Kingsoft Cloud Announces Unaudited Third Quarter 2020 Financial Results
BEIJING, China, Nov. 18, 2020 (GLOBE NEWSWIRE) -- Kingsoft Cloud Holdings Limited (“Kingsoft Cloud” or the “Company”) (NASDAQ: KC), a leading independent cloud service provider in China, today announced its unaudited financial results for the third quarter ended September 30, 2020.
Third quarter 2020 Financial Highlights
- Total revenues were RMB1,728.8 million (US$1254.6 million) in the third quarter of 2020, representing an increase of
72.6% year-over-year.
- Gross profit was RMB112.9 million (US
$16.6 million ) or6.5% gross margin in the third quarter of 2020, compared with RMB18.7 million or1.9% gross margin in the third quarter of 2019.
- Non-GAAP gross profit2, was RMB114.8 million (US
$16.9 million ) or6.6% Non-GAAP gross margin in the third quarter of 2020, compared with RMB20.6 million or2.1% Non-GAAP gross margin in the third quarter of 2019.
- Net loss was RMB105.3 million (US
$15.5 million ) or -6.1% net loss margin in the third quarter of 2020, compared with net loss of RMB350.6 million or net loss margin of -35.0% in the third quarter of 2019. The profitability and margin have been improving on both year-over- year and sequential basis.
- Non-GAAP EBITDA3, was RMB-26.3 million (US
$-3.9 million ) or -1.5% Non-GAAP EBITDA margin in the third quarter of 2020, compared with RMB-102.0 million or -10.2% Non-GAAP EBITDA margin in the third quarter of 2019.
Mr. Yulin Wang, Chief Executive Officer of Kingsoft Cloud, commented, “We delivered another solid quarter of operational and financial results for the third quarter of 2020. Our total revenues increase by
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| 1 | This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB6.7896 to US | |
| 2 | Non-GAAP gross profit is defined as gross profit excluding share-based compensation allocated in the cost of revenues, and we define Non-GAAP gross margin as Non-GAAP gross profit as a percentage of revenues. See “Reconciliation of GAAP and Non-GAAP results” set forth at the end of this press release. | |
| 3 | Non-GAAP EBITDA is defined as Non-GAAP net loss excluding interest income, interest expense, income tax expense and depreciation and amortization, and Non-GAAP net loss is defined as net loss excluding share-based compensation, foreign exchange (gain) loss, changes in fair value of financial instruments and other (income) expense, net. Non-GAAP EBITDA margin is defined as Non-GAAP EBITDA as a percentage of revenues. See “Reconciliation of GAAP and Non-GAAP results” set forth at the end of this press release. |
Mr. Henry He, Chief Financial Officer of Kingsoft Cloud added that “We are pleased to observe accelerated year-over-year revenue growth and improving bottom line performance. Our total revenues during the quarter came in at the mid-to-top end of the previous guidance, at RMB 1,728.8 million. It represents accelerated year-over-year growth of
Third quarter 2020 Financial Results
Total Revenues reached RMB1,728.8 million (US
- Revenues from public cloud services were RMB1,309.7 million (US
$192.9 million ), representing an increase of48.1% from RMB884.5 million in the same period of 2019.
- Revenues from enterprise cloud services were RMB409.1 million (US
$60.2 million ), representing an increase of257.3% from RMB114.5 million in the same period of 2019.
- Other revenues were RMB10.0 million (US
$1.5 million ).
Cost of revenues was RMB1,615.9 million (US
Gross profit was RMB112.9 million (US
Non-GAAP gross profit was RMB114.8 million (US
Selling and marketing expenses were RMB96.8 million (US
General and administrative expenses were RMB91.3 million (US
Research and development expenses were RMB167.6 million (US
Operating loss was RMB242.8 million (US
Net loss was RMB105.3 million (US
Non-GAAP net loss was RMB169.1 million (US
Non-GAAP EBITDA was RMB-26.3 million (US
Basic and diluted net loss per share was RMB0.03 (US
Cash and cash equivalents and short-term investments were RMB6,796.9 million (US
Outstanding ordinary shares were 3,270,266,493 as of September 30, 2020, equivalent to about 218,017,766 ADSs.
