HONG KONG, May 22, 2023 /PRNewswire/ — Kuaishou Technology (HK:1024) (the “Company” or “Kuaishou”), a number one content material group and social platform, at this time introduced its unaudited consolidated first quarterly outcomes for the three months ended March 31, 2023.

First Quarter 2023 Key Highlights

• Average DAUs on Kuaishou APP had been 374.3 million, representing a rise of 8.3% from 345.5 million for a similar interval of 2022.

• Average MAUs on Kuaishou APP had been 654.4 million, representing a rise of 9.4% from 597.9 million for a similar interval of 2022.

• Total e-commerce GMV⁽¹⁾ was RMB224.8 billion, representing a rise of 28.4% from RMB175.1 billion for a similar interval of 2022.

• Total income elevated by 19.7% to RMB25.2 billion from RMB21.1 billion for a similar interval of 2022. Online advertising companies and reside streaming contributed 51.8% and 37.0%, respectively, to the entire income. The different 11.2% got here from different companies.

• Gross revenue elevated by 33.4% to RMB11.7 billion from RMB8.8 billion for a similar interval of 2022. Gross revenue margin within the first quarter of 2023 was 46.4%, enhancing from 41.7% for a similar interval of 2022.

• Adjusted internet revenue⁽²⁾ was RMB42 million, in comparison with adjusted internet loss⁽²⁾ of RMB3.7 billion for a similar interval of 2022.

• Operating revenue from the home phase⁽³⁾ was RMB963 million, in comparison with an working loss⁽³⁾ of RMB1.5 billion for a similar interval of 2022.

Mr. Cheng Yixiao, Co-founder and Chief Executive Officer of Kuaishou mentioned, “We delivered strong results in the first quarter of 2023 with positive adjusted net profit at the group level for the first time since our listing. Our significant breakthrough in profitability was achieved on the back of record level user metrics, revenue growth and operating efficiency improvement. Our total revenue reached RMB25.2 billion, growing 19.7% year-over-year in the first quarter of 2023, driven by further advancements in breadth and depth across our user, traffic and commercialization ecosystems. DAUs and MAUs on the Kuaishou App continued to grow, reaching record highs of 374.3 million and 654.4 million, respectively. As we move through 2023, we will continue to leverage technology to deliver high-quality experiences and services to our users and empower content creators, advertisers and merchants while at the same time unlocking monetization potential throughout our vast and vibrant ecosystems to ultimately create long-term value for our stakeholders and shareholders.”

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First Quarter 2023 Financial Review

Revenue from our on-line advertising companies elevated by 15.1% to RMB13.1 billion for the primary quarter of 2023, from RMB11.4 billion for a similar interval of 2022, primarily attributable to the expansion within the variety of advertisers and elevated spending from advertisers, particularly from our e-commerce retailers, pushed by our efforts to additional strengthen our information infrastructure, optimize our product capabilities and refine our industry-specific administration methods.

Revenue from our reside streaming enterprise elevated by 18.8% to RMB9.3 billion for the primary quarter of 2023, from RMB7.8 billion for a similar interval of 2022, on account of a 6.4% year-over-year development in MPUs, which was supported by our enriched content material provide, evolving collaboration technique with expertise businesses, and steady optimization of our reside streaming ecosystem and algorithms.

Revenue from our different companies elevated by 51.3% to RMB2.8 billion for the primary quarter of 2023, from RMB1.9 billion for a similar interval of 2022, primarily because of the development of our e-commerce enterprise, evidenced by the expansion in our e-commerce GMV and steady enchancment in our enterprise technique in e-commerce. The development in e-commerce GMV was primarily pushed by will increase within the variety of month-to-month energetic e-commerce paying customers, common order value and month-to-month ordering frequency.

Other Key Financial Information for the First Quarter of 2023

Operating loss was RMB698 million, considerably narrowed from RMB5.6 billion for a similar interval of 2022.

Adjusted EBITDA⁽⁴⁾ was RMB2.0 billion, in comparison with adjusted EBITDA of damaging RMB1.6 billion for a similar interval of 2022.

