Kuaishou Technology Class B · HKEX:1024
Kuaishou Technology Class B — Kuaishou Technology B — Q3 2023 Earnings Presentation
27 slides from Kuaishou Technology Class B's earnings presentation, Nov 21, 2023
Slide 1: 3Q23 Management Presentation
3Q23 Management Presentation November 2023
Slide 2: Disclaimer
Disclaimer By attending the meeting that includes this presentation, or by rev iewing the presentation material, you agree to be subject to the follow ing restrictions: The information inv olved in this presentation has been prepared by the representativ es of Kuaishou Technology (the “Company” and
Slide 3: Contents
CONTENTS 1 Overview 2 Business Development 3 Financial Results 4 Appendix 3
Slide 4: 1. Overview
1. Overview
Slide 5: World's 2nd Largest Short Video Platform & China's 3rd Largest App
1.1 World’s 2nd Largest Short Video Platform & China’s 3rd Largest App(1) Large and highly engaged user community with 387 million average DAUs and nearly 130 mins average daily time spent per DAU in Q3 Extensive content supply, providing innovative interactive experience and a panoramic view of the
Slide 6: Setting a New Record in User Community Scale
1.2 Setting a New Record in User Community Scale • Continued to improve ROI by leveraging our efficient user growth strategy, high-quality content offerings and continuous algorithm optimization, and proactively explored new user acquisition channels • In 3Q23, average DAUs were 387 million, up 6.4%
Slide 7: Tremendous Revenue Growth with Margin Expansion
1.3 Tremendous Revenue Growth with Margin Expansion • 3Q23 revenues grew by 20.8% YoY. Specifically, online marketing services revenue grew by 26.7% YoY, live streaming revenue grew by 8.6% YoY and other services revenue (including e-commerce) grew by 36.6% YoY. • Domestic business achieved an opera
Slide 8: 2. Business Development
2. Business Development
Slide 9: Operating Highlights
2.1 Operating Highlights Massive User Base Highly Engaged Community Interactive Platform 387 million 129.9 minutes 9+ billion Average daily time spent per Average daily short video Average DAUs(1) DAU(1) interactions(1) (3) 685 million 290.2 RMB billion 32.2 billion Average MAUs(1) Total e-commerce
Slide 10: Rich Content Supply, Comprehensively AI Search Update
2.2 Rich Content Supply, Comprehensively AI Search Update • Promoted high-quality content featuring distinctive characteristics and enhanced quality across diverse content verticals, including short play and sports content. While solidifying the ability to produce blockbuster short plays, we have st
Slide 11: Outperforming Online Marketing Service with Improved Monetization Efficiency
2.3 Outperforming Online Marketing Service with Improved Monetization Efficiency • In 3Q23, revenue from online marketing services reached 14.7 billion, up 26.7% YoY, the number of active marketing customers increased by more than 140% YoY. • Continued to upgrade commercial products, technology and
Slide 12: Robust E-commerce Growth with Ongoing Brands' Development
2.4 Robust E-commerce Growth with Ongoing Brands’ Development • 3Q23 GMV increased by ~30% YoY to RMB290.2 billion, outpacing the industry, demonstrating unique resilience and advantages against the headwind; trust-based e-commerce continued to promote business growth. • Continued to enrich merchand
Slide 13: Continued Prosperity on the Supply and Demand Side of E-commerce
2.4 Continued Prosperity on the Supply and Demand Side of E-commerce Supply side Demand side ~50% ~120m YoY increase of average monthly active merchants in 3Q23 Number of average monthly paying users in 3Q23 Merchant development and support: Enhanced users' experience: • Introduced high-potential me
Slide 14: Live Streaming Maintained Healthy Momentum
2.5 Live Streaming Maintained Healthy Momentum • Live streaming revenue reached RMB9.7 billion in 3Q23, up 8.6% YoY, attributable to consistent improvements in high-quality live streaming offerings and continuous optimization of the live streaming ecosystem. • Continued to explore and develop more i