Business Outlook
For the fourth quarter of 2020, the Company expects total revenues to be between RMB1.88 billion and RMB1.95 billion. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change.
Conference Call Information
The Company will hold a conference call on Wednesday, November 18, 2020 at 7:00 am, U.S. Eastern Time (8:00 pm, Beijing/Hong Kong Time on the same day) to discuss the financial results.
Participants can register for the conference call by navigating to http://apac.directeventreg.com/registration/event/5847057. Once preregistration has been completed, participants will receive dial-in numbers, direct event passcode, and a unique registrant ID.
To join the conference, simply dial the number in the calendar invite you receive after preregistering, enter the passcode followed by your registrant ID, and you will join the conference instantly.
A telephone replay of the call will be available after the conclusion of the conference call through 10:00 a.m. U.S. Eastern Time, November 26, 2020. The dial-in details for the replay are as follows:
International: +61-2-8199-0299
U.S. Toll Free: +1-855-452-5696
Mainland China Toll Free: 800-870-0206
Hong Kong Toll Free: 800-963-117
Conference ID: 5847057
A live and archived webcast of the conference call will also be available at the Company’s investor relations website at http://ir.ksyun.com/.
Use of Non-GAAP Financial Measures
The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In evaluating our business, we consider and use certain non-GAAP measures, Non-GAAP gross (loss) profit, Non-GAAP gross margin, Non-GAAP EBITDA and Non-GAAP EDITDA margin, as supplemental measures to review and assess our operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define Non-GAAP gross (loss) profit as gross (loss) profit excluding share- based compensation allocated in the cost of revenues, and we define Non-GAAP gross margin as Non-GAAP gross (loss) profit as a percentage of revenues. We define Non-GAAP net loss as net loss excluding share-based compensation, foreign exchange (gain) loss, changes in fair value of financial instruments and other (income) expense, net. We define Non-GAAP EBITDA as Non-GAAP net loss excluding interest income, interest expense, income tax expense and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We also believe that the use of these non-GAAP measures facilitates investors’ assessment of our operating performance. These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP
financial measures have limitations as analytical tools. One of the key limitations of using these non-GAAP financial measures is that they do not reflect all items of income and expense that affect our operations. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.
We compensate for these limitations by reconciling these non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.
Exchange Rate Information
This press release contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from RMB to U.S. dollars, in this press release, were made at a rate of RMB6.7896 to US
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the Business Outlook and quotations from management in this announcement, as well as Kingsoft Cloud’s strategic and operational plans, contain forward-looking statements. Kingsoft Cloud may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to fourth parties. Statements that are not historical facts, including but not limited to statements about Kingsoft Cloud’s beliefs and expectations, are forward-looking statements. Forward- looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Kingsoft Cloud’s goals and strategies; Kingsoft Cloud’s future business development, results of operations and financial condition; relevant government policies and regulations relating to Kingsoft Cloud’s business and industry; the expected growth of the cloud service market in China; the expectation regarding the rate at which to gain customers, especially Premium Customers; Kingsoft Cloud’s ability to monetize the customer base; fluctuations in general economic and business conditions in China; the impact of the COVID-19 to Kingsoft Cloud’s business operations and the economy in China and elsewhere generally; China’s political or social conditions and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Kingsoft Cloud’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Kingsoft Cloud does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
About Kingsoft Cloud Holdings Limited
Kingsoft Cloud Holdings Limited (NASDAQ: KC) is a leading independent cloud service provider in China. Kingsoft Cloud has built a comprehensive and reliable cloud platform consisting of extensive cloud infrastructure, cutting-edge cloud products and well-architected industry-specific solutions across public cloud, enterprise cloud and AIoT cloud services.
For more information, please visit: http://ir.ksyun.com.
