Kingsoft Cloud Holdings Limited (“Kingsoft Cloud” or the “Company”)
(NASDAQ: KC and HKEX: 3896), a leading independent cloud service
provider in China, today announced its unaudited financial results
for the fourth quarter and fiscal year ended December 31, 2022.
Mr. Tao Zou, Chief Executive Officer 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. Our
gross margin reached 7.6% in Q4 2022, a significant increase from
1.0% in Q4 2021, and 6.2% in Q3 2022.”
Mr. Henry He, Chief Financial Officer of Kingsoft Cloud, added,
“Our revenue for this quarter is in line with our guidance at
RMB2.13 billion, and our profitability is well on an upward trend.
Gross margin increased from 1.0% in the same period in 2021 and
6.2% last quarter to 7.6% this quarter. Further, we achieved
record-high net operating cash inflow of RMB370.4 million this
quarter, marking the third consecutive quarter with positive net
operating cash flow, which, combined with prudent capital
expenditure, brought about the first quarter with positive free
cash flow of RMB259.6 million. On December 30, 2022, we
successfully listed on the Main Board of the Stock Exchange of Hong
Kong with primary listing status, followed by our inclusion into
Heng Seng Composite Index, Shanghai-Hong Kong stock connect and
Shenzhen-Hong Kong stock connect on March 13 2023. We are pleased
to see broadened investor base and improved liquidity. We will
adhere to our high-quality development principles and keep striving
to provide long-term value to all our stakeholders.”
Fourth Quarter 2022
Financial Results
Total Revenues reached RMB2,131.0 million
(US$308.91 million), in line with our guidance, increased steadily
by 8.2% quarter-over-quarter, but a decrease of 19.9% from
RMB2,659.7 million in the same period of 2021. The decrease was
mainly due to our proactive scaling down of CDN services, with its
gross billings decreased by 20.7% on year-over-year basis, and more
stringent project selection of enterprise cloud projects.
- Revenues from public cloud services slightly increased from
RMB1,346.0 million in last quarter, but decreased by 12.2% to
RMB1,344.3 million (US$194.9 million), compared with RMB1,530.5
million in the same quarter of 2021. The year-over-year decrease
was mainly due to the above-mentioned scaling down of our CDN
services.
- Revenues from enterprise cloud services were RMB785.9 million
(US$113.9 million), representing a growth of 26.4% from RMB622.0
million last quarter and a decrease of 30.4% from RMB1,128.8
million in the same quarter of 2021. The year-over-year decrease
was mainly due to the impact of the resurgence of COVID-19, as well
as more stringent project selection.
- Other revenues were RMB0.8 million (US$0.1 million).
Cost of revenues was RMB1,969.1 million
(US$285.5 million), representing a significant decrease of 25.2%
from RMB2,631.8 million in the same quarter of 2021. IDC costs
decreased significantly by 20.0% year-over-year from RMB1,321.9
million to RMB1,057.6 million this quarter. Depreciation and
amortization costs increased by 6.4% from RMB227.2 million to
RMB241.7 million. Solution development and services costs decreased
by 6.3% from RMB497.2 million to RMB465.8 million this quarter.
Fulfillment costs and other costs were RMB155.6 million and RMB48.4
million this quarter, which are in line with our enterprise cloud
projects’ quality control strategy.
Gross profit was RMB162.0 million (US$23.5
million), a significant increase of 480.7% from RMB27.9 million in
the same period in 2021. Gross margin was 7.6%,
compared with 1.0% in the same period in 2021. Non-GAAP
gross profit2 was RMB168.5 million (US$24.4 million),
compared with RMB33.2 million in the same period in 2021.
Non-GAAP gross margin2 was 7.9%,
compared with 1.2% in the same period in 2021. The significant
improvement of our gross profit and margin was mainly due to our
strategic adjustment of revenue mix, optimized enterprise cloud
project selection and efficient cost control measures.
Total operating expenses were RMB824.3 million
(US$119.5 million), compared with RMB626.6 million last quarter and
RMB698.6 million in the same period in 2021. Among which:
Selling and marketing expenses were RMB126.1
million (US$18.3 million), further decreased from RMB143.4 million
last quarter and RMB177.1 million in the same period in 2021.
General and administrative expenses were
RMB442.8 million (US$64.2 million), compared with RMB235.1 million
last quarter and RMB243.3 million in the same period in 2021. The
increase was mainly due to non-recurring Hong Kong listing expenses
of RMB94.9 million and loss on disposal of property and equipment
of RMB28.8 million.
