | -12.2 | % | -15.9 | % | -19.7 | % | -14.1 | % |
Adjusted EBITDA margin (Non-GAAP Financial Measure) | -3.3 | % | 1.9 | % | 3.2 | % | -5.2 | % | 2.6 | % |
Normalized Adjusted EBITDA margin | -3.3 | % | 0.5 | % | 3.2 | % | -4.6 | % | 1.9 | % |
KINGSOFT CLOUD HOLDINGS LIMITED | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
(All amounts in thousands) | ||||||||
Three Months Ended | ||||||||
Jun 30, 2023 | Mar 31, 2024 | Jun 30, 2024 | Jun 30, 2024 | |||||
RMB | RMB | RMB | US$ | |||||
Net cash generated from (used in) operating activities | 65,230 | (321,336 | ) | 151,169 | 20,802 | |||
Net cash generated from (used in) investing activities | 256,816 | (1,169,017 | ) | (654,829 | ) | (90,108 | ) | |
Net cash (used in) generated from financing activities | (222,767 | ) | 1,112,096 | 523,950 | 72,098 | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 57,623 | (20,464 | ) | (14,646 | ) | (2,015 | ) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 156,902 | (398,721 | ) | 5,644 | 777 | |||
Cash, cash equivalents and restricted cash at beginning of period | 3,666,185 | 2,489,481 | 2,090,760 | 287,698 | ||||
Cash, cash equivalents and restricted cash at end of period | 3,823,087 | 2,090,760 | 2,096,404 | 288,475 | ||||
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