Kingsoft Cloud Q4 2022 Achieve Revenue CNY 2.13 billion, Down 19.9% YOY

Financials, Technology Author: Yunfeng Zhang Mar 30, 2023 11:51 PM (GMT+8)

With the iteration of the large generic model, AI field is likely to continue to develop rapidly, if Kingsoft Office to build their own models and algorithms, building WPS from office software into a new generation of AI assistant, then it is also a great advantage for Kingsoft Cloud(Chinese: 金山云).

Kingsoft Cloud

On March 30, Kingsoft Cloud announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2022. The data show that Kingsoft Cloud reported revenue of CNY2,131.1 million for the fourth quarter of 2022, down 19.9% year on year; net loss of CNY521.7 million, which shrank sequentially, but non-GAAP net loss reached CNY552. 7 million, which widened year-on-year; and full year 2022 revenue of CNY8,180.1 million, down 9.7% year-on-year, and net loss of CNY2,688.4 million, which widened significantly year-on-year. Non-GAAP net loss of CNY755.0 million.

Of this, public cloud services revenue was CNY 1,344.3 million (USD 194.9 million), up slightly from CNY 1,346.0 million in the previous quarter, but down 12.2% from CNY 1,530.0 million in the year-ago quarter. Enterprise cloud services revenue was CNY785.9 million (USD113.9 million), up 26.4% from CNY622.0 million in the year-ago quarter and down 30.4% from CNY1,128.8 million in the same period of 2021. Other revenue was CNY0.8 million (USD0.1 million).

Kingsoft Cloud also reduced its R&D investment during the reporting period, with R&D expenses decreasing from CNY1.044 billion in 2021 to CNY971 million last year, mainly due to its "optimization" in 2022 and the reduction in the number of R&D employees. Overall, last year's performance was not very good.

Kingsoft Cloud has an excellent past performance, with the company's revenue growing from 3.956 billion yuan in 2019 to 9.061 billion yuan in 2021, with a compound annual growth rate significantly higher than the industry average. According to ZJSC's calculations, China's public cloud market will continue to grow at a CAGR of 30.9% over the next five years, and is expected to reach $105.77 billion by 2026.

Founded in 2012, Kingsoft Cloud is the leading cloud service provider in China. Since its establishment, Kingsoft Cloud has been dedicated to providing customers with secure, reliable, stable and high-quality cloud computing services.

In order to provide customers with ultra-low latency, strong computing power and cost-effective edge cloud computing experience, Kingsoft Cloud has completed the construction of next-generation cloud edge computing network, and through an efficient dynamic node management and intelligent computing power scheduling system, massive resources at different levels, different network environments and different hardware configurations are unified and scheduled for continuous application in computing power-intensive and network content distribution business scenarios.

Tao Zou, vice Chairman and CEO of Kingsoft Cloud said, "Despite 2022 was a challenging year, Kingsoft Cloud leveraged its solid accumulation to prepare for the new growth. With our long-term accumulation and deep cultivation in cloud computing, we will seize the opportunities brought by the economic recovery and the construction of Digital China, and continue to focus on providing high-quality cloud computing services to our customers and creating sustainable long-term value for our shareholders."