KUAISHOU(01024)2024-11-20 08:31Revenue Growth - Total revenue for Q3 2024 increased by 11.4% YoY to RMB 31.131 billion, with core business revenue (including online marketing services and e-commerce) growing nearly 20.0% YoY[2][13] - Domestic revenue for Q3 2024 was RMB 29.8 billion, a 9.2% YoY increase, while overseas revenue surged 104.1% YoY to RMB 1.331 billion[6][8] - Total revenue in Q3 2024 increased by 11.4% year-over-year to RMB 31.1 billion, driven by growth in online marketing services and e-commerce business[32] - Revenue for the nine months ended September 30, 2024, was RMB 91,514 million, up from RMB 80,909 million in the same period in 2023[94] - Total revenue for the nine months ended September 30, 2024, reached RMB 91,514 million, a 13.1% increase compared to RMB 80,909 million in the same period in 2023[112] Profitability - Adjusted net profit for Q3 2024 reached RMB 3.948 billion, a 24.4% YoY increase, reflecting improved profitability[2][13] - Operating profit for Q3 2024 rose 41.1% YoY to RMB 3.119 billion, driven by domestic operations[2][6] - Gross profit margin for Q3 2024 improved to 54.3%, up from 51.7% in Q3 2023[2] - Adjusted EBITDA for the first nine months of 2024 increased by 58.5% YoY to RMB 17.901 billion[4] - Net profit for Q3 2024 was RMB 3.3 billion, up from RMB 2.2 billion in Q3 2023[55] - Adjusted net profit for the nine months ended September 30, 2024, was RMB 13,015 million, compared to RMB 5,909 million in the same period in 2023[86] - Adjusted EBITDA for the nine months ended September 30, 2024, was RMB 17,901 million, up from RMB 11,292 million in the same period in 2023[86] - Gross profit for the nine months ended September 30, 2024, was RMB 50,169 million, compared to RMB 40,099 million in the same period in 2023[94] - Basic earnings per share for the nine months ended September 30, 2024, were RMB 2.64, up from RMB 0.65 in the same period in 2023[94] - Domestic operating profit for the nine months ended September 30, 2024, was RMB 11,994 million, a 67.7% increase from RMB 7,152 million in the same period in 2023[112] - Basic earnings per share for the nine months ended September 30, 2024, were RMB 2.64, a significant increase from RMB 0.65 in the same period in 2023[118] - Diluted earnings per share for the nine months ended September 30, 2024, were RMB 2.58, compared to RMB 0.63 in the same period in 2023[120] User Metrics - Average daily active users (DAUs) reached 407.5 million in Q3 2024, up 5.4% YoY, surpassing the 400 million milestone[11][13] - Average daily active users (DAU) of Kuaishou app reached 408 million, a year-on-year increase of 5.4%, and monthly active users (MAU) reached 714 million, a year-on-year increase of 4.3%[15] - Total user time spent on Kuaishou app increased by 7.3% year-on-year, with daily live streaming and short video views nearing 110 billion[15] - During the 2024 Paris Olympics, Kuaishou's Olympic-related content exposure reached 310.6 billion, with 640 million users watching the Olympics on the platform and 15.9 billion interactions[16] - Daily search volume on Kuaishou exceeded 700 million in Q3 2024, a year-on-year increase of over 20.0%, with peak daily searches surpassing 800 million[16] - E-commerce monthly active buyers reached 133 million in Q3 2024, a 12.2% year-over-year increase, driven by diversified marketing strategies[24] E-commerce Performance - E-commerce GMV for Q3 2024 grew to RMB 334.162 billion, a 15.1% YoY increase[11] - E-commerce GMV grew by 15.1% year-on-year to RMB 334.2 billion in Q3 2024, with monthly active merchants increasing by over 40.0% year-on-year[21] - Short video e-commerce GMV increased by over 40.0% year-on-year in Q3 2024, with live streaming slice contributions significantly increasing[23] - The proportion of general shelf e-commerce GMV in total e-commerce GMV increased to 27.0% in Q3 2024, with daily active merchants and buyers growing by nearly 70.0% and over 60.0% year-over-year, respectively[24] - Small and medium-sized merchants' daily GMV through live streaming increased by over 40.0% quarter-on-quarter in Q3 2024, supported