Research and development expenses were RMB255.5
million (US$37.0 million), further decreased from RMB248.1 million
last quarter and RMB278.2 million in the same period in 2021.
Operating loss was RMB662.4 million (US$96.0
million), compared with operating loss of RMB504.2 million last
quarter and RMB670.7 million in the same quarter of 2021.
Net loss was RMB521.7 million (US$75.6
million), compared with net loss of RMB801.4 million last quarter
and RMB482.2 million in the same quarter of 2021. Besides the
impact from operating loss changes, the year-over-year increase of
net loss was also impacted by the decrease of other gain and other
income, which were mainly related to government subsidies.
Non-GAAP net loss3 was
RMB552.7 million (US$80.1 million), compared with net loss of
RMB530.7 million last quarter and RMB404.4 million in the same
quarter of 2021.
Non-GAAP
EBITDA4 was RMB-245.1 million (US$-35.5
million), impacted by non-recurring Hong Kong listing expenses of
RMB94.9 million, and loss on disposal of property and equipment of
RMB28.8 million, compared with RMB-202.0 million last quarter and
RMB-126.3 million in the same quarter of 2021. Non-GAAP
EBITDA margin was -11.5%, compared with -10.3% last
quarter and -4.7% in the same quarter of 2021. If excluding the
Hong Kong listing expenses and loss on disposal of property and
equipment expenses, our Non-GAAP EBITDA margin would be -5.7%.
Basic and diluted net loss per share was
RMB0.14 (US$0.02), compared with RMB0.22 last quarter and RMB0.13
in the same quarter of 2021.
Cash and cash equivalents and short-term
investments were RMB4,672.8 million (US$677.5 million) as
of December 31, 2022, representing strong and sustainable cash
reserve. The decrease quarter-over-quarter was mainly due to our
repayment of around RMB500 million loan from Kingsoft Group.
Net cash generated from operating
activities amounted to RMB370.4 million, indicating the
third consecutive quarter in which we recorded positive operating
cash flow. Free cash flow, as measured by net cash
generated from operating activities of RMB370.4 million minus
capital expenditure of RMB110.8 million, was RMB259.6 million,
marking the first quarter of positive free cash flow.
Fiscal Year 2022 Financial Results
Total Revenues reached RMB8,180.1 million
(US$1,186.0 million), representing a decrease of 9.7% from
RMB9,060.8 million in 2021. The decrease was due to proactive
scale-down of delivery services within public cloud services, and
more stringent project selection of enterprise cloud services.
- Revenues from public cloud services were RMB5,360.3 million
(US$777.2 million), representing a decrease of 13.0% from
RMB6,159.1 million in 2021.
- Revenues from enterprise cloud services were RMB2,817.0 million
(US$408.4 million), representing a decrease of 2.8% from RMB2,897.8
million in 2021.
- Other revenues were RMB2.8 million (US$0.4 million).
Cost of revenues was RMB7,750.6 million
(US$1,123.7 million), representing a decrease of 11.0% from
RMB8,709.5 million in 2021. Among which: IDC costs decreased by
16.2% to RMB4,275.3 million (US$619.9 million) in 2022 from
RMB5,101.5 million in 2021. The decrease was in line with our
adjustment of public cloud services. Depreciation and amortization
costs were RMB990.7 million (US$143.6 million) in 2022, compared
with RMB785.2 million in 2021, mainly as a result of capital
expenditures in electronic equipment. Fulfillment costs were
RMB396.8 million (US$57.5 million), representing a decrease of
78.6% from RMB1,851.3 million in 2021. The decrease was mainly due
to the decrease of revenues from Kingsoft Cloud enterprise cloud
services that was due to COVID-19 negative impacts, and the
decrease of fulfillment costs as percentages of total enterprise
cloud services revenue due to our strategic focus on selected high
quality projects. Solution development and services costs were
RMB1,873.9 million (US$271.7 million) in 2022, compared with
RMB678.2 million in 2021. The increase was mainly due to our
full-year consolidation of Camelot in 2022. Other costs were
RMB213.9 million (US$31.0 million) in 2022, compared with RMB293.3
million in 2021.
Gross profit increased to RMB429.5 million
(US$62.3 million) in 2022, from RMB351.3 million in 2021.
Gross margin increased to 5.3%, from 3.9% in 2021.
Non-GAAP gross profit increased to RMB445.2
million (US$64.5 million) in 2022, from RMB368.8 million in 2021.
