Chinese cloud services provider Kingsoft Cloud Q2 revenue up 24.2%, loss widens on higher costs
Overview
Kingsoft Cloud Q2 revenue rises 24.2% yr/yr to RMB2,349.2 mln
Public cloud services revenue grows 31.7% yr/yr, driven by AI demand
Net loss widens to RMB456.9 mln due to higher credit loss expenses
Result Drivers
AI BUSINESS GROWTH - AI gross billing increased by over 120% yr/yr to RMB728.7 mln, driving revenue growth, per CEO Tao Zou
PUBLIC CLOUD SERVICES - Revenue from public cloud services rose 31.7% yr/yr to RMB1,625.3 mln, driven by AI demand
COST IMPACT - Adjusted gross margin fell to 14.9% from 17.1% in Q2 2024, due to higher server costs and upfront costs for future revenue
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| RMB 2.35 bln |
|
Q2 EPS |
| -RMB 0.11 |
|
Q2 Net Income |
| -RMB 456.86 mln |
|
Q2 Gross Profit |
| RMB 338.86 mln |
|
Q2 Operating Expenses |
| -RMB 665.84 mln |
|
Q2 Operating Income |
| -RMB 326.99 mln |
|
Q2 Pretax Profit |
| -RMB 454.52 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Kingsoft Cloud Holdings Ltd is HK$7.63, about 3.8% above its August 20 closing price of HK$7.34
Press Release: ID:nPn748T5Da
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