Kingsoft Cloud Holdings Ltd
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Kingsoft Cloud Holdings Ltd
Kingsoft Cloud Holdings Ltd., a formidable player in China’s competitive cloud services market, has been crafting its narrative as a dynamic innovator bridging technology gaps in the digital realm. Emerging from the expansive Kingsoft Corporation, the company capitalized on its established technological infrastructure to dig deep into cloud computing. From its inception, Kingsoft Cloud has focused on providing a vast array of services including cloud storage, networking, and security, aiming to revolutionize how businesses manage their digital resources. By leveraging robust partnerships and an intricate understanding of Chinese digital enterprises, Kingsoft Cloud has positioned itself strategically within the industry's dynamic environment, striving to meet the unique needs of local businesses and beyond.
Positioned in the confluence of digital demand and technological supply, Kingsoft Cloud makes its mark by enabling businesses to navigate the complexities of digital transformation. The company generates revenue through its scalable service offerings, charging clients based on the resources they consume within its expansive cloud infrastructure. Its financial model thrives on volume and efficiency, capturing a diversified client base from burgeoning tech startups to established corporations requiring intricate data management solutions. As businesses worldwide intensify their move to digital platforms, Kingsoft Cloud's narrative of growth is one written in the server rooms and data centers that form the digital backbone of modern commerce.
Kingsoft Cloud Holdings Ltd., a formidable player in China’s competitive cloud services market, has been crafting its narrative as a dynamic innovator bridging technology gaps in the digital realm. Emerging from the expansive Kingsoft Corporation, the company capitalized on its established technological infrastructure to dig deep into cloud computing. From its inception, Kingsoft Cloud has focused on providing a vast array of services including cloud storage, networking, and security, aiming to revolutionize how businesses manage their digital resources. By leveraging robust partnerships and an intricate understanding of Chinese digital enterprises, Kingsoft Cloud has positioned itself strategically within the industry's dynamic environment, striving to meet the unique needs of local businesses and beyond.
Positioned in the confluence of digital demand and technological supply, Kingsoft Cloud makes its mark by enabling businesses to navigate the complexities of digital transformation. The company generates revenue through its scalable service offerings, charging clients based on the resources they consume within its expansive cloud infrastructure. Its financial model thrives on volume and efficiency, capturing a diversified client base from burgeoning tech startups to established corporations requiring intricate data management solutions. As businesses worldwide intensify their move to digital platforms, Kingsoft Cloud's narrative of growth is one written in the server rooms and data centers that form the digital backbone of modern commerce.
Strong Revenue Growth: Kingsoft Cloud reported Q3 revenue of RMB 2.48 billion, up 31% year-over-year and accelerating from the prior quarter’s 24% growth.
Public Cloud Momentum: Public cloud revenue jumped 49% year-over-year to RMB 1.75 billion, driven by robust demand from both large and expanding customer bases.
AI & Intelligent Cloud Surge: Gross billings from intelligent computing cloud reached RMB 782 million, up 122% year-over-year, now accounting for 45% of public cloud revenue.
Xiaomi & Kingsoft Ecosystem: Revenue from the Xiaomi and Kingsoft ecosystem rose 84% year-over-year, reaching RMB 691 million and representing 28% of total revenue.
Profitability Improvement: Adjusted gross profit grew 28% to RMB 393 million, and the company achieved positive adjusted operating and net profit for the first time.
EBITDA Margin Leap: Adjusted EBITDA margin improved to 33% this quarter, but management noted part of the increase was due to one-time other income and expects margin normalization next quarter.
Confident AI Outlook: Management remains optimistic about ongoing AI demand and expects margins to improve further as inference demand grows.