KUAISHOU(01024)2022-11-22 12:00Financial Data and Key Metrics Changes - The company's revenue for Q3 2022 grew by 12.9% year-over-year to 23.1 billion RMB, driven by growth in online marketing services, e-commerce, and live streaming businesses [14][17] - Adjusted net loss narrowed to 670 million RMB from 1.3 billion RMB in Q2 2022 and 4.6 billion RMB in Q3 2021, resulting in an adjusted net margin improvement from negative 22.5% in Q3 2021 to negative 2.9% in Q3 2022 [16][17] - Gross profit reached 10.7 billion RMB, growing 28.5% year-over-year, with a gross profit margin of 46.3%, improving 4.8 percentage points year-over-year [15][16] Business Line Data and Key Metrics Changes - Revenue from online marketing services was 11.6 billion RMB, up 6.2% year-over-year, despite a challenging advertising market [14][19] - E-commerce GMV reached 222.5 billion RMB, increasing by 26.6% year-over-year, with a significant rise in the number of active merchants [10][14] - Live streaming revenue grew by 15.8% year-over-year to 8.95 billion RMB, attributed to improved content quality and user matching efficiency [12][14] Market Data and Key Metrics Changes - The average daily time spent per DAU increased by 8.6% year-over-year to 129.3 minutes, indicating strong user engagement [6][7] - The number of monthly active e-commerce paying users surpassed 100 million, with a payment penetration rate exceeding 15% [22][23] - Monthly active advertisers increased by over 65% year-over-year, reflecting the platform's growing advertising effectiveness [9][14] Company Strategy and Development Direction - The company is focusing on enhancing its commercial ecosystem by integrating e-commerce, online marketing, and live streaming [3][4] - A new Commercial Ecosystem Committee has been established to facilitate collaboration among business units and improve monetization strategies [3][4] - The company aims to build a merchandise system to enhance understanding and control over the merchandise element in e-commerce [5][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by macroeconomic conditions and the COVID-19 pandemic but emphasized breakthroughs in business operations and financial performance [2][6] - The advertising market is expected to recover slowly, with growth projected in the mid-single digits for 2022 [18][19] - The company remains confident in its long-term market development and aims to strengthen its foundational capabilities to capture more market share [21] Other Important Information - The company has implemented cross-departmental rotations for mid-level managers to enhance collaboration and efficiency [4] - The e-commerce business is seen as a key growth engine, with a focus on improving user experience and optimizing algorithms for better conversion rates [5][10] Q&A Session Summary Question: Advertising monetization outlook - Management noted that the overall recovery of the advertising market is weak, with expectations of mid-single-digit growth for 2022, and emphasized improvements in product commercialization [17][18] Question: E-commerce trends and performance - The number of active buyers surpassed 100 million, with a payment penetration rate over 15%. The company is focusing on multi-scenario penetration and enhancing user experience [22][23]