Kuaishou Technology (1024) Q3 2024 earnings summary

Executive summary

• Achieved 408 million average DAUs and 714 million MAUs in Q3 2024, with DAUs up 5.4% year over year and strong user engagement at 132 minutes per DAU daily.

• Total revenue grew 11.4% year over year to RMB 31.1 billion, driven by online marketing and e-commerce growth.

• Adjusted net profit rose 24.4% year over year to RMB 3.95 billion, with group-level net profit up 49.9% to RMB 3.3 billion and a margin of 12.7%.

• Continued integration and launch of large AI models, including Kling AI 1.5, supporting advanced video generation and content creation.

• Core business revenue, including online marketing and e-commerce, grew nearly 20% year over year, driving profitability and margin expansion.

Financial highlights

• Online marketing services revenue increased 20% year over year to RMB 17.6 billion, representing 56.6% of total revenue.

• E-commerce GMV rose 15.1% year over year to RMB 334.2 billion; e-commerce revenue up 17.5% to RMB 4.2 billion.

• Live streaming revenue was RMB 9.3 billion, down 3.9% year over year, but the decline narrowed and partner talent agencies increased.

• Gross margin improved to 54.3%, up 2.6 percentage points year over year.

• Operating net cash flow was RMB 7.7 billion in Q3; total available funds reached RMB 86.7 billion as of September 30, 2024.

Outlook and guidance

• Focus on AI-driven innovation, user-centric strategies, and ecosystem expansion to drive future growth.

• Expect further improvements in ROI and profitability as AI and smart subsidy plans mature.

• Q4 OpEx expected to rise seasonally due to e-commerce promotions, but as a share of revenue, both selling/marketing and R&D expenses will decline.

• Overseas business, especially in Brazil, is expected to contribute more as monetization and user growth accelerate.

• Continued investment in e-commerce, local services, and overseas expansion, with emphasis on user growth and monetization efficiency.