Kingsoft Cloud Holdings Ltd ( KC )  reported a fiscal first-quarter 2024 revenue of 1.78 billion Chinese yuan ($245.9 million), down by 4.8% year-on-year, missing the analyst consensus estimate of $248.3 million. 

The decrease was in line with its expectation along with its scaling down of content delivery network (CDN) services, and more stringent project selection of enterprise cloud projects.

Adjusted loss per ADS was $0.12, beating the analyst consensus estimate of $0.14 loss. 

Revenues from public cloud services increased by 2.9% Y/Y to $164.4 million mainly due to the growth of AI demands.

Revenues from enterprise cloud services were $81.5 million, a decrease of 17.2% Y/Y.

The adjusted gross profit was CNY299.1 million ($41.4 million), versus CNY194.4 million Y/Y. The margin expanded by 640 bps to 16.8%  mainly due to strategic adjustment of revenue mix, optimized enterprise cloud project selection and efficient cost control measures.

Kingsoft held $250.9 million in cash and equivalents as of March-end.

Tao Zou, Chief Executive Officer of Kingsoft Cloud ( KC ), commented, “Our revenue has returned to sequential increase for the past two quarters and our adjusted gross margin has been consecutively increased for seven quarters.”

The stock lost 34% in the last 12 months. 

Price Action: KC shares traded lower by 2.5% at $3.11 at the last check Wednesday.