Beijing, July 23 (TMTPOST) — Kuaishou Technology (HK:1024), a leading content community and social platform in China, managed to cut its loss and maintain growth amid China’s economic slowdown, according to its third-quarter financial report.
The operating loss came in at 2.6 billion yuan, down by 64.7 percent year-over-year. The main reason for the drop in Kuaishou’s net loss was a decline in customer acquisition costs. The company slashed selling and marketing expenses to 9.1 billion yuan, which was a 17.1 percent decline from the same period of last year. Expenses on research and development were also lowered by 16.2 percent year over year. Adjusted net loss was 670 million yuan, an 85.4 percent year-on-year decline.
“This resulted in the adjusted net profit margin improvement from negative 22.5 percent in the third quarter of 2021 and negative 6 percent in the second quarter of 2022 to negative 2.9 percent in the third quarter of 2022, representing an increase of 19.6 percentage points year-over-year and 3.1 percentage points quarter-over-quarter,” said Jin Bing, Kuaishou’s chief financial officer, during the earnings call.
The revenue reached 23.1 billion yuan with a year-on-year increase of 12.9 percent. “This increase was mainly driven by revenue growth in our online marketing services, e-commerce business and live-streaming business,” Jin said.
As the major source of income, online marketing brought in 11.6 billion yuan, up 6.2 percent from the same period of last year. However, due to the ongoing pandemic, such growth has been slowed down, compared with a year-on-year growth rate of 32 percent and 10 percent in the first two quarters.
The e-commerce GMV increased by 26.6 percent year-over-year to 222.5 billion yuan. And revenue from live-streaming grew by 15.8 percent year-over-year to 8.9 billion yuan due to improvement in interactive functions.
The domestic DAUs of Kuaishou App increased by 13.4 percent year-over-year to 363 million, and average MAUs grew by 9.3 percent year-over-year to 626 million. Such growth rates also slowed down compared with the last quarter.
(The exchange rate of the U.S. dollar to the Chinese yuan is 7.17.)