TikTok rival boasts profitability in China, overseas business soars

Chinese short-video platform Kuaishou recorded 21.7 billion yuan (US$3.2 billion) in revenue for the three months ended June 2022, a 13.4% jump year on year. Most notably, its domestic business turned profitable earlier than expected, bringing in about US$13.6 million in operating profit compared to a loss of US$145.7 million for the same period in 2021.

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Meanwhile, the firm’s net loss narrowed by 54.9% to 3.2 billion yuan (US$463.4 million) from US$1 billion last year.

The results were mainly driven by growth in online marketing, which increased by 10.5% to US$1.6 billion, and livestreaming services, which hiked 19.1% to US$1.3 billion. These segments represent 50.7% and 39.5% of Kuaishou’s total revenue, respectively.

The TikTok rival also gained strong momentum for its overseas business, which raked in US$15 million, a nearly 15x jump from US$1.1 million a year earlier. The segment’s operating loss also contracted by 63.2% year on year.

Traffic-wise, Kuaishou reported 347.3 million average daily active users for the quarter, an 18.5% increase from 293.2 million for the same period in 2021. On average, these users spent 125.2 minutes on the app, representing a 17.1% growth from 106.9 minutes last year.

The company attributed its positive financial numbers to stringent cost-cutting measures and a shifted business model that focuses on return on investment and operating efficiency.

Earlier this month, Kuaishou reshuffled its organizational structure by introducing a 12-member management committee. A few days prior, two senior executives reportedly left the company due to a lack of optimism in its development.

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Currency converted from Chinese yuan to US dollar: US$1 = 6.86 yuan