Short video platform Kuaishou’s domestic business makes profit two quarters ahead of schedule

August 23, 2022 0 Comments

On August 23, Kuaishou, the Chinese short video platform that rivals Douyin, released its Q2 2022 results, with total revenue of 21.7 billion yuan, up 13.4% year-on-year and exceeding the previous estimate of 20.7 billion yuan. According to the results, the company’s net loss for the second quarter was 3.18 billion yuan, down 54.9% year-over-year.

For the first two quarters of 2022 combined, Kuaishou’s revenue grew 18.3% year-over-year to 42.76 billion yuan, while the net loss was 9.43 billion yuan, down 85.4% year-over-year.

Interestingly, Kuaishou has presented its domestic and overseas operations separately in its earnings report for the first time. The company’s domestic business achieved a single quarterly profit two quarters ahead of schedule, with an operating profit of over 93 million yuan in the second quarter.

Currently, the company has made several commercialization attempts in overseas markets, such as launching the short video platform “Kwai” globally.

In the second quarter, Kuaishou’s total overseas revenue reached 103 million yuan, while operating loss narrowed to 1.606 billion yuan from 4.368 billion yuan in the same period of 2021, amounting to a 63.2% reduction in loss.

However, in the second quarter, Kuaishou’s online marketing revenue shrank by 400 million yuan to 11 billion yuan compared to 2021. The company has attributed the narrowing to a challenging macro environment which affected advertisers’ advertising needs. On the other hand, Kuaishou’s live stream revenue increased slightly by 9.2% to RMB 8.6 billion.

The company, which is listed on the Hong Kong Stock Exchange in 2021, has reported a daily average users of 347 million as of Q2 2022, which falls short of its competitor Douyin (700 million) and the short-video newcomer, Tencent’s WeChat Video, which is approaching 500 million.

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