女士们先生们大家好欢迎参加快手科技2023年第三季度业绩电话会议请注意本次电话会议提供管理层发言部分的英文同声翻译您需要进入英文频道以便收听第三方传译员的同声翻译请留意今天的会议正在录音现在有请公司资本市场和投资者关系副总裁Matthew Zhao先生发言 谢谢Operator大家好欢迎参加快手科技2023年第三季度业绩电话会议今天出席电话会议的管理层有快手科技的联合创始人执行董事兼首席执行官程一孝先生和快手科技首席财务官金炳先生在会议开始之前我们想提醒您今天的会议内容可能包含前瞻性陈述其中涉及诸多风险和不确定性 实际结论和结果可能与今天讨论的结论和结果有所不同除法律要求外本公司不承担任何更新此前瞻性信息的义务有关本会议的所有重要资料包括前瞻性陈述请以公司公开资料或今日早些时候在公司IR网站发布的截至2023年9月30日的2023年第三季度业绩公告为准 今天的电话会议中管理层还将讨论某些非国际会计准则的财务指标请公考虑作为补充但不能替代根据国际会计准则编制的公司财务业绩指标有关非国际会计准则财务指标的定义及其与国际会计准则财务业绩的对照以及相关风险因素提示请参阅公司2023年第三季的业绩公告 今天的电话会议中 ...

Financial Performance - Kuaishou Technology reported a revenue of RMB 27,948 million for Q3 2023, representing a 20.8% increase from RMB 23,128 million in Q3 2022[3]. - Gross profit for Q3 2023 was RMB 14,453 million, with a gross margin of 51.7%, compared to RMB 10,703 million and 46.3% in Q3 2022, marking a 35.0% increase[3]. - The adjusted net profit for Q3 2023 was RMB 3,173 million, a significant recovery from a loss of RMB 672 million in Q3 2022[3]. - For the nine months ended September 30, 2023, total revenue was RMB 80,909 million, a 22.8% increase from RMB 65,890 million in the same period of 2022[4]. - The adjusted EBITDA for Q3 2023 was RMB 4,980 million, a dramatic increase of 386.8% from RMB 1,023 million in Q3 2022[3]. - The operating profit for Q3 2023 was RMB 2,211 million, a significant turnaround from an operating loss of RMB 2,613 million in Q3 2022[3]. - The company recorded a net profit of RMB 2,200 million in Q3 2023, compared to a net loss of RMB 2,700 million in Q3 2022[34]. - The net profit attributable to equity holders for the nine months ended September 30, 2023, was RMB 2,788 million, a significant recovery from a loss of RMB 12,143 million in the same period of 2022[61]. User Engagement - Average daily active users reached 386.6 million in Q3 2023, up from 363.4 million in Q3 2022, while average monthly active users increased to 684.7 million from 626.0 million[8]. - The average daily usage time per active user was 129.9 minutes, with total user time increasing by 6.9% year-on-year[10]. - The number of daily interactions on the Kuaishou app exceeded 9 billion in Q3 2023, with user interactions growing nearly 40% year-on-year[10]. - The average monthly buyer count reached nearly 120 million in Q3 2023, showing an increase in both absolute value and penetration rate compared to Q2 2023[14]. - The average monthly users utilizing Kuaishou's search feature exceeded 470 million, with daily search counts surpassing 600 million[11]. E-commerce and Marketing - The total e-commerce transaction value for Q3 2023 was RMB 290,239.7 million, compared to RMB 222,520.2 million in Q3 2022[8]. - E-commerce GMV grew approximately 30% year-on-year, significantly outpacing industry growth[13]. - Online marketing service revenue reached 14.7 billion yuan, a year-on-year growth of 26.7%, accounting for 52.6% of total revenue[12]. - The number of active marketing clients increased by over 140% year-on-year in Q3 2023[12]. - Search marketing revenue grew over 120% year-on-year in Q3 2023[11]. - The proportion of online marketing services in total revenue increased to 52.6% in Q3 2023, up from 50.1% in the same period last year[21]. Operational Efficiency - Kuaishou Technology's adjusted net profit margin reached 11.4% in Q3 2023, reflecting improved operational efficiency and cost management[9]. - Sales and marketing expenses decreased by 2.1% from RMB 9,100 million in Q3 2022 to RMB 8,900 million in Q3 2023, with the percentage of total revenue dropping from 39.5% to 32.0%[27]. - Research and development expenses decreased by 16.0% from RMB 3,500 million in Q3 2022 to RMB 3,000 million in Q3 2023[29]. - The company recorded a total operating loss of RMB 11,315 million for the nine months ended September 30, 2022, compared to an operating profit of RMB 2,809 million for the same period in 2023[68]. Future Outlook and Investments - The company plans to invest RMB 10 billion in the next