Total obtainable funds⁽⁵⁾ reached RMB44.8 billion as of March 31, 2023.

Notes:

(1) Placed on or directed to our companions by way of our platform.
(2) We outline “adjusted net profit/(loss)” as loss for the interval adjusted by share-based compensation bills and internet honest worth adjustments on investments.
(3) Unallocated objects, which encompass share-based compensation bills, different earnings, and different positive aspects/(losses), internet, are usually not included.
(4) We outline “adjusted EBITDA” as adjusted internet revenue/(loss) for the interval adjusted by earnings tax bills, depreciation of property and gear, depreciation of right-of-use property, amortization of intangible property, and finance (earnings)/expense, internet.
(5) Total obtainable funds included however not restricted to money and money equivalents, time deposits, monetary property and restricted money. Financial property primarily included wealth administration merchandise and others.

Business Review

In the primary quarter of 2023, we recorded group degree adjusted internet revenue for the primary time since our itemizing on the Stock Exchange in 2021, representing a big breakthrough in our profitability. This milestone was achieved on the again of a robust first quarter efficiency pushed by new information in person metrics, revenues development and efforts in working effectivity enchancment.

In addition to wholesome development in our DAUs and MAUs, we continued to develop the variety of content material creators, advertisers and retailers on our platform whereas selling a extra built-in commercialization and visitors ecosystem. We additionally made substantial progress with our store-wide ROI technique in driving end-to-end gross sales funnel conversion for each promoting and e-commerce companies. As a results of these, mixed with macro-economic tailwinds, our income development accelerated throughout all three enterprise segments (on-line advertising companies, e-commerce and reside streaming) within the first quarter of 2023 and outperformed their respective industries.

Our success in enhancing monetization and working effectivity whereas sustaining our tempo of enterprise development performed a pivotal position in our profitability turnaround. Our home enterprise delivered an working revenue for the fourth consecutive quarter, whereas the working loss in our abroad phase additionally narrowed by 45.1% quarter-over-quarter, resulting in an adjusted internet revenue on the group degree within the first quarter of 2023.

User and content material ecosystem

In the primary quarter of 2023, we set a brand new file for the size of our person group by capitalizing on the expansion alternatives from some seasonal festivals together with the Chinese New Year. Average DAUs and MAUs on the Kuaishou App reached 374.3 million and 654.4 million, representing a year-over-year improve of 8.3% and 9.4%, respectively. Average each day time spent per DAU on the Kuaishou App was 126.8 minutes, whereas complete views of our quick video and reside streaming content material elevated by over 10% year-over-year, representing a better development fee than complete person time spent.

With a deal with each the effectivity and high quality of person development, we lowered our person acquisition and retention prices within the first quarter of 2023 on each a quarter-over-quarter and year-over-year foundation. This was the results of the refined administration and technological instruments in addition to optimized placement methods for unique, high-quality quick video and reside streaming content material. Meanwhile, we additional improved our ROI on person acquisition by way of rising the proportion of customers with larger lifetime worth.

We strengthened the virtuous cycle of content material provide and consumption by optimizing content material provide by way of enhanced algorithm-based studying system focusing on totally different person teams. We additionally continued to strengthen the social attributes and group vitality of our platform, key components setting us other than our rivals. By the top of the primary quarter of 2023, pairs of mutual followers on the Kuaishou App reached a cumulative 29.6 billion, representing a 57.6% development year-over-year.

The Chinese New Year interval has been an necessary window for person development and model promotion. This yr, by way of a mixture of “content + interaction,” we supplied customers with twin venues to rejoice the brand new yr on Kuaishou. In phrases of content material, we supplied a various vary of consumption selections together with CCTV Spring Festival Gala, Kuaishou 1001 Nights Fans’ Gala (快手一千零一夜老鉄聯歡晚會), on-line competition festivals, quick performs and extra. Among them, Kuaishou 1001 Nights Fans’ Gala, Kuaishou’s self-produced program, attracted greater than 270 million viewers and acquired over 520 million likes within the first run. On the interplay aspect, we provided quite a lot of attention-grabbing interactive options and social video games.

