Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| In summary, we have achieved great milestones in executing high quality and sustainable development strategy with our profitability measures improving continuously |
| However, we do expect that in the future, the potential for new customers' demand has higher growth potential |
| But I think we are in the very good momentum and in a confident way that in Q1 and going forward, given the three reasons I just mentioned, our gross margin will continue to be seeing good results going forward |
| So to conclude, I think we do see a positive trend, even though I understand, Xiaodan, your concern may be in Q4, you do see a very good Q-on-Q jump of the margin about 3 percentage points |
| So the enterprise cloud margin expansion and high quality initiatives and the strategy we've set since 2022 has already seen some good results |
| During the year, we started building our success based on technology and innovations, forging our reputation throughout the entire business process, enhancing our operations management and building in the strength |
| We have been strategically adjusting our business mix and proactively embracing the new AI era, therefore, laying solid foundations to long-term sustainable development in 2024 and beyond |
| This quarter, we achieved dual improvement in both our revenue and profitability measures |
| And in history, especially in 2023, we're actually seeing the good experience and good trends that those enterprise cloud projects, the single level contract revenue contribution has expanded from, let's say, mid-single-digits in history a few years ago to double-digits |
| Adjusted gross margin recorded a major increase of 3.1 percentage points quarter-over-quarter to 15.2%, marking the sixth quarter of consecutive improvement |
| The third is, also, you probably didn't notice, is really about we actually, as Zou Tao mentioned in the prepared remarks is getting the better quality of the projects, not only about the cloud project itself, but also on the enterprise side as well as those verticals, including the financial service, healthcare and certain high quality public cloud projects as well |
| Those good benefits and the positive impact from the renegotiation and the lower cost basis will actually carry the continuous benefits to our margin and cost into 2024 |
| So KC has achieved significant gross margin improvement last year, partially attributable to the change in your revenue mix |
| So the second part is really about narrow and better managing the expenses and operation expenses, including, for example, the better management of the human capital costs, including the internal efficiency and streaming line order, internal management initiatives that were actually well contributing for the expansion of the EBITDA margin |
| Looking ahead, we believe the positive trend in profitability will persist as we continue to pursue a high quality and sustainable development strategy and unlock synergies within the Xiaomi and Kingsoft Group ecosystems as well as integrate our AI technology and ecosystem in a new era |
| It resulted from our margin improvements as well as our enhanced internal cash management |
| So, we are confident to see, as we make our efforts, our EBITDA margin will be getting to approaching the breakeven in a short-term of time |
| We're trying to not only making the EBITDA margin breakeven, but we're also trying to making the company with a better quality of revenue and continuous optimize the revenue mix and picking the right clients and also expanding the AI exposures, we'll be in a very good position to have the possibility to see a good trend of OP margin expansion as well |
| Adjusted gross profit of this quarter increased by 55.8% year-over-year to RMB262.5 million, representing adjusted gross margin of 15.2% this quarter compared with 7.9% in the same period of last year and 12.1% last quarter, making another record high as well as the sixth consecutive quarter of steady margin improvement |
| We are confident to say that all the initiatives in place, we'll see that in good results going forward in the next few quarters, probably, we can observe |
| Our adjusted gross profit continued to grow for the sixth consecutive quarter and achieved RMB262.5 million, increased by 55.8% year-over-year, representing adjusted gross margin of 15.2%, which is a record high for the company and significantly improved 3.1 percentage points compared with last quarter |
| For the fourth quarter, we delivered another quarter of steady profitability improvement |
| In financial services space, we continued to deepen our business cooperation with large state owned banks, improving our big data products and service capabilities and win the base of big data platform projects for leading state owned banks and trusts |
| During the quarter, Camelot exhibited stable and healthy revenue and profitability, signing up four new customers, while maintaining robust relationships with existing major clients |
| In terms of product and technology, we uphold our principle of building success based on technology and innovation, delivering best-in-class customer experience across our core product offerings |
| Upholding the strategy of a high quality and sustainable development, we are pleased to close the year 2023 with meaningful milestones on enhancement of revenue quality, margin expansion and operating efficiency |
| This quarter, we launched our elastic bare metal compute product, EPCX7, with significantly improved computing memory, network and storage performance |
| And from our own performance results, we have also achieved for sixth consecutive quarters of profitability improvement |
| Leading with increasing management efficiency, we will keep imposing strict cost and expense control, enhanced talent training and expansion of Wuhan Research Center and further improve the company's operating efficiencies |
| So that has proven the management team has already got some good experience and practiced those skills pretty well, and we think we can carry on that in the next few quarters |
| Statement |
|---|
| Non-GAAP EBITDA margin was negative 3.4% compared with negative 8.9% in 2022 |
| However, we have also seen other factors, especially geographic tension factors deteriorating the situation |
| The first one is we have actually been experiencing price pressure since the day of our founding |
| On one hand, the production of some made in China chips have been alleviating to some extent of the issue |
| This quarter, CDN revenue decreased by nearly 10% compared to last quarter and CDN revenue as a proportion of total revenue has decreased to approximately 23% |
| Non-GAAP EBITDA was negative RMB242.1 million, compared with negative RMB726.2 million in 2022 |
| As a result, normalized adjusted EBITDA margin further narrowed from negative RMB10.2 in the same period last year and a negative 2.7% in the last quarter to negative 1.6% this quarter |
| In terms of expenses, excluding share-based compensation and impairment of long-lived assets, our total adjusted operating expenses were RMB494.8 million, decreased by 32.2% year-over-year and 1.9% from last quarter, of which our adjusted R&D expenses were RMB162.5 million, decreased by 13.2% from last quarter |
| Our normalized adjusted EBITDA narrowed from negative RMB216.3 million in the same period of last year and a negative RMB44.1 million in the last quarter to negative RMB27.7 million this quarter |
| Adjusted selling and marketing expenses were RMB106.7 million, representing a decrease of 6.5% from RMB114.1 million last quarter |
| Total cost of revenues decreased by 25.4% year-over-year to RMB1,469.3 million |
| On every year, we have been seeing different kinds of price pressure coming from various of our peers in different kind of products |
| Top customer concentration has been fundamentally alleviated |
| Depreciation and amortization costs decreased by 39.2% from RMB241.7 million to RMB146.9 million, the decrease was mainly due to previous impairments of our long-lived assets |
| Yang Liu Could management talk about the strategic planning for enterprise cloud in 2024? And the second question is, we have seen some news on peers price competition in public cloud in early 2024 |
| So, the second question relates to the price competition in the market |
Please consider a small donation if you think this website provides you with relevant information