three years to support rural revitalization and talent development initiatives[18]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in user acquisition in the next fiscal year[83]. - New product launches are expected to contribute an additional RMB 5 billion in revenue, with a focus on AI-generated content features[84]. - The company is exploring potential acquisitions to bolster its technology stack, with a budget of up to USD 500 million allocated for this purpose[83]. - The introduction of subscription services is anticipated to increase the number of paying users by 50% over the next year[84]. Cash Flow and Financial Position - Cash and cash equivalents as of September 30, 2023, were RMB 11,272 million, down from RMB 13,218 million as of June 30, 2023[56]. - The net cash generated from operating activities for the third quarter of 2023 was RMB 7,674 million, with a pre-tax profit of RMB 2,300 million adjusted for non-cash items[58]. - The net cash used in investing activities for the third quarter of 2023 was RMB 7,065 million, primarily due to net investments in financial assets at fair value of RMB 7,300 million[59]. - The company reported a significant increase in user data and engagement metrics, contributing to improved financial performance[54]. - Total available funds as of September 30, 2023, amounted to RMB 55,400 million, an increase from RMB 50,500 million as of June 30, 2023[55].

Financial Performance - Total revenue for the first half of 2023 reached RMB 52,961 million, a 23.9% increase from RMB 42,762 million in the same period of 2022[8]. - Gross profit for the first half of 2023 was RMB 25,646 million, representing 48.4% of total revenue, compared to 43.4% in the same period of 2022[8]. - Operating profit for the first half of 2023 was RMB 598 million, a significant recovery from an operating loss of RMB 8,702 million in the first half of 2022[8]. - Net profit for the first half of 2023 was RMB 605 million, compared to a net loss of RMB 9,430 million in the same period of 2022[8]. - Adjusted net profit for the first half of 2023 was RMB 2,736 million, recovering from a loss of RMB 5,034 million in the first half of 2022[8]. - Adjusted EBITDA for the first half of 2023 was RMB 6,312 million, a substantial increase from a negative RMB 1,144 million in the same period of 2022[8]. - The company achieved a net profit of approximately RMB 1.5 billion in Q2 2023, demonstrating improved profitability[14]. - The company reported a profit of RMB 1,481 million for the three months ended June 30, 2023, compared to a loss of RMB 3,176 million in the same period last year, marking a significant turnaround[55]. User Engagement and Growth - Average daily active users reached 376 million in Q2 2023, up 8.3% year-over-year[15]. - Average monthly active users reached 673.3 million in Q2 2023, up 14.8% year-over-year[15]. - Daily average user engagement time was 117.2 minutes in Q2 2023, indicating strong user retention[15]. - Monthly active users for the search function surpassed 440 million in Q2 2023, with search frequency increasing by 30% year-over-year[15]. - Monthly active buyers exceeded 110 million in Q2 2023, contributing to the growth in merchandise transaction value, with MAU penetration continuing to rise to high double digits[18]. Revenue Streams - Online marketing services revenue reached RMB 14.3 billion in Q2 2023, a year-on-year increase of 30.4%, accounting for 51.7% of total revenue[16]. - Live streaming revenue grew by 16.4% year-on-year to approximately RMB 10 billion in Q2 2023, with monthly paying user average revenue contribution showing double-digit year-on-year growth[20]. - The company’s search advertising revenue doubled year-over-year in Q2 2023, reflecting successful monetization strategies[15]. - The total merchandise transaction value in the e-commerce segment grew nearly 39% year-on-year in Q2 2023[17]. Cost and Expenses - Total sales costs rose by 15.8% from RMB 