Kuaishou Technology Class B · HKEX:1024
Kuaishou Technology Class B — Kuaishou Technology B — Q1 2024 Earnings Presentation
31 slides from Kuaishou Technology Class B's earnings presentation, May 22, 2024
Slide 1: 1Q24 Management Presentation
1Q24 Management Presentation May 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 Environment, Social & Governance (ESG) 5 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 nearly 394 million average DAUs and nearly 130 mins average daily time spent per DAU in Q1 Backed quality creators with distinct Kuaishou characteristics and created differentiated,
Slide 6: Setting a New Record in User Community Scale
1.2 Setting a New Record in User Community Scale • Advanced high-quality user growth with optimized channel mix and enhanced algorithm to forecast new user retention rates, increasing the ROI of our user growth; met user demand with superior content, elevating user experience. • In 1Q24, average DAU
Slide 7: Tremendous Revenue Growth with Margin Expansion
1.3 Tremendous Revenue Growth with Margin Expansion • 1Q24 revenues grew by 16.6% YoY. Specifically, online marketing services revenue grew by 27.4% YoY, other services revenue (including e-commerce) grew by 47.6% YoY. • Domestic business operating profit increased by over 300% YoY, primarily due to
Slide 8: 2. Business Development
2. Business Development
Slide 9: Operating Highlights
2.1 Operating Highlights Massive User Base Highly Engaged Community Interactive Platform 394 million 129.5 minutes 10+ billion Average daily time spent per Average daily short video Average DAUs(1) DAU(1) interactions(1) (3) 697 million 288.1 RMB billion 34.1 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 • Created high-quality, unique Kuaishou IP content, offered various Chinese New Year-themed activities, boosting creator exposure and user engagement. Diverse blockbuster Astral Short Plays generated huge social buzz online. • Optimized the s
Slide 11: Outperforming Online Marketing Service with Improved Monetization Efficiency
2.3 Outperforming Online Marketing Service with Improved Monetization Efficiency • In 1Q24, revenue from online marketing services reached 16.7 billion, up 27.4% YoY, the number of active marketing clients increased by nearly 90% YoY. • Vigorously promoted smart marketing solutions across various sc
Slide 12: Smart marketing solution to enhance conversion efficiency
2.3 Smart marketing solution to enhance conversion efficiency • Leveraging AI and LLM capabilities, smart marketing solution provided clients with end-to-end solutions to improve efficiency, covering smart creation, smart placement and smart connection, lowering clients’ customer acquisition costs a
Slide 13: Robust E-commerce Growth with Ongoing Brands' Development
2.4 Robust E-commerce Growth with Ongoing Brands’ Development • 1Q24 GMV steadily increased by 28.2% YoY to RMB288.1 billion, with refined operations and diverse scenario expansion showing results. • Enriched shopping scenarios and upgraded product features attracted nearly 130 million monthly activ
Slide 14: 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 ~70% ~130m YoY increase of monthly active merchants in 1Q24 Number of monthly active customers in 1Q24 Merchant development and support: Omni-domain shopping scenario: • Optimized policies to attract merchan
Slide 15: Live Streaming Maintained Healthy Momentum
2.5 Live Streaming Maintained Healthy Momentum • Live streaming revenue reached RMB8.6 billion in 1Q24; focused on building a sustainable live streaming ecosystem, laying a solid foundation for sustainable development on both supply and demand sides. • Enhanced streamer activity and quality, promote
Slide 16: New Initiative with Rapid Growth: Local Services
2.6 New Initiative with Rapid Growth: Local Services • Continuous improvement on the supply side: optimized industry-specific merchandise, targeted programs in core categories, and healthy development for multi-category products. Average daily active merchants and merchandise up 29% and 38% QoQ, res
