KINGSOFT CLOUD Reports Q2 FY2023 Earnings Results on June 30, 2023
August 24, 2023
🌥️Earnings Overview
On June 30 2023, KINGSOFT CLOUD ($NASDAQ:KC) announced its Q2 FY2023 earnings results. With a total revenue of CNY 1835.4 million, a slight decrease of 3.7% was seen compared to the same period in the prior year. Net income for the quarter was CNY -499.3 million, representing an improvement from the prior year’s deficit of CNY -803.0 million.
Stock Price
At the open of the market, KINGSOFT CLOUD stock opened at $5.3 but after the report was distributed, the stock closed at $5.1, down by 1.4% from its prior closing price of $5.2. KINGSOFT CLOUD’s operating margin and return on equity were both slightly lower than expected and its cash flow was slightly better than expected. Despite the slight miss on expectations, KINGSOFT CLOUD’s CEO was upbeat in his comments on the company’s performance, noting that they had achieved solid growth in their key markets and that they were well-positioned for future success. He also noted that the company’s product portfolio had been significantly enhanced over the past quarter and that this would help to drive further growth in the upcoming quarters.
Overall, KINGSOFT CLOUD has reported a solid quarter and investors can expect the company to build on its momentum in its upcoming quarters. The company’s strong financial performance and strategic focus on innovation makes it an attractive investment opportunity going forward. 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
At GoodWhale, we have conducted an analysis of KINGSOFT CLOUD‘s fundamentals, and based on our Risk Rating, this is a medium risk investment in terms of financial and business aspects. We have identified two risk warnings in the balance sheet and cashflow statement that a registered user can view. We encourage all potential investors to review these warnings before deciding to invest. Our analysis shows that KINGSOFT CLOUD is taking steps to reduce their risk, so investors should be aware of these changes. By taking into account the risks associated with this investment, investors can make an informed decision about their 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
KINGSOFT CLOUD reported a 3.7% decrease in total revenue for the second quarter of 2023 compared to the prior year, with income of CNY 1835.4 million. Net income was CNY -499.3 million, which is still a decrease from the prior year’s deficit of CNY -803.0 million. From an investor’s perspective, KINGSOFT CLOUD has seen a decrease in both revenue and net income year-over-year, suggesting that the company has not been able to capitalize on market opportunities and perform as well as in prior years. Investors should consider the long-term prospects of KINGSOFT CLOUD, as well as any potential risks, before making an investment decision.
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