11,925 million in Q2 2022 to RMB 13,810 million in Q2 2023, primarily due to increased revenue sharing costs[32]. - Sales and marketing expenses decreased by 1.4% from RMB 8.8 billion in Q2 2022 to RMB 8.6 billion in Q2 2023, representing 31.1% of total revenue, down from 40.4% in the same period last year[34]. - The company reported total expenses for the six months ended June 30, 2023, amounted to RMB 52,613 million, a slight increase from RMB 51,093 million in the same period of 2022[152]. Research and Development - Research and development expenses for the six months ended June 30, 2023, were RMB 6,075 million, a decrease from RMB 6,805 million in the same period of 2022[120]. - The company continues to focus on artificial intelligence as a key area for future development and innovation[196]. - Research and development expenses increased to $200 million, accounting for 13% of total revenue[199]. Cash Flow and Financial Position - Cash and cash equivalents increased to RMB 13,218 million as of June 30, 2023, up from RMB 12,473 million at the beginning of the period[58]. - The net cash generated from operating activities for the second quarter of 2023 was RMB 6,405 million, driven by a pre-tax profit of RMB 1,400 million[59]. - The company reported a net cash outflow from investing activities of RMB 6,029 million, compared to RMB 11,443 million in the same period of 2022[127]. - The company’s total liabilities decreased to RMB 49,129 million as of June 30, 2023, from RMB 49,469 million as of December 31, 2022[123]. Shareholder Information - The company holds 4,335,623,782 shares outstanding, consisting of 765,886,662 Class A shares and 3,569,737,120 Class B shares[68]. - Mr. Su Hua holds 427,119,182 Class A shares, representing approximately 55.77% of the company's total shares[66]. - The company has a competitive compensation policy to attract and retain qualified personnel[64]. - The company aims to align the interests of option holders with those of shareholders through its employee stock ownership plan[75]. Corporate Governance - The company has adhered to all applicable corporate governance code provisions during the reporting period[98]. - The corporate governance committee has confirmed that the company has taken sufficient measures to manage potential conflicts of interest with different voting rights beneficiaries[113]. - The company has established an audit committee, corporate governance committee, nomination committee, and remuneration committee to ensure compliance with listing rules and corporate governance standards[112]. Future Outlook - The company aims to continue expanding its market presence and investing in new technologies and products to drive future growth[7]. - Future guidance estimates revenue growth of 20-25% for the next fiscal year[199]. - The company plans to launch three new products in Q4 2023, targeting a 10% market share in the new segments[199].

Kuaishou Technology (OTCPK:KUASF) Q2 2023 Earnings Call Transcript August 22, 2023 7:00 AM ET Company Participants Matthew Zhao - VP of Capital Markets, Investor Relations Cheng Yixiao - Co-Founder, Executive Director and Chief Executive Officer Jin Bing - Chief Financial Officer Conference Call Participants Lincoln Kong - Goldman Sachs Kenneth Fong - Credit Suisse Alex Poon - Morgan Stanley Wei Fang - Mizuho Securities Thomas Chong - Jefferies Operator Good day, ladies and gentlemen. Thank you for standing ...

[1 -> 5] Good day, ladies and gentlemen. Thank you for standing by. [5 -> 11] Welcome to the Kuaishou Technology second quarter and interim 2023 financial results conference call. [11 -> 18] Please note that English simultaneous interpretation will be provided for the management's prepared remarks. [18 -> 22] And please join the English line, listen to the interpretation. [22 -> 27] The English line will be in listen-only mode. [27 -> 30] And now I will turn the call over to Mr. Matthew Zhao, [30 -> 35] VP ...

