Kingsoft Stock Drops On Q3 Revenue Miss, Margin Contraction

Kingsoft Cloud Holdings Ltd KC reported third-quarter FY21 revenue growth of 39.6% year-on-year to $374.6 million (RMB2.4 billion), missing the consensus of $397.2 million. EPS loss was $(0.02).

  • Revenues from public cloud services rose 28.7% Y/Y to $261.7 million, and enterprise cloud services increased 77.7% Y/Y to $112.8 million.
  • The non-GAAP gross margin contracted 280 bps to 3.8% due to lower than expected utilization of its underlying public cloud infrastructure. The non-GAAP EBITDA margin loss was (5.8)% versus (1.5)% last year.
  • Kingsoft held $930.4 million in cash and equivalents and generated $2.2 million in operating cash flow.
  • Kingsoft won Pinduoduo Inc PDD, a Chinese e-commerce platform, as a new customer this quarter.
  • Kingsoft started working with Shouqi, an emerging ride-hailing application.
  • Kingsoft is on track to integrate Camelot to build out its enterprise cloud services business. 
  • Outlook: Kingsoft sees Q4 revenue of RMB2.63 billion - RMB2.83 billion, implying 37% - 47% Y/Y growth.
  • Price Action: KC shares traded lower by 3.09% at $19.1 in the premarket session on the last check Wednesday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceMoversTechTrading IdeasBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!