Original title: Kuaishou Q3 financial report: average daily activity reached 320 million, a record high advertising revenue accounted for more than 53%
21st Century Business Herald reporter Bai Yang reports from Beijing On November 23, Kuaishou released its financial report for the third quarter of 2021. During the reporting period, Kuaishou achieved revenue of 20.493 billion yuan, a year-on-year increase of 33.4%; a loss for the period was 7.08 billion yuan, a year-on-year decrease of 75.8%; an adjusted net loss of 4.822 billion yuan, a year-on-year increase of 401.4%.
Kuaishou’s revenue mainly comes from online marketing services, live broadcasts and other services. Among them, online marketing services have become the core source of revenue for Kuaishou. In the third quarter, Kuaishou’s revenue from online marketing services was 10.909 billion yuan, a year-on-year increase of 76.5%, accounting for 53.2% of total revenue.
According to the financial report, the strong growth in online marketing services revenue was mainly due to strong traffic growth and the continued growth in the number of fast-hand advertisers. During the reporting period, the average daily traffic of Kuaishou apps (average daily active users multiplied by the average daily usage time per daily active user) increased by nearly 60% year-on-year. At the same time, based on the production of more native advertising content and materials, and sales team coverage With the expansion and service capabilities of Kuaishou, the number of active advertisers in the third quarter of Kuaishou also achieved steady growth year-on-year and quarter-on-quarter.
In terms of brand advertising, Kuaishou said this is still one of its strategic priorities. In the third quarter, the number of brand advertisers in Kuaishou achieved high double-digit year-on-year growth.
During the reporting period, Kuaishou’s revenue from live broadcast business was 7.724 billion yuan, compared with 8 billion yuan in the same period last year, accounting for 37.7% of total revenue. The financial report shows that in the third quarter, the average monthly paying users of Kuaishou Live increased to 46.1 million, an increase of 3.6% month-on-month, and the average monthly income of paying users for live-streaming increased to 55.9 yuan, an increase of 8.8% year-on-year, and an increase of 3.7% month-on-month.
In addition, Kuaishou’s revenue from other services (including e-commerce) was 1.86 billion yuan, a year-on-year increase of 53%. According to the financial report, the growth of this part of the business is mainly driven by the e-commerce business. In the third quarter, the total transaction volume of Kuaishou e-commerce (including from third-party platforms) was 175.787 billion yuan, compared with 94.458 billion yuan in the same period last year, an increase of 86.1% year-on-year.
The financial report shows that in September 2021, Kuaishou’s e-commerce repeat purchase rate has further increased to more than 70%. At the same time, as a closed-loop model of the fast-hand e-commerce business, Kuaishou Xiaodian increased its contribution to the total e-commerce transactions from 71.4% in the same period last year to 90%.
Among them, in terms of brand marketing of e-commerce business, Kuaishou said that it has achieved initial results in promoting brand owners, especially in key industries such as clothing, fast-moving consumer goods, electronic products, home appliances, jewelry and jade. In the third quarter, the growth of total e-commerce transactions of Kuaishou brand goods exceeded the growth of overall e-commerce transactions, helping e-commerce penetration to achieve year-on-year growth.
According to the financial report, the strong growth in the number of Kuaishou users is attributable to the reorganization of users and product teams in June and the promotion of full-cycle user management; at the same time, it continues to optimize user experience by providing rich content, products and services.
In terms of content, Kuaishou mainly mentioned two sections: skits and sports. In the third quarter, there were more than 850 short dramas with a cumulative view of over 100 million in a single Kuaishou app, and the daily active users of short dramas on the Kuaishou app reached 230 million, which accounted for an increasing proportion of the total number of platform videos viewed and watched time.
Kuaishou sports is also an advantageous content category in Kuaishou. At present, Kuaishou Sports covers more than 40 sports content categories. In the third quarter, the total time users spent on Kuaishou Sports content increased by more than 1.5 times compared with the same period last year. In particular, as China’s short video and video-on-demand partner for the 2020 Tokyo Summer Olympics, as of August 2021, the total number of Olympic-related content videos on the Kuaishou app has reached 73 billion times, and the total number of interactions within the terminal has reached 6 billion.
In addition, the financial report also pointed out that another feature of the Kuaishou platform is social trust. As of September 30, the cumulative number of cross-linked users of the Kuaishou app reached more than 14 billion pairs, an increase of 59% compared to the same period last year. Kuaishou said that it continues to strengthen the conversion of user following relationships in single-line pushes to help users, especially new users, build social mentality and social stickiness.
(Author: Bai Yang Editor: Li Qingyu)