Financial Performance - Revenue for the three months ended June 30, 2023, was RMB 27,744 million, representing a 27.9% increase from RMB 21,695 million in the same period of 2022[2] - Gross profit for the same period was RMB 13,934 million, with a gross margin of 50.2%, compared to RMB 9,770 million and a gross margin of 45.0% in the prior year[2] - Adjusted net profit for the three months was RMB 2,694 million, a significant recovery from a loss of RMB 1,312 million in the same period last year[2] - For the six months ended June 30, 2023, revenue was RMB 52,961 million, a 23.9% increase from RMB 42,762 million in the same period of 2022[3] - Adjusted EBITDA for the six months was RMB 6,312 million, a recovery from a loss of RMB 1,144 million in the same period last year[3] - Operating profit for the six months was RMB 598 million, compared to a loss of RMB 8,702 million in the same period last year[3] - In Q2 2023, the company achieved a net profit of approximately RMB 1.5 billion, marking the first quarterly profit since its listing in 2021[8] - The profit before tax for Q2 2023 was RMB 1.4 billion, compared to a loss of RMB 3.1 billion in the same period of 2022[32] - The net profit for Q2 2023 was RMB 1.5 billion, recovering from a loss of RMB 876 million in Q1 2023[52] - Basic earnings per share for Q2 2023 were RMB 0.34, a significant improvement from a loss of RMB 0.75 per share in the same quarter last year[61] User Engagement and Growth - Average daily active users reached 376 million in Q2 2023, up from 347.3 million in Q2 2022, indicating a growth of 8.0%[7] - The average daily active users (DAUs) and monthly active users (MAUs) of the Kuaishou app reached 376 million and 673.3 million, respectively, representing year-on-year growth of 8.3% and 14.8%[9] - The average daily usage time per DAU on the Kuaishou app was 117.2 minutes, contributing to a significant increase in total user engagement[9] - The company reported a significant increase in daily active users, with a total of 500 million users, representing a 20% year-over-year growth[99] E-commerce Performance - Total e-commerce transaction value for the three months was RMB 265,456.4 million, compared to RMB 191,174.1 million in the same period last year, reflecting a growth of 38.9%[7] - The company's e-commerce business saw a nearly 39% year-on-year growth in gross merchandise volume (GMV) in Q2 2023[11] - In Q2 2023, the number of monthly active buyers exceeded 110 million, driving significant growth in gross merchandise volume (GMV) with a high double-digit penetration rate[13] - The average order value and monthly order frequency both achieved year-on-year growth in Q2 2023, attributed to improved supply and user experience[13] - The number of new brands added in Q2 2023 increased by 90% year-on-year, with brand GMV accounting for over 30% of total e-commerce GMV[12] Marketing and Advertising - Online marketing services revenue reached RMB 14.3 billion in Q2 2023, a year-on-year increase of 30.4%, accounting for 51.7% of total revenue[10] - The number of active advertisers on the platform nearly doubled compared to the same period last year, indicating strong demand for advertising services[10] - Brand advertising revenue grew by over 30% year-on-year in Q2 2023, driven by enhanced product capabilities and promotional events[10] Operational Efficiency - Sales and marketing expenses decreased by 1.4% year-over-year to RMB 8.6 billion, with the percentage of total revenue dropping from 40.4% to 31.1%[27] - Research and development expenses slightly decreased by 3.9% year-over-year to RMB 3.2 billion, reflecting reduced employee benefit costs[28] - The company optimized user acquisition strategies, reducing user acquisition and retention costs year-on-year and quarter-on-quarter[9] Future Plans and Investments - The company plans to continue expanding its market presence and investing in new technologies to enhance user engagement and monetization strategies[1] - The company plans to enhance online marketing, e-commerce, and live streaming businesses to attract users and business partners, leveraging its large traffic and deep trust within its ecosystem[17] - The company is investing $50 million in AI technology development to enhance user experience and engagement[100] - The company plans to implement cost-cutting measures aimed at reducing operational expenses by 5%[102] Cash Flow and Financial Position - The total cash and cash equivalents increased to RMB 13.2 billion as of June 30, 2023, up from RMB 12.5 billion as of March 31, 2023[56] - The net cash generated from operating activities for Q2 2023 was RMB 6.4 billion, influenced by a pre-tax profit of RMB 1.4 billion and adjustments for non-cash items[58] - The total available funds as of June 30, 2023, amounted to RMB 50.5 billion, an increase from RMB 44.8 billion as of March 31, 2023[56] Corporate Governance and Compliance - The company has complied with all applicable corporate governance codes as of June 30, 2023[93] - The board emphasized the importance of maintaining strong corporate governance and compliance with regulations[99] Shareholder Returns and Dividends - The company did not declare or pay any dividends for the six months ended June 30, 2023[83] - The company has not declared an interim dividend for the six months ending June 30, 2023[95]

