KINGSOFT CLOUD Q4 revenue increased by 30% year-on-year, surpassing the industry average growth rate, with AI revenue increasing by nearly 500%

On March 19, 2025, Kingsoft Cloud (NASDAQ: KC, HKEX: 3896) released its fourth quarter financial report for 2024. Under the guidance of a high-quality sustainable development strategy, the company achieved a dual leap in revenue scale and profitability during the quarter, with adjusted operating profit turning profitable for the first time. The financial report shows that Kingsoft Cloud's Q4 revenue reached 2.23 billion yuan, a year-on-year increase of 29.6%, surpassing the industry average growth rate; among them, public cloud revenue was 1.41 billion yuan, a year-on-year increase of 34.0%, and industry cloud revenue was 820 million yuan, a year-on-year increase of 22.7%, achieving dual-driven and balanced development. In this quarter, the company continued to lead its transformation with artificial intelligence, with AI billing revenue reaching 474 million yuan, a nearly 500% year-on-year increase, accounting for 34% of public cloud revenue.

During the quarter, the company's profitability accelerated, achieving both "revenue growth" and "profit growth." Adjusted gross profit reached a historical high of 430 million yuan, a year-on-year increase of 63.0%; adjusted gross margin reached 19.2%; adjusted EBITDA margin hit a new high of 16.1%, a year-on-year increase of 17.7 percentage points and a quarter-on-quarter increase of 6.3 percentage points; adjusted operating profit turned profitable for the first time, with an adjusted operating profit margin of 1.1%, an increase of 12.0 percentage points compared to the same period last year.

In 2024, Kingsoft Cloud will deeply integrate the solid advancement of its artificial intelligence strategy with the resilience development goals of its core business, and the good performance reflects that the company has made breakthrough progress. Currently, the company has achieved the adaptation and use of DeepSeek in both public cloud and industry cloud scenarios. In the new technological development cycle, the company will continue to capture new growth opportunities based on its advantageous position.

Technological Innovation Makes a Strong Statement Artificial Intelligence Revenue Rises Again

The development of artificial intelligence brings transformative opportunities. Kingsoft Cloud is building an intelligent computing capability system around basic cloud, intelligent computing network, and intelligent computing platform to accumulate technology for the implementation of large models. As the only strategic cloud platform within the ecosystem, the company not only provides cloud services for ecological enterprises but also achieves new breakthroughs in areas such as general artificial intelligence and autonomous driving.

At the basic cloud level, multiple cloud servers have been successively released to meet customers' elastic computing needs. Among them, the ninth-generation cloud server performance assurance model X9 officially opened for invitation testing this quarter, with full-core turbo frequency reaching 3.8GHz, and the entire series supports ESSD high-speed cloud disks; for intelligent computing scenarios, the company has built a full range of high-performance file storage product matrix suitable for AI training, autonomous driving, video rendering, and other high-performance computing scenarios.

At the platform level, Kingsoft Cloud's StarFlow training and inference platform has resource pool management and training task management capabilities, providing RoCE network observability and GPU self-healing capabilities on one hand, and supporting distributed training of mainstream frameworks with task observability and fault tolerance capabilities on the other hand. In addition, the platform also provides an independent training and inference integrated module, supporting the entire process of model development, training, and inference To solve the "last mile" problem of large model implementation, Kingsoft Cloud's Hanhai platform has launched the App Builder product, which has already been continuously delivered to several key projects, including Beijing's government cloud. In the "2024 China MaaS Market Development Research Report" and the "China Generative Artificial Intelligence Enterprise Application Report (2024H1)" released by CCID, Kingsoft Cloud's Hanhai MaaS platform and Kingsoft Cloud's Qingzhou Zhihui application have both been selected for the Leaders quadrant.

In response to the digital intelligence upgrade of government and enterprise, Kingsoft Cloud's Galaxy platform V3.2.0 has achieved significant improvements in multiple dimensions such as cost, performance, security, and usability. The upgraded Galaxy platform fully embraces the cloud-native ecosystem, with major upgrades completed for the cloud platform foundation and over 30 core components, supporting a starting point of 5+N nodes, and reducing costs by up to 50% in IaaS+PaaS scenarios. With the comprehensive strength of the Galaxy platform, Kingsoft Cloud has been awarded the highest level of ITSS operation and maintenance service capability maturity certification.

Industry Benchmark Blossoms Collaborating with Customers to Expand Business Boundaries

The rapid development of large models is profoundly driving the digital transformation of vertical industries such as public services and healthcare. Kingsoft Cloud collaborates with customers through technological integration and scenario innovation to jointly expand business boundaries and create new growth engines.

Focusing on integrated cloud intelligence, Kingsoft Cloud has achieved fruitful results in the government cloud and state-owned assets cloud markets, with bases in Beijing, Wuhan, and Zhuhai. In this quarter, the company reached a strategic cooperation agreement with the Zhuhai Municipal People's Government, where both parties will conduct in-depth cooperation around government AIGC intelligent large models, government AI office applications, and digital innovation capabilities in government cloud applications; completed the data assetization project for DeepTrust Investment, and both parties will continue to explore deep cooperation in data elements and large models based on this project; won the bid for the Wuhan Optics Valley Cloud project, where both parties will form a joint operation team to achieve unified planning, construction, and management of the "Digital Optics Valley"; and the Yunnan State-owned Assets Cloud, officially launched in the second quarter, was awarded the "Leading Plan 2024 Cloud Building and Cloud Usage Typical Case" by the China Electronics Technology Standardization Institute.

Benefiting from deep industry accumulation and solid self-research capabilities, the company has seen benchmark projects in the digital health field flourish. In Central China, the company completed the phased acceptance of the system construction for the Yichang Central People's Hospital project, and the Kingsoft Cloud KDX data middle platform has been put into production; successfully signed the third phase project of the Xiantao Medical Community, which will be based on Kingsoft Cloud's own KDX platform for business transformation; at the same time, the first phase of the Chibi Medical Community constructed by the company has completed overall acceptance and successfully signed the second phase project. In South China, the project for the People's Hospital of Zhuhai High-tech Zone that the company serves has been delivered and launched; in East and Southwest China, Jiangsu Imaging Cloud and Chongqing Imaging Cloud continue to expand; in Northeast China, the Kingsoft Cloud KDX data middle platform product has been delivered and accepted at the Changchun CDC.

Zou Tao, Vice Chairman and CEO of Kingsoft Cloud, stated: "Under the guidance of a high-quality sustainable development strategy, our business fundamentals have been comprehensively improved, and our business has entered a new development cycle. Looking ahead, we will simultaneously promote revenue growth and profit enhancement measures, deeply cooperate with Xiaomi and Kingsoft's ecosystem, fully understand and explore new artificial intelligence opportunities, thereby continuously creating value for our customers, shareholders, employees, and other stakeholders."