Kingsoft Cloud Q1: Earnings Miss, 14% Topline Decline, Revenue Mix Adjustment & More - Kingsoft Cloud Hldgs (NASDAQ:KC)

Kingsoft Cloud Holdings Limited KC shares are trading lower after first-quarter FY23 earnings missed estimates.
The China-based technology firm reported a first-quarter FY23 revenue of $271.48 million, missing the consensus of $282.80 million.
EPS loss was $(0.25), missing the analyst consensus of $(0.23) loss.
The lackluster results were mainly due to the proactive scaling down of CDN services, with its gross billings decreasing by 11.7% Y/Y.
Revenues from public cloud services decreased by 16.4% Y/Y, and enterprise cloud services fell 10.4% Y/Y.
The non-GAAP gross margin expanded 660 bps to 10.4%, mainly due to our strategic adjustment of revenue mix, optimized enterprise cloud project selection and efficient cost control measures.
Kingsoft held $649.7 million in cash and equivalents at quarter end.
CFO Henry He added, "Looking ahead, we will continue to take various measures to cut down expenses and we believe we are well on track to quarterly adjusted EBITDA breakeven."
Outlook: Kingsoft sees Q2 revenue of RMB1.85 billion -RMB2.00 billion.
Price Action: KC shares traded lower by 7.4% at $4.40 on the last check Tuesday.