Non-GAAP gross margin increased to 5.4% in 2022
from 4.1% in 2021. Such increases were primarily because of the
optimization of revenue mix and our effective cost controls.
Selling and marketing expenses were RMB560.1
million (US$81.2 million), compared with RMB518.2 million in 2021.
The increase was mainly due to the amortization expenses related to
Camelot’s acquisition.
General and administrative expenses were
RMB1,149.7 million (US$166.7 million), compared with RMB601.7
million in 2021. The increase was mainly due to the non-recurring
Hong Kong listing expenses and loss on disposal of property and
equipment, as well as Camelot share awards expenses, workforce
optimization related compensations and credit loss.
Research and development expenses were RMB971.2
million (US$140.8 million), compared with RMB1,043.8 million in
2021. The decrease was mainly due to the workforce
optimization.
Operating loss was RMB2,251.4 million (US$326.4
million), compared with RMB1,812.4 million in 2021.
Net loss was RMB2,688.4 million (US$389.8
million), compared with net loss of RMB1,591.8 million in 2021. The
increase was due to the increase of workforce optimization related
compensations, credit loss, Hong Kong listing expenses, Camelot
share awards expenses, while offset by the improvement of gross
profits and changes of foreign exchange rates.
Non-GAAP net loss was RMB1,993.9 million
(US$289.1 million), compared with net loss of RMB1,195.2 million in
2021.
Non-GAAP EBITDA was RMB-755.0 million
(US$-109.5 million), compared with RMB-343.8 million in 2021.
Non-GAAP EBITDA margin was -9.2%, compared with
-3.8% in 2021.
Basic and diluted net loss per share was
RMB0.73 (US$0.11), compared with RMB0.46 in 2021.
Share Repurchase. During the
year ended December 31, 2022, the Company repurchased approximately
12.3 million of ADSs, each representing 15 ordinary shares, from
the open market for a total consideration of approximately US$29.2
million pursuant to the currently effective share repurchase
program announced in September 2022.
Outstanding ordinary shares were 350,3710,905
as of December 31, 2022, equivalent to about 233,580,727 ADSs.
Business Outlook
For the first quarter of 2023, the Company expects total
revenues to be between RMB1.85 billion and RMB2.05 billion. This
forecast reflects the Company’s current and preliminary views on
the market and operational conditions, which are subject to
change.
Conference Call Information
Kingsoft Cloud’s management will host an earnings conference
call on Wednesday, March 29, 2023 at 8:00 am, U.S. Eastern Time
(8:00 pm, Beijing/Hong Kong Time on the same day).
Participants can register for the conference call by navigating
to
https://register.vevent.com/register/BI33f07c2440c0493cb833817afb236a9f.
Once preregistration has been completed, participants will receive
dial-in numbers, direct event passcode, and a unique access
PIN.
To join the conference, simply dial the number in the calendar
invite you receive after preregistering, enter the passcode
followed by your PIN, and you will join the conference
instantly.
Additionally, a live and archived webcast of the conference call
will also be available on the Company’s investor relations website
at http://ir.ksyun.com.
Use of Non-GAAP Financial Measures
The unaudited condensed consolidated financial information is
prepared in conformity with accounting principles generally
accepted in the United States of America (“U.S. GAAP”). In
evaluating our business, we consider and use certain non-GAAP
measures, Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP
EBITDA, Non-GAAP EBITDA margin, Non-GAAP net loss and Non-GAAP net
loss margin, as supplemental measures to review and assess our
operating performance. The presentation of these non-GAAP financial
measures is not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in
accordance with U.S. GAAP. We define Non-GAAP gross profit as gross
profit excluding share-based compensation allocated in the cost of
revenues, and we define Non-GAAP gross margin as Non-GAAP gross
profit as a percentage of revenues. We define Non-GAAP net loss as
net loss excluding share-based compensation and foreign exchange
(gain) loss, and we define Non-GAAP net loss margin as adjusted net
loss as a percentage of revenues. We define Non-GAAP EBITDA as
Non-GAAP net loss excluding interest income, interest expense,
income tax expense and depreciation and amortization, and we define
Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of
revenues. We present these non-GAAP financial measures because they
are used by our management to evaluate our operating performance
and formulate business plans. We also believe that the use of these
non-GAAP measures facilitates investors’ assessment of our
operating performance.
These non-GAAP financial measures are not defined under U.S.
GAAP and are not presented in accordance with U.S. GAAP. These
non-GAAP financial measures have limitations as analytical tools.
