Kuaishou Technology Class B · HKEX:1024
Kuaishou Technology Class B — Q4 2022 Earnings Presentation
29 slides from Kuaishou Technology Class B's earnings presentation, March 2023
Slide 1: 4Q22 Management Presentation
4Q22 Management Presentation March 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 engaging user community with 366 million DAUs and 130+ mins average daily time spent per DAU Thriving creator ecosystem with 1 billion+ videos uploaded every month and daily video views exceeding 100 billion Diverse
Slide 6: Massive, Growing and Engaging User Base
1.2 Massive, Growing and Engaging User Base • Achieved solid growth in user scale and total traffic, through optimizations of user growth strategy, content supply and algorithms. • Average DAUs was 366 million, up 13.3% YoY and 0.8% QoQ; average daily time spent per DAU was 133.9 minutes, up 12.6% Y
Slide 7: Tremendous Revenue Growth with Margin Expansion
1.3 Tremendous Revenue Growth with Margin Expansion • 4Q22 revenues grew by 15.8% YoY. Specifically, online marketing services revenue rapidly grew by 14.0% YoY, live streaming revenue grew by 13.7% YoY and other services revenue (including e-commerce) grew by 33.7% YoY. • Benefitting from tremendou
Slide 8: 2. Business Development
2. Business Development
Slide 9: Operating Metrics Highlights
2.1 Operating Metrics Highlights Massive User Base Highly Engaging Community Interactive Platform 366 million 133.9 minutes 50%+ Average Daily Time Spent per YoY increase in average daily Average DAUs(1) DAU(1) short video interactions (1) (3) 640 million 312.4 billion 26.7 billion Average MAUs(1) T
Slide 10: Thriving Creator Ecosystem with Rich Supply of Content Verticals
2.2 Thriving Creator Ecosystem with Rich Supply of Content Verticals • Enrich content supply and improve the quality of short play, knowledge content, variety shows and other content verticals. • Optimize search function to strengthen users’ mindset, providing more user insights and accurate content
Slide 11: Outperformed Online Marketing Services
2.3 Outperformed Online Marketing Services • Online marketing revenue in 4Q22 outperformed the overall industry in China driven by growing traffic, enriched product portfolio, enhanced algorithm, comprehensive industry solutions and refined organizational efficiency. Revenue from Online Marketing Se
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: Revolutionary E-commerce Business
2.4 Revolutionary E-commerce Business • GMV increased by 30.0% YoY in 4Q22, outpaced the industry and continued to gain market share despite COVID impact. • Achieved the full-year e-commerce GMV target of RMB900 billion in 2022. GMV Key Highlights RMB million Promote brand e-commerce: Continue to su
Slide 14: Continued Supply and Consumption Prosperity of E-commerce
2.4 Continued Supply and Consumption Prosperity of E-commerce Supply side Consumption side ~50% ~106m monthly active paying users with 30%+ YoY increase rate & YoY increase of average monthly active merchants in 4Q22 16.5% MAU penetration in 4Q22 Merchant operations: Buyers shopping experience: • At
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 reached a quarterly high to RMB10.03 billion in 4Q22, up 13.7% YoY, attributable to diversified content, optimized live streaming ecosystem, and cutting-edge algorithms. Key Highlights Revenue from Live Streaming RMB million 12,000 65 Str
Slide 17: Promising New Initiative-Local Services
2.6 Promising New Initiative-Local Services • Enormous TAM and relatively low entry barrier for large traffic platform. • Cooperate with service providers and third-party platforms to enrich our product supply and merchant coverage. • Smart investments and achieve key city MVP. Local Services Access
Slide 18: 3. Financial Results
3. Financial Results
Slide 19: Impressive Financial Highlights
3.1 Impressive Financial Highlights 4Q22 FY2022 Adjusted net loss narrowed significantly YoY and QoQ, Adjusted EBITDA turned positive from the loss and adjusted net loss margin improved to around 0.2% reached RMB1.81 billion Operating profit of domestic business turned positive Operating profit of d
Slide 20: Accelerating Revenue Growth with High GPM
3.2 Accelerating Revenue Growth with High GPM • 4Q22 revenues grew by 15.8% YoY, 53.4% from online marketing services, 35.5% from live streaming and 11.1% from other services (including e-commerce); • In 4Q22, online marketing services revenue rapidly grew by 14.0% YoY, live streaming revenue grew b
Slide 21: Consistently Enhanced Operating Efficiency Across All Expenses
3.3 Consistently Enhanced Operating Efficiency Across All Expenses • S&M as a percentage of revenue decreased by 7.5 ppts YoY and 5.1 ppts QoQ to 34.4%; • R&D expenses as a percentage of revenue decreased by 4.2 ppts YoY and 3.1 ppts QoQ to 12.2%; • Administrative expenses as a percentage of revenue
Slide 22: Significantly Increasing Domestic Profit and Narrowing Overseas Loss
3.4 Significantly Increasing Domestic Profit and Narrowing Overseas Loss • 4Q22 domestic operating profit increased to RMB1.27 billion, mainly attributable to the rapid increase in domestic revenue and improvement of operating efficiency. • Overseas revenue increased by 50.8% QoQ due to strengthened
Slide 23: Substantially Narrowed Group Level Loss
3.5 Substantially Narrowed Group Level Loss • The group’s operating loss continued to narrow, with operating loss margin up 19.3 ppts YoY and 6.9 ppts QoQ. • Adjusted net loss narrowed significantly YoY. Adjusted net loss margin improved by 14.4 ppts YoY and 2.7 ppts QoQ. Operating Loss and Operatin
Slide 24: Appendix
4 Appendix
Slide 25: Income Statement
Income Statement RMB million 2021Q4 % of revenue 2022Q3 % of revenue 2022Q4 % of revenue YoY change QoQ change Revenues 24,430 100.0% 23,128 100.0% 28,292 100.0% 15.8% 22.3% Cost of revenues (14,281) (58.5%) (12,425) (53.7%) (15,416) (54.5%) 7.9% 24.1% Gross profit 10,149 41.5% 10,703 46.3% 12,877 4
Slide 26: Income Statement
Income Statement Year ended Year ended RMB million % of revenue % of revenue Change December 31, 2021 December 31, 2022 Revenues 81,082 100.0% 94,183 100.0% 16.2% Cost of revenues (47,052) (58.0%) (52,051) (55.3%) 10.6% Gross profit 34,030 42.0% 42,131 44.7% 23.8% Selling and marketing expenses (44,
Slide 27: Adjusted Net Loss and Adjusted EBITDA
Adjusted Net Loss and Adjusted EBITDA 2021Q4 2022Q3 2022Q4 Year ended Year ended RMB million December 31, 2021 December 31, 2022 Loss for the period (6,203) (2,712) (1,547) (78,077) (13,689) Add: SBC 1,742 1,708 1,112 7,830 6,249 Fair value changes of convertible - - - 51,276 - redeemable preferred
Slide 28: Balance Sheet
Balance Sheet December 31, December 31, December 31, December 31, RMB million RMB million 2022 2021 2022 2021 ASSETS EQUITY AND LIABILITIES Non-current assets Share capital 0.145 0.142 Property and equipment 13,215 11,051 Share premium 274,473 274,408 Right-of-use assets 10,806 12,562 Intangible ass
Slide 29: Thank You!
IR Contacts Thank You! Kuaishou Technology Investor Relations Email: ir@kuaishou.com