Financial Data and Key Metrics Changes - In Q1 2023, the company achieved a group-level adjusted net profit for the first time since its listing, amounting to RMB 42 million, a turnaround from an adjusted net loss of RMB 45.3 million in Q4 2022 and RMB 3.7 billion in the same period last year [59] - Group revenue increased by 19.7% year-over-year to RMB 25.2 billion, accelerating from 15.8% in Q4 2022 [50] - Gross profit rose by 33.4% year-over-year to RMB 11.7 billion, with gross profit margin increasing from 41.7% in Q1 2022 to 46.4% in Q1 2023 [55][56] Business Line Data and Key Metrics Changes - Revenue from online marketing services grew by 15.1% year-over-year to RMB 13.1 billion, accounting for 51.8% of total revenue [19][50] - Live streaming revenue increased by 18.8% year-over-year to RMB 9.3 billion, driven by a 6.4% increase in average monthly active users (MPUs) to 60.1 million [40][52] - E-commerce GMV rose by 28.4% year-over-year to RMB 224.8 billion, with e-commerce revenue growth outpacing overall revenue growth [28][54] Market Data and Key Metrics Changes - Average daily active users (DAUs) reached 374.3 million, and monthly active users (MAUs) reached 654.4 million, representing year-over-year increases of 8.3% and 9.4%, respectively [11] - The penetration rate of monthly active e-commerce paying users hovered around 15%, indicating significant upside potential [71] Company Strategy and Development Direction - The company aims to leverage technology to enhance user experiences and empower content creators, advertisers, and merchants while unlocking monetization potential across its ecosystem [46] - The focus on improving the merchandising infrastructure and enhancing the quality of e-commerce content is expected to drive future growth [66][72] - The company is testing a new shopping mall service to improve user shopping experiences and increase GMV [74] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in gaining market share in the e-commerce sector, supported by a growing user base and improved merchandising infrastructure [65][66] - The company anticipates a gradual recovery in external performance ads, particularly in the gaming, information services, and retail industries [80] - Future gross profit margin improvements are expected to be driven by a favorable revenue mix and technological innovations [102] Other Important Information - The company announced a share repurchase plan of HKD 4 billion, reflecting management's confidence in long-term growth potential [61] - The balance sheet remained healthy with cash and cash equivalents totaling RMB 44.8 billion as of March 31, 2023 [60] Q&A Session Summary Question: E-commerce business upside potential and marketplace status - Management highlighted that the e-commerce industry is expanding, with Kuaishou positioned to gain market share through improved merchandising and user targeting [65][66] Question: Recovery of external ads and traffic efficiency upgrades - Management noted a clear recovery trend in external performance ads, particularly in gaming and information services, with expectations for growth in the second half of the year [79][80] Question: Progress in local services and online equipment - Management reported significant growth in local services, particularly in Qingdao, and plans to expand operations to more cities [88][90] Question: Future trends for gross margin and OpEx ratio - Management indicated that gross profit margin improvements will continue, driven by a favorable revenue mix and ongoing cost efficiency initiatives [102][103] Question: Progress in AI and potential products - Management confirmed the establishment of an LLM model R&D team, focusing on enhancing user experiences through AI technologies [107][109]

[0 -> 5] Good day, ladies and gentlemen. Thank you for staying by. Welcome to Kuaishou Technology [5 -> 9] first quarter 2023 financial results conference call. Please note that English simultaneous [9 -> 15] interpretation will be provided for the management prepared remarks. The English line will be [15 -> 25] in listen only mode. And now I will turn the call over to Mr. Matthew Tao, VP of capital [25 -> 32] market and investor relations at Kuaishou Technology. Thank you, Operator. Good evening [32 -> 36] ...