One of the key limitations of using these non-GAAP financial
measures is that they do not reflect all items of income and
expense that affect our operations. Further, these non-GAAP
measures may differ from the non-GAAP information used by other
companies, including peer companies, and therefore their
comparability may be limited.
We compensate for these limitations by reconciling these
non-GAAP financial measures to the nearest U.S. GAAP performance
measure, all of which should be considered when evaluating our
performance. We encourage you to review our financial information
in its entirety and not rely on a single financial measure.
Exchange Rate
Information
This press release contains translations of certain RMB amounts
into U.S. dollars at specified rates solely for the convenience of
readers. Unless otherwise noted, all translations from RMB to U.S.
dollars, in this press release, were made at a rate of RMB6.8972 to
US$1.00, the noon buying rate in effect on December 31, 2022 as
certified for customs purposes by the Federal Reserve Bank of New
York.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the “safe harbor” provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
“will,” “expects,” “anticipates,” “future,” “intends,” “plans,”
“believes,” “estimates” and similar statements. Among other things,
the Business Outlook, and quotations from management in this
announcement, as well as Kingsoft Cloud’s strategic and operational
plans, contain forward-looking statements. Kingsoft Cloud may also
make written or oral forward-looking statements in its periodic
reports to the U.S. Securities and Exchange Commission (“SEC”), in
its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Statements that are not
historical facts, including but not limited to statements about
Kingsoft Cloud’s beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: Kingsoft
Cloud’s goals and strategies; Kingsoft Cloud’s future business
development, results of operations and financial condition;
relevant government policies and regulations relating to Kingsoft
Cloud’s business and industry; the expected growth of the cloud
service market in China; the expectation regarding the rate at
which to gain customers, especially Premium Customers; Kingsoft
Cloud’s ability to monetize the customer base; fluctuations in
general economic and business conditions in China; the impact of
the COVID-19 to Kingsoft Cloud’s business operations and the
economy in China and elsewhere generally; China’s political or
social conditions and assumptions underlying or related to any of
the foregoing. Further information regarding these and other risks
is included in Kingsoft Cloud’s filings with the SEC. All
information provided in this press release and in the attachments
is as of the date of this press release, and Kingsoft Cloud does
not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
About Kingsoft Cloud
Holdings Limited
Kingsoft Cloud Holdings Limited (NASDAQ: KC and HKEX:3896) is a
leading independent cloud service provider in China. With extensive
cloud infrastructure, cutting-edge cloud-native products based on
vigorous cloud technology research and development capabilities,
well-architected industry-specific solutions and end-to-end
fulfillment and deployment, Kingsoft Cloud offers comprehensive,
reliable and trusted cloud service to customers in strategically
selected verticals.
For more information, please visit: http://ir.ksyun.com.
For investor and media inquiries, please
contact:
Kingsoft Cloud Holdings LimitedNicole ShanTel: +86
(10) 6292-7777 Ext. 6300Email: ksc-ir@kingsoft.com
ChristensenIn ChinaMr. Eric YuanPhone:
+86-10-5900-1548Email: eric.yuan@christensencomms.com
In USMs. Linda BergkampPhone:
+1-480-6143004Email: lbergkamp@christensenir.com
_________________________
1 This announcement contains translations of certain Renminbi
(RMB) amounts into U.S. dollars (US$) at a specified rate solely
for the convenience of the reader. Unless otherwise noted, the
translation of RMB into US$ has been made at RMB6.8972 to US$1.00,
the noon buying rate in effect on December 31, 2022 as certified
for customs purposes by the Federal Reserve Bank of New York.
2 Non-GAAP gross profit is defined as gross profit excluding
share-based compensation allocated in the cost of revenues and we
define Non-GAAP gross margin as Non-GAAP gross profit as a
percentage of revenues. See “Use of Non-GAAP Financial Measures”
set forth at the end of this press release.
3 Non-GAAP net loss is defined as net loss excluding share-based
compensation and foreign exchange (gain) loss, and we define
Non-GAAP net loss margin as adjusted net loss as a percentage of
revenues. See “Use of Non-GAAP Financial Measures” set forth at the
end of this press release.
