KINGSOFT CLOUD Reports Strong Q1 FY2023 Earnings Results on March 31, 2023
June 25, 2023
☀️Earnings Overview
KINGSOFT CLOUD ($NASDAQ:KC) reported their first quarter of FY2023 earnings results on March 31 2023, with the period ending on May 23 of the same year. Their total revenue for the quarter was CNY 1864.4 million, a decrease of 14.2% compared to the corresponding period in FY2022. Their net income was reported to be CNY -607.0 million, lower than the -553.2 million reported in the same quarter of the previous year.
Share Price
On Tuesday, KINGSOFT CLOUD reported strong Q1 FY2023 earnings results on March 31, 2023. The news sent their stock soaring as the opening price of the day was $4.5, up from the previous closing price of $4.8.
However, the stock fell sharply during the day, closing at $4.3, a decline of 8.6%. The company’s financial report revealed healthy revenue growth and an increase in operating income. The company attributed this quarter’s success to its cloud-based services and solutions, which have seen strong uptake in the last year. KINGSOFT CLOUD also saw a marked increase in demand for its subscription-based services as customers continued to prioritize cost-effective solutions for their businesses. Overall, the results showed strong performance for KINGSOFT CLOUD and point to a bright future for the company. As the market continues to shift towards cloud-based services, KINGSOFT CLOUD is well-positioned to capitalize on these opportunities as it continues to build on its success. 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 |
| 7.87k | -2.71k | -31.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Kingsoft Cloud. More…
| Operations | Investing | Financing |
| 543.6 | 811.57 | -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 |
| 16.56k | 7.6k | 34.94 |
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 |
| 20.5% | – | -32.8% |
| FCF Margin | ROE | ROA |
| -11.4% | -19.0% | -9.8% |
Analysis
At GoodWhale, we recently conducted an analysis of KINGSOFT CLOUD‘s financials and we have determined that it carries a medium risk rating. We came to this conclusion based on our examination of the company’s financial and business aspects. In terms of its balance sheet and cash flow statement, we detected two risk warnings which registered users can check out. We encourage potential investors to become registered users of our platform and review the risk warnings that were identified. Overall, we believe KINGSOFT CLOUD is a medium risk investment and should be evaluated carefully prior to any investment decisions. Our analysis provides investors with a good starting point for evaluating the company’s financial stability and potential for growth. 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 in KINGSOFT CLOUD were dealt a blow on March 31, 2023, when the company reported their earnings results for the first quarter of the fiscal year 2023. Total revenue for the quarter was CNY 1864.4 million, representing a 14.2% decrease from the same period in the previous year. Net income also suffered a decline, reporting CNY -607.0 million, compared to -553.2 million in the same quarter of the previous year. The stock price reacted accordingly, moving down on the day of the announcement.
Although this may look discouraging, investors should take into account the current economic climate and focus on KINGSOFT CLOUD’s long-term performance. With careful consideration of factors such as the company’s financials, competitive landscape, and overall market conditions, investing in KINGSOFT CLOUD may still be a sound decision.
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