On August 25th, Kingsoft Cloud Holdings (NASDAQ:KC) released his results for the second quarter of 2021. Thanks to the strategy of focusing on high-growth verticals and serving high-quality head customers, overall performance has remained solid and high. According to the financial report, Kingsoft Cloud Holdings Q2's total revenue reached 2.17 billion yuan, a record high for a single quarter and an increase of 42% over the same period last year. According to the company's Q3 revenue guidelines, the rate of increase is faster than that of Q2, and it is expected to increase by 49% Fr 56% compared with the same period last year, reaching 2.58 billion yuan to 2.7 billion yuan.
In the quarter, the company's two main businesses, the public cloud and the enterprise cloud, both achieved steady improvements in business scale and revenue quality. The fundamentals of public cloud continued to improve, achieving revenue of 1.55 billion yuan, maintaining the sixth consecutive quarter of growth after listing, with an absolute growth of 160 million yuan in a single quarter, reaching a new level of growth, the highest level in history. The enterprise cloud maintained a strong triple-digit growth momentum, with revenue of 620 million yuan, an increase of 153% over the same period last year, which is significantly higher than the growth rate of Q1.
Accelerate cloud edge integrationThe scale of public cloud is expanding
As the basic plate of Kingsoft Cloud Holdings's business, public cloud business, while deepening existing customer cooperation, relies on the synergy of previous infrastructure, technology reserves and customer accumulation to achieve steady business development and significant improvement in quality and efficiency. The acquisition of two PaaS companies this quarter will enhance the company's technical capabilities in edge computing and RTC, and further enrich the diversity of business scenarios to explore more innovative and service models to meet the diversified needs of customers.
In terms of product technology, the company continues to improve the cloud native ecosystem and publishes a high-performance, high-reliable, out-of-the-box one-stop micro-service PaaS platform-Service Grid, which achieves global and unified service management and accelerates the transformation of enterprises to digital cloud native architecture. At the same time, the micro-service engine is officially commercial, providing full-stack solutions such as service development, governance, operation and maintenance around the whole life cycle of micro-services, greatly improving business agility. The object storage product KingStorage-OBS has been upgraded to version 3.0, adding 8 key features such as data security, storage efficiency, and operation management, and improving access performance by 100%. At the same time, Kingsoft Cloud Holdings IaaS virtualization technology has won the "China Patent Excellence Award", one of the highest honors in China's patent field.
In terms of edge cloud, high-speed edge node networking Livenet 2.0 is introduced to achieve flexible networking between edge nodes, greatly improve the efficiency and stability of network transmission between edge computing nodes, accelerate the landing application of cloud-edge collaboration, and meet the needs of ultra-low latency and ultra-high interaction in scenarios such as live video streaming, cloud games, WebRTC, Internet of things and so on.
In the three high-concurrency live streaming activities of a well-known short video platform, Kingsoft Cloud Holdings's intelligent scheduling system intelligently deployed resources to respond to the sudden increase in network-wide traffic, ensuring a smooth and high-definition viewing experience for hundreds of millions of viewers. Based on the end-to-end VR solution from collection to playback, Autohome Inc exclusively completed a 360-degree panoramic 4K VR live broadcast for the Shanghai International Auto Show. In addition, help national-level martial arts IP "sword net 3 nostalgic clothes" to achieve the release of cloud game version, multi-terminal release rich game scenes.
The continuous enrichment and improvement of product and technical capabilities not only provide high-quality services to customers, but also further consolidate Kingsoft Cloud Holdings's market position in the industry. According to the 2021 China Cloud Computing Market Research Annual report released by Sadie Consultants, a domestic authority, Kingsoft Cloud Holdings ranks among the top three in China's public cloud market and public cloud IaaS market, with a stable market share.
The high growth of enterprise cloud business continues the strong momentum of the "iron triangle".
At present, the digital transformation has entered the "deep water area", and the industry is in the stage of continuous improvement of permeability and high release of demand. Kingsoft Cloud Holdings seizes the opportunity of increasing demand in the vertical field, through targeted output of differentiated technical services, to provide more practical business scenarios, complete and easy-to-use products and solutions, and set up barriers to industry segmentation. Kingsoft Cloud Holdings has built a solid "iron triangle" model in the high-growth areas of healthcare, finance and public services, helping corporate cloud revenues continue to grow.
In the medical field, in the period of accelerated development of the large health industry, Kingsoft Cloud Holdings gives full play to the power of "China and Taiwan" to help customers effectively achieve business landing. In the Hubei Health Medical big data Center and Public Health Emergency Management platform construction project-- Health Medical big data Center and its application support construction sub-project, the customized project strategy is adopted. by reflecting the ability of the business in the middle and Taiwan in the design and structure management and control, it has realized the first landing of "one lake and four middle and Taiwan" in the medical field. In addition, Cloud Pot, a full-stack health care digital platform, won the Golden I Award of "2021 Best Intelligent Medical Cloud solution provider" from the Informatization Research Center of the Chinese Academy of Social Sciences, and is the only winner in the medical cloud field.
In the financial sector, the new compliance requirements and competitive situation of financial science and technology services continue to promote the industry to accelerate information construction. In this quarter, Kingsoft Cloud Holdings assisted in the construction of Shandong provincial supply chain financial platform "Taifuxin" by exporting financial cloud service capabilities, driving customer business growth with industrial ties, and providing security services for Anhui Agricultural Credit. To ensure the smooth and efficient operation of its business. Excellent product technology and neutral attribute, so that Kingsoft Cloud Holdings won the trust of more customers. At present, the company has served nearly half of the state-owned banks and joint-stock banks, accounting for 60% of China's TOP 10 banks, forming a strong benchmarking effect for the continued development of the financial cloud market.
In the field of public service, take root in the industry, give full play to the top-level design advantages of cloud computing, and accelerate the digital transformation of various industries through industrial technology. Successfully won the bid for the Beijing Housing and Urban and Rural Construction Information Center to prepare the selection project for the top-level design of the brain to help it improve the level of information and achieve the safe and stable operation of the business system.
As part of the enterprise cloud business, Kingsoft Cloud Holdings enterprise cloud has recently made significant strategic progress. By integrating the project delivery capabilities and resources of Colette throughout the country's core hub cities, including Beijing, Wuhan, Nanjing, Shanghai and other places, the company's enterprise cloud service project implementation speed is expected to be greatly improved. Thanks to the Klaette team's unique industry proprietary technology solutions, strong delivery operation and maintenance capabilities and highly complementary high-quality customer base, so as to further expand and strengthen the enterprise cloud services business.
Self-built data center capped on scheduleFirm green and high-quality development
The stability and scalability of cloud computing services can not be separated from the strong data center support. This quarter, the first phase of Tianjin Yixianyuan Cloud Computing data Center project completed the main body capping on schedule. The data center is planned as Kingsoft Cloud Holdings North China core cloud computing base, based in North China, radiating the whole country, and providing a solid guarantee for supporting the digital transformation of various industries. By optimizing the design of mechatronics, air conditioning and civil engineering, the average annual PUE of the park
Kingsoft Cloud Holdings CEO Wang Yulin said: "Cloud computing has entered a new round of development cycle." Kingsoft Cloud Holdings will continue to explore the depth and breadth of the cloud industry, go deep into the industrial scene, continue to promote the cross-integration of cloud computing and cloud native, big data, edge computing and other technologies, and upgrade from'co-project'to'co-building industry 'with customers. form a new growth point under the new ecological cooperation relationship, and better achieve green and sustainable development. "