4 Non-GAAP EBITDA is defined as Non-GAAP net loss excluding
interest income, interest expense, income tax expense and
depreciation and amortization, and we define Non-GAAP EBITDA margin
as Non-GAAP EBITDA as a percentage of revenues. See “Use of
Non-GAAP Financial Measures” set forth at the end of this press
release.
|
|
KINGSOFT CLOUD HOLDINGS LIMITED |
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
(All amounts in thousands) |
|
|
Dec 31, 2021 |
Dec 31, 2022 |
Dec 31, 2022 |
|
|
RMB |
RMB |
US$ |
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
4,217,528 |
|
3,419,166 |
|
495,732 |
|
|
Restricted cash |
239,093 |
|
114,560 |
|
16,610 |
|
|
Accounts receivable, net |
3,570,975 |
|
2,402,430 |
|
348,320 |
|
|
Short-term investments |
2,491,056 |
|
1,253,670 |
|
181,765 |
|
|
Prepayments and other assets |
1,687,021 |
|
1,612,022 |
|
233,721 |
|
|
Amounts due from related parties |
207,143 |
|
246,505 |
|
35,740 |
|
|
Total current assets |
12,412,816 |
|
9,048,353 |
|
1,311,888 |
|
|
Non-current assets: |
|
|
|
|
Property and equipment, net |
2,364,103 |
|
2,132,994 |
|
309,255 |
|
|
Intangible assets, net |
1,169,767 |
|
1,008,020 |
|
146,149 |
|
|
Prepayments and other assets |
29,066 |
|
21,263 |
|
3,083 |
|
|
Equity investments |
207,166 |
|
273,580 |
|
39,665 |
|
|
Goodwill |
4,625,115 |
|
4,605,724 |
|
667,767 |
|
|
Amounts due from related parties |
5,758 |
|
5,758 |
|
835 |
|
|
Operating lease right-of-use assets |
256,451 |
|
220,539 |
|
31,975 |
|
|
Deferred tax assets, net |
7,798 |
|
— |
|
— |
|
|
Total non-current assets |
8,665,224 |
|
8,267,878 |
|
1,198,729 |
|
|
Total assets |
21,078,040 |
|
17,316,231 |
|
2,510,617 |
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Short-term bank loans |
1,348,166 |
|
909,500 |
|
131,865 |
|
|
Accounts payable |
2,938,632 |
|
2,301,958 |
|
333,753 |
|
|
Accrued expenses and other current liabilities |
2,223,840 |
|
2,830,826 |
|
410,428 |
|
|
Income tax payable |
60,217 |
|
51,892 |
|
7,524 |
|
|
Amounts due to related parties |
836,435 |
|
427,727 |
|
62,015 |
|
|
Current operating lease liabilities |
108,590 |
|
136,723 |
|
19,823 |
|
|
Total current liabilities |
7,515,880 |
|
6,658,626 |
|
965,408 |
|
|
Non-current liabilities: |
|
|
|
|
Deferred tax liabilities |
205,889 |
|
167,052 |
|
24,220 |
|
|
Amounts due to related parties |
472,882 |
|
413,464 |
|
59,947 |
|
|
Other liabilities |
1,232,677 |
|
370,531 |
|
53,722 |
|
|
Non-current operating lease liabilities |
158,289 |
|
123,059 |
|
17,842 |
|
|
Total non-current liabilities |
2,069,737 |
|
1,074,106 |
|
155,731 |
|
|
Total liabilities |
9,585,617 |
|
7,732,732 |
|
1,121,139 |
|
|
Shareholders’ equity: |
|
|
|
|
Ordinary shares |
24,782 |
|
25,062 |
|
3,634 |
|
|
Treasury stock |
— |
|
(208,385 |
) |
(30,213 |
) |
|
Additional paid-in capital |
18,245,801 |
|
18,648,205 |
|
2,703,736 |
|
|
Accumulated deficit |
(7,458,752 |
) |
(10,116,936 |
) |
(1,466,818 |
) |
|
|
Accumulated other comprehensive (loss) income |
(207,882 |
) |
453,074 |
|
65,690 |
|
|
Total Kingsoft Cloud Holdings Limited shareholders’
equity |
10,603,949 |
|
8,801,020 |
|
1,276,029 |
|
|
Non-controlling interests |
