Kuaishou Technology Class B · HKEX:1024
Kuaishou Technology Class B — Kuaishou Technology B — Q3 2024 Earnings Presentation
31 slides from Kuaishou Technology Class B's earnings presentation, Nov 20, 2024
Slide 1: 3Q 2024 Management Presentation
3Q 2024 Management Presentation November 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 408 million average DAUs, achieved the mid-term milestone target of breaking 400 million DAU ；132 mins average daily time spent per DAU in Q3 Kuaishou’s AI matrix supports content c
Slide 6: Setting a New Record in User Community Scale
1.2 Setting a New Record in User Community Scale • Enhanced marketing channel capabilities and integrated marketing with commercial scenarios to drive high-quality user growth; optimized content distribution mechanism, interaction scenarios, and algorithms to boost user retention. • In 3Q24, average
Slide 7: Robust Revenue Growth, with a YoY Profitability Improvement
1.3 Robust Revenue Growth, with a YoY Profitability Improvement • 3Q24 revenues grew by 11.4% YoY. Revenue from core commercial business, including online marketing services and other services, primarily e-commerce, increased by nearly 20% year-over-year. • Domestic business operating profit increas
Slide 8: 2. Business Development
2. Business Development
Slide 9: Operating Highlights
2.1 Operating Highlights Massive User Base Highly Engaged Community Interactive Platform 408 million 132.2 minutes 10 billion Average daily time spent per Average daily short video Average DAUs(1) DAU(1) interactions(1) (3) 714 million 334.2 RMB billion 36.3 billion Average MAUs(1) Total e-commerce
Slide 10: Rich Content Supply, Comprehensive AI Search Update
2.2 Rich Content Supply, Comprehensive AI Search Update • Developed specialized content verticals aligned with users‘ interests; supported standout creators with Kuaishou’s unique ethos; broadened user base through high-profile events. • Optimized the search results page; improved search accuracy an
Slide 11: Outperforming Online Marketing Service with Improved Monetization Efficiency
2.3 Outperforming Online Marketing Service with Improved Monetization Efficiency • In 3Q24, revenue from online marketing services reached RMB17.6 billion, up 20.0% YoY, accounting for 56.6% of total revenue, market share continued to increase. • Improvements in data infrastructure, smart placement
Slide 12: Solid E-commerce Growth in Slow Season
2.4 Solid E-commerce Growth in Slow Season, with“Exceptional Content, Superior Products” Strategy • 3Q24 GMV increased by 15.1% YoY to RMB334.2 billion; the number of e-commerce monthly active paying users grew by 12.2% YoY to 133 million; the number of average monthly active merchants increased by
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 40%+ 133m YoY increase in monthly active merchants in 3Q24 Number of monthly active customers in 3Q24 Merchant development and support: Increased omni-domain user base: • Continued to develop new merchant su
Slide 14: Live Streaming Maintained Healthy Momentum
2.5 Live Streaming Maintained Healthy Momentum • 3Q24 live streaming revenue reached RMB 9.3 billion; focused on fostering a healthy, sustainable live-streaming ecosystem. • Increased professionalism and institutionalization among streamers; enhanced operational capabilities through our partner tale
Slide 15: Deepened Overseas Penetration, Major Boost in Profitability
2.6 Deepened Overseas Penetration, Major Boost in Profitability • Strengthened local market brands by deepening local content operations in Brazil; • Explored innovative user acquisition channels and improved user retention; DAUs in Brazil grew by 9.7% YoY in 3Q24; Promoted greater visibility for pr
Slide 16: Local Services: Maximized Value-for-Money, Rapid Growth
