KINGSOFT CLOUD Reports Profitable 2nd Quarter in FY2023
August 31, 2023
☀️Earnings Overview
On June 30, 2023 KINGSOFT CLOUD ($NASDAQ:KC) publicly released their second quarter FY2023 earnings report. Their total revenue for the quarter had decreased by 3.7% compared to the same period in the previous fiscal year and was reported as CNY 1835.4 million. Net income was CNY -499.3 million, a vast improvement from the -803.0 million loss that was reported in the same quarter of FY2022.
Price History
On Tuesday, KINGSOFT CLOUD reported their second quarter earnings for FY2023, showcasing a profitable quarter. Their stock opened at $5.3 and closed at $5.1, a 1.4% drop from their previous closing price of $5.2. This impressive customer growth is indicative of KINGSOFT CLOUD’s success in the competitive cloud computing market.
Overall, KINGSOFT CLOUD has had a successful second quarter in FY2023, despite the 1.4% drop in stock price on Tuesday. Their strong customer base and impressive cloud infrastructure indicate that the company will continue to remain profitable and successful in the coming quarters. Live Quote…
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 |
| 7.8k | -2.41k | -28.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Kingsoft Cloud. More…
| Operations | Investing | Financing |
| -89.4 | 956.75 | -1.06k |
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 |
| 16.13k | 7.85k | 33.92 |
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 |
| 15.2% | – | -29.1% |
| FCF Margin | ROE | ROA |
| -19.6% | -17.6% | -8.8% |
Analysis
GoodWhale has conducted an analysis of KINGSOFT CLOUD‘s wellbeing, and based on our Risk Rating system we rate it as a medium risk investment. We identified two risk warnings in their balance sheet and cashflow statement, and recommend investors register with us to take a closer look at the details. The risk ratings we provide are a holistic assessment of the financial and business aspects of an investment, taking into account multiple parameters such as revenue growth, liquidity, profitability and operational performance. Our analysis found that KINGSOFT CLOUD displayed moderate risk in most of these areas, which is why it is rated as a medium risk investment. 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
Investors may be disappointed with KINGSOFT CLOUD‘s second quarter of FY2023 results, as total revenue declined 3.7% year-on-year to CNY 1835.4 million. Additionally, reported net income was CNY -499.3 million compared to a loss of -803.0 million in the same quarter of FY2022. This suggests that KINGSOFT CLOUD is still struggling financially and may not be a wise investment at this time. Investors should closely monitor these results and any future earnings releases to assess the company’s financial health and growth prospects.
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