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- Total Revenue for Q2 2024: 30.98 billion yuan, a 12% increase year-over-year and higher than the 30.37 billion yuan estimate.
- Online Marketing Services: Revenue reached 17.52 billion yuan, up 22% year-over-year, slightly missing the estimate of 17.59 billion yuan.
- Live Streaming Revenue: Declined by 6.7% year-over-year to 9.30 billion yuan, exceeding the estimate of 8.59 billion yuan.
- Other Services Revenue: Grew by 21% year-over-year to 4.16 billion yuan, narrowly missing the estimate of 4.21 billion yuan.
- Net Income for Q2: 3.98 billion yuan, significantly higher than 1.48 billion yuan year-over-year and above the estimate of 3.48 billion yuan.
- Adjusted Net Income: 4.68 billion yuan, a 74% increase year-over-year, beating the estimate of 4.34 billion yuan.
- Adjusted EBITDA: Reached 6.34 billion yuan, surpassing the estimate of 6.01 billion yuan.
- Gross Margin: Improved to 55.3%, compared to 50.2% year-over-year and above the estimate of 54.6%.
- R&D Expenses: Decreased by 11% year-over-year to 2.81 billion yuan, below the estimate of 2.89 billion yuan.
- Average Monthly Active Users (MAUs): 691.80 million, slightly under the estimate of 698.94 million.
- Selling and Marketing Expenses: Increased by 16% year-over-year to 10.04 billion yuan, above the estimate of 9.8 billion yuan.
- First Half Revenue for 2024: 60.38 billion yuan, up 14% year-over-year.
- First Half Online Marketing Services Revenue: 34.17 billion yuan, up 25% year-over-year.
- First Half Live Streaming Revenue: Declined by 7.3% year-over-year to 17.88 billion yuan.
- First Half Net Income: 8.10 billion yuan, a substantial increase compared to 605 million yuan year-over-year.
- First Half Adjusted Net Income: 9.07 billion yuan, up from 2.74 billion yuan year-over-year.
- Analyst Ratings: 49 buys, 4 holds, and 1 sell.
Kuaishou Technology on Smartkarma
Analysts Ming Lu and Ying Pan have been closely following Kuaishou Technology on Smartkarma, an independent investment research network. Ming Lu, in a bullish outlook, anticipates significant growth for Kuaishou in the second quarter of 2024. Expecting an 11% year-over-year revenue increase and the company’s fifth consecutive profitable quarter, Lu emphasizes the strength in both advertising and e-commerce revenue growth. With an optimistic upside potential of 140% and a price target of HK$104 by the end of 2025, Ming Lu recommends a “Buy” rating on Kuaishou.
Similarly, analyst Ying Pan highlights Kuaishou’s robust performance driven by Generative AI, resulting in a target price increase to HK$83. Pan underscores the company’s outperformance in the off-season, crediting the growth to Generative AI’s impact on the advertising business. Reiterating a “Buy” rating, Pan sets a target price that implies 17x PE in 2025. With consistent positive results and promising future prospects, analysts on Smartkarma continue to show confidence in the growth trajectory of Kuaishou Technology.
A look at Kuaishou Technology Smart Scores
Factor | Score | Magnitude |
---|---|---|
Value | 2 | |
Dividend | 1 | |
Growth | 5 | |
Resilience | 5 | |
Momentum | 4 | |
OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Kuaishou Technology, an innovative content community and social platform, seems poised for long-term success based on its Smartkarma Smart Scores analysis. The company has scored high in Growth, Resilience, and Momentum, indicating strong potential for expansion, adaptability, and market performance. This suggests that Kuaishou Technology is well-positioned to capitalize on future opportunities and navigate challenges effectively, making it an appealing prospect for investors seeking sustained growth.
Although Kuaishou Technology shows promise in various areas, it is essential to note that its Value and Dividend scores are comparatively lower. This suggests that the company may not be perceived as undervalued and does not emphasize dividend payouts. Despite these factors, Kuaishou Technology‘s focus on growth, resilience, and momentum highlights its strategic direction and market competitiveness, positioning it as a key player in the content creation and social platform industry.
### Summary: Kuaishou Technology operates as a content community and social platform, facilitating the creation, uploading, and viewing of short videos on mobile devices worldwide. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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