888,474 |
|
782,479 |
|
113,449 |
|
|
Total equity |
11,492,423 |
|
9,583,499 |
|
1,389,478 |
|
|
Total liabilities and shareholders’ equity |
21,078,040 |
|
17,316,231 |
|
2,510,617 |
|
|
|
|
|
|
|
|
|
KINGSOFT CLOUD HOLDINGS LIMITED |
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS |
|
(All amounts in thousands, except for share and per share
data) |
|
|
Three Months Ended |
Twelve Months Ended |
|
|
Dec 31, 2021 |
Sep 30, 2022 |
Dec 31, 2022 |
Dec 31, 2022 |
Dec 31, 2021 |
Dec 31, 2022 |
Dec 31, 2022 |
|
|
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
Revenues: |
|
|
|
|
|
|
|
|
Public cloud services |
1,530,476 |
|
1,346,038 |
|
1,344,293 |
|
194,904 |
|
6,159,085 |
|
5,360,282 |
|
777,168 |
|
|
Enterprise cloud services |
1,128,775 |
|
621,975 |
|
785,918 |
|
113,947 |
|
2,897,817 |
|
2,816,976 |
|
408,423 |
|
|
Others |
479 |
|
774 |
|
802 |
|
117 |
|
3,882 |
|
2,849 |
|
413 |
|
|
Total revenues |
2,659,730 |
|
1,968,787 |
|
2,131,013 |
|
308,968 |
|
9,060,784 |
|
8,180,107 |
|
1,186,004 |
|
|
Cost of revenues |
(2,631,839 |
) |
(1,846,368 |
) |
(1,969,056 |
) |
(285,486 |
) |
(8,709,496 |
) |
(7,750,569 |
) |
(1,123,727 |
) |
|
Gross profit |
27,891 |
|
122,419 |
|
161,957 |
|
23,482 |
|
351,288 |
|
429,538 |
|
62,277 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Selling and marketing expenses |
(177,081 |
) |
(143,363 |
) |
(126,081 |
) |
(18,280 |
) |
(518,167 |
) |
(560,059 |
) |
(81,201 |
) |
|
General and administrative expenses |
(243,315 |
) |
(235,077 |
) |
(442,764 |
) |
(64,195 |
) |
(601,702 |
) |
(1,149,677 |
) |
(166,687 |
) |
|
Research and development expenses |
(278,202 |
) |
(248,149 |
) |
(255,488 |
) |
(37,042 |
) |
(1,043,811 |
) |
(971,216 |
) |
(140,813 |
) |
|
Total operating expenses |
(698,598 |
) |
(626,589 |
) |
(824,333 |
) |
(119,517 |
) |
(2,163,680 |
) |
(2,680,952 |
) |
(388,701 |
) |
|
Operating loss |
(670,707 |
) |
(504,170 |
) |
(662,376 |
) |
(96,035 |
) |
(1,812,392 |
) |
(2,251,414 |
) |
(326,424 |
) |
|
Interest income |
20,601 |
|
20,408 |
|
21,688 |
|
3,144 |
|
71,942 |
|
80,743 |
|
11,707 |
|
|
Interest expense |
(27,208 |
) |
(37,845 |
) |
(31,694 |
) |
(4,595 |
) |
(52,040 |
) |
(137,812 |
) |
(19,981 |
) |
|
Foreign exchange gain (loss) |
47,363 |
|
(218,941 |
) |
132,290 |
|
19,180 |
|
37,822 |
|
(334,629 |
) |
(48,517 |
) |
|
Other gain (loss), net |
62,467 |
|
(42,243 |
) |
26,399 |
|
3,827 |
|
83,606 |
|
(43,810 |
) |
(6,352 |
) |
|
Other income (expense), net |
89,253 |
|
(1,079 |
) |
4,085 |
|
592 |
|
95,047 |
|
23,007 |
|
3,336 |
|
|
Loss before income taxes |
(478,231 |
) |
(783,870 |
) |
(509,608 |
) |
(73,887 |
) |
(1,576,015 |
) |
(2,663,915 |
) |
(386,231 |
) |
|
Income tax expense |
(3,982 |
) |
(17,577 |
) |
(12,049 |
) |
(1,747 |
) |
(15,741 |
) |
(24,473 |
) |
(3,548 |
) |
|
Net loss |
(482,213 |
) |
(801,447 |
) |
(521,657 |
) |
(75,634 |
) |
(1,591,756 |
) |
(2,688,388 |
) |
(389,779 |
) |
|
Less: Net loss attributable to non-controlling interests |
(4,287 |
) |
(8,387 |
) |
(12,779 |
) |
(1,853 |
) |
(3,044 |
) |
(30,204 |
) |
(4,379 |
) |
|
Net loss attributable to Kingsoft Cloud Holdings
Limited |
(477,926 |
) |
(793,060 |
