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China’s No 2 short video platform operator Kuaishou narrows its losses in 2022 amid stiff competition from ByteDance-owned Douyin
- Kuaishou narrowed its net loss to US$218 million in the fourth quarter from US$902 million in the same period in 2021
- For the whole of 2022, the company trimmed its losses to US$2 billion, down from US$11.3 billion the previous year
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Tracy Quin Shanghai
Kuaishou Technology, China’s No 2 short video platform behind TikTok’s sister app Douyin, narrowed its losses in the fourth quarter and the whole of 2022 on the back of better-than-expected revenue and record growth in number of users.
Beijing-based Kuaishou on Wednesday reported a net loss of 1.5 billion yuan (US$218 million) in the quarter ended December 31, compared with a 6.2 billion yuan loss in the same period in 2021.
Fourth-quarter revenue reached 28.3 billion yuan, up 15.8 per cent from 24.4 billion yuan a year earlier, lifted primarily by its online marketing services and live-streaming operations. Its total revenue last quarter was 3.7 per cent ahead of the market’s consensus estimates and “up 3.4 per cent of our estimates”, said Jefferies equity analyst Thomas Chong in a report posted after Kuaishou released its latest financial results.
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For the full year, the company’s losses narrowed to 13.7 billion yuan from 78 billion yuan in 2021. Operating profit from its domestic segment – a financial gauge that excludes unallocated items, which consist of share-based compensation expenses, other income and other gains – reached 192.1 million yuan last year, compared to an operating loss of 8.7 billion yuan in 2021.
The firm’s online marketing services, live streaming and e-commerce businesses helped boost total 2022 revenue to 94.2 billion yuan, a 16.2 per cent increase from 81.1 billion yuan the previous year.
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