Financial Performance - Kuaishou Technology reported a revenue of RMB 25,217 million for the three months ended March 31, 2023, representing a 19.7% increase from RMB 21,067 million in the same period of 2022[2]. - Gross profit for the same period was RMB 11,712 million, with a gross margin of 46.4%, compared to RMB 8,782 million and a margin of 41.7% in the previous year, indicating a 33.4% increase in gross profit[2]. - The company achieved an adjusted net profit of RMB 42 million, a significant turnaround from an adjusted net loss of RMB 3,722 million in the same quarter of 2022[2][3]. - Operating loss narrowed to RMB 698 million from RMB 5,643 million in the same quarter of 2022, reflecting an 87.6% improvement[2][6]. - The company recorded a net loss of RMB 876 million in Q1 2023, compared to a net loss of RMB 6.3 billion in Q1 2022[32]. - The basic loss per share for Q1 2023 was RMB 0.20, improving from RMB 1.48 in Q1 2022[55]. - The company reported a total of RMB 16,232 million in total assets as of March 31, 2023, down from RMB 18,109 million as of December 31, 2022[68]. User Engagement and Growth - Average daily active users (DAUs) reached 374.3 million, up 8.3% year-over-year, while average monthly active users (MAUs) increased to 654.4 million, a 9.4% growth[5][7]. - The average revenue per daily active user (ARPU) increased to RMB 34.9, up from RMB 32.9 in the previous year[5]. - The number of monthly average users for Kuaishou's search function exceeded 420 million in Q1 2023, with peak daily search counts surpassing 650 million[8]. - Daily active users (DAUs) reached 50 million, a 10% increase compared to the previous quarter, indicating robust platform growth[75]. - Monthly active users (MAUs) grew to 200 million, representing a 12% year-over-year increase, showcasing the platform's expanding reach[76]. E-commerce Performance - The total gross merchandise value (GMV) for e-commerce transactions on the platform was RMB 224,766.5 million, compared to RMB 175,075.6 million in the same period last year[5]. - The total e-commerce transaction volume increased by 28.4% year-over-year, reaching RMB 224.8 billion in Q1 2023[10]. - The brand self-broadcasting transaction volume increased by approximately 70% year-over-year in Q1 2023, supported by promotional activities[10]. - E-commerce transactions through influencer distribution channels grew by over 50% year-over-year in Q1 2023, indicating a strong performance in influencer marketing[10]. - E-commerce monthly active buyers and average order value continued to grow year-over-year, contributing to an increase in e-commerce transaction volume[20]. Marketing and Revenue Segments - Kuaishou's online marketing services revenue grew by 15.1% year-over-year to approximately RMB 13.1 billion, accounting for 51.8% of total revenue in Q1 2023[9]. - Online marketing services revenue rose by 15.1% year-over-year to RMB 13.06 billion, attributed to improved data infrastructure and optimized product capabilities[18]. - Live streaming revenue grew by 18.8% year-over-year to RMB 9.3 billion, supported by a 6.4% increase in average monthly paying users and enhanced content supply[19]. - The company successfully integrated its commercialization and traffic ecosystem, enhancing operational efficiency and monetization capabilities[6]. Cost Management and Operational Efficiency - The cost of sales increased by 9.9% from RMB 12.3 billion in Q1 2022 to RMB 13.5 billion in Q1 2023, primarily due to an increase in revenue-sharing costs and related taxes[22]. - Sales and marketing expenses decreased by 8.1% from RMB 9.5 billion in Q1 2022 to RMB 8.7 billion in Q1 2023, representing a reduction in total revenue percentage from 45.0% to 34.6%[23]. - Research and development expenses decreased by 17.1% from RMB 3.5 billion in Q1 2022 to RMB 2.9 billion in Q1 2023[25]. - The company's operating loss narrowed by 45.1% quarter-over-quarter in overseas markets due to improved operational efficiency[13]. Future Outlook and Strategic Initiatives - The company plans to launch three new products in the next quarter, aiming to enhance user experience and drive further growth[76]. - Future guidance estimates revenue growth of 25% for the upcoming fiscal year, driven by user acquisition and retention strategies[76]. - The company is exploring potential acquisitions to expand its market presence and diversify its service offerings[76]. - Investment in new technologies is expected to increase by 30% in the next fiscal year, focusing on enhancing platform capabilities[76].

