Kingsoft Cloud (KC) Q4 2024 earnings summary

Executive summary

• Achieved first-ever non-GAAP operating profit since inception, marking a turnaround from historical operating losses and entering a new phase of healthy growth.

• Total revenue for Q4 2024 reached RMB 2.23 billion, up 30% year-over-year, outpacing industry peers.

• AI-related business gross billing surged nearly 500% year-over-year to RMB 474 million, now 34% of public cloud revenue.

• Revenue from Xiaomi and Kingsoft ecosystem grew 76% year-over-year to RMB 493 million, now 22% of total revenue.

Financial highlights

• Adjusted gross profit for Q4 was RMB 427.7 million, up 63% year-over-year, with an adjusted gross margin of 19.2%.

• Adjusted operating profit turned positive at RMB 24.4 million, compared to a loss of RMB 187.6 million a year ago.

• Non-GAAP EBITDA profit reached RMB 359.7 million, with a margin of 16.1%, up from negative 1.6% last year.

• Cash and cash equivalents stood at RMB 2.65 billion as of December 31, 2024.

• Net inflow of operating cash flow was RMB 570.2 million for the quarter.

Outlook and guidance

• Expecting accelerated revenue growth and continued profitability improvement in 2025, with positive non-GAAP operating profit for the full year.

• AI and Xiaomi Kingsoft ecosystem strategies to remain key growth drivers.

• Capital expenditures and OPEX for AI expected to reach RMB 10 billion in 2025, supported by leasing and alternative financing.

• Shareholders approved RMB 11.3 billion in connected-party revenue from Xiaomi and Kingsoft Group over the next three years.