- Kingsoft Cloud Holdings Limited KC reported a fourth-quarter FY22 revenue decline of 19.9% year-on-year to $308.9 million, beating the consensus of $302.9 million.
- Revenues from public cloud services decreased 12.2% Y/Y to $194.9 million due to the scaling down of its CDN services. Enterprise cloud services revenues declined 30.4% Y/Y to $113.9 million due to the resurgence of COVID-19 and more stringent project selection.
- Adjusted loss per ADS of $(0.34) missed the consensus loss of $(0.24).
- Non-GAAP gross margin expanded by 670 bps to 7.9% due to revenue mix, optimized enterprise cloud project selection, and efficient cost control.
- Non-GAAP EBITDA loss margin was (11.5)% versus (4.7)% last year.
- Kingsoft held $677.5 million in cash and equivalents and generated $53.7 million in operating cash flow.
- Tao Zou, CEO of Kingsoft Cloud, commented, "We concluded the challenging year of 2022 with pleasing fourth quarter results. During the year, we have reaffirmed our original aspiration for sustainable high-quality growth, continued to build our business led by technology, and resolutely implemented cost reduction and efficiency initiatives. Our initiatives include the proactive scaling-down of delivery services, optimization of underlying resources, adjustment of customer mix and improvement of enterprise cloud project quality. Our strategy of building a healthy and sustainable business and improving profitability has been well executed and bear fruit in the fourth quarter. With these efforts, we have been improving our profitability steadily."
- Outlook: Kingsoft sees Q1 revenue of $268.225 million - $297.222 million, versus the consensus of $285.780 million.
- Price Action: KC shares traded higher by 3.11% at $6.29 premarket on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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