Kuaishou Technology (1024) Q1 2025 earnings summary

Executive summary

• Achieved record-high 408 million average DAUs and 712 million MAUs in Q1 2025, with 134 minutes average daily time spent per DAU, reflecting strong user engagement and platform growth.

• Total revenue grew 10.9% year-over-year to RMB32.6 billion, driven by robust performance in online marketing, live streaming, and e-commerce.

• Adjusted net profit reached RMB4.6 billion with a 14% margin; overseas business delivered its first-ever quarterly operating profit.

• Kling AI 2.0 launched globally, generating RMB150 million in Q1 revenue and reinforcing leadership in AI-driven video content.

• AI integration across business lines enhanced user experience, operational efficiency, and marketing conversion.

Financial highlights

• Gross profit reached RMB17.8 billion, with a gross margin of 54.6%, up 0.6% sequentially.

• Online marketing services revenue increased 8% to RMB18 billion; e-commerce revenue rose 15.2% to RMB4.8 billion; live streaming revenue up 14.4% to RMB9.8 billion.

• E-commerce GMV increased 15.4% year-over-year to RMB332.3 billion; monthly active paying users reached 135 million.

• Overseas revenue up 32.7% to RMB1.32 billion, achieving first-ever quarterly operational profitability.

• Adjusted EBITDA up 7.6% year-over-year to RMB6.43 billion.

Outlook and guidance

• Confident in returning to double-digit year-over-year growth in online marketing services in Q2.

• Continued investment in AI to drive operational efficiency, user engagement, and monetization across core business lines.

• Focus on expanding e-commerce, live streaming, and local services, with ongoing support for new merchants and KOLs.

• Overseas business expected to maintain growth momentum, leveraging local content and marketing services.

• AI investment expected to impact group profit margin by 1-2% for full year 2025, with long-term positive contribution anticipated.