After the Hong Kong stock market on August 22, Kuaishou, the only short video listed company in China, released its financial report for the second quarter of 2023. Overall, this is another exciting financial report for the market. There are many positive factors, especially the first group-level operating profit since listing in 2021 — Q1 2023 is still only a domestic business profit — which is particularly encouraging, but aside from many highlights, Kuaishou will still face a long war.
As the profit target is achieved, the market will also be freed from the question of “when will Kuaishou make money” and instead focus on the next goal: the scale of the business and the sustainability of profit growth.
This article will mainly give a brief interpretation of this financial report from the following three levels:
Brief review of financial results for the second quarter;
Important snippets worth paying attention to;
Overall business progress assessment.
What needs to be clarified is that since we are not yet aware of the management's explanation of financial reports, the information currently known is limited, so our analysis will be as brief as possible, and may be one-sided or even erroneous. Investments are risky. Please refer to them as appropriate, and make decisions after cross-verifying information from multiple sources.
I. Performance Reviews
Of course, Kuaishou's core revenue is advertising, but currently most of its advertising revenue comes from the internal circulation part, that is, advertising by brands, merchants, and celebrities within the platform. Additionally, “other revenue items” are the fastest growing sector and are already quite large-scale. Yet these businesses are all high-margin businesses. Another thing they have in common is that they are all closely related to the e-commerce business, so we think,...