In addition to our participating event-driven content material, we additionally continued to counterpoint our content material provide throughout numerous verticals. In phrases of quick performs, we additional augmented the genres on supply whereas sustaining our industry-leading means to supply blockbuster quick performs. We launched a complete of 55 quick performs produced by Project Astral (星芒計劃) throughout the 2023 winter break interval. Among them, Donglan Snow (東欄雪) amassed 100 million views inside a record-breaking 40 hours of its launch. Our high-quality quick play content material and rising model consciousness on this space have additionally been acknowledged by advertisers. In the primary quarter of 2023, income from promoting sponsorship of Project Astral (星芒計劃) quick performs elevated by greater than 300% year-over-year. In phrases of pan-knowledge content material, we continued to counterpoint our inclusive training program New Knowledge Open Class (新知如師說). We have collaborated with prime notch establishments resembling Tsinghua University and Peking University to supply programs masking all kinds of fields resembling historical past, science and expertise, economics and advantageous arts, attracting roughly ten million viewers.

We additional refined the search operate on our platform, which has led to stronger person habits on looking that facilitate content material discovery. In the primary quarter of 2023, Kuaishou search’s common month-to-month customers exceeded 420 million, and the variety of each day searches on our platform peaked at greater than 650 million. Meanwhile, we now have additionally achieved steady progress in commercialization of our search operate, as evidenced by a doubling of improve in search-generated e-commerce GMV year-over-year, in addition to a year-over-year development in search promoting income of over 50% within the first quarter of 2023.

Online advertising companies

Our income from on-line advertising companies for the primary quarter of 2023 grew by 15.1% year-over-year to succeed in roughly RMB13.1 billion, accounting for 51.8% of our complete income, though a substantial variety of advertisers additionally remained cautiously optimistic in direction of the restoration of macro-economy and consumption traits in 2023. This was primarily pushed by our efforts to additional strengthen our information infrastructure, optimize our product capabilities and refine our industry-specific administration methods. The variety of advertisers on our platform additionally continued to develop quickly year-over-year and quarter-over-quarter within the first quarter of 2023.

Our promoting companies supplied to our native e-commerce retailers skilled strong development momentum, propelled by the sturdy development within the e-commerce GMV on our platform within the first quarter of 2023. In addition, we pioneered using store-wide ROI as a key efficiency indicator and accomplished pilot runs for sure advertisers throughout the Valentines’ Day and March 8 Women’s Day buying festivals. Those trials proved the effectiveness of our new system in end-to-end gross sales funnel conversion from model promotion to efficiency advertisements, and in the end to transactions. In addition, we launched a undertaking to develop our small and medium-sized e-commerce service provider consumer base to capitalize on their promoting wants and optimize our service provider ecosystem. In specific, we strengthened our consumer acquisition and advertising capabilities and upgraded our Magnetic Taurus (磁力金牛) platform for e-commerce advertising options on cellular units.

In phrases of our exterior performance-based promoting companies, to facilitate our advertisers to seize this restoration development and obtain their long-term targets, we’re leveraging merchandise and algorithms which are nicely built-in with {industry} attributes to advertise the invention, accumulation and user-brand matching of high-value person cohorts. This permits us to empower advertisers to realize in-depth conversion of their goal customers. At the identical time, we actively monitor the healthiness of exterior commercials on our platform, making certain their penetration of high-value customers by way of our optimized visitors allocation mechanism. In addition, we now have established evaluate requirements and system for native commercial supplies to enhance the standard of artistic supplies and cut back their damaging impression on person expertise and our ecosystem. These efforts, along with our “organic + commercial” visitors allocation mechanism to reinforce conversion effectivity and ROI for advertisers, have propelled the expansion of our exterior promoting companies. An encouraging restoration development regularly started to take form throughout the first quarter of 2023 in industries resembling info companies, medical care, finance and training.

