On May 27, Kuaishou (01024.HK) released its performance report for the first quarter of 2025. In that quarter, Kuaishou achieved total revenue of 32.6 billion yuan, a year-on-year increase of 10.9%; the profit for the period was 3.979 billion yuan, a year-on-year decline of 3.4%; the adjusted net profit reached 4.6 billion yuan, a year-on-year increase of 4.4%; the adjusted net profit margin was 14%.
It is worth noting that in the first quarter of 2025, Kuaishou's overseas business achieved an overall operating profit for the first time in a single quarter. At the same time, Kuaishou stated that the commercialization of Keling AI has accelerated, with revenues exceeding 150 million yuan in this quarter, and it has been widely applied in various industries such as advertising marketing, short dramas, and smart terminals.
The reporter from "China Business Journal" noted that during the earnings call, Kuaishou Technology's founder and CEO Cheng Yixiao revealed that Kuaishou will soon launch more version models with cost-performance advantages, providing users with a wider variety of choices to meet their different video production needs and scenarios.
AI empowers business
In the first quarter of 2025, Kuaishou achieved total revenue of 32.608 billion yuan, a year-on-year rise of 10.9%. Among them, online marketing service revenue was 17.977 billion yuan, a year-on-year rise of 8.0%, accounting for 55.1% of total revenue; live streaming business revenue was 9.814 billion yuan, a year-on-year rise of 14.4%, accounting for 30.1% of total revenue; other services (mainly e-commerce) revenue was 4.817 billion yuan, a year-on-year rise of 15.2%, accounting for 14.8% of total revenue.
From a business perspective, Kuaishou's three major business segments achieved a rise in this quarter; however, the proportion of each business unit's contribution to total revenue did not change significantly compared to the same period last year. Online marketing service revenue remains the main contributor to revenue.
Kuaishou stated that in the complex and changing global macroeconomic environment, it is promoting the empowerment of business through artificial intelligence (AI) technology, consolidating the content and commercial ecosystem through intelligent upgrades, enhancing the platform usage experience for users and content creators, and improving the operational efficiency for merchants and online marketing clients.
In the first quarter of 2025, the average daily active users and average monthly active users of the Kuaishou app reached 408 million and 712 million, respectively, with a year-on-year rise of 3.6% and 2.1%, setting a historical high for average daily active users. Moreover, the average online marketing service revenue per daily active user was 44.1 yuan, an increase of 4.3% year-on-year.
"We have empowered the entire process of online marketing service solutions using AI technology, including AIGC marketing material production, marketing deployment intelligent agents, and marketing recommendation large models, enhancing the marketing conversion efficiency for our clients." Kuaishou disclosed that in the first quarter of 2025, the daily average advertising consumption of AIGC marketing materials was approximately 30 million yuan.
In the first quarter of 2025, the marketing expenditure in Kuaishou's local life sector rose by over 50.0% year-on-year. In terms of intelligent product deployment, the total marketing expenditure of the UAX (Fully Automated Deployment) solution accounted for more than 60.0% of the total external circulation expenditure. Additionally, the total expenditure of e-commerce merchants using the All-Site Promotion Smart Agent 4.0 or Smart Hosting for marketing promotion accounted for 60.0% of the internal circulation expenditure.
Accelerate monetization of KeLing AI
In April this year, Kuaishou officially released the Kegeng 2.0 video generation model and the Ketux 2.0 image generation model.
"Since its launch in June last year, Keling AI has completed more than 20 iterations." Gai Kun, Senior Vice President of Kuaishou and head of the Community Science Line, stated that the newly released Keling 2.0 model has significant improvements in dimensions such as dynamic quality, semantic response, and visual aesthetics; the Ketu 2.0 model has significantly enhanced performance in instruction adherence, cinematic quality, and artistic style.
According to Kuaishou, as of April, the global user base of Kelin AI has exceeded 22 million, generating a total of 168 million videos and 344 million image materials. Since its launch in June last year, the monthly active user count of Kelin AI has risen 25 times in just 10 months until April this year.
Kuaishou has revealed that Keling AI has been widely applied in various industries such as advertising marketing, short dramas, and smart terminals. "We are more confident in our vision of Keling AI becoming the infrastructure for video creation in the new AI era."
Cheng Yixiao revealed on the earnings call that in the first quarter of this year, the revenue scale of Keling AI has reached 150 million yuan. From the perspective of revenue composition, at present, the paid subscribers on the P (Prosumer) side contribute nearly 70% of the operating income of Kelin AI, and the paid subscribers on the P side refer to professional users such as self-media video creators and advertising and marketing practitioners, who have both the communication attributes of C-end users and the payment ability of B-end users, and are the core audience group of the current video generation model. At present, the number of paid subscribers and ARPU value of Kuaishou P-end are showing a high growth rate, and the two-wheel drive of Keling P-end paid subscription revenue growth.
Moreover, Keling also provides API access cooperation for B-end merchants. Currently, Keling has provided API services for over 10,000 enterprise clients, covering multiple industries such as professional creation platforms, advertising and marketing, film and animation, game production, and smart terminals, with a very high renewal rate among enterprise clients.
