Kingsoft Cloud Reports Strong Q3 2024 Growth

Kingsoft Cloud Holdings Ltd. ( (KC) ) has released its Q3 earnings. Here is a breakdown of the information Kingsoft Cloud Holdings Ltd. presented to its investors.

Kingsoft Cloud Holdings Limited is a prominent cloud service provider in China, offering reliable cloud services across various sectors with a focus on industry-specific solutions and cloud-native products. In its latest earnings report for the third quarter of 2024, Kingsoft Cloud announced significant growth in revenue and profitability, driven by strategic business adjustments. The company reported a 16% year-over-year increase in total revenues, reaching RMB1,885.6 million, and a substantial 54.6% rise in gross profit. Notably, its AI business expanded significantly, contributing 31% to public cloud revenues. Despite an increase in operating loss due to asset impairments, the company achieved a positive Non-GAAP EBITDA of RMB185.4 million, reflecting improved cost control and revenue quality.

The company’s strategic focus on high-quality business growth, particularly in AI and cloud services, has led to a favorable shift in its revenue mix. Revenues from enterprise cloud services increased by 16.7%, and the company benefited from its partnerships within the Xiaomi and Kingsoft Ecosystem. However, operating expenses rose due to asset impairments, leading to a net loss of RMB1,061.1 million. Despite this, Non-GAAP net loss narrowed, indicating better operating efficiency.

Looking ahead, Kingsoft Cloud remains optimistic about its growth prospects. The company anticipates continued revenue growth and profitability improvements in the fourth quarter of 2024, driven by its dual focus on public and enterprise cloud offerings. This forward-looking stance reflects management’s confidence in sustaining momentum through strategic initiatives and market opportunities.