#China #Hong Kong #E-Commerce #Kuaishou Technology #Kling AI

Kuaishou Technology's First Quarter 2025 Financial Report

Kuaishou Technology, a prominent content and social platform, shared its unaudited financial performance for the first quarter of 2025. This update not only reflects key metrics of growth but also highlights the strategic investments in artificial intelligence that have become instrumental in optimizing their services and overall business model.

Key Highlights of Q1 2025

Kuaishou reported an impressive 408 million average daily active users (DAUs), marking a 3.6% increase from 393.8 million year-over-year. Furthermore, their average monthly active users (MAUs) reached 711.7 million, up by 2.1% from the previous year.

The total gross merchandise volume (GMV) for e-commerce soared to RMB 332.3 billion, showing a robust 15.4% increase compared to the same quarter in 2024. Overall, Kuaishou’s total revenue jumped to RMB 32.6 billion, representing a 10.9% growth, significantly bolstered by online marketing services and live streaming, which contributed 55.1% and 30.1% to total revenues, respectively.

Profitability Metrics

Gross profit also saw a healthy rise of 10.4% to RMB 17.8 billion, though the gross profit margin slightly eased to 54.6% from 54.8% last year. The company's profit for the period amounted to RMB 4.0 billion, a minor dip from RMB 4.1 billion in Q1 2024, while their adjusted net profit saw an uptick to RMB 4.6 billion from RMB 4.4 billion year-over-year.

AI Integration and Technological Advancements

Kuaishou's CEO, Mr. Cheng Yixiao, expressed confidence in the company’s strategic direction, citing the expansion of Kling AI 2.0, the latest iteration of their AI-enhanced video generation model. This upgrade not only maintains its leadership in terms of motion quality and visual aesthetics but introduces a new concept known as Multi-modal Visual Language (MVL), paving the way for richer creative processes in video production.

The average daily advertising expenditure on their AIGC marketing materials has hit around RMB 30 million, evidencing the success of integrating AI into their marketing strategies to boost client conversion rates.

User Engagement Metrics

User engagement metrics reflected a positive trend, with daily time spent on the Kuaishou app averaging 133.8 minutes per DAU. The refined user acquisition strategy has effectively reduced costs, leading to higher retention rates of new users, particularly notable during festive campaigns like the Chinese New Year, which saw over 15 billion live streaming views.

E-commerce and Live Streaming Developments

Kuaishou's e-commerce sector continues to thrive, encouraging new merchants through enhanced operational support and AI-backed tools. Their three-in-one business model combining live streaming, shopping, and video content has resulted in e-commerce GMV growth outpacing overall growth metrics. The live-streaming revenue surged 14.4% to RMB 9.8 billion for the quarter, demonstrating a remarkable recovery and growth trajectory.

Future Outlook

Despite facing a challenging global macroeconomic environment, Kuaishou managed to sustain solid financial performance through its strategic integration of AI technology across business operations. As they look to the future, Kuaishou is keen to continue leveraging AI to enhance user experiences and foster sustainable growth within its content and business ecosystems. The focus on technological innovation and user engagement is set to propel Kuaishou further into the competitive landscape of digital media and e-commerce.

In summary, Kuaishou's first-quarter results for 2025 indicate a promising trajectory for the company, fueled by user growth, increased revenue, and strategic AI investments that could redefine the industry's standards.