KUAISHOU's Q4 revenue increased by 8.7% year-on-year, short video e-commerce GMV grew by over 50.0%, and Keling AI's cumulative revenue exceeded 100 million yuan | Financial Report Insights

KUAISHOU's Q4 revenue increased by 8.7% year-on-year, and net profit grew by 7.8% year-on-year. The GMV of short video e-commerce grew by over 50.0%, and the cumulative revenue of KOL AI exceeded 100 million yuan. On the 25th, KUAISHOU Technology announced its fourth quarter and annual financial report: 1) Key Financial Data: Revenue: Q4 revenue reached 35.384 billion yuan, an increase of 8.7% year-on-year; Net Profit: Q4 adjusted net profit was 4.701 billion yuan, an increase of 7.8% year-on-year. Gross Margin: Q4 gross margin reached 54.0%, higher than 53.1% in the same period last year, with this growth mainly attributed to the continuous optimization of revenue structure and improvement in operational efficiency. For the full year of 2024, KUAISHOU's revenue is expected to be 126.9 billion yuan, a year-on-year increase of 11.8%; the full-year adjusted net profit is expected to be 17.716 billion yuan, a year-on-year increase of 72.5%. 2) Business Revenue Data: Online Marketing Services: Q4 online marketing service revenue reached 20.620 billion yuan, an increase of 13.3% year-on-year; the annual growth rate of online marketing service revenue exceeded 20%. E-commerce Business: Q4 e-commerce GMV increased by 14.4% year-on-year to 462.1 billion yuan, with Q4 short video e-commerce GMV growing by over 50.0% year-on-year. Live Streaming Business: Q4 revenue was 9.8 billion yuan, with the year-on-year decline further narrowing compared to the previous quarter. User Ecosystem Continues to Prosper, Online Marketing Services Become Main Growth Engine KUAISHOU's user base continues to grow steadily, with Q4 average daily active users reaching 401 million, an increase of 4.8% year-on-year; monthly active users reached 736 million, an increase of 5.0% year-on-year. User stickiness remains high, with an average daily usage time of 125.6 minutes and total usage time increasing by 5.8% year-on-year. The company has enhanced user activity, interactivity, and retention through refined user growth strategies and content operations. In terms of content ecology, KUAISHOU has deeply engaged in niche content, such as its collaboration with the Anwan Qin Opera Troupe in the general knowledge field, which garnered over 140 million views, effectively promoting online and offline user interaction and demonstrating KUAISHOU's social value in traditional cultural dissemination. Q4 online marketing service revenue reached 20.620 billion yuan, an increase of 13.3% year-on-year, with the annual growth rate of online marketing service revenue exceeding 20%. This growth mainly comes from the high year-on-year increase in eCPM and incremental marketing opportunities, including commercial short dramas. In particular, the marketing expenditure for commercial short dramas grew by over 300% year-on-year in Q4, becoming an important driver of marketing revenue growth. External circulation marketing services remain the main source of growth for online marketing service revenue, while internal circulation marketing services continue to assist e-commerce merchants in exploring quality traffic on the KUAISHOU platform and improving operational efficiency The E-commerce Ecosystem Continues to Prosper, AI Empowerment Becomes Core Competitiveness In Q4, e-commerce GMV grew by 14.4% year-on-year to 462.1 billion yuan, and the number of monthly active buyers in e-commerce increased by 10.0% year-on-year to 143 million, with a monthly active user penetration rate of 19.5%. The number of active merchants in e-commerce grew by over 25.0% year-on-year in Q4, especially small and medium-sized merchants whose GMV saw significant year-on-year growth, mainly due to the enhancement of new merchant recruitment policies, optimization of existing merchant policies, and the construction of diversified scenarios. In terms of diversified scenarios, Q4 short video e-commerce GMV grew by over 50.0% year-on-year, becoming an important incremental scene in the content field. At the same time, the GMV of general shelf e-commerce continued to grow significantly, accounting for 30.0% of total e-commerce GMV. In Q4, the daily active merchants in the mall scenario grew by over 50.0% year-on-year, and the daily active buyers increased by nearly 40.0%. In Q4 2024, KUAISHOU made significant breakthroughs in the AI field, with the video generation large model Keling launching version 1.6, achieving significant improvements in image quality and action details. The Keling AI independent app officially launched, and from the start of monetization until February 2025, it accumulated revenue exceeding 100 million yuan. In terms of content and commercial ecosystem applications, KUAISHOU utilizes the understanding capabilities of AI large models for short videos, live broadcasts, and other content to recommend more precise content to users, enhancing user duration and activity. In commercial scenarios, AIGC marketing materials are consumed at over 30 million yuan daily, significantly improving customer marketing efficiency. Overseas Business Accelerates Breakthrough, Deepening in the Brazilian Market KUAISHOU's overseas business maintains rapid growth, with Q4 revenue increasing by 52.9% year-on-year, of which online marketing revenue grew by 83.5% year-on-year. The operating loss of overseas business narrowed by 57.2% year-on-year, with a significant improvement in profitability. In the Brazilian market, KUAISHOU achieved a year-on-year growth of 9.3% in daily active users by optimizing traffic distribution mechanisms and local content operations, with average daily usage time exceeding 75 minutes. The Brazilian e-commerce business has initially validated its business model, with order scale continuing to rise and improvements in subsidy efficiency and operational efficiency