Slide 17: AI LLM to Empower More Business Scenarios
2.7 AI LLM to Empower More Business Scenarios • For self-developed LLMs, breakthroughs in RLHF technology improved the 175 billion-scale LLM to near GPT-4.0 performance; recently launched the first multimodal LLM. • In Q1, LLM were widely applied in short video and live streaming content understandi
Slide 18: 3. Financial Results
3. Financial Results
Slide 19: Financial Highlights
3.1 Financial Highlights 1Q24 GPM improved significantly YoY to 54.8%, adjusted Operating net cash inflow ~ RMB5.80 billion with total NPM continued to increase and reached a historical available funds increasing QoQ for 7 consecutive high of 14.9% quarters Domestic business operating profit reached
Slide 20: Steady Revenue Growth, Continuous GPM Improvement
3.2 Steady Revenue Growth, Continuous GPM Improvement • 1Q24 revenues grew by 16.6% YoY, including 56.6% from online marketing services, 29.2% from live streaming and 14.2% from other services (including e-commerce); • In 1Q24, online marketing services revenue grew by 27.4% YoY, live streaming reve
Slide 21: Significant Cost Reductions and Consistent Improvement in Operating Efficiency
3.3 Significant Cost Reductions and Consistent Improvement in Operating Efficiency • S&M as a percentage of revenue decreased by 2.7 ppts YoY to 31.9%, mainly due to more efficient spending on user acquisition and retention with YoY decrease in user acquisition cost per new equipment; • R&D expenses
Slide 22: Improved Profitability for Domestic Business and Narrowing Overseas Loss
3.4 Improved Profitability for Domestic Business and Continuously Narrowing Overseas Loss • 1Q24 Domestic business operating profit was RMB3.99 billion, profitability further improved YoY. • 1Q24 Overseas revenue increased by nearly 2 times thanks to the strategic focus on core overseas markets, dee
Slide 23: Continuous 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 RMB3.99 billion at a margin of 13.6% and net profit reaching RMB4.12 billion at a margin of 14.0%. • The gro
Slide 24: 4. Environment, Social & Governance (ESG)
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 25: ESG Recognitions
4.1 ESG Recognitions Receives MSCI ESG rating of “BBB” in Other accreditations, awards and recognitions recognition of commitment to sustainability 2023 Data Center Technology Achievement 2023 IDC Industry Award - First Prize Annual Green ——Water and Power Control Solutions Awards Energy Efficient A
Slide 26: ESG Highlights (2023)
4.2 ESG Highlights (2023) ENVIRONMENT SOCIAL GOVERNANCE Protecting our planet and Support for the communities Operate with integrity and being a responsible where our team members live embrace fairness and diversity as environmental stewardship and work our drivers for sustainable growth • Kuaishou’
Slide 27: 5. Appendix
5. Appendix
Slide 28: Income Statement
Income Statement RMB million 2024Q1 % of revenue 2023Q4 % of revenue 2023Q1 % of revenue YoY change QoQ change Revenues 29,408 100.0% 32,561 100.0% 25,217 100.0% 16.6% (9.7%) Cost of revenues (13,288) (45.2%) (15,269) (46.9%) (13,505) (53.6%) (1.6%) (13.0%) Gross profit 16,120 54.8% 17,292 53.1% 11,
Slide 29: Adjusted Net Profit/(Loss) and Adjusted EBITDA
Adjusted Net Profit/(Loss) and Adjusted EBITDA RMB million 2024Q1 2023Q4 2023Q1 (loss)/profit for the period 4,120 3,612 (876) Add: SBC 292 653 990 Net fair value changes on investments (24) 97 (72) Adjusted net profit 4,388 4,362 42 Adjusted net profit margin 14.9% 13.4% 0.2% Adjusted net profit 4,
Slide 30: Balance Sheet
Balance Sheet March 31, December 31, March 31, December 31, RMB million RMB million 2024 2023 2024 2023 ASSETS EQUITY AND LIABILITIES Non-current assets Share capital 0 0 Property and equipment 11,770 12,356 Share premium 272,264 273,459 Right-of-use assets 9,653 10,399 Treasury shares (113) (88) In
Slide 31: Thank you!
IR Contacts Thank you! Kuaishou Technology Investor Relations Email: ir@kuaishou.com
Kuaishou Technology B — Q1 2024 Earnings Presentation on 6ix