Kuaishou Technology Class B · HKEX:1024
Kuaishou Technology Class B — Kuaishou Technology B — Q1 2023 Earnings Presentation
28 slides from Kuaishou Technology Class B's earnings presentation, May 22, 2023
Slide 1: 1Q23 Management Presentation
1Q23 Management Presentation May 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 374 million average DAUs and 126+ mins average daily time spent per DAU Rich content supply, with our industry-leading ability to produce blockbuster short plays and Kuaishou New Kn
Slide 6: Setting a New Record for User Community Scale
1.2 Setting a New Record for User Community Scale • Improved automated placement of original, high-quality content through refined management and technological tools, and enhanced user acquisition ROI by growing the proportion of users with higher lifetime value. • In 1Q23, average DAUs was 374 mill
Slide 7: Tremendous Revenue Growth with Margin Expansion
1.3 Tremendous Revenue Growth with Margin Expansion • 1Q23 revenues grew by 19.7% YoY. Specifically, online marketing services revenue grew by 15.1% YoY, live streaming revenue grew by 18.8% YoY and other services revenue (including e-commerce) grew by 51.3% 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 374 million 126.8 minutes 20%+ Average Daily Time Spent per YoY increase in average daily Average DAUs(1) DAU(1) short video interactions (1) (3) 654 million 224.8 billion 29.6 billion Average MAUs(1) Total e-co
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 pan-knowledge content, providing users with various “content + interaction” consumption choices during Chinese New Year. • Refined search function, shaping stronger user ha
Slide 11: Gradually Resumed Online Marketing Services Growth
2.3 Gradually Resumed Online Marketing Services Growth, Outperforming Advertising Industry Driven by Closed-loop Advertising • Through efforts to further strengthen commercialization data infrastructure, optimize product capabilities and refine industry-specific management strategies, online marketi
Slide 12: Integrated Brand & Performance Marketing Solutions
2.3 Integrated Brand & Performance Marketing Solutions • Rich product portfolio and end-to-end marketing solutions for advertisers to drive sustainable operation.. Brand mindset Conversion Sustainable operation Magnetic User group operation Brand exposure Search scenarios Promotion Storewide Magneti
Slide 13: Rapidly Developing E-commerce Business with Trust-based Ecosystem
2.4 Rapidly Developing E-commerce Business with trust-based ecosystem • Continue to strengthen trust-based e-commerce ecosystem and execute omni-domain operating strategy • Enrich merchandise, improve matching accuracy, harness high-quality streamers and content • 1Q23 GMV increased by 28.4% YoY to
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 >50% 100m+ YoY increase of average monthly active merchants in 1Q23 Number of monthly active paying users in 1Q23 Merchant-KOL cooperation: Users' shopping experience: • Delved into users’ needs and expanded
Slide 15: Upgraded All-domain Solutions for Merchants
2.4 Upgraded All-domain Solutions for Merchants • Leverage high-quality public domain traffic and the trust-based private domain traffic in our dual-engine model, establish an end-to-end path from “recommendation” to “transaction.” Consumers Discovery Mode Purchase Mode Store Content-based Distribut
Slide 16: Solid Live Streaming Performance
2.5 Solid Live Streaming Performance • Live streaming revenue showed steady growth, reaching RMB9.32 billion in 1Q23, up 18.8% YoY; monthly ARPPU rose by double digits YoY. • Live streaming content quality continued to improve, while user-content matching efficiency was optimized through algorithm i
Slide 17: Promising New Initiative: Local Services
2.6 Promising New Initiative: Local Services • Users’ consumption demand for local services content surged post pandemic. Kuaishou prioritizes key cities MVPs and is currently in the validation phase. • Establish “KOL + merchants” ecosystem and advance merchandise engine to build an efficient dual c
Slide 18: 3. Financial Results
3. Financial Results
Slide 19: Financial Highlights
3.1 Financial Highlights 1Q23 Operating net cash inflow ~ RMB1.8 billion, comparing Positive adjusted net profit at the group level for the with net cash outflow last year, with total available first time since IPO, adjusted NPM~0.2% funds increasing QoQ for 3 consecutive quarters Domestic business
Slide 20: Accelerating Revenue Growth with High GPM
3.2 Accelerating Revenue Growth with High GPM • 1Q23 revenues grew by 19.7% YoY, including 51.8% from online marketing services, 37.0% from live streaming and 11.2% from other services (including e-commerce); • In 1Q23, online marketing services revenue grew by 15.1% YoY, live streaming revenue grew
Slide 21: 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 10.4 ppts YoY to 34.6%, due to more efficient and restrained spending on user acquisition and retention; • R&D expenses as a percentage of re
Slide 22: Steady Domestic Profit and Significantly Narrowing Overseas Loss
3.4 Steady Domestic Profit and Significantly Narrowing Overseas Loss • 1Q23 domestic business operating profit was RMB963 million, maintaining solid earnings momentum; • Overseas revenue increased by 6 times thanks to enhanced monetization capability. Operating loss narrowed by 55.4% YoY and 45.1% Q
Slide 23: Positive Adjusted Net Profit at the Group Level for the First Time
3.5 Positive Adjusted Net Profit at the Group Level for the First Time • The group’s operating loss continued to narrow, with operating loss margin down 24.0 ppts YoY and 1.6 ppts QoQ; • Achieved positive adjusted net profit at the group level for the first time since IPO. Operating Loss and Operati
Slide 24: Appendix
4 Appendix
Slide 25: Income Statement
Income Statement RMB million 2022Q1 % of revenue 2022Q4 % of revenue 2023Q1 % of revenue YoY change QoQ change Revenues 21,067 100.0% 28,293 100.0% 25,217 100.0% 19.7% (10.9%) Cost of revenues (12,285) (58.3%) (15,417) (54.5%) (13,505) (53.6%) 9.9% (12.4%) Gross profit 8,782 41.7% 12,876 45.5% 11,71
Slide 26: Adjusted Net Profit/(Loss) and Adjusted EBITDA
Adjusted Net Profit/(Loss) and Adjusted EBITDA RMB million 2022Q1 2022Q4 2023Q1 Loss for the period (6,254) (1,547) (876) Add: SBC 1,711 1,112 990 Net fair value changes on investments 821 390 (72) Adjusted net profit/(loss) (3,722) (45) 42 Adjusted net margin (17.7%) (0.2%) 0.2% Adjusted net profit
Slide 27: Balance Sheet
Balance Sheet March 31, December 31, March 31, December 31, RMB million RMB million 2023 2022 2023 2022 ASSETS EQUITY AND LIABILITIES Non-current assets Share capital 0.146 0.145 Property and equipment 12,407 13,215 Share premium 274,521 274,473 Right-of-use assets 10,130 10,806 Intangible assets 1,
Slide 28: Thank You!
IR Contacts Thank You! Kuaishou Technology Investor Relations Email: ir@kuaishou.com
Kuaishou Technology B — Q1 2023 Earnings Presentation on 6ix