Kuaishou Technology Class B · HKEX:1024
Kuaishou Technology Class B — Kuaishou Technology B — Q4 2023 Earnings Presentation
27 slides from Kuaishou Technology Class B's earnings presentation, Mar 20, 2024
Slide 1: 4Q23 Management Presentation
4Q23 Management Presentation March 2024
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 700 million average MAUs and nearly 125 mins average daily time spent per DAU in Q4 Continuously identified and magnified content with unique vertical strengths. By the end of 2023,
Slide 6: Setting a New Record in User Community Scale
1.2 Setting a New Record in User Community Scale • Optimized user growth strategies, built more scenarios for app opening, and refined algorithms, promoting high-value user growth; • In 4Q23, average DAUs were 383 million, up 4.5% YoY; average daily time spent per DAU was 124.5 minutes; Average MAUs
Slide 7: Tremendous Revenue Growth with Margin Expansion
1.3 Tremendous Revenue Growth with Margin Expansion • 4Q23 revenues grew by 15.1% YoY. Specifically, online marketing services revenue grew by 20.6% YoY, other services revenue (including e-commerce) grew by 36.2% YoY; • Domestic business achieved an operating profit for 7 consecutive quarters, prim
Slide 8: 2. Business Development
2. Business Development
Slide 9: Operating Highlights
2.1 Operating Highlights Massive User Base Highly Engaged Community Interactive Platform 383 million 124.5 minutes 9+ billion Average daily time spent per Average DAUs(1) DAU(1) Average daily interactions(1) (3) 700 million 403.9 RMB billion 33.0 billion Average MAUs(1) Total e-commerce GMV(1)(4) Pa
Slide 10: Rich Content Supply, Optimized Search Function
2.2 Rich Content Supply, Optimized Search Function • Continued to deepen the distinctive content supply ecosystem, illustrated by our Astral Short Plays that frequently turn into blockbusters, elevating users’ willingness to pay. Active content creation in Three Rural content category, with fair tra
Slide 11: Outperforming Online Marketing Service with Improved Monetization Efficiency
2.3 Outperforming Online Marketing Service with Improved Monetization Efficiency • In 4Q23, revenue from online marketing services reached 18.2 billion, up 20.6% YoY, the number of active marketing clients increased by more than 160% YoY; • Continued to upgrade smart marketing placement products, op
Slide 12: Robust E-commerce Growth with Ongoing Brands' Development
2.4 Robust E-commerce Growth with Ongoing Brands’ Development • 4Q23 GMV increased by 29.3% YoY to RMB403.9 billion, outpacing the industry, continuously gaining market share; • Continued to enrich shopping scenarios and upgrade marketing product features, resulting in a record high of over 130 mill
Slide 13: Continued Prosperity on Both Supply and Demand Sides
2.4 Continued Prosperity on Both Supply and Demand Sides Supply side Demand side ~50% 130m+ YoY increase of average monthly active merchants in 4Q23 Number of average monthly paying users in 4Q23 Merchant development and support: Enhanced users' experience: • Over one million merchants participated
Slide 14: Live Streaming Maintained Healthy Momentum
2.5 Live Streaming Maintained Healthy Momentum • Live streaming revenue reached RMB10.0 billion in 4Q23, remained stable YoY, up 3.4% QoQ, attributable to a steadfast commitment to long-term ecosystem health and high-quality content; • Continued to explore and cultivate high-quality live-streaming c
Slide 15: New Initiative with Rapid Growth: Local Services
2.6 New Initiative with Rapid Growth: Local Services • Deepened our focus on core cities, created blockbuster cases and supported KOLs. In Q4, the number of average daily active merchants up nearly 40% QoQ; • Leveraging core competitive advantage in best value-for-money, optimized the traffic distri
Slide 16: AI LLM to Empower More Business Scenarios
2.7 AI LLM to Empower More Business Scenarios • For Self-developed LLMs, following the KwaiYii 13 billion and 66 billion models, we focused on developing and training the 175 billion model in Q4, which significantly surpassed GPT-3.5 in overall performance. The overall performance of AI text-to-imag
Slide 17: 3. Financial Results
3. Financial Results
Slide 18: Financial Highlights
3.1 Financial Highlights 4Q23 Operating net cash inflow ~ RMB8.9 billion, achieving a Positive adjusted net profit at the group level for 4 new record high, with total available funds consecutive quarters, with adjusted NPM of 13.4% increasing QoQ for 6 consecutive quarters Operating profit of domes
Slide 19: Steady Revenue Growth, Continuous GPM Improvement
3.2 Steady Revenue Growth, Continuous GPM Improvement • 4Q23 revenues grew by 15.1% YoY, including 55.9% from online marketing services, 30.9% from live streaming and 13.2% from other services (including e-commerce); • In 4Q23, online marketing services revenue grew by 20.6% 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 3.1 ppts YoY to 31.3%, 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 • 4Q23 Domestic business operating profit was RMB4.25 billion, profitability significantly improved; • 4Q23 Overseas DAUs and user time spent in our core overseas markets including Brazil and Indonesia continue
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 RMB3.62 billion at a margin of 11.1% and net profit reaching RMB3.61 billion at a margin of 11.1%; • The gro
Slide 23: 4. Appendix
4. Appendix
Slide 24: Income Statement
Income Statement RMB million 2022Q4 % of revenue 2023Q3 % of revenue 2023Q4 % of revenue YoY change QoQ change Revenues 28,293 100.0% 27,948 100.0% 32,561 100.0% 15.1% 16.5% Cost of revenues (15,417) (54.5%) (13,495) (48.3%) (15,269) (46.9%) (1.0%) 13.1% Gross profit 12,876 45.5% 14,453 51.7% 17,292
Slide 25: Adjusted Net Profit/(Loss) and Adjusted EBITDA
Adjusted Net Profit/(Loss) and Adjusted EBITDA RMB million 2022Q4 2023Q3 2023Q4 Profit/(loss) for the period (1,547) 2,182 3,612 Add: SBC 1,112 871 653 Net fair value changes on investments 390 120 97 Adjusted net profit/(loss) (45) 3,173 4,362 Adjusted net profit/(loss) margin (0.2%) 11.4% 13.4% Ad
Slide 26: Balance Sheet
Balance Sheet December 31, December 31, December 31, December 31, RMB million RMB million 2023 2022 2023 2022 ASSETS EQUITY AND LIABILITIES Non-current assets Share capital 0 0 Property and equipment 12,356 13,215 Share premium 273,459 274,473 Right-of-use assets 10,399 10,806 Treasury shares (88) -
Slide 27: Thank you!
IR Contacts Thank you! Kuaishou Technology Investor Relations Email: ir@kuaishou.com
Kuaishou Technology B — Q4 2023 Earnings Presentation on 6ix