2021-08-25 18:22Financial Data and Key Metrics Changes - The company reported total revenues of RMB2.17 billion for Q2 2021, marking a 41.6% year-over-year increase and a significant acceleration from the 30.4% increase in Q1 2021 [6][19]. - Public Cloud services revenues reached RMB1.55 billion, an increase of RMB159 million from Q1 2021, representing the sixth consecutive quarter of revenue growth since the IPO [6][19]. - Enterprise Cloud services revenues were RMB622.1 million, reflecting a 152.8% year-over-year increase, accelerating from 131.3% in Q1 2021 [6][19]. Business Line Data and Key Metrics Changes - Public Cloud services continued to show strong performance with stable existing customer usage and significant new customer acquisition [7][10]. - The company entered a partnership with ByteDance's Volcano Engine to jointly provide services, enhancing its market position [8]. - In the Enterprise Cloud segment, the company is actively engaging with major sectors such as financial services and healthcare, with notable projects underway [13][14]. Market Data and Key Metrics Changes - Kingsoft Cloud maintained its position as the third-largest internet cloud service provider in China, with a market share of 7.1% [12]. - The company is focusing on premium customer relationships and expanding its customer base to drive growth in both Public and Enterprise Cloud segments [20][21]. Company Strategy and Development Direction - The company aims to strengthen relationships with existing customers while diversifying its customer base to sustain growth [12][26]. - The acquisition of Camelot is expected to enhance implementation capabilities and expand the Enterprise Cloud service offerings [16][38]. - The company is committed to maintaining a disciplined approach in selecting verticals, minimizing exposure to sectors facing regulatory headwinds [21][25]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the Public Cloud segment for the second half of the year, citing stable relationships with top customers and a disciplined vertical focus [31][32]. - The regulatory environment is seen as beneficial, allowing the company to leverage its neutral positioning to penetrate further into the market [32][46]. - Future revenue guidance for Q3 2021 is projected between RMB2.58 billion and RMB2.7 billion, indicating a year-over-year increase of 49% to 56% [26]. Other Important Information - The company has established an ESG taskforce to improve transparency and corporate governance [27]. - Kingsoft Cloud is preparing for its first Investor Day, targeting mid-October 2021 [27]. Q&A Session Summary Question: Growth outlook for Public Cloud in the second half of the year - Management is confident in the growth of Public Cloud revenue, citing a stable relationship with top customers and minimal impact from regulatory headwinds [31][32]. Question: Details on cooperation with ByteDance - The cooperation involves integrating Kingsoft Cloud's iOS products with Volcano Engine's PaaS and SaaS offerings, but significant revenue contributions are not expected in the short term [33][34]. Question: Update on Camelot acquisition and future targets - The Camelot acquisition is expected to enhance implementation capabilities, with consolidation anticipated by Q4 2021 [36][38]. Question: Guidance on EBITDA margin - Management expects EBITDA margins to improve as the company continues to manage expenses efficiently, with a goal of approaching breakeven by the end of the year [40][41].