Kuaishou Technology (1024) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 11.6% year-over-year to RMB31.0 billion, with online marketing and e-commerce both achieving over 20% growth year-over-year.

• Adjusted net profit for Q2 2024 reached RMB4.7 billion, with a record margin of 15.1%; group net profit was RMB4.0 billion, up 168.7% year-over-year.

• Gross margin hit a record 55.3%, with gross profit up 23% year-over-year to RMB17.1 billion.

• AI infrastructure and large model advancements drove operational and financial improvements, enhancing platform engagement and commercialization.

• User engagement reached new highs, with 395 million average DAUs (+5.1% YoY) and 692 million MAUs (+2.7% YoY).

Financial highlights

• Online marketing services revenue rose 22.1% year-over-year to RMB17.5 billion, accounting for 56.5% of total revenue.

• E-commerce GMV increased 15% year-over-year to RMB305.3 billion; monthly active paying users grew 14.1% to 131 million.

• Live streaming revenue was RMB9.3 billion, down 6.7% year-over-year.

• Overseas revenue surged 141.4% year-over-year to RMB1.1 billion, with operating loss narrowing by 64.5%.

• Cash and equivalents stood at RMB11.4 billion as of June 30, 2024; total available funds were RMB77.7 billion.

Outlook and guidance

• Management expects continued high-quality growth in H2 2024, leveraging AI innovation to sustain market leadership and deliver long-term value.

• Confident in achieving a mid-term adjusted net margin target of 20%, driven by improved revenue mix and operational efficiency.

• AI investments expected to have minimal short-term impact on profitability, with significant long-term value creation.

• Focus on technological innovation, diversified omni-domain e-commerce, and sustainable profitability.