With respect to model promoting, we centered on strengthening our product capabilities. We established a wealthy promoting product portfolio, which included splash advertisements and sponsorships for our self-produced IPs in addition to KOLs’ residence pages and searches, additional increasing our model promoting situations and sources. Furthermore, we designed and customised options for model advertisers at numerous phases throughout totally different industries. We systematically established person property for model advertisers and created an end-to-end conversion path integrating model promotion, efficiency advertisements and transaction, resulting in elevated recognition of our platform’s worth from a rising variety of model advertisers. Driven by these initiatives to unlock our ecosystem’s potential for model advertisers and benefitting from key promotion occasions such because the Chinese New Year and March 8 Women’s Day within the first quarter of 2023, our income from model promoting maintained its development momentum with a year-over-year improve of over 20%.

E-commerce

In the primary quarter of 2023, we continued to strengthen our trust-based e-commerce ecosystem and execute our omni-domain working technique. We additional happy our customers’ wants by enriching our merchandise, enhancing matching accuracy between patrons and sellers and harnessing high-quality streamer sources and e-commerce content material, which in flip drove a year-over-year improve in GMV of 28.4% to RMB224.8 billion.

On the merchandise aspect, we continued to strengthen our merchandising capabilities, amplifying the publicity of extra high-quality merchandise for suggestion by way of product evaluations and scores primarily based on a broader array of metrics. At the identical time, we guided retailers to proceed enhancing product info high quality and amount in addition to elevating their service skills.

On the service provider aspect, we additional upgraded the cooperative mechanism between retailers and KOLs. We delved into customers’ wants and established connections between customers and retailers leveraging high-quality suggestion content material produced by KOLs. We additionally facilitated extra correct product matching for KOLs engaged in product distributions by way of a extra refined, tiered operation technique, resulting in an over 50% year-over-year improve in GMV by way of the KOL distribution channel on this quarter. Since the primary quarter of 2023, we began to generate fee income from KOL distribution. We additionally anticipate that it’ll contribute to incremental e-commerce income development going ahead. Moreover, by leveraging our “Stream Initiative (川流計劃)” to construct a bridge between retailers and KOLs, we now have created a flywheel of merchandise and visitors, driving elevated movement of each on our platform.

Onboarding and improvement of retailers are additionally important in driving the success of this phase. We established cooperation with extra model retailers throughout a rising vary of industries, catering to our customers’ rising wants and consumption of branded merchandise. Leveraging our deep insights into customers’ consumption behaviors, we carried out focused on-boarding program of retailers, resulting in a year-over-year improve of roughly 30% within the common variety of manufacturers onboarded per 30 days within the first quarter of 2023. Aided by promotional occasions resembling Super Brand Day, the rise fee of GMV from manufacturers, together with Kwai Brands, was a lot larger than the general platform. We additionally facilitated manufacturers’ self-operated reside streaming by way of artistic content material codecs, resembling press conferences, product launches and reside streaming by bosses, to raised cater to customers’ buying wants for model merchandise. In the primary quarter of 2023, GMV of manufacturers’ self-operated reside streaming grew by roughly 70% year-over-year. Going ahead, we purpose to assist extra manufacturers develop their person base, whereas attaining GMV ramp-up and sustainable operations.

Additionally, we labored with service suppliers to draw retailers in {industry} zones and enhance our service provider empowerment system. In the primary quarter of 2023, we launched the Gold Rush Initiative (斗金計劃) with unique coverage and visitors assist to assist small and medium retailers develop. In March 2023, the variety of each month-to-month onboarded enterprise retailers and month-to-month energetic enterprise retailers elevated by over 50% year-over-year. As for retailers with regular operations on Kuaishou, we leveraged promotion actions, resembling Spring Festival Goods Festivals and March 8 Women’s Day promotions to refine our subsidy methods, optimize visitors allocation and improve conversion effectivity, thus fostering GMV scale-up for small and medium retailers.

