KUAISHOU-W's revenue and profit continued to grow in the second quarter, with adjusted net profit reaching RMB 4.679 billion, a year-on-year increase of 73.7%

According to the financial news from Zhitong Finance APP, KUAISHOU-W (01024) announced its mid-year performance for 2024, with revenue of RMB 60.383 billion, a year-on-year increase of 14%; gross profit of RMB 33.255 billion, a year-on-year increase of 29.7%; net profit for the period was RMB 8.1 billion, a year-on-year increase of 1238.8%; adjusted net profit was RMB 9.067 billion, a year-on-year increase of 231.4%. In the first half of 2024, nearly 20,000 merchants optimized their operations on the Kuaishou platform with the help of AI matrix. In the second quarter of 2024, the daily peak consumption of AIGC marketing materials from marketing clients reached RMB 200 million.

In the second quarter of 2024, KUAISHOU-W achieved revenue of RMB 30.975 billion, a year-on-year increase of 11.6%; gross profit of RMB 17.135 billion, a year-on-year increase of 23%; net profit for the period was RMB 3.98 billion, a year-on-year increase of 168.7%; adjusted net profit was RMB 4.679 billion, a year-on-year increase of 73.7%.

Among them, online marketing service revenue increased by 22.1% from RMB 14.3 billion in the same period of 2023 to RMB 17.5 billion in the second quarter of 2024, mainly driven by optimized intelligent marketing solutions and advanced algorithms, which led to an increase in marketing client spending. Other service revenue increased by 21.3% from RMB 3.4 billion in the same period of 2023 to RMB 4.2 billion in the second quarter of 2024, mainly due to the growth of the company's e-commerce business, reflected in the increase in e-commerce GMV. The increase in e-commerce GMV is attributed to the company's diversified omnichannel operations, which increased the number of active paying users and active selling merchants in e-commerce.

In the second quarter of 2024, the average daily active users and average monthly active users of the Kuaishou app reached 395 million and 692 million respectively, with year-on-year growth of 5.1% and 2.7% respectively. The average daily usage time of Kuaishou app users reached 122 minutes. The company achieved accelerated growth in user traffic, with total usage time of Kuaishou app users increasing by 9.5% year-on-year.

In terms of search business, in the second quarter of 2024, the company continued to optimize the "search after watching" function and introduced a single-column style in the presentation of search results to enhance user experience and unleash commercial potential. The company's search user penetration rate further increased, with nearly 500 million monthly active users using Kuaishou search in the second quarter of 2024, while daily search volume increased by over 20% year-on-year.

In the second quarter of 2024, e-commerce GMV increased by 15% year-on-year to RMB 305.3 billion. From the demand side, the number of monthly active buyers in e-commerce in the second quarter of 2024 increased by 14.1% year-on-year to 131 million, and the penetration rate of monthly active users reached a record high of 18.9%. The company adheres to a user-first strategy and rapidly captures and responds to rapidly changing consumer preferences through precise industry tactics. Specifically, the company will continue to focus on the continuous iteration of new customer acquisition and activation measures, expand coverage of the population through product and subsidy strategies, and encourage repeat purchases by users.

In the field of e-commerce, in the second quarter of 2024, the GMV of pan-shelf e-commerce continued to grow significantly, accounting for over 25% of total GMV. During the 618 promotion period, the order volume of pan-shelf e-commerce increased by 65% year-on-year, becoming an important growth point for e-commerce business. The average daily active selling merchants in the mall in the second quarter of 2024 increased by over 50% year-on-year, and the average daily buyers increased by over 70% year-on-year From the user's perspective, the average number of product cards viewed per user in the company's mall and the scale of products searched by users have grown rapidly year-on-year. The consumer mindset of being able to browse and search on Kuaishou Mall is increasingly strengthening. The introduction of large models has also enhanced the ability to identify user shopping intentions, with a year-on-year increase of over 80% in e-commerce GMV from searches in the second quarter of 2024. In addition, Kuaishou Mall has launched sales hosting services, integrating platform-wide traffic, aiming to reduce the operational threshold for merchants and provide them with a deterministic sales channel. Furthermore, the company's short video e-commerce GMV continued to grow rapidly in the second quarter of 2024, with a year-on-year increase of nearly 70%. Merchants use short videos before live streaming to attract potential users, and after live streaming, they extend the sales cycle of popular products through short videos, further strengthening the linkage between short videos and live streaming.

In terms of monetization capabilities, overseas revenue reached RMB 1.1 billion in the second quarter of 2024, a year-on-year increase of 141.4%. The company's overseas online marketing team actively expands clients in various industries by optimizing product capabilities and enhancing customer experience. As a result, online marketing revenue from overseas businesses grew by over 200% year-on-year, with a continuous increase quarter-on-quarter. With the improvement in overseas monetization efficiency, the operating leverage effect continues to be released, and the operating loss of overseas business in the second quarter of 2024 was RMB 277 million, a year-on-year decrease of 64.5%