Kingsoft Cloud reports Q2 EPS (2c), consensus (20c)

Reports Q2 revenue $253.1M, consensus $268.15M. CEO Tao Zou commented, “With our top priority remaining to achieve high-quality and sustainable development, we keep our focus on selected verticals and invest in core technologies to build our competencies and improve our efficiencies. Our execution of these strategies is well reflected in the sustained robust growth momentum of our gross profit and Non-GAAP EBITDA in Q2. Meanwhile, we are maintaining a high level of agility and quick response to AI trends…Looking forward, we will leverage and amplify the synergy with Xiaomi and Kingsoft Corporation ecosystem to fully embrace the opportunities in the AI trend.” CFO Henry He added, “Our gross margin continued its upward trend and recorded a historical high of 11.3%, increasing for another consecutive quarter and rising by a significant 7.9 percentage points year-over-year…Our adjusted EBITDA margin narrowed down largely from -8.6% in the second quarter of 2022 and -7.0% last quarter to -3.3% in this quarter, demonstrating our revenue quality improvement as well as effective expense control. This quarter, we once again recorded operating cash inflow of RMB65.2M, resulting from our enhanced management of accounts receivables and cash usage. We believe we are directing to a more balanced and healthy business structure and improving financial performance.”