Kingsoft Cloud Announces Unaudited First Quarter 2024 Financial Results

Core Viewpoint - Kingsoft Cloud Holdings Limited reported a significant improvement in its financial performance for Q1 2024, achieving profitability in adjusted EBITDA and a sequential increase in revenue, driven primarily by growth in AI-related services. Financial Performance - Total revenues for Q1 2024 reached RMB1,775.7 million (US$245.91 million), a 3.1% increase from RMB1,722.5 million in Q4 2023, but a 4.8% decrease from RMB1,864.4 million in Q1 2023 [4][10]. - Adjusted EBITDA turned profitable at RMB33.2 million, with an adjusted EBITDA margin of 1.9%, compared to a loss of RMB130.5 million in Q1 2023 [2][11]. - Adjusted gross profit was RMB299.1 million, a 53.8% increase from RMB194.4 million in Q1 2023, with an adjusted gross margin of 16.8%, up from 10.4% in the same quarter last year [2][8]. Revenue Breakdown - Revenues from public cloud services increased by 12.9% quarter-over-quarter to RMB1,187.4 million (US$164.4 million) and by 2.9% year-over-year [5]. - Revenues from enterprise cloud services were RMB588.2 million (US$81.5 million), reflecting a decrease of 12.3% from the previous quarter and a 17.2% decline from Q1 2023 [5]. - AI-related revenue contributed approximately 13% of total revenues from public cloud services, up from 8% in the previous quarter [2]. Cost Management - Cost of revenues decreased significantly by 11.2% year-over-year to RMB1,482.4 million (US$205.3 million), primarily due to the scaling down of CDN services [6]. - Total operating expenses were RMB567.4 million (US$78.6 million), down from RMB595.9 million in the previous quarter and RMB792.1 million in Q1 2023 [8]. Profitability Metrics - Gross profit for Q1 2024 was RMB293.3 million (US$40.6 million), a 51.0% increase from RMB194.2 million in Q1 2023, with a gross margin of 16.5% [8][10]. - Net loss narrowed to RMB363.6 million (US$50.4 million) from RMB608.8 million in the same quarter of 2023 [10][11]. Cash Position - As of March 31, 2024, cash and cash equivalents were RMB1,811.7 million (US$250.9 million), down from RMB2,255.3 million at the end of 2023, primarily due to operational expenses and investments in computing power [11].