When discussing the future rise strategy of KeLing AI, Cheng Yixiao stated: "The team will continuously iterate on technological capabilities and engineering innovations to maintain the global technological leadership of the KeLing foundation model, while enhancing user experience through product innovation. In addition, we will continue to carry out related operational activities, especially in overseas regions, to achieve user growth."
"In the past year, the most noticeable breakthrough in domestic video generation large models is the enhancement of 'controllability'. Some models can precisely control character positions, movement trajectories, and even audio synchronization, so users no longer have to crazily 'draw cards' and rely on luck." Zhang Xiaorong, the director of the Deep Technology Research Institute, stated in an interview with reporters: "The commercialization of video generation large models mainly involves subscription-based services for consumers (to C) and industry customization for businesses (to B). However, overall, it is still in the experimental stage, and it has not yet reached a breakout period; most products have not yet established a monetization loop."
Chief Economist Zheng Lei of Samoyed Cloud Technology Group also pointed out to reporters: "At the technical level, the coherence, realism, and consistency of video generation large models still need to be improved."
Overseas business operating profit turned positive
From the perspective of domestic and overseas business segments, in the first quarter of 2025, Kuaishou's domestic segment achieved a revenue of 31.293 billion yuan, a year-on-year rise of 10.1%, accounting for approximately 96.0% of total revenue; the overseas segment achieved a revenue of 1.215 billion yuan, a year-on-year rise of 32.7%, accounting for approximately 4.0% of total revenue.
From the perspective of operating profit, Kuaishou's domestic division's operating profit in the first quarter of 2025 was 4.345 billion yuan, compared to 3.991 billion yuan in the same period last year; the overseas division's operating profit was 28 million yuan, compared to an operating loss of 268 million yuan in the same period last year.
Although the revenue contribution from Kuaishou's overseas division is still relatively small, it has already achieved profitability at the overall operational level.
Kuaishou's overseas business focus strategy has shown significant results after two years of implementation, with revenue rise and for the first time achieving positive operating profit at the overall overseas level in a single quarter.
Kuaishou stated that the turnaround in operating profit is related to the rise in revenue and effective cost control. Kuaishou continuously optimizes its customer acquisition channels overseas, focusing on targeted advertising for high-value audiences. In Brazil, one of its core overseas markets, both DAU and usage time have steadily risen. Additionally, while strictly controlling ROI, the order volume of the e-commerce business in Brazil has achieved healthy year-on-year growth.
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Kuaishou Q1 revenue of 32.6 billion yuan accelerates AI commercialization.
On May 27, Kuaishou (01024.HK) released its performance report for the first quarter of 2025. In that quarter, Kuaishou achieved total revenue of 32.6 billion yuan, a year-on-year increase of 10.9%; the profit for the period was 3.979 billion yuan, a year-on-year decline of 3.4%; the adjusted net profit reached 4.6 billion yuan, a year-on-year increase of 4.4%; the adjusted net profit margin was 14%.
It is worth noting that in the first quarter of 2025, Kuaishou's overseas business achieved an overall operating profit for the first time in a single quarter. At the same time, Kuaishou stated that the commercialization of Keling AI has accelerated, with revenues exceeding 150 million yuan in this quarter, and it has been widely applied in various industries such as advertising marketing, short dramas, and smart terminals.
The reporter from "China Business Journal" noted that during the earnings call, Kuaishou Technology's founder and CEO Cheng Yixiao revealed that Kuaishou will soon launch more version models with cost-performance advantages, providing users with a wider variety of choices to meet their different video production needs and scenarios.
AI empowers business
In the first quarter of 2025, Kuaishou achieved total revenue of 32.608 billion yuan, a year-on-year rise of 10.9%. Among them, online marketing service revenue was 17.977 billion yuan, a year-on-year rise of 8.0%, accounting for 55.1% of total revenue; live streaming business revenue was 9.814 billion yuan, a year-on-year rise of 14.4%, accounting for 30.1% of total revenue; other services (mainly e-commerce) revenue was 4.817 billion yuan, a year-on-year rise of 15.2%, accounting for 14.8% of total revenue.
From a business perspective, Kuaishou's three major business segments achieved a rise in this quarter; however, the proportion of each business unit's contribution to total revenue did not change significantly compared to the same period last year. Online marketing service revenue remains the main contributor to revenue.
Kuaishou stated that in the complex and changing global macroeconomic environment, it is promoting the empowerment of business through artificial intelligence (AI) technology, consolidating the content and commercial ecosystem through intelligent upgrades, enhancing the platform usage experience for users and content creators, and improving the operational efficiency for merchants and online marketing clients.
In the first quarter of 2025, the average daily active users and average monthly active users of the Kuaishou app reached 408 million and 712 million, respectively, with a year-on-year rise of 3.6% and 2.1%, setting a historical high for average daily active users. Moreover, the average online marketing service revenue per daily active user was 44.1 yuan, an increase of 4.3% year-on-year.
