Revenue Performance - Total revenue for Q4 2023 reached RMB 1,722.5 million (USD 242.6 million), a 6.0% increase from RMB 1,625.2 million in Q3 2023, but a 19.2% decrease from RMB 2,131.0 million in Q4 2022[5] - Total revenue for the fiscal year 2023 was RMB 7,047.5 million (USD 992.6 million), a decrease of 13.8% from RMB 8,180.1 million in 2022[10] - Public cloud service revenue was RMB 4,381.7 million (USD 617.2 million), down 18.3% from RMB 5,360.3 million in 2022[10] - Industry cloud service revenue was RMB 2,664.0 million (USD 375.2 million), a decrease of 5.4% from RMB 2,817.0 million in 2022[10] - Public cloud service revenue increased by 3.5% quarter-over-quarter to RMB 1,052.0 million (USD 148.2 million), but decreased by 21.7% year-over-year from RMB 1,344.3 million[5] - Industry cloud service revenue was RMB 670.3 million (USD 94.4 million), a 10.2% increase from the previous quarter but a 14.7% decrease year-over-year[5] Profitability and Margins - Adjusted gross margin for 2023 was 12.2%, significantly up from 5.4% in 2022, with adjusted gross profit nearly doubling to RMB 859.9 million from RMB 445.2 million[4] - Gross profit reached RMB 253.1 million (USD 35.7 million), a significant increase of 56.3% compared to RMB 162.0 million in the same period of 2022, with a gross margin of 14.7% compared to 7.6% in 2022[7] - Operating loss narrowed to RMB 342.7 million (USD 48.3 million), significantly improved from RMB 804.8 million in the previous quarter and RMB 662.4 million in the same period of 2022[7] - Net loss was RMB 286.8 million (USD 40.4 million), a considerable reduction from RMB 789.7 million in the previous quarter and RMB 521.7 million in the same period of 2022[7] - The net loss for the three months ended December 31, 2023, was RMB 521,657 thousand, compared to a net loss of RMB 286,836 thousand for the same period in 2022, representing an increase in losses of 82%[26] - The net loss margin for the three months ended December 31, 2023, was -24.5%, compared to -16.7% for the same period in 2022, indicating a worsening profitability situation[27] Cost Management - Operating costs decreased by 25.4% year-over-year to RMB 1,469.3 million (USD 206.9 million), with IDC costs down 30.0% to RMB 740.4 million (USD 104.3 million)[5] - The company plans to continue strict cost control and believes there is potential for further improvement in profitability in 2024[4] - Total operating expenses amounted to RMB 595.9 million (USD 83.9 million), a substantial decrease from RMB 1,001.1 million in the previous quarter and RMB 824.3 million in the same period of 2022[7] Research and Development - The company established an AI research center and launched a Model-as-a-Service (MaaS) solution, enhancing data security features[4] - The workforce at the Wuhan research center exceeded 500 employees by the end of 2023, representing about 40% of the total R&D staff[4] - Research and development expenses were RMB 175.2 million (USD 24.7 million), further reduced from RMB 200.4 million in the previous quarter and RMB 255.5 million in the same period of 2022[7] Financial Position - Cash and cash equivalents and short-term investments totaled RMB 2,255.3 million (USD 317.7 million) as of December 31, 2023, indicating strong cash reserves[9] - Total current assets decreased from RMB 9,048,353,000 in 2022 to RMB 6,098,124,000 in 2023, a decline of approximately 32.3%[20] - Total non-current assets increased from RMB 8,267,878,000 in 2022 to RMB 8,972,154,000 in 2023, an increase of approximately 8.5%[20] - Total assets decreased from RMB 17,316,231,000 in 2022 to RMB 15,070,278,000 in 2023, a decline of approximately 12.9%[20] - Total current liabilities increased from RMB 6,658,626,000 in 2022 to RMB 6,828,590,000 in 2023, an increase of approximately 2.6%[20] - The total liabilities as of December 31, 2023, were RMB 7,824,374 thousand, slightly up from RMB 7,732,732 thousand in 2022, an increase of 1.2%[21] Future Outlook - The company is focusing on high-quality revenue expansion and improving profitability while creating value for customers, shareholders, employees, and society[4] - The company plans to hold an earnings conference call on March 20, 2024, at 8:15 AM ET[14] - The company plans to focus on expanding its public cloud services, which generated revenue of RMB 1,051,966 thousand for the three months ended December 31, 2023, compared to RMB 1,344,293 thousand in the same period of 2022, indicating a strategic shift in focus[22] Non-GAAP Metrics - The company utilizes several non-GAAP financial metrics to assess its operational performance, including non-GAAP gross profit and non-GAAP EBITDA[15] - Non-GAAP net loss was RMB 250.4 million (USD 35.3 million), compared to RMB 313.3 million in the previous quarter and RMB 552.7 million in the same period of 2022[9] - Adjusted EBITDA for the twelve months ended December 31, 2023, was RMB (726,170) thousand, compared to RMB (754,958) thousand for the same period in 2022, showing a slight improvement in operational performance[26] - The adjusted net loss for the three months ended December 31, 2023, was RMB (552,677) thousand, compared to RMB (250,410) thousand for the same period in 2022, representing a 120% increase in adjusted losses[26] - The adjusted net loss rate for the three months ended December 31, 2023, was -25.9%, compared to -14.5% for the same period in 2022, highlighting a decline in financial health[27] Cash Flow and Investments - The company reported a decrease in cash flow from operating activities to RMB 16,787 thousand for the three months ended December 31, 2023, down from RMB 370,446 thousand for the same period in 2022, reflecting operational challenges[28] - The net cash used in investing activities for the three months ended December 31, 2023, was RMB (1,414,761) thousand, compared to RMB (1,414,761) thousand for the same period in 2022, indicating a significant increase in investment outflows[28] - The company reported a net cash provided by financing activities of RMB 1,154,815 thousand for the three months ended December 31, 2023, compared to a net cash used of RMB (806,656) thousand for the same period in 2022, indicating a positive shift in financing[28] Currency and Exchange - The exchange rate used for converting RMB to USD is 7.0999 RMB per 1.00 USD as of December 31, 2023[17] - The company experienced a foreign exchange loss of RMB (132,290) thousand for the three months ended December 31, 2023, compared to a loss of RMB (74,011) thousand for the same period in 2022, indicating increased volatility in currency exchange[26]
金山云(03896) - 2023 Q4 - 季度业绩