by the "New Star Plan"[23] Marketing and Advertising - Online marketing service revenue reached RMB 17.6 billion in Q3 2024, a year-on-year increase of 20.0%[17] - Short drama marketing consumption increased by over 300% year-on-year in Q3 2024, driven by the In-Apps Ads (IAA) short drama model[19] - The proportion of fully automated marketing solutions (UAX) in external marketing consumption reached approximately 50.0% in Q3 2024[19] - Online marketing service revenue grew by 20.0% year-over-year to RMB 17.6 billion in Q3 2024, supported by optimized algorithms and increased client spending[33] - Online marketing services revenue for the nine months ended September 30, 2024, grew to RMB 51,799 million, a 23.0% increase from RMB 42,101 million in the same period in 2023[113] - Promotion and marketing expenses for the nine months ended September 30, 2024, increased to RMB 27,981 million, up 15.1% from RMB 24,316 million in the same period in 2023[114] Live Streaming - Live streaming revenue in Q3 2024 was RMB 9.3 billion, with a narrowing year-over-year decline, and the number of signed guilds and hosts increased by over 40.0% and 60.0%, respectively[25] - Live streaming revenue decreased by 3.9% year-over-year to RMB 9.3 billion in Q3 2024, reflecting efforts to build a healthier and more sustainable ecosystem[34] - Live streaming revenue remained stable at RMB 9.3 billion in both Q2 and Q3 2024[61] Costs and Expenses - Sales cost as a percentage of total revenue decreased to 45.7% in Q3 2024 from 48.3% in Q3 2023, with revenue sharing costs and related taxes accounting for 28.5%[37] - Sales cost increased by 5.4% from RMB 13.5 billion in Q3 2023 to RMB 14.2 billion in Q3 2024, driven by higher revenue-sharing costs, taxes, bandwidth, and server hosting expenses[38] - Gross profit rose by 17.0% from RMB 14.5 billion in Q3 2023 to RMB 16.9 billion in Q3 2024, with gross margin improving from 51.7% to 54.3%[40] - Sales and marketing expenses increased by 15.9% from RMB 8.9 billion in Q3 2023 to RMB 10.4 billion in Q3 2024, accounting for 33.3% of total revenue, up from 32.0%[42] - R&D expenses grew by 4.5% from RMB 3.0 billion in Q3 2023 to RMB 3.1 billion in Q3 2024, primarily due to higher employee benefits[44] - Sales costs increased by 2.7% from RMB 13.8 billion in Q2 2024 to RMB 14.2 billion in Q3 2024, primarily due to higher revenue-sharing costs and related taxes, as well as increased content costs[65] - Gross profit decreased by 1.3% from RMB 17.1 billion in Q2 2024 to RMB 16.9 billion in Q3 2024, with gross margin dropping from 55.3% to 54.3%[67] - Sales and marketing expenses rose by 3.2% from RMB 10.0 billion in Q2 2024 to RMB 10.4 billion in Q3 2024, accounting for 33.3% of total revenue, up from 32.4% in the previous quarter[69] - R&D expenses increased by 10.5% from RMB 2.8 billion in Q2 2024 to RMB 3.1 billion in Q3 2024, mainly due to higher employee benefits and share-based compensation[71] Overseas Operations - Overseas revenue in Q3 2024 reached RMB 1.3 billion, a 104.1% year-over-year increase, with operating losses reduced by 75.9% to RMB 153 million[28] - Overseas operating loss narrowed by 75.9% from RMB 635 million in Q3 2023 to RMB 153 million in Q3 2024, supported by rapid overseas revenue growth[50] - Overseas revenue for the three months ended September 30, 2024, was RMB 1,331 million, with a net operating loss of RMB 153 million[109] Cash Flow and Financial Position - Cash and cash equivalents as of September 30, 2024, were RMB 12.5 billion, compared to RMB 11.4 billion as of June 30, 2024[87] - Total available funds, including cash, cash equivalents, fixed deposits, financial assets, and restricted cash, were RMB 86.7 billion as of September 30, 2024, up from RMB 77.7 billion as of June 30, 2024[87] - Net cash generated from operating activities for the nine months ended September 30, 2024, was RMB 21,147 million, compared to RMB 7,598 million in the same period in 2023[89] - Net cash used in investing activities for the nine months ended September 30, 2024, was RMB 29,133 million, primarily due to investments in fixed