Revenue Performance - Total revenue for Q1 2023 reached RMB 1,864.4 million (USD 271.5 million), a decrease of 14.2% compared to RMB 2,173.8 million in Q1 2022[5] - Public cloud service revenue was RMB 1,153.7 million (USD 168.0 million), down 16.4% from RMB 1,380.8 million in the same period last year[5] - Industry cloud service revenue amounted to RMB 710.0 million (USD 103.4 million), a decrease of 10.4% from RMB 792.5 million in Q1 2022[5] - The decline in revenue was primarily due to the proactive scaling down of CDN services and stricter selection of industry cloud projects[5] - The company expects total revenue for Q2 2023 to be between RMB 1.85 billion and RMB 2.0 billion, reflecting current market and operational conditions[11] Profitability and Margins - Gross profit reached RMB 194.2 million (USD 28.3 million), a substantial increase of 142.8% compared to RMB 80.0 million in Q1 2022[5] - Adjusted gross margin rose to a historical high of 10.4%, up from 3.7% in the same quarter last year[5] - The gross margin for public cloud services improved from -3.4% to 2.1%, while industry cloud services saw an increase from 16.1% to 23.8%[4] - Public cloud services gross profit improved significantly to RMB 24.8 million (USD 3.6 million) from a gross loss of RMB 47.2 million in the same period last year, with a gross margin of 2.1% compared to -3.4% year-over-year[7] - Industry cloud services gross profit increased to RMB 169.0 million (USD 24.6 million) from RMB 127.4 million year-over-year, with a gross margin rising from 16.1% to 23.8%[7] - Operating loss narrowed to RMB 597.9 million (USD 87.1 million) from RMB 662.4 million in the previous quarter and RMB 532.8 million year-over-year[7] - Net loss was RMB 608.8 million (USD 88.7 million), compared to RMB 521.7 million in the previous quarter and RMB 554.8 million year-over-year[7] - Non-GAAP net loss improved to RMB 412.5 million (USD 60.1 million) from RMB 552.7 million in the previous quarter and RMB 442.9 million year-over-year[8] - Non-GAAP EBITDA was RMB -130.5 million (USD -19.0 million), an improvement from RMB -245.1 million in the previous quarter and RMB -144.2 million year-over-year, with a margin of -7.0%[8] - The adjusted net loss margin for Q1 2023 was -22.1%, an improvement from -20.4% in Q1 2022[27] Operating Costs and Expenses - Operating costs decreased significantly by 20.2% to RMB 1,670.2 million (USD 243.2 million) from RMB 2,093.9 million in the previous year[5] - Total operating expenses were RMB 792.1 million (USD 115.3 million), down from RMB 824.3 million in the previous quarter and up from RMB 612.8 million year-over-year[7] - Research and development expenses decreased to RMB 215.4 million (USD 31.4 million) from RMB 255.5 million in the previous quarter and RMB 246.6 million year-over-year[7] - The company plans to continue implementing various measures to reduce expenses and aims for quarterly adjusted EBITDA breakeven[4] Cash and Assets - Cash and cash equivalents as of March 31, 2023, were RMB 4,461.6 million (USD 649.7 million), indicating strong and sustainable cash reserves[10] - Cash and cash equivalents increased to RMB 3,568,288 thousand as of March 31, 2023, up from RMB 3,419,166 thousand as of December 31, 2022, reflecting a growth of about 4.4%[18] - The company's accumulated losses increased to RMB (10,709,224) thousand as of March 31, 2023, compared to RMB (10,102,236) thousand as of December 31, 2022, representing an increase of about 6%[19] - The company's total equity decreased to RMB 8,956,153 thousand as of March 31, 2023, from RMB 9,583,499 thousand as of December 31, 2022, reflecting a decline of about 6.5%[19] - The total liabilities decreased to RMB 7,601,105 thousand as of March 31, 2023, down from RMB 7,732,732 thousand as of December 31, 2022, indicating a reduction of approximately 1.7%[19] - The net accounts receivable decreased to RMB 2,232,702 thousand as of March 31, 2023, from RMB 2,402,430 thousand as of December 31, 2022, indicating a reduction of about 7.1%[18] Financial Management - Cash used in operating activities for Q1 2023 was RMB (271,387) thousand (USD (39,517) thousand), compared to RMB (626,008) thousand in Q1 2022, indicating improved cash flow management[28] - The company reported a cash and cash equivalents balance of RMB 3,533,726 thousand (USD 514,550 thousand) at the end of Q1 2023, up from RMB 3,206,354 thousand at the end of Q4 2022[28]
金山云(03896) - 2023 Q1 - 季度业绩