Kingsoft Cloud's Q1 Revenue Dip: AI Demand Drives Public Cloud Growth Amid Enterprise Challenges
Portfolio Pulse from Anusuya Lahiri
Kingsoft Cloud Holdings Ltd (NASDAQ:KC) reported a fiscal first-quarter 2024 revenue of $245.9 million, down 4.8% year-on-year, missing the analyst consensus estimate of $248.3 million. Despite the revenue dip, the company saw a 2.9% increase in public cloud services revenue due to AI demand. Adjusted loss per ADS was $0.12, beating the consensus estimate of $0.14 loss. The stock has lost 34% in the last 12 months and traded lower by 2.5% at $3.11 recently.
May 22, 2024 | 2:40 pm
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Kingsoft Cloud Holdings Ltd reported a fiscal Q1 2024 revenue of $245.9 million, down 4.8% YoY, missing analyst estimates. Public cloud services revenue increased by 2.9% due to AI demand. Adjusted loss per ADS was $0.12, beating estimates. The stock has lost 34% in the last 12 months and traded 2.5% lower recently.
The revenue miss and year-on-year decline, despite the growth in public cloud services, indicate challenges in the enterprise segment. The stock's significant decline over the past year and recent trading lower suggest negative sentiment. However, beating the adjusted loss per ADS estimate and improving gross margins are positive signs.
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RELEVANCE 100