Kuaishou Technology Class B · HKEX:1024
Kuaishou Technology Class B — Kuaishou Technology B — Q2 2023 Earnings Presentation
26 slides from Kuaishou Technology Class B's earnings presentation, Aug 22, 2023
Slide 1: 2Q23 Management Presentation
2Q23 Management Presentation August 2023
Slide 2: Disclaimer
Disclaimer By attending the meeting that includes this presentation, or by reviewing the presentation material, you agree to be subject to the following restrictions: The information involved in this presentation has been prepared by the representatives of Kuaishou Technology (the “Company” and toge
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 376 million average DAUs and 117+ mins average daily time spent per DAU in Q2 Continue to enrich content supply, creating several blockbuster summer entertainment IPs and original s
Slide 6: Setting a New Record in User Community Scale
1.2 Setting a New Record in User Community Scale • Spurred users’ high interactivity and engagement, enhanced our user growth strategies and explored new channels for user growth through refined management, technological tools and high-quality content. • In 2Q23, average DAUs was 376 million, up 8.3
Slide 7: Tremendous Revenue Growth with Margin Expansion
1.3 Tremendous Revenue Growth with Margin Expansion • 2Q23 revenues grew by 27.9% YoY. Specifically, online marketing services revenue grew by 30.4% YoY, live streaming revenue grew by 16.4% YoY and other services revenue (including e-commerce) grew by 61.4% YoY. • Domestic business achieved an oper
Slide 8: 2. Business Development
2. Business Development
Slide 9: Operating Highlights
2.1 Operating Highlights Massive User Base Highly Engaged Community Interactive Platform 376 million 117.2 minutes 8+ billion Average Daily Time Spent per average daily short video Average DAUs(1) DAU(1) interactions(1) (3) 673 million 265.5 billion 31.1 billion Average MAUs(1) Total e-commerce GMV(
Slide 10: Rich Content Supply, Optimized Search Function
2.2 Rich Content Supply, Optimized Search Function • Enhanced quality across diverse content verticals including short play and sports content; several blockbuster summer entertainment IPs and original sports IPs that the public enjoys provided users with various “content + interaction” consumption
Slide 11: Outperforming online marketing service with improved monetization efficiency
2.3 Outperforming online marketing service with improved monetization efficiency • Through efforts to further strengthen commercialization data infrastructure, optimize product capabilities and unlock the value of high-quality traffic, online marketing services revenue grew steadily in 2Q23. Revenue
Slide 12: Robust E-commerce Growth with Ongoing Brands' Development
2.4 Robust E-commerce Growth with Ongoing Brands’ Development • 2Q23 GMV increased by ~39% YoY to RMB265.5 billion, beating market expectations and outpacing the industry, further gaining market share. • Over 110 million monthly active paying users, with penetration rate rising to the high teens. Ac
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 >60% 110m+ YoY increase of average monthly active merchants in 2Q23 Number of monthly active paying users in 2Q23 Merchant development and support: Enhanced Users' experience: • Attracted new merchants from
Slide 14: Solid Live Streaming Performance
2.5 Solid Live Streaming Performance • Live streaming revenue showed steady growth, reaching RMB10 billion in 2Q23, up 16.4% YoY; monthly ARPPU rose by double digits YoY. • Consistent efforts in enriching live streaming offerings, optimizing live streaming ecosystem and exploring user preferences an
Slide 15: Promising New Initiative: Local Services
2.6 Promising New Initiative: Local Services • Expanded core cities, accelerated MVP establishment via high-quality city roll out strategy. Developed merchants through in-house BD and matching with KOLs. Strengthened in-store dining SKA supply and created blockbuster hotel and travel products, with
Slide 16: 3. Financial Results
3. Financial Results
Slide 17: Financial Highlights
3.1 Financial Highlights 2Q23 Operating net cash inflow ~ RMB6.4 billion, compared Positive IFRS net profit at the group level for the first with net cash outflow last year, with total available time since IPO, with IFRS NPM of 5.3% funds increasing QoQ for 4 consecutive quarters Domestic business d
Slide 18: Accelerating Revenue Growth, GPM Over 50% for the First Time Since IPO
3.2 Accelerating Revenue Growth, GPM Over 50% for the First Time Since IPO • 2Q23 revenues grew by 27.9% YoY, including 51.7% from online marketing services, 35.9% from live streaming and 12.4% from other services (including e-commerce); • In 2Q23, online marketing services revenue grew by 30.4% YoY
Slide 19: Significant Cost Reductions and Productivity Enhancements Led to Improving Operating Efficiency
3.3 Significant Cost Reductions and Productivity Enhancements Led to Consistently Improving Operating Efficiency • S&M as a percentage of revenue decreased by 9.3 ppts YoY to 31.1%, mainly due to more efficient and restrained spending on user acquisition and retention; • R&D expenses as a percentage
Slide 20: Improved Profitability for Domestic Business and Narrowing Overseas Loss
3.4 Improved Profitability for Domestic Business and Continuously Narrowing Overseas Loss • 2Q23 domestic business operating profit was RMB3.03 billion, profitability significantly improved; • Overseas revenue increased by 3 times thanks to refined monetization strategies and deep presence in key ov
Slide 21: First-Ever Group-Level Net Profit, Significant QoQ Growth in Adjusted Net Profit
3.5 First-Ever Group-Level Net Profit, Significant QoQ Growth in Adjusted Net Profit • Achieved positive operating profit and net profit at the group level for the first time, with operating profit margin of 4.7% and net profit margin of 5.3%. • The group’s adjusted net profit increased significantl
Slide 22: Appendix
4 Appendix
Slide 23: Income Statement
Income Statement RMB million 2022Q2 % of revenue 2023Q1 % of revenue 2023Q2 % of revenue YoY change QoQ change Revenues 21,695 100.0% 25,217 100.0% 27,744 100.0% 27.9% 10.0% Cost of revenues (11,925) (55.0%) (13,505) (53.6%) (13,810) (49.8%) 15.8% 2.3% Gross profit 9,770 45.0% 11,712 46.4% 13,934 50
Slide 24: Adjusted Net Profit/(Loss) and Adjusted EBITDA
Adjusted Net Profit/(Loss) and Adjusted EBITDA RMB million 2022Q2 2023Q1 2023Q2 Profit/(loss) for the period (3,176) (876) 1,481 Add: SBC 1,718 990 1,056 Net fair value changes on investments 146 (72) 157 Adjusted net profit/(loss) (1,312) 42 2,694 Adjusted net profit/(loss) margin (6.0%) 0.2% 9.7%
Slide 25: Balance Sheet
Balance Sheet June 30, December 31, June 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 12,071 13,215 Share premium 274,429 274,473 Right-of-use assets 10,350 10,806 Treasury shares (113) - Intang
Slide 26: Thank you!
IR Contacts Thank you! Kuaishou Technology Investor Relations Email: ir@kuaishou.com
Kuaishou Technology B — Q2 2023 Earnings Presentation on 6ix