KUAISHOU's Q3 revenue increased by 14% year-on-year, net profit increased by 37% year-on-year, AI revenue exceeded 300 million, and DAU reached a historical high for three consecutive quarters | Financial Report Insights

Kuaishou's Q3 revenue increased by 14% year-on-year to RMB 35.6 billion, with operating profit rising by 69.9% year-on-year to RMB 5.299 billion, achieving a record high operating profit margin. With comprehensive empowerment from AI technology, core commercial revenue grew by 19.2%, and reliable AI business revenue exceeded RMB 300 million. The average daily active users (DAU) surpassed 416.2 million, breaking historical highs for three consecutive quarters.

Core Financial Indicators

Q3 revenue increased by 14.2% to RMB 35.6 billion;

Net profit reached RMB 4.5 billion, a year-on-year increase of 37.3%;

Adjusted net profit reached RMB 5 billion, a year-on-year increase of 26.3%;

Adjusted net profit margin reached 14.0%, up 1.3 percentage points from 12.7% in the same period last year;

Total revenue for the first three quarters was RMB 103.2 billion, a year-on-year increase of 12.8%.

Core Business Progress:

User Data: Daily active users reached 416.2 million, a historical high for three consecutive quarters; monthly active users reached 731.1 million;

Online Marketing Services: Revenue was RMB 20.1 billion, a year-on-year increase of 14.0%, but only a 1.7% increase quarter-on-quarter; AI large model technology contributed 4%-5% growth;

E-commerce Business: GMV reached RMB 385 billion, a year-on-year increase of 15.2%; the share of general merchandise exceeded 32%;

Live Streaming Business: Revenue was RMB 9.6 billion, a year-on-year increase of 2.5%;

Keling AI: Q3 revenue exceeded RMB 300 million, and the 2.5 Turbo model topped the global text-to-video rankings, with the cost of generating a single video reduced by nearly 30%.

The financial report shows that the average daily active users of the Kuaishou app reached 416.2 million, breaking historical highs for three consecutive quarters. The average monthly active users reached 731.1 million, with total user usage time increasing by 3.6% year-on-year, and each daily active user spending an average of 134.1 minutes per day.

The company's total e-commerce GMV in the third quarter increased by 15.2% year-on-year to RMB 385 billion, with a cumulative GMV of RMB 1.08 trillion in the first nine months. Revenue from online marketing services increased by 14.0% year-on-year to RMB 20.1 billion, with growth continuing to accelerate compared to the previous quarter.

Kuaishou Chairman Cheng Yixiao stated, "While firmly investing in AI strategies, we have achieved a year-on-year improvement in the overall profitability of the group, and the empowering value of AI technology for Kuaishou's content and commercial ecosystems is continuously being released."

Major Breakthroughs in AI Business

In the third quarter, Kuaishou's AI business made significant progress.

Kuaishou's management stated that the Keling AI 2.5 Turbo model launched at the end of September topped the global text-to-video and image-to-video model rankings within ten days of its release. The new model maintains industry-leading content generation effects while reducing the cost of generating a single video for creators by nearly 30% The financial report shows that Keling AI's revenue in the third quarter exceeded RMB 300 million, achieving further breakthroughs. The application of AI technology in online marketing service scenarios brought about a revenue increase of approximately 4%-5%, with the total expenditure on AIGC marketing materials exceeding RMB 3 billion.

In the e-commerce business, AI-driven mall search order volume increased by nearly 5%, bringing a high single-digit increase in GMV for the e-commerce mall's information flow.

E-commerce, live streaming, and other business segments show steady growth

In terms of online marketing services, third-quarter revenue reached RMB 20.1 billion, a year-on-year increase of 14.0%. Through the iterative development of technologies such as the Generative Reinforcement Learning bidding model G4RL and the Generative Recommendation large model OneRec, marketing recommendation efficiency has further improved. The Universal Auto X fully automated delivery solution has achieved a consumption penetration rate of over 70% in external circulation.

The e-commerce business remains strong, with third-quarter GMV increasing by 15.2% year-on-year to RMB 385 billion. The GMV of general merchandise e-commerce accounts for over 32% of total e-commerce GMV, with a healthy trend in the monthly average buyer structure, and the repurchase frequency of active e-commerce users continues to increase year-on-year.

The financial report indicates that live streaming business revenue grew by 2.5% year-on-year to RMB 9.6 billion. The AI Wanxiang series of gifts launched in late September utilized Keling AI's video generation capabilities, with users paying to create and send customized virtual gifts over 100,000 times on the launch day.

The financial report states that overseas business (mainly in the Brazilian market) incurred a loss of RMB 64 million in Q3, narrowing by 58.2% year-on-year. For three consecutive quarters, GMV and order volume have still been able to grow under strict ROI control, indicating improvements in market potential and operational efficiency