Kingsoft Cloud Holdings Limited KC reported a second-quarter FY23 revenue of $253.14 million, missing the consensus of $268.15 million. Revenues fell 3.7% Y/Y.
Adjusted earnings per ADS was $(0.18), beating the analyst consensus of $(0.20) loss.
The decrease was mainly due to proactive scale-down of services for the two largest CDN customers and phasing-out of loss-making clients.
Revenues from public cloud services decreased by 10.1% Y/Y, and enterprise cloud services rose by 9.5% Y/Y.
Gross profit was $28.5 million, which is a record-high quarterly gross profit, representing a significant increase of 216.9% Y/Y.
Q2 gross margin was 11.3%, compared with 3.4% in the same period in 2022.
Kingsoft held $591.2 million in cash and equivalents at quarter end.
"Looking forward, we will leverage and amplify the synergy with Xiaomi and Kingsoft Corporation ecosystem to fully embrace the opportunities in the AI trend," Tao Zou, Chief Executive Officer of Kingsoft Cloud, commented.
Price Action: KC shares traded lower by 4.26% at $4.94 on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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