On the person entrance, we continued to refine our tiered operations for e-commerce paying customers. We cultivated person mindsets by way of suggestions and strengthened the conversions of latest paying customers and potential prospects by way of good subsidies, promotions and visitors allocation changes. In the primary quarter of 2023, new e-commerce paying customers’ month-to-month buy frequency elevated repeatedly year-over-year and quarter-over-quarter, with retention charges enhancing each month. With respect to paying customers who’re comparatively much less energetic, we strengthened the identification and reactivation of customers with subpar expertise. As for e-commerce energetic paying customers, we launched our early warning and focused anti-churn methods within the first quarter of 2023 to offer higher companies to high-value customers. In the primary quarter of 2023, the variety of month-to-month energetic e-commerce paying customers and common order value continued to extend year-over-year, with month-to-month ordering frequency rising year-over-year. Algorithm-wise, we mitigated the impression of e-commerce content material on person time spent by modeling the connection between e-commerce associated person interactions and consumption time spent. This optimized customers’ e-commerce consumption expertise, resulting in more practical suggestions and conversion.

Shelf-based e-commerce is one other main realm in Kuaishou’s omni-domain e-commerce enterprise technique. In the primary quarter of 2023, we began to check the brand new shopping center entry button on the touchdown web page of Kwai store to raised meet the intent-driven buying wants of extremely energetic paying customers. Meanwhile, as we additional optimized our search operate to raised establish person intentions, we improved the product relevance of search outcomes, resulting in a doubling of GMV generated from searches year-over-year within the first quarter of 2023.

Live streaming

In the primary quarter of 2023, reside streaming income grew by 18.8% year-over-year to RMB9.3 billion, pushed by year-over-year will increase in each common MPUs and month-to-month ARPPU. Specifically, common MPUs elevated by 6.4% year-over-year to 60.1 million, whereas month-to-month ARPPU rose by double digits year-over-year. These achievements are a results of our constant enchancment of reside streaming content material high quality and optimization of user-content matching effectivity by way of algorithm iterations.

On the availability aspect, we centered on selling the event of reside streaming as a career and repeatedly superior our various cooperation with prime expertise businesses and streamers. In the primary quarter of 2023, the variety of energetic streamers from expertise businesses elevated by over 140% year-over-year. We additionally supplied visitors assist to high-quality mid-level streamers to optimize the constituents of our reside streaming provide. At the identical time, we continued to discover totally different reside streaming classes, together with knowledge-based reside streaming and digital individual reside streaming, to carry our customers an infinite movement of latest sorts of reside streaming content material.

Our revolutionary “live streaming +” companies made regular progress within the first quarter of 2023, with common each day resume submissions on Kwai Hire (快聘) rising by over 300% year-over-year and peak each day resume submissions exceeding 500,000. As on the finish of the primary quarter of 2023, Ideal Housing (理想家) coated greater than 70 cities nationwide, with cumulative gross transaction worth surpassing RMB8 billion within the first quarter of 2023.

Overseas

In the primary quarter of 2023, we additional deepened our key nation focus technique to optimize useful resource allocation and enhance our monetization capabilities. As a end result, income from our abroad enterprise grew at an accelerated tempo to succeed in RMB338 million within the first quarter of 2023, rising by over six instances year-over-year pushed by strong growth of reside streaming and on-line advertising companies. In our core area markets resembling Brazil and Indonesia, DAUs and person time spent continued to develop year-over-year and quarter-over-quarter because of ongoing content material enhancement efforts and efficient buyer acquisition strategies. Meanwhile, we continued to slender our general working loss within the abroad markets by 45.1% quarter-over-quarter within the first quarter of 2023 as we additional enhanced working effectivity and continued to cut back prices by way of an ROI-based funding strategy.