deposits, property, equipment, and intangible assets[91] - Net cash generated from financing activities for the nine months ended September 30, 2024, was RMB 7,598 million, mainly from borrowings and notes issuance[92] - Net cash from operating activities was RMB 21,147 million for the nine months ended September 30, 2024, compared to RMB 11,876 million for the same period in 2023[102] - Net cash used in investing activities was RMB 29,133 million for the nine months ended September 30, 2024, compared to RMB 14,662 million for the same period in 2023[102] - Net cash from financing activities was RMB 7,598 million for the nine months ended September 30, 2024, compared to RMB 675 million for the same period in 2023[102] Investments and Assets - Investments in financial assets measured at fair value through profit or loss totaled RMB 20,711 million as of September 30, 2024, a significant increase from RMB 5,245 million as of December 31, 2023[123] - Total assets increased to RMB 132,095 million as of September 30, 2024, compared to RMB 106,296 million as of December 31, 2023[98] - Non-current assets rose to RMB 70,465 million as of September 30, 2024, up from RMB 45,935 million as of December 31, 2023[98] - Current assets slightly increased to RMB 61,630 million as of September 30, 2024, compared to RMB 60,361 million as of December 31, 2023[98] - Total equity increased to RMB 58,353 million as of September 30, 2024, from RMB 49,074 million as of December 31, 2023[100] - Total liabilities rose to RMB 73,742 million as of September 30, 2024, compared to RMB 57,222 million as of December 31, 2023[100] Share Repurchases and Corporate Governance - The company repurchased a total of 51,070,000 Class B shares at a total cost of HKD 2,131,261,837.49 during the period from July to November 2024[128] - The highest price paid per share was HKD 54.95 in October 2024, while the lowest price was HKD 37.70 in August 2024[128] - A total of 56,742,800 Class B shares repurchased from June to October 2024 were canceled, reducing the number of issued Class B shares by 56,742,800[128] - Reach Best Developments Limited converted 9,813,662 Class A shares to Class B shares on a one-to-one basis to maintain the voting rights ratio[128] - The company has complied with all applicable code provisions of the Corporate Governance Code, except for the separation of Chairman and CEO roles[131] - The company's unaudited interim financial information for the three and nine months ended September 30, 2024, was prepared in accordance with International Financial Reporting Standards[132] - No other significant events affecting the group occurred after September 30, 2024, up to the date of the announcement[133] Definitions and Organizational Structure - GMV (Gross Merchandise Volume) refers to the total value of all products and services transacted on the company's platform or redirected to partner platforms, excluding single transactions over RMB 100,000 and a series of transactions by a single buyer exceeding RMB 1,000,000 in a day unless settled[142] - The company's monthly active users (MAU) are calculated as the number of unique user accounts that access the application at least once per calendar month, excluding fraudulent accounts[142] - The company's organizational outline, adopted and effective on June 13, 2024, is subject to amendments[144] - Paying users are defined as user accounts that have purchased specific services at least once during a specific period[144] - The company's shares include Class A and Class B shares as per the context[144] - The company's subsidiaries are defined in accordance with the "Company Ordinance"[144] - The company's treasury shares are defined in accordance with the listing rules[144] - The company's ROI (Return on Investment) is a key metric for evaluating investment performance[144] - The company's platform includes the main station, the speed version, and the concept version of the mobile application[142] - The company's concept version of the mobile application was launched in November 2018 to explore different user needs and preferences[142]