Kuaishou Technology, China’s leading content community and social platform, released its financial report for the first quarter of this year. Revenue rose to 21.07 billion yuan ($3.16 billion) for the three months ended March, a year-on-year increase of nearly 24%. Net loss came in at 6.25 billion yuan, down 89% year-on-year, while the adjusted net loss narrowed to 3.72 billion yuan, down 34% year-on-year.
As a percentage of total revenue, online marketing services contributed 53.9%, while live streaming contributed 37.2%. The remaining 8.9% came from other services (including e-commerce). Specifically, the online marketing services increased by 32.6% year-on-year to 11.4 billion yuan. In addition, the number of advertisers on the platform increased by over 60% year-on-year.
In the first quarter of 2022, Kuaishou’s revenue from live streaming reached 7.8 billion yuan, increasing by 8.2% year-on-year. The company said that the launch of new content categories, including Kwai Recruitment, attracted both new users and previous users to the platform. According to the financial report, in the first quarter of 2022, the average MPUs for live streaming increased by 7.8% year-on-year to 56.5 million on Kuaishou App, with the monthly ARPPU being 46.3 yuan, compared with 46.1 yuan last year.
The number of users of Kuaishou continued to break through the record high. In the first quarter, both average DAUs and average MAUs on Kuaishou App increased by 17% and 15% year-on-year, to 345.5 million and 597.9 million, respectively. Its user stickiness and engagement have been improving along with the expanding user base. Benefiting from successful event operations such as the Winter Olympics and Chinese New Year campaigns and the improvement of social trust, the total user traffic increased by over 50% compared with the same period of last year. Pairs of mutual followers on the Kuaishou App reached nearly 18.8 billion, cumulatively, by the end of March 2022, representing a 68.9% year-over-year increase.
The total e-commerce GMV increased by 47.7% year-over-year to 175.1 billion yuan in the first quarter of 2022, among which, over 99% was contributed by its self-developed closed-loop e-commerce marketplace, Kwai Shop. Driven by its e-commerce business, the revenue of other service sectors was 1.9 billion yuan, up 54.6% year-on-year. The Kwai Brand, which grew and flourished in Kuaishou’s e-commerce ecosystem, continues to enrich the supply of e-commerce. In the first quarter, the average monthly GMV of the Kwai Brand has exceeded 25 million yuan.
In terms of sales and marketing expenses, the corresponding expenditure of Kuaishou in the first quarter was 9.5 billion yuan, accounting for 45% of the total revenue, which decreased by 23.5% compared with last year’s 68.5%. The company’s user acquisition efficiency and user retention rate also improved.