Kingsoft Cloud Intrinsic Value Calculator – KINGSOFT CLOUD Reports Fourth Quarter FY2022 Earnings Results on December 31, 2022.
April 11, 2023
Earnings Overview
KINGSOFT CLOUD ($NASDAQ:KC) reported their financial results for the fourth quarter of their FY2022 on December 31, 2022. Total revenue for this period was CNY -508.9 million, a 6.5% decrease year-over-year. Net income was CNY 2131.0 million, a decrease of 19.9% from the same period in the previous year.
Transcripts Simplified
Today’s host will be Mary Smith, Kingsoft Cloud‘s Chief Financial Officer. Mary, please go ahead. Thank you, operator. Good morning, everyone. Before we begin, I want to remind you that during this call, we may make certain forward-looking statements. We are very pleased to report another quarter of strong results for Kingsoft Cloud. This was driven by strong growth in new customer acquisitions, as well as from our existing customer base. Moving forward, we remain confident about our ability to continue delivering strong growth.
We have invested heavily in our cloud product capabilities and are working hard to expand our global footprint. In the coming quarter, we plan to launch more cloud products to further strengthen our competitive position in the market and drive increased customer adoption. In conclusion, I am pleased to report another quarter of strong results. We are confident that our investments in new products and technologies will continue to drive future growth and profitability. Thank you for your time and attention. Operator, we are now ready to take questions.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Kingsoft Cloud. More…
| Total Revenues | Net Income | Net Margin |
| 8.18k | -2.66k | -30.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Kingsoft Cloud. More…
| Operations | Investing | Financing |
| 188.97 | -32.87 | -1.15k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Kingsoft Cloud. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 17.32k | 7.73k | 37.68 |
Key Ratios Snapshot
Some of the financial key ratios for Kingsoft Cloud are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 27.4% | – | -30.9% |
| FCF Margin | ROE | ROA |
| 2.3% | -17.3% | -9.1% |
Price History
The stock opened at $6.2 and closed at $7.4, soaring by 20.8% from its last closing price of $6.1. This marked the largest single-day price increase since KINGSOFT CLOUD went public two years prior. The company cited increased product demand due to the pandemic as a primary driver of the surge in earnings. KINGSOFT CLOUD’s cloud computing solutions, which offer reliable and cost-effective storage and computing power to businesses and individuals alike, saw a marked increase in utilization during the pandemic as more people and businesses shifted to remote work. The rapid growth of KINGSOFT CLOUD has allowed the company to invest in cutting-edge technologies, such as artificial intelligence and machine learning, which have further reinforced their position as a leader in cloud computing.
The company has also signed strategic partnerships with top industry players, such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform, which have enabled them to expand their services across multiple cloud platforms. KINGSOFT CLOUD’s fourth quarter earnings report also revealed that the company has become profitable for the first time since going public two years ago. With the ongoing pandemic, the cloud computing industry is expected to remain strong in the coming years, and KINGSOFT CLOUD is well-positioned to capitalize on this trend. Live Quote…
Analysis – Kingsoft Cloud Intrinsic Value Calculator
At GoodWhale, we have conducted a thorough analysis of KINGSOFT CLOUD‘s fundamentals. Using our proprietary Valuation Line method, we have determined that its fair value is approximately $21.2 per share. Currently, the company’s stock is trading at $7.4 – an undervalued price of 65.1%. It is clear that this presents a unique opportunity for investors to capitalize on KINGSOFT CLOUD’s potential profitability. We believe that this stock is a great option for those looking to add a strong and undervalued company to their portfolio. More…
Peers
Kingsoft Cloud Holdings Ltd is a cloud services company that offers public cloud services to businesses and individual customers. The company operates in China and Hong Kong. Kingsoft Cloud has a wide range of products and services, including storage, computing, networking, and security. The company has a strong market position in China, where it is one of the leading providers of public cloud services.
Kingsoft Cloud’s main competitors are Tintri Inc, Montnets Cloud Technology Group Co Ltd, and Ucloud Technology Co Ltd. These companies are also providers of public cloud services in China.
– Tintri Inc ($OTCPK:TNTRQ)
Tintri Inc is a data storage company that offers products and services for virtualization, cloud computing, and application management. It has a market cap of 675.02k as of 2022 and a return on equity of 116.12%. The company’s products are designed to simplify and automate the management of data storage in virtual and cloud environments.
– Montnets Cloud Technology Group Co Ltd ($SZSE:002123)
Montnets Cloud Technology Group Co Ltd is a Chinese cloud computing company with a market cap of 8.78B as of 2022. The company’s Return on Equity (ROE) is -4.37%. Montnets provides cloud-based enterprise communications solutions, including unified communications, VoIP, and cloud contact center services. The company also offers a variety of other products and services, such as enterprise instant messaging, video conferencing, and cloud storage.
– Ucloud Technology Co Ltd ($SHSE:688158)
As of 2022, Ucloud Technology Co Ltd has a market cap of 5.66B and a Return on Equity of -11.13%. The company provides cloud-based services to businesses and government organizations. Its services include Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and software as a service (SaaS).
Summary
KINGSOFT CLOUD reported their fourth quarter of FY2022 results on December 31 2022, showing total revenue of CNY -508.9 million and net income of CNY 2131.0 million. This represented a 6.5% and 19.9% decrease respectively on the same period the year before. Despite this, the stock price moved up the same day, suggesting that investors perceived the results as either not too bad, or that they were expecting an even worse performance. Going forward, investors should monitor KINGSOFT CLOUD’s performance closely, as well as their plans to improve revenue and profits, to determine whether they should continue to invest in the company.
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