"We have empowered the entire process of online marketing service solutions using AI technology, including AIGC marketing material production, marketing deployment intelligent agents, and marketing recommendation large models, enhancing the marketing conversion efficiency for our clients." Kuaishou disclosed that in the first quarter of 2025, the daily average advertising consumption of AIGC marketing materials was approximately 30 million yuan.
In the first quarter of 2025, the marketing expenditure in Kuaishou's local life sector rose by over 50.0% year-on-year. In terms of intelligent product deployment, the total marketing expenditure of the UAX (Fully Automated Deployment) solution accounted for more than 60.0% of the total external circulation expenditure. Additionally, the total expenditure of e-commerce merchants using the All-Site Promotion Smart Agent 4.0 or Smart Hosting for marketing promotion accounted for 60.0% of the internal circulation expenditure.
Accelerate monetization of KeLing AI
In April this year, Kuaishou officially released the Kegeng 2.0 video generation model and the Ketux 2.0 image generation model.
"Since its launch in June last year, Keling AI has completed more than 20 iterations." Gai Kun, Senior Vice President of Kuaishou and head of the Community Science Line, stated that the newly released Keling 2.0 model has significant improvements in dimensions such as dynamic quality, semantic response, and visual aesthetics; the Ketu 2.0 model has significantly enhanced performance in instruction adherence, cinematic quality, and artistic style.
According to Kuaishou, as of April, the global user base of Kelin AI has exceeded 22 million, generating a total of 168 million videos and 344 million image materials. Since its launch in June last year, the monthly active user count of Kelin AI has risen 25 times in just 10 months until April this year.
Kuaishou has revealed that Keling AI has been widely applied in various industries such as advertising marketing, short dramas, and smart terminals. "We are more confident in our vision of Keling AI becoming the infrastructure for video creation in the new AI era."
Cheng Yixiao revealed on the earnings call that in the first quarter of this year, the revenue scale of Keling AI has reached 150 million yuan. From the perspective of revenue composition, at present, the paid subscribers on the P (Prosumer) side contribute nearly 70% of the operating income of Kelin AI, and the paid subscribers on the P side refer to professional users such as self-media video creators and advertising and marketing practitioners, who have both the communication attributes of C-end users and the payment ability of B-end users, and are the core audience group of the current video generation model. At present, the number of paid subscribers and ARPU value of Kuaishou P-end are showing a high growth rate, and the two-wheel drive of Keling P-end paid subscription revenue growth.
Moreover, Keling also provides API access cooperation for B-end merchants. Currently, Keling has provided API services for over 10,000 enterprise clients, covering multiple industries such as professional creation platforms, advertising and marketing, film and animation, game production, and smart terminals, with a very high renewal rate among enterprise clients.
When discussing the future rise strategy of KeLing AI, Cheng Yixiao stated: "The team will continuously iterate on technological capabilities and engineering innovations to maintain the global technological leadership of the KeLing foundation model, while enhancing user experience through product innovation. In addition, we will continue to carry out related operational activities, especially in overseas regions, to achieve user growth."
"In the past year, the most noticeable breakthrough in domestic video generation large models is the enhancement of 'controllability'. Some models can precisely control character positions, movement trajectories, and even audio synchronization, so users no longer have to crazily 'draw cards' and rely on luck." Zhang Xiaorong, the director of the Deep Technology Research Institute, stated in an interview with reporters: "The commercialization of video generation large models mainly involves subscription-based services for consumers (to C) and industry customization for businesses (to B). However, overall, it is still in the experimental stage, and it has not yet reached a breakout period; most products have not yet established a monetization loop."
Chief Economist Zheng Lei of Samoyed Cloud Technology Group also pointed out to reporters: "At the technical level, the coherence, realism, and consistency of video generation large models still need to be improved."
Overseas business operating profit turned positive
From the perspective of domestic and overseas business segments, in the first quarter of 2025, Kuaishou's domestic segment achieved a revenue of 31.293 billion yuan, a year-on-year rise of 10.1%, accounting for approximately 96.0% of total revenue; the overseas segment achieved a revenue of 1.215 billion yuan, a year-on-year rise of 32.7%, accounting for approximately 4.0% of total revenue.
From the perspective of operating profit, Kuaishou's domestic division's operating profit in the first quarter of 2025 was 4.345 billion yuan, compared to 3.991 billion yuan in the same period last year; the overseas division's operating profit was 28 million yuan, compared to an operating loss of 268 million yuan in the same period last year.
Although the revenue contribution from Kuaishou's overseas division is still relatively small, it has already achieved profitability at the overall operational level.
Kuaishou's overseas business focus strategy has shown significant results after two years of implementation, with revenue rise and for the first time achieving positive operating profit at the overall overseas level in a single quarter.
Kuaishou stated that the turnaround in operating profit is related to the rise in revenue and effective cost control. Kuaishou continuously optimizes its customer acquisition channels overseas, focusing on targeted advertising for high-value audiences. In Brazil, one of its core overseas markets, both DAU and usage time have steadily risen. Additionally, while strictly controlling ROI, the order volume of the e-commerce business in Brazil has achieved healthy year-on-year growth.
(Source: China Business Journal)
Source: Eastmoney.com
Author: China Business News