Event: 24Q2 The company achieved revenue of 30.975 billion yuan, YoY +11.6%; net profit of 3.98 billion yuan, YoY +168.7%, adjusted net profit of 4.679 billion yuan, YoY +73.7%.
User growth continues to reach new highs. Thanks to the improvement of the user ecosystem, the average DAU and MAU of Kuaishou in 24Q2 reached 0.395/0.692 billion, YoY +5.1%/2.7% respectively, continuing to reach record highs. Total user time increased 9.5% year-on-year, and the platform maintained high stickiness.
Internal and external circular marketing is growing steadily. By optimizing intelligent marketing solutions, 24Q2 Kuaishou's online marketing service revenue was 17.5 billion yuan, YoY +22.1%. Among them, revenue from external circulation marketing services increased significantly, especially in industries such as media information, e-commerce platforms, and local lifestyle; revenue from internal circulation marketing services also showed steady growth, and the investment consumption of small and medium-sized businesses increased by 60% over the same period last year.
E-commerce GMV growth is slowing down. 24Q2's e-commerce GMV reached 305.3 billion yuan, YoY +15%, and other businesses (mainly e-commerce) achieved revenue of 4.2 billion yuan and YoY +21%. On the demand side, the company continues to iterate and promote new initiatives. The number of monthly active e-commerce buyers reached 0.131 billion, YoY +14.1%; on the supply side, the launch plan helped new merchants cool down, and the average number of monthly sales merchants increased by more than 50% year-on-year.
Breakthroughs have been made in multi-modal AI, and overseas business is progressing smoothly. During the reporting period, the company officially released Keling AI, a large model for video generation, and introduced a membership system to users around the world; at present, the company has built an AI matrix including a quick large language model, a large visual generation model, and a large recommendation model, and embedded multiple business scenarios. In 24Q2, AIGC marketing material consumption from marketing customers peaked at 20 million yuan per day.
Overseas business user traffic continues to grow. In 24Q2, daily active users in overseas core markets spent nearly 80 minutes per day, YoY +5%. The company's overseas business revenue was 1.1 billion yuan, YoY +141.4%, and operating losses decreased by 64.5% over the same period last year.
Profit prediction and investment advice: The company's user ecosystem and commercialization capabilities continue to improve, and AI matrix empowerment is expected to further open up room for growth. We expect the company's adjusted net profit for 2024/25/26 to be 17.6/23.4/30.3 billion yuan, +71%/33%/30% YoY, maintaining a “buy” rating.
Risk warning: Consumption recovery falls short of expectations, policy risks, and increased market competition.