Home » Quick Fact | Q4 losses narrowed month-on-month, Kuaishou CFO Jin Bing expressed confidence in achieving quarterly profitability of domestic business during the year_YoY Growth_Users_RMB

Quick Fact | Q4 losses narrowed month-on-month, Kuaishou CFO Jin Bing expressed confidence in achieving quarterly profitability of domestic business during the year_YoY Growth_Users_RMB

by admin
Quick Fact | Q4 losses narrowed month-on-month, Kuaishou CFO Jin Bing expressed confidence in achieving quarterly profitability of domestic business during the year_YoY Growth_Users_RMB

Original title: Quick Fact | Q4 losses narrowed month-on-month, Kuaishou CFO Jin Bing expressed confidence in achieving quarterly profitability of domestic business within the year

Produced | Sohu Technology

Editor | Huang Xiaofang

On the afternoon of March 29, Kuaishou Technology released its fourth-quarter and full-year results for 2021.

According to the financial report, Kuaishou’s annual revenue was 81.1 billion yuan, a year-on-year increase of 37.9%; the market estimated that it was 80.1 billion yuan. Kuaishou’s fourth-quarter revenue was 24.4 billion yuan, compared with an estimated 23.12 billion yuan. Adjusted net profit margin improved by 7.9 percentage points from the previous quarter.

The adjusted net loss in the fourth quarter was 3.57 billion yuan, down 22.7% from the 4.616 billion yuan in the third quarter. The adjusted net loss ratio was 14.6%, an improvement of 7.9 percentage points from 22.5% in the previous quarter. The net loss for the year was 18.85 billion yuan, and the adjusted net loss of Kuaishou in 2020 was about 7.9 billion yuan, a year-on-year increase of 138%.

Sales and marketing expenses increased from RMB 26.6 billion in 2020 to RMB 44.2 billion in 2021, a year-on-year increase of 66.0%, and its percentage of total revenue increased from 45.3% in 2020 to 54.5% in 2021

At the performance conference call held that evening, Jin Bing, the CFO of Kuaishou, who was just appointed at the beginning of the year, made his debut. When answering questions from analysts, Jin Bing said that he is “very confident” that the net profit after the quarterly domestic business adjustment will be positive within this year. “In the fourth quarter, we continued to optimize our revenue and cost structure and unleash the operating leverage effect. On a quarter-on-quarter basis, operating loss and adjusted net loss decreased significantly.”

See also  New Era, New Journey, New Great Achievement·Return of the Two Sessions | Ma Bing drives high-quality development with innovation

The financial report shows that from the first to the fourth quarter of 2021, Kuaishou’s sales and marketing expenses will continue to decline, with sales expenses accounting for 68.5%, 58.9%, 53.8% and 41.9%, respectively. Jin Bing said, “I hope that the absolute value of sales and marketing expenditures this year will not be higher than last year, so that the proportion of revenue will drop significantly.”

After the release of the financial report, Kuaishou’s share price fell first and then rose. As of 11 pm on March 29, the increase was 4.5%, at HK$78.5 per share, with a total market value of HK$334.4 billion.

In terms of user data, in the fourth quarter of 2021, the average daily active users of the Kuaishou app reached 323 million, a year-on-year increase of 19.2%, and the average monthly active users reached 578 million, a year-on-year increase of 21.5%, compared with 572 million in the third quarter, a month-on-month increase 1%.

From the perspective of the overall environment, according to the “Statistical Report on the Development of China’s Internet” released by CNNIC, as of December 2021, the number of online video (including short video) users in my country reached 97.5 billion, an increase of 47.94 million compared with December 2020. It accounted for 94.5% of the total netizens; among them, the number of short video users reached 934 million, an increase of 60.8 million compared with December 2020, accounting for 90.5% of the total netizens. This means that the short video traffic growth dividend has peaked.

In terms of revenue, online marketing services are Kuaishou’s largest source of revenue. The revenue of this business segment in 2021 will reach 42.7 billion yuan, a year-on-year increase of 95.2%. Revenue in the fourth quarter reached RMB 13.2 billion, a year-on-year increase of 55.5% and a quarter-on-quarter increase of 21.3%. Kuaishou said that in 2021, the number of Kuaishou advertisers will increase by more than 60% year-on-year, and the average monthly spend of advertisers on the platform will increase by a double-digit percentage year-on-year. Among them, brand advertising is another growth driver for online marketing services. In 2021, Kuaishou brand advertising revenue will increase by more than 150% year-on-year.

See also  The coolant leaked and burned the motor, causing car owners to collectively defend their rights. Mercedes-Benz finally recalled the EQC – yqqlm

In 2021, Kuaishou’s live broadcast business revenue was 30.9 billion yuan, a year-on-year decrease of 6.7%. In the fourth quarter of 2021, Kuaishou’s live broadcast revenue was 8.8 billion yuan, an increase of 14.3% month-on-month and an increase of 11.7% year-on-year. The financial report shows that in the fourth quarter of 2021, the penetration rate of live broadcast viewing users and the penetration rate of live broadcast paying users both increased month-on-month, and the average monthly paying users of live broadcast increased by 5.2% month-on-month to 48.5 million. In the fourth quarter of 2021, the average revenue of monthly live streaming paying users increased to RMB 60.7, an increase of 8.6% quarter-on-quarter and a year-on-year increase of 17.2%.

For other services (including e-commerce), revenue in 2021 will reach 7.4 billion yuan, a year-on-year increase of 99.9%. In the fourth quarter, revenue reached 2.4 billion yuan, a year-on-year increase of 40.2% and a month-on-month increase of 27.3%. The financial report shows that the total post-mortem e-commerce transactions in 2021 will reach 680 billion yuan, a year-on-year increase of 78.4%. Kuaishou said that its e-commerce business has formed a closed loop. In December 2021, Kuaishou Xiaodian contributed 98.8% of the total e-commerce transactions. , and the repeat purchase rate of e-commerce business increased by more than five percentage points year-on-year.

It is reported that 2018 is the first year of Kuaishou’s commercialization. At that time, Kuaishou’s annual revenue was 20.3 billion yuan, of which, live broadcast revenue was 18.6 billion yuan, accounting for 91.7% of revenue; online marketing services (mainly advertising revenue) 1.7 billion yuan , the revenue accounted for 8.2%. The proportion of online marketing business has been the most important cash cow in Kuaishou’s revenue since it surpassed live broadcast in the fourth quarter of 2020.

See also  Buffett increasingly focuses on the West and buys 18 million in shares of a US oil giant

In October last year, Kuaishou’s “dual-core drive” management model changed. Co-founder Cheng Yixiao replaced co-founder Su Hua as Kuaishou CEO, responsible for the company’s daily operations and business development and reporting to Chairman Su Hua. Su Hua will continue to serve as chairman, executive director, and member of the compensation committee, responsible for formulating the company’s long-term strategy.

When attending the performance conference call held in the evening, Cheng Yixiao, founder and CEO of Kuaishou, said that with the continuous growth of user scale, as a digital community with strong interaction, high stickiness and large volume, Kuaishou also needs to use its own advantages and capabilities to provide services for customers. The digitalization of more commodities and industries provides technologies, products, services, infrastructure and solutions to help users reduce transaction costs, improve the efficiency of optimal resource allocation, and promote the development of social productivity and digital economy.Return to Sohu, see more

Editor:

Disclaimer: The opinions of this article only represent the author himself, Sohu is an information publishing platform, and Sohu only provides information storage space services.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy