- Q4 Revenue: RMB35.4 billion, up 8.7% year-over-year.
- Full Year 2024 Revenue: RMB126.9 billion, up 11.8% year-over-year.
- Q4 Adjusted Net Profit: RMB4.7 billion, a new quarterly high.
- Full Year 2024 Adjusted Net Profit: RMB17.7 billion, up 72.5% year-over-year.
- Adjusted Net Margin: 14% for the full year 2024.
- Online Marketing Services Revenue Q4: RMB20.6 billion, up 13.3% year-over-year.
- Online Marketing Services Revenue Full Year 2024: RMB72.4 billion, up 20.1% year-over-year.
- Live Streaming Revenue Q4: RMB9.8 billion, a 2% decrease year-over-year.
- Live Streaming Revenue Full Year 2024: RMB37.1 billion, a 5.1% decrease year-over-year.
- Other Services Revenue Q4: RMB4.9 billion, up 14.1% year-over-year.
- Other Services Revenue Full Year 2024: RMB17.4 billion, up 23.4% year-over-year.
- Gross Profit Margin Q4: 54%, up 0.9 percentage points year-over-year.
- Gross Profit Margin Full Year 2024: 54.6%, up 4 percentage points year-over-year.
- Operating Cash Flow Q4: RMB8.6 billion.
- Cash and Cash Equivalents: RMB92.8 billion as of December 31, 2024.
- Average Daily Active Users (DAUs) Q4: Over 400 million.
- Monthly Active Users (MAUs) Q4: 736 million, up 5% year-over-year.
- E-commerce GMV Q4: RMB462.1 billion, up 14.4% year-over-year.
- Overseas Revenue Growth Q4: 52.9% year-over-year.
- Overseas Online Marketing Revenue Growth Q4: 83.5% year-over-year.
Release Date: March 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Kuaishou Technology (KUASF, Financial) reported a significant increase in total revenue for the full year 2024, growing by 11.8% year-over-year to RMB126.9 billion.
- The company's adjusted net profit for 2024 increased by 72.5% year-over-year, reaching RMB17.7 billion with an adjusted net margin of 14%.
- Kuaishou's average daily active users (DAUs) surpassed 400 million, indicating strong user engagement and growth.
- The Kling AI model has gained significant traction, with over 1 million applicants in just one month after its launch, and is recognized as one of the top two large models globally.
- Kuaishou's overseas revenue maintained rapid growth, with a 52.9% year-over-year increase in Q4, driven by strong performance in Brazil and other international markets.
Negative Points
- Live streaming revenue decreased by 2% year-over-year in Q4, continuing a trend of decline in this segment.
- The company anticipates that increased capital expenditures and new investments in AI may impact the speed of margin expansion.
- Despite growth in other areas, the live streaming business saw a year-over-year decline of 5.1% in revenue for the full year 2024.
- Kuaishou's AI investments are expected to impact the adjusted net margin by about 1% to 2% in 2025.
- The company faces challenges in maintaining its leadership amid potential AI breakthroughs and market volatility.
Q & A Highlights
Q: Can management share the reason for Kling AI's success and your plans to maintain the model's leading edge?
A: Yixiao Cheng, CEO, explained that Kling AI's success is due to its rapid iteration and improvements in semantic adherence, visual aesthetics, and motion quality. The model's global leadership is maintained through strategic investments in computing power, algorithm innovation, and data accumulation. The company plans to continue supporting Kling AI with R&D investments and talent acquisition to sustain its technological edge.
Q: Could management break down the company's longer-term AI strategy in terms of action plans and milestone targets?
A: Yixiao Cheng, CEO, outlined that the AI strategy focuses on upgrading existing business models and forming a positive cycle between R&D investments and returns. Key areas include refining large language models, enhancing AI monetization models like Kling AI, and integrating AI capabilities across Kuaishou's ecosystem to drive growth in online marketing services and e-commerce.
Q: Could management share recent progress in Kling AI's commercialization and its targets for 2025?
A: Bing Jin, CFO, stated that Kling AI's revenue has grown rapidly since its commercialization, reaching over RMB100 million in cumulative revenue. The company aims to expand Kling AI's reach through user subscriptions, API solutions, and partnerships with enterprises. They expect significant revenue growth for Kling AI in 2025.
Q: Could you elaborate on the progress of AI technology applications in your content and business ecosystem?
A: Yixiao Cheng, CEO, highlighted that AI models enhance content understanding and recommendations, improving user engagement and monetization opportunities. AI-powered tools are expected to reduce marketing costs and create new opportunities for merchants, contributing to growth in online marketing services revenue.
Q: What is the company's AI investment plan and its impact on profit?
A: Bing Jin, CFO, mentioned that AI-related CapEx will increase in 2025, focusing on computing power for Kling AI. The company plans to optimize existing resources and expects AI investments to impact the adjusted net margin by 1% to 2%. Kling AI's monetization progress may lead to further investment adjustments.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