For investor and media inquiries, please contact:
Kingsoft Cloud Holdings Limited
Nicole Shan
Tel: +86 (10) 6292-7777 Ext. 6300
Email: ksc-ir@kingsoft.com
Christensen
Ms. Linda Bergkamp
Phone: +1-480-614-3004
E-mail: lbergkamp@christensenir.com
| KINGSOFT CLOUD HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands) | ||||||
| Dec 31, 2019 | Sep 30, 2020 | Sep 30, 2020 | ||||
| RMB | RMB | US$ | ||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | 2,023,263 | 3,866,503 | 569,474 | |||
| Accounts receivable, net | 1,347,481 | 2,027,606 | 298,634 | |||
| Short-term investments | 225,425 | 2,930,435 | 431,606 | |||
| Prepayments and other assets | 421,938 | 553,324 | 81,496 | |||
| Amounts due from related parties | 131,632 | 127,070 | 18,715 | |||
| Total current assets | 4,149,739 | 9,504,938 | 1,399,925 | |||
| Non-current assets: | ||||||
| Property and equipment, net | 1,720,974 | 1,935,358 | 285,047 | |||
| Intangible assets, net | 7,428 | 19,696 | 2,901 | |||
| Prepayments and other assets | 36,468 | 59,495 | 8,763 | |||
| Equity investments | 114,876 | 117,081 | 17,244 | |||
| Amounts due from related parties | 2,336 | 5,758 | 848 | |||
| Operating lease right-of-use assets | - | 276,452 | 40,717 | |||
| Total non-current assets | 1,882,082 | 2,413,840 | 355,520 | |||
| Total assets | 6,031,821 | 11,918,778 | 1,755,445 | |||
| LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT | ||||||
| Current liabilities | ||||||
| Accounts payable | 1,254,589 | 1,992,053 | 293,398 | |||
| Accrued expenses and other current liabilities | 949,213 | 717,739 | 105,712 | |||
| Short-term bank loans | - | 278,488 | 41,017 | |||
| Long-term bank loan, current portion | 100,000 | 124,351 | 18,315 | |||
| Income tax payable | 11,930 | 20,156 | 2,969 | |||
| Amounts due to related parties | 104,259 | 120,154 | 17,697 | |||
| Current operating lease liabilities | - | 66,287 | 9,763 | |||
| Total current liabilities | 2,419,991 | 3,319,228 | 488,871 | |||
| Non-current liabilities | ||||||
| Long-term bank loan | 74,351 | - | - | |||
| Deferred tax liabilities | 206 | 74 | 11 | |||
| Other liabilities | - | 41,799 | 6,156 | |||
| Non-current operating lease liabilities | - | 209,189 | 30,810 | |||
| Total non-current liabilities | 74,557 | 251,062 | 36,977 | |||
| Total liabilities | 2,494,548 | 3,570,290 | 525,848 | |||
| Mezzanine equity: | ||||||
| Series B convertible preferred shares | 337,268 | - | - | |||
| Series C redeemable convertible preferred shares | 1,043,147 | - | - | |||
| Series D redeemable convertible preferred shares | 5,965,273 | - | - | |||
| Series D+ redeemable convertible preferred shares | 388,844 | - | - | |||
| Total mezzanine equity | 7,734,532 | - | - | |||
| Shareholders’ (deficit) equity: | ||||||
| Series A convertible preferred shares | 123,186 | - | - | |||
| Ordinary shares | 5,558 | 22,343 | 3,291 | |||
