The following is a summary of the Kingsoft Corporation Limited (KSFTF) Q4 2024 Earnings Call Transcript:
Financial Performance:
Kingsoft Corporation reported a significant quarter-on-quarter and year-on-year revenue increase of 42% and 18%, respectively, reaching RMB 2.915 billion.
The company's operating profit reached a high of RMB 1.14 billion, marking an increase of 204% year-on-year and 44% quarter-on-quarter.
Gross profit increased 46% year-on-year and 20% quarter-on-quarter to RMB 2.454 billion, with the gross profit margin rising to 84%.The company's net profit attributable to owners, excluding share-based compensation cost, was RMB 453 million.
Business Progress:
Kingsoft emphasized AI integration across its products, notably with the launch of WPS AI 2.0, which has seen high user engagement and conversion rates.
In gaming, the company highlighted the sustained success of JX Online series and the promising start of Mecha BREAK, which attracted nearly 3 million global pre-registrations.
Continued investments in AI and innovation are planned to deliver more intelligent solutions and enhance player experiences across gaming platforms.
Opportunities:
Significant growth was noted in Kingsoft's international office software and gaming sectors, with high recognition and promising user growth rates indicating strong market potential abroad.
The company plans further expansion into overseas markets, leveraging their AI capabilities, which are expected to enhance growth.
Risks:
The gaming business, while currently strong, faces future uncertainties as next year's performance forecasts are yet undisclosed, depending on the success of upcoming game launches.
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