Financial Performance - Total revenue for 2022 reached RMB 94.18 billion, representing a year-on-year increase of 16.2% from RMB 81.08 billion in 2021[10] - Gross profit for 2022 was RMB 42.13 billion, accounting for 44.7% of total revenue, up from 42.0% in 2021[10] - Operating loss for 2022 was RMB 12.56 billion, a significant improvement compared to an operating loss of RMB 27.70 billion in 2021, reflecting a 54.7% reduction[10] - Net loss for the year was RMB 13.69 billion, down 82.5% from RMB 78.08 billion in 2021[10] - Adjusted EBITDA for 2022 was RMB 1.81 billion, a turnaround from an adjusted EBITDA loss of RMB 12.95 billion in 2021[10] - Total revenue for 2022 was RMB 94.2 billion, an increase from RMB 81.1 billion in 2021, marking a 16.1% year-over-year growth[17] - The company reported a net loss of RMB 13.7 billion for 2022, a reduction from a net loss of RMB 78.1 billion in 2021[17] - Adjusted EBITDA for the year ended December 31, 2022, was RMB 1.8 billion, compared to an adjusted loss of RMB 12.95 billion in the previous year[81] Quarterly Performance - In Q4 2022, total revenue was RMB 28.29 billion, a 15.8% increase from RMB 24.43 billion in Q4 2021[11] - Q4 2022 gross profit was RMB 12.88 billion, representing 45.5% of total revenue, up from 41.5% in Q4 2021[11] - Adjusted net loss for Q4 2022 was RMB 45.32 million, a significant decrease from RMB 3.57 billion in Q4 2021[11] - Revenue increased by 15.8% from RMB 24.43 billion in Q4 2021 to RMB 28.29 billion in Q4 2022, driven by growth in online marketing services, live streaming, and e-commerce[49] - The net loss for Q4 2022 was RMB 1.5 billion, significantly reduced from RMB 6.2 billion in Q4 2021[64] User Engagement - Average daily active users reached 366.2 million in Q4 2022, up from 323.3 million in Q4 2021, representing a 13.9% year-over-year increase[16] - Average monthly active users reached 640 million in Q4 2022, compared to 578 million in Q4 2021, showing a 10.7% increase[16] - Average daily usage time per active user was 133.9 minutes in Q4 2022, up from 118.9 minutes in Q4 2021, a 12.6% increase[16] - The average daily usage time per DAU increased by 12.6% year-on-year to 133.9 minutes in Q4 2022, indicating strong user engagement[21] E-commerce Performance - E-commerce gross merchandise volume (GMV) for 2022 exceeded RMB 901.5 billion, reflecting a 30% year-over-year growth in Q4 2022[20] - The total gross merchandise volume (GMV) for e-commerce in Q4 2022 increased by 30% year-on-year, surpassing RMB 900 billion for the entire year[24] - The number of monthly active merchants increased by over 50% year-on-year in Q4 2022, reflecting strong growth in the e-commerce sector[24] Marketing and Advertising - Kuaishou's online marketing services revenue grew by 14.0% year-on-year in Q4 2022, accounting for 53.4% of total revenue[23] - Kuaishou's brand advertising revenue grew by over 20% year-on-year in Q4 2022, supported by significant marketing events and product capability upgrades[23] - Online marketing services revenue rose by 14.9% to RMB 49.0 billion in 2022, accounting for 52.1% of total revenue[35] Cost Management - Sales and marketing expenses decreased by 16.0% to RMB 37.1 billion, representing 39.4% of total revenue[41] - Research and development expenses decreased by 7.8% to RMB 13.8 billion in 2022[41] - Sales and marketing expenses decreased by 4.8% from RMB 10.23 billion in Q4 2021 to RMB 9.74 billion in Q4 2022, reducing its share of total revenue from 41.9% to 34.4%[57] Corporate Governance - The company has adopted corporate governance principles and codes as part of its governance practices during the reporting period[106] - The board of directors includes key executives such as Su Hua (Chairman) and Cheng Yixiao (CEO) who are responsible for the company's long-term strategy and daily operations[116] - Independent non-executive directors have confirmed their independence according to listing rules, ensuring unbiased oversight of the company's governance[116] Strategic Initiatives - The company plans to continue expanding its market presence and investing in new technologies and products to drive future growth[10] - The company aims to enhance its market position in online marketing and e-commerce, focusing on improving monetization capabilities and operational efficiency in 2023[30] - The company is committed to seeking strategic partnerships, investments, and acquisitions to further expand its ecosystem and monetization capabilities[98] Social Responsibility - The company emphasized its commitment to social responsibility, integrating public welfare and environmental practices into its corporate culture[19] - The group made charitable donations of approximately RMB 22.7 million during the reporting period[104] Cash Flow and Financial Position - Cash and cash equivalents decreased to RMB 13,274,269 thousand as of December 31, 2022, down from RMB 32,612,419 thousand at the end of 2021[85] - The net cash generated from operating activities was RMB 2,198,028 thousand for the year, a substantial recovery from a cash outflow of RMB 5,519,291 thousand in the previous year[85] - The company had no borrowings as of December 31, 2022, resulting in a leverage ratio of zero[87] Employee and Shareholder Information - As of December 31, 2022, the group has 25,445 full-time employees, primarily based in China[100] - The company has no plans to distribute dividends in the foreseeable future, considering its financial condition and current economic environment[97] - The employee stock ownership plan aims to attract, motivate, retain, and reward senior staff and align their interests with those of shareholders[143]