Kingsoft Cloud Holdings (NASDAQ:KC) shares are trading higher on Wednesday after the company reported fourth-quarter 2024 revenue of CNY2.23 billion, up by 29.6% year-on-year (Y/Y).
In USD terms, revenues of $305.8 million beat the consensus of $269.6 million.
The revenue growth was led by increased contributions from Xiaomi, Kingsoft Ecosystem and AI-related customers, along with higher demand and more enterprise cloud project deliveries toward year-end.
Revenues from public cloud services increased by 34.0% Y/Y to CNY1.41 billion ($193.1 million), mainly led by higher AI demands.
Revenues from enterprise cloud services were CNY822.3 million ($112.7 million), an increase of 22.7% Y/Y.
The adjusted gross profit was CNY427.7 million ($58.6 million) versus CNY262.5 million a year ago quarter.
The margin expanded to 19.2% from 15.2% due to strategic revenue mix adjustment, increased AI revenues, optimized enterprise cloud project selection and efficient cost control measures.
Adjusted operating profit stood at CNY24.4 million ($3.3 million) vs. operating loss of CNY187.6 million a year ago quarter.
For the first time since its founding in 2012, the company achieved profitability in adjusted operating profit.
Kingsoft, which clocked an adjusted loss per ADS of 4 cents, beating the consensus loss of 11 cents, held CNY2.65 billion ($362.9 million) in cash and equivalents as of December 31, 2024.
"This quarter the gross billing of AI business increased by triple-digit year-over-year to CNY474 million. Both our public cloud and enterprise cloud businesses are harnessing the vast potential of AI cloud computing,” Tao Zou, CEO of Kingsoft Cloud said.
Henry He, CFO of Kingsoft Cloud, added, ”last December, our shareholders approved revenue from connected-party of Xiaomi and Kingsoft Group for next three years of CNY11.3 billion, around 10 times over the revenue of 2023, providing solid support for company's revenue and profit growth.”
Price Action: KC shares are up 2.16% at $18.48 at the last check Wednesday.
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