) |
(508,878 |
) |
(73,781 |
) |
(1,588,712 |
) |
(2,658,184 |
) |
(385,400 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss per share: |
|
|
|
|
|
|
|
|
Basic and diluted |
(0.13 |
) |
(0.22 |
) |
(0.14 |
) |
(0.02 |
) |
(0.46 |
) |
(0.73 |
) |
(0.11 |
) |
|
Shares used in the net loss per share
computation: |
|
|
|
|
|
|
|
|
Basic and diluted |
3,630,916,768 |
|
3,660,755,177 |
|
3,528,680,363 |
|
3,528,680,363 |
|
3,441,729,444 |
|
3,623,838,985 |
|
3,623,838,985 |
|
|
Other comprehensive (loss) income, net of tax of
nil: |
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
(119,133 |
) |
414,142 |
|
(136,070 |
) |
(19,728 |
) |
(139,575 |
) |
660,697 |
|
95,792 |
|
|
Comprehensive loss |
(601,346 |
) |
(387,305 |
) |
(657,727 |
) |
(95,362 |
) |
(1,731,331 |
) |
(2,027,691 |
) |
(293,987 |
) |
|
Less: Comprehensive loss attributable to non-controlling
interests |
(4,420 |
) |
(8,390 |
) |
(12,682 |
) |
(1,839 |
) |
(3,177 |
) |
(30,463 |
) |
(4,417 |
) |
|
Comprehensive loss attributable to Kingsoft Cloud Holdings
Limited shareholders |
(596,926 |
) |
(378,915 |
) |
(645,045 |
) |
(93,523 |
) |
(1,728,154 |
) |
(1,997,228 |
) |
(289,570 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
KINGSOFT CLOUD HOLDINGS LIMITED |
|
|
RECONCILIATION OF GAAP AND NON-GAAP RESULTS |
|
|
(All amounts in thousands, except for
percentage) |
|
|
|
Three Months Ended |
Twelve Months Ended |
|
|
Dec 31, 2021 |
Sep 30, 2022 |
Dec 31, 2022 |
Dec 31, 2022 |
Dec 31, 2021 |
Dec 31, 2022 |
Dec 31, 2022 |
|
|
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
Gross profit |
27,891 |
122,419 |
161,957 |
23,482 |
351,288 |
429,538 |
62,277 |
|
Adjustments: |
|
|
|
|
|
|
|
|
– Share-based compensation expenses |
5,280 |
2,233 |
6,557 |
951 |
17,481 |
15,618 |
2,264 |
|
Adjusted gross profit |
33,171 |
124,652 |
168,514 |
24,433 |
368,769 |
445,156 |
64,541 |
|
|
|
|
|
|
|
|
|
|
|
|
|
KINGSOFT CLOUD HOLDINGS LIMITED |
|
|
RECONCILIATION OF GAAP AND NON-GAAP RESULTS |
|
|
(All amounts in thousands, except for
percentage) |
|
|
|
Three Months Ended |
Twelve Months Ended |
|
|
Dec 31, 2021 |
Sep 30, 2022 |
Dec 31, 2022 |
Dec 31, 2021 |
Dec 31, 2022 |
|
Gross margin |
1.0% |
|
6.2% |
|
7.6% |
|
3.9% |
|
5.3% |
|
|
Adjusted gross margin |
1.2% |
|
6.3% |
|
7.9% |
|
4.1% |
|
5.4% |
|
|
|
|
|
|
|
|
|
|
|
|
KINGSOFT
CLOUD HOLDINGS LIMITED |
|
|
RECONCILIATION OF GAAP AND NON-GAAP RESULTS |
|
|
(All amounts
in thousands, except for percentage) |
|
|
|
Three Months Ended |
Twelve Months Ended |
|
|
Dec 31, 2021 |
Sep 30, 2022 |
Dec 31, 2022 |
Dec 31, 2022 |
Dec 31, 2021 |
Dec 31, 2022 |
Dec 31, 2022 |
|
|
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
Net Loss |
(482,213 |
) |
(801,447 |
) |
(521,657 |
) |
(75,634 |
) |
(1,591,756 |
) |
(2,688,388 |
) |
(389,779 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
–
Share-based compensation expenses |
125,139 |
|
51,826 |
|
101,270 |
|
14,683 |
|
434,350 |
|
359,835 |
|
52,171 |
|
|
– Foreign
exchange (gain) loss |
(47,363 |
) |
218,941 |
|
(132,290 |
) |
(19,180 |
) |
(37,822 |
) |
334,629 |
|
48,517 |
|
|
Adjusted net
loss |
(404,437 |
) |
(530,680 |
) |
(552,677 |
) |
