30 May 2025
Kuaishou’s 1QFY25 revenue was up by 10.9% YoY to Rmb32.6bn, mainly due to i) 8% YoY increase in online marketing services to Rmb18.0bn, driven by higher spending from marketing clients; ii) 14% YoY increase in live streaming biz to Rmb9.8bn, due to its refined operations and diversified high-quality content; and iii) 15.2% YoY increase in other services to Rmb4.8bn on the growth of its e-commerce biz. GPM slightly down by 0.2ppt YoY to 54.6% on increased revenue sharing costs and related taxes. Selling expense ratio dropped from 31.9% in 1Q24 to 30.4% in 1Q25 due to improved operating efficiency. Admin cost up 79% YoY to Rmb828m due to increase in employee benefit expenses, while R&D cost up by 16% YoY to Rmb3.3bn. As a result, after excluding one off items such as share-based compensation expenses and FV investment changes, 1Q25 adj NP was up by 4.4% to Rmb4.6bn.