2.7 Local Services: Maximized Value-for-Money, Rapid Growth in Supply and Demand • Enhanced user experience by iterating the KOL tiering policy to guide high-quality content production, supporting good content, and optimizing traffic distribution mechanism. • Strengthened core product price comparis
Slide 17: Fully Upgraded AI Matrix to Empower More Business Scenarios
2.8 Fully Upgraded AI Matrix to Empower More Business Scenarios • Continued optimization of foundation large model performance：developed KwaiYii LLMs MoE model, reducing training and inference costs; released Kling AI 1.5, an updated model that supports original 1080P video and upgrades multiple con
Slide 18: 3. Financial Results
3. Financial Results
Slide 19: Financial Highlights
3.1 Financial Highlights 3Q24 Operating net cash inflow ~ RMB7.74 billion with total GPM improved to 54.3% YoY, adjusted NPM improved available funds increasing QoQ for 9 consecutive to 12.7% YoY quarters Domestic business operating profit reached RMB3.51 Overseas revenue increased by 104.1% YoY, op
Slide 20: Steady Revenue Growth, GPM Improvement YoY
3.2 Steady Revenue Growth, GPM Improvement YoY • 3Q24 revenues grew by 11.4% YoY, including 56.6% from online marketing services, 30.0% from live streaming and 13.4% from other services (including e-commerce); • In 3Q24, online marketing services revenue grew by 20.0% YoY, other services revenue gre
Slide 21: Driving Growth through Quality and Productivity Enhancements
3.3 Driving Growth through Quality and Productivity Enhancements, Consistent Improvement in Operating Efficiency • S&M as a percentage of revenue increased by 1.3 ppts YoY to 33.3%, primarily attributable to the increased promotional spending on commercialized short plays, e-commerce, etc; • R&D exp
Slide 22: Improved Profitability for Domestic Business, Significantly Narrowed Overseas Loss
3.4 Improved Profitability for Domestic Business, Significantly Narrowed Overseas Loss YoY • 3Q24 Domestic business operating profit was RMB3.51 billion, profitability improved YoY. • 3Q24 Overseas revenue monetization efficiency continued to improve. Operating loss narrowed by 75.9% YoY. RMB millio
Slide 23: Continuous YoY Growth in Group-Level Operating Profit and Adjusted Net Profit
3.5 Continuous YoY Growth in Group-Level Operating Profit and Adjusted Net Profit • The group’s operating profit reached RMB3.12 billion at a margin of 10.0%, up by 2.1 ppts YoY. • The group’s adjusted net profit increased YoY to RMB3.95 billion, with a 12.7% adjusted net profit margin. Operating Pr
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 being Support for the communities where Operate with integrity and embrace a responsible environmental our team members live and work fairness and diversity as our drivers stewardship for sustainable growth • Kuaishou’
Slide 27: 5. Appendix
5. Appendix
Slide 28: Income Statement
Income Statement RMB million 2024Q3 % of revenue 2024Q2 % of revenue 2023Q3 % of revenue YoY change QoQ change Revenues 31,131 100.0% 30,975 100.0% 27,948 100.0% 11.4% 0.5% Cost of revenues (14,217) (45.7%) (13,840) (44.7%) (13,495) (48.3%) 5.4% 2.7% Gross profit 16,914 54.3% 17,135 55.3% 14,453 51.
Slide 29: Adjusted Net Profit and Adjusted EBITDA
Adjusted Net Profit and Adjusted EBITDA RMB million 2024Q3 2024Q2 2023Q3 Profit for the period 3,270 3,980 2,182 Add: SBC 698 723 871 Net fair value changes on investments (20) (24) 120 Adjusted net profit 3,948 4,679 3,173 Adjusted net profit margin 12.7% 15.1% 11.4% Adjusted net profit 3,948 4,679
Slide 30: Balance Sheet
Balance Sheet September 30, December September 30, December 31, RMB million RMB million 2024 31, 2023 2024 2023 ASSETS EQUITY AND LIABILITIES Non-current assets Share capital - - Property and equipment 13,366 12,356 Share premium 269,745 273,459 Right-of-use assets 9,759 10,399 Treasury shares - (88
Slide 31: Thank you!
IR Contacts Thank you! Kuaishou Technology Investor Relations Email: ir@kuaishou.com
Kuaishou Technology B — Q3 2024 Earnings Presentation on 6ix