Kuaishou Technology (1024) Q1 2025 earnings summary

Executive summary

• Achieved 10.9% year-over-year revenue growth to RMB 32.6 billion in Q1 2025, driven by AI integration, strong user growth, and robust performance in online marketing, live streaming, and e-commerce.

• Adjusted net profit reached RMB 4.6 billion with a 14% margin, and adjusted EBITDA rose 7.6% to RMB 6.43 billion.

• Overseas business delivered its first-ever quarterly operating profit, with revenue up 32.7% year-over-year and RMB 28 million in operating profit.

• Kling AI 2.0 launched globally, generating RMB 150 million in Q1 revenue and reinforcing leadership in AI-driven video content.

• Record user engagement with 408 million DAUs, 712 million MAUs, and 134 minutes average daily time spent per DAU.

Financial highlights

• Gross profit margin was 54.6%, up 0.6 percentage points sequentially; gross profit reached RMB 17.8 billion.

• Online marketing services revenue rose 8% year-over-year to RMB 18 billion; live streaming revenue up 14.4% to RMB 9.8 billion.

• E-commerce GMV increased 15.4% year-over-year to RMB 332.3 billion, with 135 million monthly active paying users.

• Local services revenue doubled year-over-year, with over 65% of growth from lower-tier cities.

• Overseas revenue up 33% year-over-year to RMB 1.32 billion.

Outlook and guidance

• Continued investment in AI and product innovation to drive operational efficiency, user engagement, and monetization.

• Confident in returning to double-digit year-over-year growth in online marketing services in Q2.

• Overseas business expected to maintain growth momentum, leveraging local content and marketing services.

• Full-year AI investment expected to impact group profit margin by 1-2 percentage points.