Beijing Kingsoft Office Software, Inc's financial report shows that in the first three quarters of this year, Beijing Kingsoft Office Software, Inc achieved a revenue of 3.627 billion yuan, a year-on-year increase of 10.90%, and a net profit attributable to the mother increased by 16.41% year-on-year. Domestic personal office service subscription business remains the main driver of revenue growth for Beijing Kingsoft Office Software, Inc, with a year-on-year increase of 17.24% in the third quarter, while domestic institutional subscription and service business only grew by 0.02%.
"Star Daily" reported on October 25th (Reporter: Guo Hui) Beijing Kingsoft Office Software, Inc released its third-quarter financial report for 2024 tonight on October 25th.
According to the data, in the first three quarters of this year, Beijing Kingsoft Office Software, Inc achieved a revenue of 3.627 billion yuan, a year-on-year increase of 10.90%; the net profit attributable to the mother was 1.04 billion yuan, a year-on-year increase of 16.41%.
Looking at a single quarter, the company's third-quarter revenue was 1.214 billion yuan, a year-on-year increase of 10.53%, basically the same as the first and second quarters of this year; the net profit attributable to the mother was 0.318 billion yuan, a year-on-year increase of 8.33%, but has been declining for three consecutive quarters since the first quarter of this year.
In the third quarter, the net cash flow from operating activities of Beijing Kingsoft Office Software, Inc was 0.451 billion yuan, a year-on-year increase of 31.20%. In terms of research and development, the total R&D investment of Beijing Kingsoft Office Software, Inc in the first three quarters of this year was 1.262 billion yuan, a year-on-year increase of 17.26%.
By business segment, domestic personal office service subscription business remains the main driver of revenue growth for Beijing Kingsoft Office Software, Inc, with related revenue of 0.762 billion yuan in the third quarter, a year-on-year increase of 17.24%.
Beijing Kingsoft Office Software, Inc stated that in WPS AI 2.0, new AI writing assistants, AI reading assistants, AI data assistants, AI design assistants, and other features have been added to provide users with a more convenient and efficient creative experience. This effectively promotes user stickiness, increases conversion rates, and drives steady growth in domestic personal office service subscription business.
Recently, WPS AI functionality has been updated again. Beijing Kingsoft Office Software, Inc. announced the launch of WPS AI co-writing feature based on AI Agent, which can understand user intent and continue writing content, improving document writing efficiency and accuracy.
In terms of domestic institutional subscriptions and service business, the revenue in the third quarter was 0.248 billion yuan, with a year-on-year growth of only 0.02% compared to last year. Previously, the company aimed to leverage WPS 365 to strengthen the scale of the public cloud market for large private enterprises and local state-owned enterprises, optimize revenue structure, and further upgrade the revenue model. The growth rate of its related business has slowed down in the first half of this year.
The revenue of domestic institutional authorization business in the third quarter was 0.143 billion yuan, an increase of 8.97% year-on-year. Beijing Kingsoft Office Software, Inc. stated that the growth of related business is attributed to the company's continuous close tracking of policy changes and customer demands, fully deploying in the party and government information creation field in the sinking market, and the increase in related orders driving the growth of domestic institutional authorization business.
In its research report released in September this year, Tianfeng Securities is bullish on the business growth of Beijing Kingsoft Office Software, Inc. in the information creation market. The view is that basic office software is the most widely applicable product in the information creation software, and it is expected that with further publication of information creation policies and financial support, the institutional authorization business of Beijing Kingsoft Office Software, Inc. is expected to resume high-growth revenue under the new round of information creation impetus, and the overall growth rate is expected to be raised.
In addition, in terms of international and other businesses, the revenue in the third quarter was 60.75 million yuan, a year-on-year decrease of 10.43%. Beijing Kingsoft Office Software, Inc. stated that its overseas business maintained high-speed growth, but due to the closure of domestic third-party commercial advertising business this year, the revenue change was affected by a high base number in the same period last year.
As of the end of the third quarter of this year, the monthly active device number of Beijing Kingsoft Office Software, Inc.'s main products was 0.618 billion, a year-on-year growth of 4.92%. Among them, the monthly active device number of WPS Office PC version was 0.277 billion, a year-on-year growth of 6.95%; and the mobile version had 0.338 billion monthly active devices, a year-on-year growth of 3.36%.
Of note, the recent release of Huawei's native HarmonyOS system has already seen over 15,000 Harmony native applications and elements go live, with universal office applications covering over 38 million industries nationwide. Huawei's Yu Chengdong mentioned at the HarmonyOS launch event that thousands of internal government and enterprise office applications are accelerating online, 'HarmonyOS-ified office' becoming the new trend of the times.
WPS's HarmonyOS native application has also been officially launched simultaneously. According to Beijing Kingsoft Office Software, Inc., the WPS R&D team has conducted product adaptations on different screen sizes such as mobile phones, foldable screens, and tablets, and based on a unified multi-platform account, it can achieve cross-platform, cross-device document and data sharing, support multi-user collaboration, browsing, editing, and revising capabilities. WPS AI will also be synchronized across multiple platforms, and dozens of AI functions are set to migrate to HarmonyOS NEXT.
Beijing Kingsoft Office Software, Inc.'s Vice President Bi Xiaocun stated that HarmonyOS NEXT has opened up a brand new business market opportunity, bringing users a whole new office experience. "WPS Hongmeng native version is just the beginning, and in the future, it will work together with Hongmeng to refine ultimate products in the AI and collaborative office fields".
CITIC Securities' latest research report released on October 24 stated that HarmonyOS 5.0 has been officially released, achieving overall evolution since its birth, accelerating the growth of the Harmony software and hardware ecosystem. Optimistic about the increase in the penetration rate of HarmonyOS and the continuous acceleration of the software ecosystem formation. Harmony partners are expected to embrace development opportunities.
