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Chinese short video app operator Kuaishou tops revenue forecast amid tough quarter for tech giants

  • Kuaishou’s revenue rose 24 per cent, beating analyst estimates amid a tough first quarter for China’s tech sector
  • The ByteDance rival has fared better than other Big Tech firms grappling with the effects of 18 months of crackdowns that authorities suggest will end

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The courtyard of the Kuaishou Technology headquarters in Beijing on February 3, 2021. Photo: Bloomberg
Tracy Qu
Kuaishou Technology reported revenue growth of 24 per cent in the first quarter, beating estimates, after a year of challenges for China’s technology sector that has weighed heavily on the operator of the country’s second largest short video platform.

The Hong Kong-listed company, which has lost over 80 per cent of its market value from its peak in February 2021, said revenue increased to 21.1 billion yuan (US$3.2 billion) in the first three months this year, topping consensus forecast of 20.6 billion yuan.

Net losses fell to 6.25 billion yuan from 57.75 billion yuan a year ago, the company added, better than the 6.4 billion yuan loss estimated by 11 analysts tracked by Bloomberg.

Average daily active users for the app, which competes with market leader ByteDance’s Douyin, the Chinese version of TikTok, rose 17 per cent to 346 million, up from 295 million a year ago.

Cheng Yixiao, co-founder and CEO of Kuaishou, said the company achieved “satisfactory results” across its business operations “amid a challenging environment”.

Speaking in a conference call after the results were released, Cheng noted that the recent Covid outbreak in China had dragged on growth at the company’s e-commerce and advertising business.

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