Overview

* Kingsoft Cloud ( KC ) Q2 revenue rises 24.2% yr/yr to RMB2,349.2 mln

* Public cloud services revenue grows 31.7% yr/yr, driven by AI demand

* Net loss widens to RMB456.9 mln due to higher credit loss expenses

Result Drivers

* AI BUSINESS GROWTH - AI gross billing increased by over 120% yr/yr to RMB728.7 mln, driving revenue growth, per CEO Tao Zou

* PUBLIC CLOUD SERVICES - Revenue from public cloud services rose 31.7% yr/yr to RMB1,625.3 mln, driven by AI demand

* COST IMPACT - Adjusted gross margin fell to 14.9% from 17.1% in Q2 2024, due to higher server costs and upfront costs for future revenue

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 RMB 2.35

Revenue bln

Q2 EPS -RMB

0.11

Q2 Net -RMB

Income 456.86

mln

Q2 Gross RMB

Profit 338.86

mln

Q2 -RMB

Operatin 665.84

g mln

Expenses

Q2 -RMB

Operatin 326.99

g Income mln

Q2 -RMB

Pretax 454.52

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy"

* Wall Street's median 12-month price target for Kingsoft Cloud Holdings Ltd ( KC ) is HK$7.63, about 3.8% above its August 20 closing price of HK$7.34

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)