Financial summary
Kuaishou is a leading content community and social platform in China and globally. As a
technology company powered by and built upon artificial intelligence, Kuaishou is dedicated
to continuously enriching its services and application scenarios through ongoing
technological innovation and product upgrades, thereby creating value for its customers. On
Kuaishou, users record and share their lives through short videos and live streaming,
discover what they need, and showcase their talents. By closely collaborating with content
creators and businesses, Kuaishou provides technologies, products, and services that meet
users’ diverse needs, including entertainment, online marketing services, e-commerce, local
lifestyle services, gaming, and more.
Financial performance
In the first quarter of 2025, the company achieved total revenue of RMB 32.6 billion
(Chinese yuan, same below), representing a year-over-year increase of 10.9%. In terms of
profitability, operating profit reached RMB 4.3 billion, up 6.6% YoY, while adjusted net profit
was RMB 4.6 billion, a 4.4% YoY increase. By segment, 1Q25 online marketing services
revenue grew 8.0% YoY to RMB 18.0 billion, primarily driven by increased ad spending from
marketing clients due to the adoption of AI-powered ad placement solutions. Live streaming
revenue rose 14.4% YoY to RMB 9.8 billion, attributed to refined operations and diversified
content. Other services revenue increased 15.2% YoY to RMB 4.8 billion, mainly fueled by ecommerce business growth.
In terms of expenses, the company’s sales and marketing expenses as a percentage of total
revenue decreased to 30.4% in Q1 2025 from 31.9% in the same period last year, primarily
due to improved operational efficiency.
In Q1 2025, Kuaishou’s average daily active users (DAUs) and monthly active users (MAUs)
reached 408 million and 712 million, respectively, up 3.6% and 2.1% YoY. The app’s DAUs hit
a record high and surpassed 400 million for the third consecutive quarter. Through refined
user growth strategies, the average customer acquisition cost (CAC) for new users decreased.
Meanwhile, enhanced content consumption experiences—driven by high-quality content,
iterative traffic distribution mechanisms, and diverse community engagement features—
further improved new user retention rates.
Online Marketing Services: External-loop business as the core growth engine, AI-driven
end-to-end efficiency improvement
In the first quarter of 2025, external-loop marketing services served as the primary growth
driver, with AI technology deeply enhancing end-to-end operational efficiency. Within the
content consumption sector, marketing expenditure for short dramas achieved rapid yearover-year growth. Marketing clients leveraged native pathways to elevate content value and
strengthen user engagement, deepening the platform’s understanding of user preferences.
In the local lifestyle sector, solutions such as native direct messaging and lead form
collection boosted conversion rates, driving marketing expenditure growth of over 50.0%
YoY.
Meanwhile, AI technology empowered the entire workflow of online marketing service
solutions, delivering efficient brand marketing and performance-driven conversions.
According to management, Q2 online marketing service revenue is expected to return to
double-digit YoY growth, with accelerated ad expenditure growth in the generalized shelfbased advertising space.
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She graduated from the University of New South Wales with a bachelor's degree in accounting and finance and from the University of Hong Kong with a master's degree in finance. He is currently a licensed analyst at Phillip Securities, mainly responsible for research in the TMT and semiconductor sectors, and has worked in securities companies and family offices.