Kuaishou Technology Class B ((HK:1024)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Kuaishou Technology’s latest earnings call painted a picture of robust growth and strategic success, with a strong emphasis on the company’s AI strategy and e-commerce expansion. While revenue and profit figures were impressive, challenges such as moderate growth in live-streaming and increased capital expenditures were also acknowledged.
Record Revenue Growth
Total revenue for Q3 2025 rose by an impressive 14.2% year-over-year, reaching RMB 35.6 billion. This growth underscores Kuaishou Technology’s ability to capitalize on its strategic initiatives and market opportunities.
Strong Profitability
The company reported a significant increase in adjusted net profit, which grew by 26.3% year-over-year to RMB 5 billion. This resulted in an adjusted net margin of 14%, highlighting the company’s effective cost management and profitability.
AI Strategy Success
Kling AI, Kuaishou’s AI initiative, generated over RMB 300 million in revenue during Q3. The model’s top rankings in text-to-video and image-to-video categories by Artificial Analysis.ai demonstrate its competitive edge and potential for future growth.
Robust E-commerce Growth
E-commerce continues to be a strong growth driver for Kuaishou, with GMV increasing by 15.2% year-over-year to RMB 385 billion. This reflects the company’s successful expansion in the e-commerce sector.
Increased User Engagement
The Kuaishou App achieved an average of 416 million daily active users, marking the third consecutive quarter of record highs. This indicates strong user engagement and platform popularity.
Expanded AI Applications
AI integration across major business scenarios has driven significant benefits, particularly in online marketing services and e-commerce, showcasing the strategic importance of AI in Kuaishou’s growth.
Moderate Live-streaming Growth
Live-streaming revenue saw a modest increase of 2.5% year-over-year, reaching RMB 9.6 billion. This moderate growth highlights an area of potential improvement for the company.
Increasing CapEx
The company’s capital expenditures are expected to rise in the mid- to high double digits year-over-year, driven by investments in AI. This reflects Kuaishou’s commitment to sustaining its technological edge.
Cautious Consumer Spending
Despite a resilient recovery, consumer spending remains cautious and rational, indicating a need for strategic adjustments to encourage more robust user spending.
Forward-looking Guidance
Kuaishou Technology’s forward-looking guidance remains optimistic, with significant metrics reflecting robust performance and strategic progress. The company declared a special dividend of HKD 2 billion, showcasing confidence in its long-term growth prospects. The healthy balance sheet, with cash and equivalents totaling RMB 106.6 billion, further supports this positive outlook.
In conclusion, Kuaishou Technology’s earnings call highlighted a period of strong growth and strategic success, driven by AI and e-commerce. While challenges such as moderate live-streaming growth and increased capital expenditures were noted, the company’s forward-looking guidance and robust financial health suggest a promising future.