Kingsoft Cloud Stock Gains After 42% Q2 Revenue Growth; Issues Robust Q3 Outlook

  • Chinese cloud service provider Kingsoft Cloud Holdings Ltd (NASDAQ:KCreported second-quarter FY21 revenue growth of 41.6% year-on-year to $336.7 million (RMB2.17 billion), beating the analyst consensus of $335.2 million.
  • Revenues from public cloud services rose 20.5% Y/Y to $240.2 million, and enterprise cloud services increased 152.8% Y/Y to $96.4 million.
  • The non-GAAP gross margin expanded ten bps to 5.6% as the costs rose 41.3% Y/Y. The non-GAAP EBITDA margin loss increased 20 bps to (2.5)%.
  • EPS loss of $(0.01) beat the consensus loss of $(0.13).
  • Kingsoft held $848 million in cash and equivalents and used $40.8 million in operating cash flow.
  • Kingsoft remains optimistic over Meituan (OTC: MPNGF) (OTC: MPNGY) and synergies from the Camelot acquisition.
  • Outlook: Kingsoft sees Q3 revenue between $399.6 million - $418.2 million (RMB2.58 billion - RMB2.7 billion), implying 49% - 56% Y/Y growth.
  • Price Action: KC shares traded higher by 3.58% at $29.48 in the market session on the last check Wednesday.
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