With respect to reside streaming, we optimized our content material provide by including an unlimited array of expertise businesses to our accomplice roster and energizing our current expertise company companions to supply extra and higher reside streaming content material. Meanwhile, we ramped up our exploration in reside streaming income merchandise and rolled out new iterations of operational course of, resulting in regular enhancements in reside streaming paying ratio and ARPPU. In addition, we efficiently enhanced the gross revenue margin of our reside streaming enterprise by way of a sequence of measures to enhance expertise businesses’ effectivity. On the promoting entrance, we achieved better-than-expected income development, because of our efforts to strengthen native operation capabilities, develop advertiser protection to extra industries, and optimize our product portfolio and repair capabilities. In addition, we launched our e-commerce companies in Brazil within the first quarter of 2023 to check the waters and preliminarily verified our processes.

Corporate social obligations

Given the accelerated digitalization of China’s financial system, digital expertise has profoundly modified individuals’s methods of dwelling, working and studying. As digital expertise turns into deeply built-in with all walks of life, Kuaishou has grown into an necessary studying platform for enhancing the digital literacy and expertise of the Chinese individuals. In 2022, Kuaishou launched over 26 million agriculture-related reside streaming periods to assist farmers promote their agriculture merchandise, in addition to enhance their information and expertise by way of coaching. Over 5 million of Kuaishou’s reside streaming periods all through 2022 had been about recruitment and employment, which promoted on-line recruitment. Due to our excellent practices in strengthening the workforce’s digital capabilities and competitiveness, together with our empowerment of employment and entrepreneurship by way of digital expertise and instruments, Kuaishou was chosen as considered one of “Excellent Cases of Digital Work to Enhance Digital Literacy and Skills of the Chinese Population in 2022” in March 2023.

About Kuaishou

Kuaishou is a number one content material group and social platform with its mission to be essentially the most customer-obsessed firm on the earth. Kuaishou has relentlessly been specializing in serving its prospects and creating worth for them by way of the continuous innovation and optimization of its services. At Kuaishou, any person can chronicle and share their life experiences by way of quick movies and reside streams and showcase their skills. Working carefully with content material creators and companies collectively, Kuaishou gives product and repair choices that handle numerous person wants that come up naturally, together with leisure, on-line advertising companies, e-commerce, on-line video games, on-line knowledge-sharing, and extra.

Forward-Looking Statements

Certain statements included on this press launch, apart from statements of historic truth, are forward-looking statements. Forward-looking statements typically could be recognized by means of forward-looking terminology resembling “may”, “might”, “can”, “could”, “will”, “would”, “anticipate”, “believe”, “continue”, “estimate”, “expect”, “forecast”, “intend”, “plan”, “seek”, or “timetable”. These forward-looking statements, that are topic to dangers, uncertainties, and assumptions, might embody our enterprise outlook, estimates of economic efficiency, forecast enterprise plans, development methods and projections of anticipated traits in our {industry}. These forward-looking statements are primarily based on info at present obtainable to the Group and are said herein on the idea of the outlook on the time of this press launch. They are primarily based on sure expectations, assumptions and premises, lots of that are subjective or past our management. These forward-looking statements might show to be incorrect and might not be realized sooner or later. Underlying these forward-looking statements are a lot of dangers and uncertainties. In gentle of the dangers and uncertainties, the inclusion of forward-looking statements on this press launch shouldn’t be thought to be representations by the Board or the Company that the plans and aims will probably be achieved, and buyers shouldn’t place undue reliance on such statements. Except as required by regulation, we’re not obligated, and we undertake no obligation, to launch publicly any revisions to those forward-looking statements that may mirror occasions or circumstance occurring after the date of this press launch or people who would possibly mirror the prevalence of unanticipated occasions.

For investor and media inquiries, please contact

Kuaishou Technology

Investor Relations
Email: ir@kuaishou.com

Note:

(1)  Net honest worth adjustments on investments represents internet honest worth (positive aspects)/losses on monetary property at honest worth by way of revenue or lack of our investments in listed and unlisted entities, internet (positive aspects)/losses on deemed disposals of investments and impairment provision for investments, which is unrelated to our core enterprise and working efficiency and topic to market fluctuations, and exclusion of which gives buyers with extra related and helpful info to guage our efficiency.

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