Kingsoft Cloud Holdings Ltd has delivered a remarkable quarterly performance that shattered expectations, with its strategic focus on artificial intelligence fueling extraordinary revenue growth. The Chinese cloud computing specialist reported that its AI-related business more than doubled, driving the company’s strongest results to date.
Financial Performance Exceeds Projections
The company’s second-quarter earnings report revealed substantial growth across key metrics. Total revenue reached $327.9 million, representing a 24.2 percent year-over-year increase. The public cloud services segment demonstrated even stronger performance, advancing 31.7 percent to $226.9 million.
Market analysts point to the AI division as the primary growth catalyst. Revenue from artificial intelligence services skyrocketed by 120 percent to $101.7 million, accounting for nearly half of all public cloud revenue.
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Key financial highlights include:
- Total Revenue: $327.9 million (+24.2% YoY)
- Public Cloud Revenue: $226.9 million (+31.7% YoY)
- AI Revenue: $101.7 million (+120% YoY)
- Non-GAAP EBITDA: RMB 406.0 million (+570.1% YoY)
- EBITDA Margin: 17.3%
Operational Efficiency and Market Response
Operational improvements were equally impressive, with adjusted EBITDA surging 570 percent year-over-year. The company achieved an EBITDA margin of 17.3 percent, though gross margin experienced slight pressure at 14.9 percent due to increased server costs and strategic investments in AI infrastructure expansion.
Investors responded enthusiastically to the results, driving the stock price up 6.7 percent to close at $15.07 on Wednesday. Technical indicators strengthened significantly, with both short-term and long-term moving averages now signaling strong buy positions according to market technicians.
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