Slide 15: New Initiative with Rapid Growth: Local Services
2.6 New Initiative with Rapid Growth: Local Services • Extended the number of core cities to 16 cities, actively expanded into more specific categories of general in-store, hotels, and travel; created blockbuster cases, expanded KOL scale and continuously enhanced content quality, with daily average
Slide 16: AI LLM to Empower More Business Scenarios
2.7 AI LLM to Empower More Business Scenarios • Self-developed LLMs, KwaiYii 13 billion and 66 billion models, have achieved leading positions in the industry at a comparable scale; also introduced the AI text-to-image LLM, “KeTu”; • Accelerated the application of LLMs in various scenarios, for exam
Slide 17: 3. Financial Results
3. Financial Results
Slide 18: Financial Highlights
3.1 Financial Highlights 3Q23 Operating net cash inflow ~ RMB7.67 billion, achieving Positive adjusted net profit at the group level for 3 a new record high, with total available funds consecutive quarters, with adjusted NPM of 11.4% increasing QoQ for 5 consecutive quarters Domestic business operat
Slide 19: Steady Revenue Growth, Continuous GPM Improvement
3.2 Steady Revenue Growth, Continuous GPM Improvement • 3Q23 revenues grew by 20.8% YoY, including 52.6% from online marketing services, 34.8% from live streaming and 12.6% from other services (including e-commerce); • In 3Q23, online marketing services revenue grew by 26.7% YoY, live streaming reve
Slide 20: Significant Cost Reductions and Productivity Enhancements
3.3 Significant Cost Reductions and Productivity Enhancements Led to Consistently Improving Operating Efficiency • S&M as a percentage of revenue decreased by 7.5 ppts YoY to 32.0%, mainly due to more efficient spending on user acquisition and retention; • R&D expenses as a percentage of revenue dec
Slide 21: Improved Profitability for Domestic Business and Narrowing Overseas Loss
3.4 Improved Profitability for Domestic Business and Continuously Narrowing Overseas Loss • 3Q23 Domestic business operating profit was RMB3.16 billion, profitability significantly improved; • 3Q23 Overseas revenue increased by 2 times thanks to strategic focus on core overseas markets, deepened mon
Slide 22: Growth in Group-Level Operating Profit and Adjusted Net Profit
3.5 Continuous YoY & QoQ Growth in Group-Level Operating Profit and Adjusted Net profit • Continuous improvement in group level operating profit and net profit, with operating profit reaching RMB2.21 billion at a margin of 7.9% and net profit reaching RMB2.18 billion at a margin of 7.8%. • The group
Slide 23: 4. Appendix
4. Appendix
Slide 24: Income Statement
Income Statement RMB million 2022Q3 % of revenue 2023Q2 % of revenue 2023Q3 % of revenue YoY change QoQ change Revenues 23,128 100.0% 27,744 100.0% 27,948 100.0% 20.8% 0.7% Cost of revenues (12,425) (53.7%) (13,810) (49.8%) (13,495) (48.3%) 8.6% (2.3%) Gross profit 10,703 46.3% 13,934 50.2% 14,453 5
Slide 25: Adjusted Net Profit/(Loss) and Adjusted EBITDA
Adjusted Net Profit/(Loss) and Adjusted EBITDA RMB million 2022Q3 2023Q2 2023Q3 Profit/(loss) for the period (2,712) 1,481 2,182 Add: SBC 1,708 1,056 871 Net fair value changes on investments 332 157 120 Adjusted net profit/(loss) (672) 2,694 3,173 Adjusted net profit/(loss) margin (2.9%) 9.7% 11.4%
Slide 26: Balance Sheet
Balance Sheet September 30, December 31, September 30, December 31, RMB million RMB million 2023 2022 2023 2022 ASSETS EQUITY AND LIABILITIES Non-current assets Share capital 0 0 Property and equipment 12,115 13,215 Share premium 274,206 274,473 Right-of-use assets 10,112 10,806 Treasury shares (45)
Slide 27: Thank you!
IR Contacts Thank you! Kuaishou Technology Investor Relations Email: ir@kuaishou.com
Kuaishou Technology B — Q3 2023 Earnings Presentation on 6ix