Kingsoft Cloud Holdings Limited (NASDAQ:KC) reported Q2 FY23 revenue of $253.14 million, missing the consensus of $268.15 million. Revenues fell 3.7% Y/Y. Adjusted earnings per ADS was $(0.18), beating the analyst consensus of $(0.20) loss. The decrease was mainly due to proactive scale-down of services for the two largest CDN customers and phasing-out of loss-making clients. Revenues from public cloud services decreased by 10.1% Y/Y, and enterprise cloud services rose by 9.5% Y/Y. Gross profit was $28.5 million, a record-high quarterly gross profit, representing a significant increase of 216.9% Y/Y. Q2 gross margin was 11.3%, compared with 3.4% in the same period in 2022. Kingsoft held $591.2 million in cash and equivalents at quarter end.