Beijing Kingsoft Office Software (688111) Q4 2024 earnings summary

Executive summary

• Achieved revenue of ¥5.12 billion, up 12.40% year-over-year; net profit attributable to shareholders was ¥1.65 billion, up 24.84% year-over-year; adjusted net profit (excluding non-recurring items) was ¥1.56 billion, up 23.30% year-over-year.

• WPS personal business revenue grew 18.00% to ¥3.28 billion; WPS 365 business surged 149.33% to ¥436.5 million; WPS software business declined 8.56% to ¥1.27 billion; other business revenue fell 37.17% to ¥131.7 million.

• WPS Office global monthly active devices reached 632 million, up 6.22% year-over-year; PC version MAU up 9.81%, mobile version MAU up 3.33%.

• R&D investment reached ¥1.70 billion, up 15.16%, accounting for 33.11% of revenue; R&D staff totaled 3,473, about 67% of total employees.

Financial highlights

• Operating cash flow was ¥2.20 billion, up 6.71% year-over-year.

• Gross margin for software business was 85.16%, up 0.15 percentage points; WPS 365 business gross margin was 91.16%, up 1.18 percentage points.

• Basic and diluted EPS were both ¥3.56, up 24.48% and 24.91% year-over-year, respectively.

• Weighted average ROE was 15.51%, up 1.33 percentage points; adjusted ROE was 14.68%.

• Non-recurring profit and loss items contributed ¥88.74 million to net profit.

Outlook and guidance

• Strategic focus on AI, collaboration, and internationalization; continued investment in R&D and user experience.

• 2025 plan to strengthen WPS 365 in enterprise collaboration, deepen AI applications, and expand global presence.

• Expect further growth in user base, product upgrades, and market share, especially in AI and cloud collaboration.