(80,131 |
) |
(1,195,228 |
) |
(1,993,924 |
) |
(289,091 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
– Interest
income |
(20,601 |
) |
(20,408 |
) |
(21,688 |
) |
(3,144 |
) |
(71,942 |
) |
(80,743 |
) |
(11,707 |
) |
|
– Interest
expense |
27,208 |
|
37,845 |
|
31,694 |
|
4,595 |
|
52,040 |
|
137,812 |
|
19,981 |
|
|
– Income tax
expense |
3,982 |
|
17,577 |
|
12,049 |
|
1,747 |
|
15,741 |
|
24,473 |
|
3,548 |
|
|
–
Depreciation and amortization |
267,565 |
|
293,672 |
|
285,515 |
|
41,396 |
|
855,604 |
|
1,157,424 |
|
167,811 |
|
|
Adjusted
EBITDA |
(126,283 |
) |
(201,994 |
) |
(245,107 |
) |
(35,537 |
) |
(343,785 |
) |
(754,958 |
) |
(109,458 |
) |
|
– Loss on
disposal of property and equipment |
- |
|
- |
|
28,788 |
|
4,174 |
|
- |
|
28,788 |
|
4,174 |
|
|
Excluding
loss on disposal of property and equipment, normalized Adjusted
EBITDA |
(126,283 |
) |
(201,994 |
) |
(216,319 |
) |
(31,363 |
) |
(343,785 |
) |
(726,170 |
) |
(105,284 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
KINGSOFT CLOUD HOLDINGS LIMITED |
|
RECONCILIATION OF GAAP AND NON-GAAP RESULTS |
|
(All amounts in thousands, except for
percentage) |
|
|
Three Months Ended |
Twelve Months Ended |
|
Dec 31, 2021 |
Sep 30, 2022 |
Dec 31, 2022 |
Dec 31, 2021 |
Dec 31, 2022 |
Net loss margin |
-18.1% |
|
-40.7% |
|
-24.5% |
|
-17.6% |
|
-32.9% |
|
Adjusted net loss margin |
-15.2% |
|
-27.0% |
|
-25.9% |
|
-13.2% |
|
-24.4% |
|
Adjusted EBITDA Margin |
-4.7% |
|
-10.3% |
|
-11.5% |
|
-3.8% |
|
-9.2% |
|
Normalized Adjusted EBITDA Margin |
-4.7% |
|
-10.3% |
|
-10.2% |
|
-3.8% |
|
-8.9% |
|
|
|
|
|
|
|
KINGSOFT
CLOUD HOLDINGS LIMITED |
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS |
|
|
|
|
(All amounts
in thousands) |
|
|
|
|
|
Three Months Ended |
Twelve Months Ended |
|
|
Dec 31, 2021 |
Dec 31, 2022 |
Dec 31, 2022 |
Dec 31, 2021 |
Dec 31, 2022 |
Dec 31, 2022 |
|
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
Net
cash generated from (used in) operating activities |
38,006 |
|
370,446 |
|
53,709 |
|
(708,869 |
) |
188,974 |
|
27,398 |
|
|
Net
cash (used in) generated from investing activities |
(226,519 |
) |
900,951 |
|
130,626 |
|
(421,623 |
) |
(32,865 |
) |
(4,765 |
) |
|
Net
cash generated from (used in) financing activities |
1,085,021 |
|
(806,656 |
) |
(116,954 |
) |
2,212,487 |
|
(1,152,146 |
) |
(167,045 |
) |
|
Effect of
exchange rate changes on cash, cash equivalents and restricted
cash |
(34,654 |
) |
(137,369 |
) |
(19,917 |
) |
(50,048 |
) |
73,142 |
|
10,605 |
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash |
896,508 |
|
464,741 |
|
67,381 |
|
1,081,995 |
|
(996,037 |
) |
(144,412 |
) |
|
Cash, cash
equivalents and restricted cash at beginning of period |
3,594,767 |
|
3,206,354 |
|
464,878 |
|
3,424,674 |
|
4,456,621 |
|
646,149 |
|
|
Cash, cash equivalents and restricted cash at end of
period |
4,456,621 |
|
3,533,726 |
|
512,342 |
|
4,456,621 |
|
3,533,726 |
|
512,342 |
|
|
|
|
|
|
|
|
|
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
Kingsoft Cloud (NASDAQ:KC)
Historical Stock Chart
From May 2023 to Jun 2023
Kingsoft Cloud (NASDAQ:KC)
Historical Stock Chart
From Jun 2022 to Jun 2023