| Additional paid-in capital | 91,746 | 13,826,068 | 2,036,357 | |||
| Accumulated deficit | (4,902,097 | ) | (5,759,144 | ) | (848,230 | ) |
| Accumulated other comprehensive income | 484,348 | 259,214 | 38,178 | |||
| Total Kingsoft Cloud Holdings Limited shareholders’ (deficit) equity | (4,197,259 | ) | 8,348,481 | 1,229,596 | ||
| Noncontrolling interests | - | 7 | 1 | |||
| Total (deficit) equity | (4,197,259 | ) | 8,348,488 | 1,229,597 | ||
| Total liabilities, mezzanine equity and shareholders’ (deficit) equity | 6,031,821 | 11,918,778 | 1,755,445 | |||
| KINGSOFT CLOUD HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (All amounts in thousands, except for share and per share data) | |||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| Sep 30, 2019 | Mar 31, 2020 | Jun 30, 2020 | Sep 30, 2020 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2020 | Sep 30, 2020 | ||||||||||
| RMB | RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||
| Revenues: | |||||||||||||||||
| Public cloud services | 884,518 | 1,208,514 | 1,287,139 | 1,309,693 | 192,897 | 2,513,701 | 3,805,346 | 560,467 | |||||||||
| Enterprise cloud services | 114,450 | 181,587 | 246,081 | 409,101 | 60,254 | 265,881 | 836,769 | 123,243 | |||||||||
| Others | 2,822 | 862 | 1,535 | 10,049 | 1,480 | 3,131 | 12,446 | 1,833 | |||||||||
| Total revenues | 1,001,790 | 1,390,963 | 1,534,755 | 1,728,843 | 254,631 | 2,782,713 | 4,654,561 | 685,543 | |||||||||
| Cost of revenues | (983,046 | ) | (1,320,192 | ) | (1,454,011 | ) | (1,615,945 | ) | (238,003 | ) | (2,829,327 | ) | (4,390,148 | ) | (646,599 | ) | |
| Gross profit (loss) | 18,744 | 70,771 | 80,744 | 112,898 | 16,628 | (46,614 | ) | 264,413 | 38,944 | ||||||||
| Operating expenses: | |||||||||||||||||
| Selling and marketing expenses | (87,309 | ) | (87,968 | ) | (109,775 | ) | (96,802 | ) | (14,257 | ) | (219,140 | ) | (294,545 | ) | (43,382 | ) | |
| General and administrative expenses | (55,491 | ) | (75,977 | ) | (170,421 | ) | (91,338 | ) | (13,453 | ) | (151,403 | ) |
Kingsoft Cloud Holdings Limited
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About KC北京金山云网络技术有限公司（以下简称“金山云”）为金山软件旗下的子公司，成立于2012年，是国内领先的云计算服务提供商，在北京、上海、成都、广州、香港和北美等全球各地设立数据中心及运营机构。 目前，金山云研发人员超过400人，核心技术团队来自百度、阿里巴巴、腾讯、微软、中国电信、金山软件等国内外一流的it公司；金山云服务器总规模超过两万台，资产总额超过5亿元，2014年营业收入近1亿元，预计2015年营业收入将达到5亿元左右。从人员数量、服务器规模、营业收入等方面来看，金山云已经成为国内领先的第三方云服务商。 成立短短3年间，金山云获得诸多殊荣。2012年，金山云受邀参与北京市“祥云工程”建设；2013年3月，金山云存储入选北京市四大云计算项目；2014年7月，金山云首批通过工信部组织的可信云服务认证，并荣获“年度新进云服务大奖”；同年12月，金山云承建的“高安全海量云存储北京市工程实验室创新能力建设项目”通过验收，成为我国云存储领域的标杆项目。2015年3月，金山云获中关村管委会权威认证，被授予中关村智能硬件唯一云服务平台称号，同月金山云还被工信部评选为云计算十大最具影响力企业、年度云计算应用优秀实践单位、年度云计算优秀解决方案/产品服务商；2015年7月，金山云通过公安部信息系统安全等级保护第三级认证，同月金山云还独家荣获“可信云2014-2015年度游戏云服务奖”。 我们的产品主要有云主机、云存储、关系型数据库、云监控和云安全。 我们的优势： 一、金山云拥有国内规模最大的openstack公有云，同时，金山云已成为国内首家提供混合云解决方案的云服务企业。 二、金山云已经成为国内最大的商业云存储服务商 三、金山云打造了国内最先进的医疗云平台 四、金山云构建了国内最大的游戏云平台，形成完善的游戏产业生态。
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