Kingsoft Cloud Holdings Limited (NASDAQ: KC) reported Q4 EPS of $0.00, $0.09 better than the analyst estimate of ($0.09). Revenue for the quarter came in at $294.7 million versus the consensus estimate of $297.23 million.

Fourth quarter 2020 Financial Highlights

• Total revenues were RMB1,922.7 million (US$1294.7 million) in the fourth quarter of 2020, representing an increase of 63.8% year-over-year.
• Gross profit was RMB92.6 million (US$14.2 million) in the fourth quarter of 2020, representing an increase of 70.5% year-over-year.
• Non-GAAP gross profit2 was RMB94.9 million (US$14.5 million) in the fourth quarter of 2020, representing an increase of 67.4% year-over- year.
• Net loss was RMB105.2 million (US$16.1 million) or -5.5% net margin in the fourth quarter of 2020, compared with net loss of RMB239.5 million or net margin of -20.4% in the fourth quarter of 2019.
• Non-GAAP EBITDA3 was RMB-17.5 million (US$-2.7 million) or -0.9% Non-GAAP EBITDA margin in the fourth quarter of 2020, compared with RMB-89.3 million or -7.6% Non-GAAP EBITDA margin in the fourth quarter of 2019.

Mr. Yulin Wang, Chief Executive Officer of Kingsoft Cloud, commented, “We are pleased to report another quarter of fast growth. We continued to improve our cloud-native product portfolio and focus on serving our premium customers across the Internet, public services, financial services, and healthcare sectors. During the year, we have made solid progress winning and serving new customers, including Zhihu, Agora, Huya, Bigo, Sogou and many other companies. As a leading independent cloud services provider, and with our full dedication to cloud business, we are able to avoid potential conflicts of interest with our premium customers and enhance our neutral position, which in turn gains additional trust from customers. With more and more customers deploying a multi-cloud strategy, we are being warmly welcomed as their vendor of choice. By deeply digging into and understanding customer needs during this profound era of digital transformation, we have laid a solid foundation to expand our customer base and drive steady growth this year.”

Mr. Henry He, Chief Financial Officer of Kingsoft Cloud added that “We continue to rapidly scale our business and are making great strides in achieving profitability. As the backbone that supports IT infrastructure development, the demand for cloud computing has been growing rapidly and drives our revenue growth. Our total revenues were RMB1.92 billion this quarter, representing a year-over-year growth of 63.8%. Our adjusted EBITDA margin improved significantly from -7.6% in the fourth quarter of 2019 to -0.9% this quarter, representing an improvement of 6.7 percentage points. Net loss margin also narrowed to -5.5% this quarter, which was a significant improvement from -20.4% in the same period last year. Our earnings per share was RMB-0.03 this quarter, improving significantly from RMB-0.32 in the same period last year and approaching quarterly breakeven. In addition, to touch on our Environment, Social and Governance (“ESG”) efforts, we are working on our internal ESG initiatives and expect to publish the first ESG report in the near future.”

For earnings history and earnings-related data on Kingsoft Cloud Holdings Limited (KC) click here.